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Now too broad themes are converging today we've got the new normal of a tepid economy.
And what some are calling a real estate come back our next guest says small business owners and -- norms are buying commercial real estate.
He's -- -- from the mercantile capital corporation.
I think I think that's the same -- -- -- people buying -- real estate for the most part you know flippers investors.
But does that necessarily suggests that the broad economy is coming back and in your case commercial real estate.
Well you're right Charles a dozen -- Soros suggested -- But there's a lot of courageous small business owners who -- taking this downturn.
As an opportunity that it is to buy discounted commercial real state at historic low interest rates and it's it's terrific time for them.
-- -- I guess the key selling point for real estate from the beginning -- time is that they don't make any more of it so.
Why would -- will be courageous now to jump into a market that's been brutally beaten down.
Well for starters of commercial real state across the country is down anywhere from forty to 60% depending on the market.
And so for a lot of small business owners it's a little bit different than buying a home but for them if they have to have a brick and -- place to have their business oftentimes right now to own it's actually cheaper than continuing to rent so makes a big difference for -- business not to mention it creates wealth for them.
Yen Aussie can lease at that because great protected and Chris let's mcdonalds here.
What's Eric commercial real estate bubble burst of bursting that we saw I mean there was a lot of people saying hey -- commercial real estate bubble.
It's going to burst and that they are they are saying is gonna happen like for five years -- did that happen.
It happened to some extent lose certainly.
These are professionals that are managing commercial real -- for the most part I mean there -- plenty of class -- office space.
That was over built that is still sitting there with only ten or 20% occupancy so it's still a problem.
And now what I do -- is I actually.
Finance commercial real estate owner occupied commercial real estate for small businesses.
Is that they -- because you know it's interesting as you look at the breakdown of of jobs and our country over the last over -- it's it's without a doubt.
Small businesses is especially businesses of less than ten employees is that's what's driving your business right now.
Absolutely -- my business was up about a 143%.
Last year 2012 over -- previous record high 2011 so it's certainly driving it no question and as I said.
A lot of courageous small business people out there that realize this is a great wealth creation strategy for them.
-- We had a little we have little a quite a few signs of hiccups here in the last month.
A dramatic decline in job creation from November to January.
Item and and an amazing swoon in consumer confidence.
A lot of people really concerned particularly about the first quarter how wobbly.
Do you -- about this this rebound in your business in how sustainable is it.
Well I think I think he certainly have sort of what I've heard some economists refer to -- sort of the plow share economy we're just kind of we're kind of treading water a little bit it's certainly this 2.4 percent predicted growth for this year GDP.
It's nothing to get overly excited about certainly not by historical norms.
But I think most small business owners -- it doesn't surprise me that we had a little bit of that dip as reported in the fourth quarter.
You know we had -- -- presidential election of course not too many small business owners that are gonna hire new people.
In the fourth quarter which doesn't happen -- your retailer of course and it's a lot of uncertainty that's come from.
Obviously the reelection of the incumbent president as it relates to small business owners.
Alright Chris things -- -- extraordinarily informative we appreciate it we'll -- back adjacent Santa can match that 140% this year like a bit less.
I'll try -- I know you well all right we've got.
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