April 15, 2008

We just want to take this opportunity to keep you informed of the activity in the commercial market. As you are probably aware, things could be better, we are getting a lot of inquiries but not much action. The general attitude is buyers are looking for bargains and are waiting for prices to drop. Those who must borrow to purchase property are also waiting to see if interest rates will drop...so unless we have a 1031 exchange buyer that must do something now; buyers seem to be in a wait and see mode. Even then, some people with 1031 funds are opting to pay the capital gain taxes.

A report from the local Multiple Listing Service shows that from Jan 1, 2008 to April 1, 2008:

In Prescott there are a total of 145 Commercial properties on the market, 76 for lease and 69 for sale, and 28 Industrial properties, 19 for lease and 9 for sale. In Prescott, one 15380 sf retail space sold for $2,800,000 and one 25000 sf retail space sold for $3,400,000., and one 560 sf condo warehouse sold for $78,400.00.

Prescott Valley has 96 Commercial properties on the market, 56 for lease and 40 for sale, Industrial properties 5 for lease and 5 for sale. No reported sales in 2008.

Chino Valley has 4 commercial properties for lease and 24 for sale, with one industrial for sale and no sales this year. No reported sales in 2008.
Dewey has 5 leases and 16 for sale properties, three industrial leases and no sales this year. No reported sales in 2008.

Our local Multiple Listing Service does not accurately track the leases that are executed; so we can not report to you how many leases were actually placed. We have executed three leases this year and have three more near completion.

While it is not very encouraging right now, we are optimistic and continue to advertise and keep our name out in front of the public. We receive many calls inquiring regarding market conditions from appraisers and other real estate firms and lending professionals, so we are recognized for our commercial market expertise. This interchange with other professionals helps us keep all of your properties at the front of the market. Historically, most of our sales are in the second and third quarter of the year with the first quarter being the slowest. We are looking forward to this summer.

Sincerely,

Jack Fowler, CCIM