It might be surprising to learn that industrial buildings are selling in this difficult real estate market. Some of the reasons why buildings are selling is because values are at 20-year lows. Another reason why is because the interest rates are at historic lows. Buyers are expecting huge discounts on property today and are finding them. For example, a new listing at 1016 Fuller in Santa Ana (5,201 Sq. Ft. industrial building) was just listed at $598,000 which would equal a rent payment of $0.78/ Sq. Ft. Gross! This building would have sold three years ago for over $1 million. In addition, buyers expect a discount off of the asking purchase price if there is a deficiency with the building. For instance, 1016 Fuller has very limited parking. Thus, it will likely be discounted further. For more information about this example listing, please go to:
http://www.youtube.com/watch?v=Hgw4o20Kmms
