Welcome to Apartment Building Trader

In early 2009 Warren Buffett wrote in his letter from the Chairman, “By yearend [2008], investors of all stripes were bloodied and confused, much as if they were small birds that had strayed into a badminton game.” Not only were investors devastated by the economic collapse but millions of Americans nationwide felt also the recession in their daily lives. The real estate industry was especially affected after the proverbial housing bubble finally burst. Commercial real estate properties faced high vacancy rates, low selling prices, and a slow buyers’ market. Headlines reading “recession,” “hyperinflation,” and “derivatives” all became increasingly commonplace. Needless to say, as the year progressed, 2009 brought many trials and tribulations to the American people.

Just last week, the world rang in the start of a new decade. No one was quite sure what to expect, but many made speculations. Costar.com featured an article by Mark Heschmeyer entitled “Fear and Hoping in Commercial Real Estate,” giving readers a perspective on the 2010 outlook. While conditions are worsening still, the pace has slowed considerably. Although the low selling prices of properties may discourage current owners, prospective buyers benefit from the increased opportunities for investment. As the market is expected to turn around through this year and the next, those who can afford to invest in distressed properties can gain in the midst of bleak economic conditions.

While the future of commercial real estate remains uncertain, Buffett highlighted in his letter that “In the face of […] obstacles […] the real standard of living for Americans improved nearly seven-fold during the 1900s,” expressing a sense of optimism for the coming years as the market recovers. 2010 brings a new year, and with it, new beginnings.

Through it all, you can count on us to be there – enabling sellers to position their properties to achieve optimal value, helping buyers meet their investment criteria, and going above and beyond to assist clients with additional services such as property management and customized business plans.

All the best,

Alice Hua and Raymond Rodriguez

Sources:
Letter from the Chairman
Fear and Hoping in Commercial Real Estate