For the past several months, I've been calling our meltdown "TRICKLE DOWN PROPERTY LOSS". Because that's exactly what it is.
I've gotten used to seeing the FOR SALE signs in my neighborhood, and even noticed a few 'Auction' signs . . . but now I'm seeing the FOR LEASE signs.
While I live in a residential neighborhood, there is an area of upscale business/office complexes that string along a very large area. Driving home last evening, I started to count 5 FOR LEASE signs. Within three blocks, I counted five.
That's A LOT!!
For EACH sign, that means there's one less SMALL BUSINESS renting/leasing in that business complex. Perhaps the business moved to another location {wishful thinking.} Or, perhaps, the business couldn't afford to remain open.
When I see FOR LEASE signs I wonder if the owner was forced to lay off employees . . . those employees have got to look for other jobs, go on unemployment, dip into their savings, etc. Not to mention the owner and/or owners of the company. They've got a mortgage to pay.
In reading Gary Woltal post's, Do You Know What Homeowners Need? he writes about compassion. Then, he goes on to write about what might have caused the distressed homeowner to be . . . well . . . distressed!
It's NOT only homeownersw who is distressed. It's the business owner when they can't keep their doors open. They cut staff, costs, and then when that fails . . . the FOR LEASE sign is posted.
How many FOR LEASE signs are up in your area??
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| Carla Muss-Jacobs 503-810-7192 Carla@carlahomes.com |
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Carla,
On the commerical side, we see quite a few for lease signs. You're driving around and suddenly that office/shop/restaurant is just GONE!
On the residential side, some Lease adverts in our MLS, but mostly still straight resale. BUT they did recently add lease as an option for the MLS input form. Huge numbers around here asking about leases or lease/options. One of the first questions we ask our sellers, will you lease?
I have a friend who owns quite a few commercial rental properties. He is way down on his rentals and constantly lowering rents to keep people. Times are just hard for small business owners.
Carla, I think your "Trickle Down Property Loss" is an accurate commentary on real estate values at this point. Really hurts to see what consumers are losing... and wish there were some more innovative solutions to stop the blood letting in equity values.
Carla - It's a sad problem. This afternoon I drove past a health food store in my area that was opened about 3 years ago by a local young couple. Today their sign was plastered over with "For Rent." There are literally dozens of empty commercial spaces in my area, with one 3 building office complex without a single tenant for more than 2 years.
How many FOR LEASE signs are up in your area?? Way too many, Carla. Commercial properties, residential properties, land for agriculture ... you name it. It is going to take YEARS to dig ourselves out of this one.
I think that you should edit the post. When you say "That's a lot." You should follow with '(no pun intended)'. Joking aside, the commercial market is really tanking right now. We just snapped up a new commercial lease for so little it is almost ridiculous.
Carla, It’s the trickle effect … it’s sad and yet we will all get through this. Lease signs are all over in my area … some areas much worse than others … we are seeing a lot of commercial REO as well.
To answer your question - LOTS. I am actually planning a drive from the street just west of my house and ending two miles down that involves video and a commercial agent explaining the situation. Many people ask me and I simply don't know, that's why I need to learn what is going on here. Much of it I am assuming is overbuilt brand new commercial.
The small businesses are truly suffering these days and it's a sad fact that we must face. We will see many more of them leave us before this is done.
Hi Brian . . . thanks for your comments, it helps round out the blog post! Yes, it's a bad cycle, and we'll overcome.
Hey Liz & Bill -- yes, I know what you mean -- just gone!
Hi Jane . . . as Melissa #7 puts it, deals are there for those who want to lease, or renew. Hard on the owners, as you put it.
Hey Deborah -- the blood letting should be on the investors of the banksters. But since they are too high up on the food chain, it's the low rung folks that are the sacrifice.
Hi John . . . food costs aren't going down. I'm sure the health food store realized their costs weren't being lowered. Food, and transportation are very expensive in this economy. Hmmm . . .
Hey Cynthia -- I'm afraid you're right. Years . . .
Hi Melissa . . . that was punny!! Yeah, if you can snap something up, it's a windfall.
Hey Kathleen -- Yes, we will get through this.
Hi Renee . . . are you doing the video? If so, I'll watch for the post. It would be interesting. Perhaps I can link it here too!
Hey JL -- face the fact we must!! We will get through this. I hope it never happens again.