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Twenty-three buildings totalling 230 units were destroyed by the fire started by an arsonist on July 30th. The re-building of this apartment complex, located in South Reno, is a blessing to many subcontractors and tradesmen. This project could employ as many as 200 tradesmen through the winter!
Click here for more information and the full article by Northern Nevada Business Weekly.
Fennell & Associates Ron Boles just put 2 fourplex’s into Escrow! The Multi-Family market in Reno is finally priced to sell. Sell. SELL!!
On another Note…”The National Association of Home Builders is reporting that Nationwide housing starts and permits posted substantial gains in June as home builders responded to improved market conditions and the impending expiration of the first-time buyer tax credit. These stats comes from the U.S. Commerce Department.” – Realty Times Staff
Lots of incentives are flooding the market aiding the idea to help investors stimulate the market. Positive signs in both the commercial & residential markets shed light & perk interests. The market is indeed itching for a turnaround!
”The incentives of doing business in Nevada are expansive. Nevada boasts one of the most liberal tax structures in the nation and from a tax-planning perspective, the return on investment in the form of tax saving dollars can be enormous. Explore the numerous advantages of doing business in Nevada.”
- Nevada Energy
Great Link to Nevada Energy’s Site explaining why living and working or owning a business in Reno is extremely beneficial!
More commonly practiced in Residential Real Estate than Commercial Real Estate, the notorious “Buyer Broker Agreement” may be worth bringing into everyday play for the Commercial world.
The State Law in Nevada allows an agent to enter into a buyer representation agreement via orally or written. This is the law! That’s all fine and dandy until 1 or more minor or extravagant details are overlooked and that oral/verbal agreement becomes questionable. This game of “he said-she said” can become quite an issue, if not a catalog! Buyer representation disputes can be nasty. Pretty soon, everyone and their brother want a piece of the pie, and if you’re not careful with this, you can end up landing yourself in front of a judge! So… How do we prevent this?? Do as the residential agents do…
The Reno Sparks Association of Realtors recommends that Commercial agents utulize the “buyer Broker Agreement”. This adds additional protection for all parties involved in the deal. As a “Realtor”, which is different than holding the title, “Real Estate Agent”, we are held to a higher code of ethics.
All you Commercial Real Estate Agents out there that happen to be Realtor’s as well, Check out Article 9 in your Realtor Code of Ethics, and decide if it is time for you and your fellow brokers & agents to bring the ”Buyer Broker Agreement” into effect!
Which comes first, the chicken, or the egg? The age old question that’s left millions pondering since the beginning of time. Some firmly believe in the egg, others’ loyalty lay with the chicken. So how do we relate this to Commercial Real Estate? Here we go…
The buzz at the water-cooler lately, is that the Reno & National Markets are turning around. With New home prices at an all time low, short sales/ REO’s getting snatched up in a New York minute, land available for pennies on the dollar, and smart investors getting the itch to finally make their move, some predict an over-correction in the market, soon!
Staying on this Media backed “positive note” regarding the market rebound… Which industry comes first? Housing? Land? Office/Industrial? Retail?
You would think that because of Nevada’s lack of State Tax, Homestead Law, unlimited number of outdoor activities, and an infinite list of additional benefits & attributes that attract potential employees to Nevada, business owners from California & surrounding states would wise up and make the move to Reno. Wouldn’t businesses make the move into offices, industrial buildings, retail space, or purchase land to build new space? That business would in turn create new jobs, which equal new employees. New employees then create a need for housing, which creates, once again, a need for land! This pattern is what some would assume, but history proves differently.
The natural order for the Commercial & Residential markets returning after the infamous ”R word “( of which we do not speak of anymore) is past, is this:
1.Housing 2.Land 3.MF 4.Office/Industrial, 5.Retail This doesn’t mean that office and industrial will not make any deals in the mean time. Right now much of their business is being generated by people downsizing or moving around for a better deal in the marketplace. There are also those lone investors out there snatching up high cap rate buildings since they are currently cash-flowing assets, as opposed to land. But as far as new faces moving into the market place, historically, this has been the natural order of things. Only time will tell.
So, back to the chicken or the egg deal: Will Residential drive Commercial this time? or will Commercial feed Residential? I would love to hear your feedback Reno!
Aside from the tax advantages we reap as business owners in Nevada, a long train of additional benefits have surfaced recently and deemed the Silver State as one of the most preferable locations to operate a successful business. Cali residents are a bit jealous, I think. Many think it’s only going to get worse for Californians & frequent border crossing is in Reno’s immediate future. What does this do for the Commercial Real Estate Industry? Nothing but generate heaps of business. I feel proud to be a Nevadan working in the Commercial Real Estate Industry right now. As a former native of San Diego California, I’m glad I moved up here when I did, 7 years ago. Just in time to miss out on California’s Giant Debt Attack. Check out the article below!
http://www.rgj.com/article/20090425/BIZ05/904250324/1071/BIZ
An interesting idea for interesting economic times… The town of Berkshire, Massachusetts decided in the Fall of 2006 to start printing their own form of currency. Berkshire Inc., a local non-profit organization, teamed up with local businesses, banks, and other non-profits to launch Berkshares. This genius idea has created a sense of empowerment for the community & possible economic independence for local businesses and merchants. Is it an option for Reno?
We could call it “RenoBucks” , where the Buck stops here! Any thoughts?
Check out the links below for more information in the BerkShare!
http://www.msnbc.msn.com/id/3032619/#30421140
A good community, as we know, insures itself by trust,
by good faith and good will, by mutual help,
A good community, in other words, is a good local economy.
-Wendell Berry, from “Work of Local Culture”
-dubbed a “great economic experiment” by the New York Times
Ron Boles, CCIM of Fennell and Associates, commercial real estate solutions, of Reno, Nevada successfully completed the sale of multifamily land with a 1,230 sf single family residence in Sparks Nevada. Originally priced at $295,000 the property end up selling at $182,500. The key in this market is for the principals to be flexible to get the transaction done, unfortunately this can be financially painful to the Seller… just two years ago this was turned around it was the Buyer who was in the financial pain… I look forward to a balanced market without the pain.
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Dickson CommercialP 775.850.3100F 775.850.7010info@dicksoncre.com
