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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: russwinter who wrote (14858)11/6/2003 8:56:11 AM
From: TradeliteRead Replies (1) of 306849
 
Interesting comments, russ.
Got a question for you....

If plenty of land is available in Tacoma and zoning rules haven't constricted new apartment development, why are so many "speculators with access to cheap financing" offering continually higher prices for your friend's building? Why don't they just build their own?

Could the reason be that the speculators want the location and the land the building is sitting on? Those two things are hard to replace, sometimes.

Or could it be that they can get a good price on the building that has lots of vacancies, with an educated guess that the building will fill up later if interest rates rise and the rental market improves?

The so-called Dulles Corridor in Northern Virginia has a lot of vacant commercial buildings since the blow-up of the tech sector, but from what I've read, people have been buying commercial buildings throughout the Wash DC metro area, regardless of vacancies. LOCATION LOCATION LOCATION?

Another question: How many commercial or apartment buildings are actually financed with loans from banks? I'm not an expert on commercial lending, but there didn't used to be much of this financing in my area after the savings & loan debacle of the 1980s.
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