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!

Check out the links below from Costar for Reno/Sparks & National 2009 1st Qtr Commercial Market Stats. for Office!

2009 1st Qtr RENO/SPARKS Commercial Office Stats

2009 1st Qtr NATIONAL Commercial Office Stats

Great Article this Morning on Cinco de Mayo. Looks like the tides may be turning for the economy. I’ve seen different attitudes in consumers & investors lately in the new home & commercial real estate world. Americans are impatient & support change. What goes up, must come down, and then go back up again. Since man has created currency, there have been fluctuations in wealth & prosperity. After seeing an enormous drop in new home prices in the last couple years, and the vacancy rate for business skyrocket, we have reached a plateau & are ready as a nation to start plowing ahead again. The media is catching on & I feel that this whole depression/ recession debauchery will be a thing of the past by summer of 2010. Wishful thinking regarding the timing? Maybe. As that I am up close &personal with the Commercial Real Estate world, as well as a hop skip and a jump away from the Residential Real Estate Community, there have been notable changes in activity and attitudes that haven’t gone unnoticed!

Check out the article & link below!

News Alert from The Wall Street Journal – Sponsored by NASDAQ

The U.S. recession appears to be losing steam, with growth likely to resume later this year on the back of firmer household spending, a bottoming housing market and an end to inventory liquidation, Fed Chairman Ben Bernanke said Tuesday. But Bernanke said that the recovery will probably be slower than usual, and warned that the unemployment rate may stay high “for a time” as businesses remain cautious about new hiring.

http://online.wsj.com/article/SB124153102795887367.html#mod=djemalertNEWS

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.berkshares.org/ 

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 succesfully completed the sale portion of a lease option negotiated over 5 years ago. Despite the trouble in the finance industry the Coral Academy of Science was able to secure bond financing neccessary to complete the purchase of their building located at 1350 E. 9th Street, Reno, Nevada.