In an interview, economist Victor Calanog Ph.D. by Bo Barron CCIM of Barron Commercial Group, the important of good data is for making CRE investment decisions.
Always “scratch beneath” of the preliminary data. But that is hard to do – exhaustively. That is why you want to use an experienced professional to help with your commercial real estate purchase. It is not possible to have an infallible view of the future, but someone who has dealt with CRE for many years is more likely to know the right question and see insightfully.
Many people are a little bit frustrated that the right CRE numbers are not available easily with a quick internet search. Demographics within a 2, 3, or 5 mile radius might not be available. Vacancy rate might be obvious with a drive by, but cash flow may not. Cap rates for a particular property over time certainly are not available. Did you know that Bill Oates has sources for in depth market analysis.
Is the data you are getting, really appropriate to your particular area? National data may be helpful; but maybe not! Is the economy returning to pre-covid levels? Yes, the summer was great. But, now, slowing. Consumer confidence is down. Does this mean you should wait to open that store? But is this true in Austin? Where restaurant space is hard to find! Are people worried about having a job? Or are wages up as workers are harder to find. The answer very much depends upon the location. Which in turn might determine where you want to buy that office building.
As a member of the elite CCIM designation, Bill Oates has at his fingertips robust market research specifically tailored for the commercial real estate investor. Call us at 512.527.9600 Ext 205 and let us know your CRE interests.