2015 Year in Review
by George Vlamis, CNE
We are excited to say that the year 2015 has shown positive movement in Monroe County. We have seen retail and office leasing improve but income producing properties are still the most sought after properties especially with interest rates still holding steady. Inventory that has been sitting on the market for years is starting to be absorbed which will eventually open the gates to new development.
In our first full year 2015 with KW Commercial Real Estate the Daniel Perich Group has been successful in moving many real estate properties that came over to us which have been sitting stale for up to five years on the market and included lease space, investment properties and commercial buildings. This is a testament to the marketing tools and the networking of KW Commercial has to offer. We have also added several key agents to our team who are highly motivated and ready to service our clients with the utmost professionalism.
I am proud to say that, according to the Pocono Mountain Association of Realtors, KW Commercial/The Daniel Perich Group is the top producing commercial real estate company in the Poconos for 2015 and we are geared up for a great 2016.
2016 Outlook
by Daniel M. Perich, CCIM
In order to determine what to expect in 2016, I think we need to look back at the market activity in 2015. I think the most pleasantly surprising part of the market in 2015 was the level of activity in leasing. We saw a good amount of empty space get absorbed and also did several sales of vacant buildings to owner/users. This kind of activity indicates to me the “healing” of the real estate market that some larger metropolitan areas have been experiencing has finally reached us here in the Poconos. We are seeing stabilizing and even increasing rates for lease spaces but continued activity in that part of the market.
The “hero” in the market has been cash flow properties however. Investors are hungry for good deals and strong returns. We did many investment property deals in 2015 and there is even more interest in these properties as we head into 2016. Bank rates remain low so it’s been easy for investors to achieve double digit returns with some even in the 20%+ range. That is very strong and outpaces any other form of investment.
The one sector of our market that is sluggish is raw land. Due to the huge investment in time and money, along with the difficulty in working through the approval process, raw land has suffered. There are some larger parcels being taken on by big developers or development companies, but for the average 1-3 acre parcel it has been very quiet. Only those pieces that already have engineering and approvals are getting attention today. I believe that will continue in 2016 unless there are major changes to the process.
Overall though I see a rebounding commercial market continuing in the new year with sales and leasing outpacing 2015’s performance.
