I found your reply most amusing.
LOL.... and I yours....
Grubb & Ellis ranks NJ as THE number 1 growth market over the next four years. Your're absolutely right, you know nothing about it.
At least I admitted I know nothing about... (I will further comment on this link in another post as I do not want to be accused of "long winded-hard to read-(or comprehend-illogical-post)" LOL !
As for you...
First you suggest that based on your 15 year experience as a developer of industrial real estate would hardly qualify as a "safe heaven..." (to my defined suggestion of a MULTI tenanted building)...
You further complain that...
...Industrial rents in New Jersey are just now approaching what they were in the mid 80's. The problem is that land costs are higher, building costs are higher, and clear heights on new buildings have increased from 24' to 32', further driving up costs
Message 20271779
NOW....
You are saying that industrial real estate in NJ is the hottest thing since sliced bread...
HAHAHAHAHAHAHAHA....
So... You are confusing me... -g- (not)...
Which one is it... good, bad, or ugly? -lol
You then feign amazement and indignation at the suggestion that this sounds like a description of a "safe haven"?
"Feign amazement" ? Hardly so, I merely CLARIFIED what I stated and you misinterpreted (or did not understand), hence the 'clarification"
Here it is ONCE AGAIN....
Did I say that industrial real estate was free of risk ? i.e. "such a safe heaven"
Answer = NO
I said...
However... If you are interested in protecting your equity now that the market has given it to you...
You could exchange into a more stable "type" of real Estate. True, if you stay on the residential single family residence type your risk exposure changes little. On the other hand you could consider something more in line of "commercial real estate"
Message 20271028
Does that mean RISK FREE HEAVEN...
NO
I merely made a suggestion, but in this idiotic universe, aka SI, the Theatre of the Absurd, such is grounds for your type of post, i.e. moronic, condescending and nonsensical.
Then you suggest to need voodoo abilities to "read my mind", when all you need is the ability to read and comprehend....
i.e.: You insinuate
Common sense meaning the ability to read your mind? Meaning the ability to understand that when you used the term "industrial real estate" in your original post, you of course meant small, multi-tenanted flex buildings
Evidently, you cannot read, so you have to resort to voodoo... here is what I said:
Industrial buildings are far more stable in their valuations and they are far more reliable and capable of ditributing risk amongst more tenants. (example a 3 or 4 unit building). In general, these buildings are valued based on capitalization rates used based on NET income (after expenses) and in most cases the income is based on triple net (nnn) leases. (meaning, the lessee pays all your operational expenses in the building on a pro-rata basis).
Message 20271028
So, before you forget, here is a questonaire-review, [it is ok to look up the text to answer correctly]: -lol
Does 3 or 4 unit building qualify as "MULTI-tenant"?
Does 'valuation based on capitalization rates is a more stable format than a mere wild and woolly frenzied-demand for residential real estate?
Do you need voodoo to understand these things out of my suggestion?
Let's see.... one, two, three, four...
HAHAHAHAHAHA
Your arrogance borders on the comical.
Arrogance ? why ? because I made a suggestion and then defended my statements from your stupid response based on the fact that you could not understand it ?
I WILL tell you why your posts are stupid:
First, you do not understand what I said and pull this 15 year experience as it was a... "my dick is bigger than yours" crap...
Then, you feel insulted at my defense of my initial post AND make a reference to an article that:
1. Goes AGAINST YOUR premise that industrial real estate in NJ is a harder than hell proposition
2. REINFORCES what I said in the first place, i.e. that industrial real estate IS the MOST stable form of real estate investment (no, it does NOT say RISK FREE). Read below...
3. HAHAHAHAHAHAHAHAHAHAHA......
So....
I do not see that as arrogance at all, if you take isssue, (and obviously insult) at my defense, that is YOUR problem not mine.
btw... thank you for that link on G&E. This link makes the EXACT same suggestion I made to David Jones. That being: industrial real estate is a more stable form of RE investment.
I will comment on it separately because of my particular interest on this market. Do not take it personal as it is NOT my interest to rub on you what I stated in my very first post to David Jones, as mentioned above.
Here is the G&E comment that confirms what I have always believed and I will allude to:
Industrial Market Turns Challenge into Opportunity
While increased worker productivity hurt the office sector over the past few years as businesses produced an equal or greater quantity of goods with less labor, it spurred the need for modern industrial space as companies optimized distribution networks and consolidated multiple facilities into state-of-the-art buildings. This tempered the negative impact the recession had on the overall industrial vacancy rate, which ended 2003 at 9.7 percent.
Although the manufacturing sector continued to post low levels of leasing activity, distribution space remained in demand due to robust consumer spending. Companies engaged in trade, transportation and utilities accounted for nearly half of all activity in 2003.
Indicators such as rising factory orders, low inventories and a weakeningdollar should continue to encourage demand for industrial space in 2004, pushing the vacancy rate to just above 9 percent by year-end. However, therecovery will not be strong enough to boost rental rates for warehouse-distribution space, except perhaps in a few markets, such as Los Angeles. R&D-flex rents could soften further by the end of 2004.
Investors have been attracted to the "slow but steady" returns offered by industrial properties and this trend is expected to continue. Grubb & Ellis' analysis of market strength predicts that New Jersey, Atlanta and Washington, D.C. will offer the greatest returns for investors over the next five years.
grubb-ellis.com
So... thank you for helping me make my point LOL!!!!
Have a great 4th of July, so far, you have absolutely made mine a fun one!!!! |
