I was chatting with my youngest son the other evening and and he mentioned several condos and business buildings available in downtown Tacoma. Some sounded like re-listings. Perhaps there is a new and hopeful attitude growing about business property in the Pacific Northwest. I decided to nose around. While looking on Loopnet.com for news concerning business property for sale, I came across in the Pierce County area a number of places that looked familiar and then I stopped on the image of the property at 2901-2915 Bridgeport Way W in University Place. It’s the CHI Franciscan Hospice Property. I produced a video about Hospice there several years ago. It’s interesting to see connections.
Recently I was also talking with Anders Ibsen. Anders is a Windermere Professional. He used to be a member of the Tacoma City Council. We met when he was out door belling for election, or re-election. I always like to keep up on community news. Anders mentioned he had “Great News for VA Home Buyers.” I’m not a veteran, but I used to buy and sell homes. A few days later I heard a news item on NPR about a need for new cities in Washington State. The new cities would be for populations of between 200,000 to 400,000. Evidently the COVID pandemic has shown that many people can work from home and don’t need to be centralized for the job location. “An astonishing 14 million to 23 million Americans intend to relocate to a different city or region as a result of telework, according to a new study released by Upwork, a freelancing platform. The survey was conducted Oct. 1 to 15 among 20,490 Americans 18 and over . . . ” – npr.org/sections/coronavirus-live-updates/2020/10/30/929667563/now-that-more-americans-can-work-anywhere-many-are-planning-to-move-away
I was out shopping for Thanksgiving supplies, so didn’t have the opportunity to check out where these people where coming from, but if the news was from NPR, it’s good enough for me.
Anders had mentioned details almost too good to be true. “Buying a duplex with 0% down? Yes, that’s a thing! What many VA buyers may not realize is: you can use your VA loan to purchase investment properties like duplexes or fourplexes, too. All you have to do is live in one of the units for a year after closing, and move in within 60 days of purchasing the property. VA mortgage rates are insanely competitive now. Even for multi-family, if your credit is good you can expect rates into the low 3% or even high 2% range for a 2-4 unit property. With rents in our region skyrocketing, service members have a unique opportunity to build a lasting investment portfolio with minimal out-of-pocket expense.”
It’s too late for me to enlist, but those details seemed like a good deal to me. I know the economy is down, and business property hasn’t been selling too well, but with a new president coming to the White House and three pharmaceutical companies announcing versions of COVID Vaccines, Washington might very well be the center of a new real estate boom both for residential and business property. I have a grandson who is studying for his real estate license, so this might be really good news for him . . . and his parents.
Residential real estate has been doing well even during the pandemic. Tacoma and Pierce County homes are ideal for families wanting to relocate between downtown Seattle and Olympia. Commercial property is another matter, however. Before even considering buying or selling commercial property I would suggest talking to a non-selling agent. Rick Pinkley of GPA Valuation, which is located just a couple hundred yards away from CHI Franciscan Hospice Property. GPA Valuation is a commercial real estate appraisal and consulting company. – gpavaluation.net/
I’m not looking to buy or sell, but I am always interested. As people say, things change.
Michael Leones says
It is much of a commercial plug with no truth. Commercial real estate is a desperate situation and it will even get worse in 2021. I don’t think this publication should not be used for a misleading infomercial
Don Doman says
Thank you for commenting. A down market perhaps, but a desperate situation? I don’t think so. Interest rates are still down. With three vaccines nearing delivery we could well be on the brink of complete recovery. If you factor in what business has learned from the pandemic: rewarding workers . . . the shift of many working from home instead of the office this changes dynamics . . . a wider reliance on health care AND the chance for America to re-emerge in global trade with a new president . . . well the future looks brighter than it has for several years. The opportunity is there. As always, fortune favors the bold.
Thanks for sharing.
John Arbeeny says
Retail commercial real estate has been dealt a death blow by the internet. Office commercial real estate is about to be buried in the adjacent plot due to covid. The only commercial real estate that will be worth investing in the near future are warehousing (which supports the drop shipped internet model) and essential services related properties that can’t be accessed virtually via the internet. It’s tough to get a tooth pulled virtually!
Much of the drive up in residential properties is directly related to the low interest rates which have driven up prices astronomically. This cannot continue unabated. Once interest rates rise, and they will given how the US is printing free money, you can expect a pull back in residential prices and POOF: there goes a lot of the inflated equity people think they have. Deja vu all over again.
Unrecognized is the leading indicator of a real estate bubble bursting: the rate of rent increases recently. People are increasingly unwilling to chase prices in the residential market: shades of 2008. Rents had not kept up with the apparent appreciation of residential real estate because demand was low given many renters chasing purchases. However, recently rents have started to zoom. The differential between rent and purchase costs as well as the risk of winding upside down in a falling market are jacking up rents far faster than the continued rise in housing prices. Prepare for a pull back and just like in 2008, 4 or 5 years later there will be a great buying opportunity as the market comes back to reality.
Don Doman says
Thanks for your comments.
You’re right, things are always cyclical. We got killed in the late 70s/early 80s with skyrocket interest rates. Warehousing is booming from what I’ve seen in the port area. We videotaped a building being leased just a few weeks ago. Things change.
Thanks for sharing.
Well written, and very interesting information.
Don Doman says
Thank you for commenting.
I think we can certainly learn from the last four years and especially the last ten months. With our government and business leaders working together we can rebuild our economy and our society. I’m optimistic and look forward to a renewal of both effort and results.
Thanks for sharing.
Scott Anderson says
It’s optimistic speculation at best. The author ignores many factors.