The Zehner Hill Blog

Real Estate Strategy for Long Term Owners – Part 1

March 9, 2016

The Orange County industrial real estate market is still on a bull run that began back in 2010 as the US economy began to recover from a systemic failure in the financial sector.

It seems like not so long ago we were bumping along a bottom and wondering whether or not the good times would ever roll again.

Well, the good times have been better than any of the experts would have thought, and the prolific run has sent investors, owner/users, tenants and buyers back to the drawing boards in terms of their real estate strategy for the future.

What Price Point Would Compel You To Sell?

March 2, 2016

After falling nearly 40% by the end of 2009, we were dubious of the prospects that industrial property values in Orange County could exceed the previous market peak.

But, after years of recovery spurred in part by a massive monetary stimulation by our central bank, here we are. Pricing levels have blown through the peak of 2007 and they are still on the rise.

Why is this so and when will it stop? Good questions.

February 25, 2016

The old saying: “it’s miserable, but it’s home” has taken on a new meaning in these times of short supply.

In other words, many are facing a commercial lease renewal in the near future.

When Will We Finally See A Rise In Mortgage Interest Rates?

February 16, 2016

For the past five years, interest rates for industrial property loans have been the lowest since Eisenhower was President.

For the past two years, commercial real estate experts have been predicting the end to cheap money and a rise in mortgage interest rates, but here we are, still waiting for even the slightest increase.

Global Economics and the Psychology of Bad News

February 9, 2016

Commercial real estate professionals are optimists by nature, but we’ve been around long enough not to ignore what’s happening in the world just to stay upbeat.

With that in mind, please forgive us for sounding a bit dark as we channel the bear in us to explain how the psychology of a market – the way its participants feel and think about what’s going on – is an important component of making informed real estate decisions. Consider the following and ask yourself if your outlook for the future has changed in the last year.