Dayton, Ohio

 Commercial real estate insiders say local investors should get their checkbooks ready.

As many are scanning investments with a wary eye, property could be a safer bet, said Tim Echemann, broker with Sidney-based Industrial Property Brokers.

Those who have the money, and the resolve, to buy may find themselves with a good investment down the line.

In the past, many commercial real estate deals have come from out-of-town investors, mostly large real estate investment firms from the coasts.

But insiders said some local investors are starting to hunt for local deals.

One of those is Doug Townsend, president of Sidney-based Townsend Engineering. Townsend purchased the 36,000-square-foot former Schindler Elevator building in the first week of January. Located on Vandemark Road in Sidney, Townsend paid $800,000 for the property, which has good access to Interstate 75.

Townsend plans on putting $200,000 into renovating the building, which sits on five acres and offers room for a future tenant to grow.

While Townsend is moving some of his engineering business in the building for now, he thinks it will be easy to lease it out for a profit.

The purchase was the second half of a 1031 exchange, in which certain types of property are exchanged without having to pay any capital gains taxes.

Townsend has thought about using the entire facility for his business, which has revenue of between $1 million and $5 million, but he would rather see tenants occupy the space.

Other brokers advise investors to keep their eyes open to changes in the marketplace.

Digger Daley, second vice president with the Dayton office of Colliers Turley Martin Tucker, said the opportunity for buying is coming, but it’s not here just yet.

Daley said commercial property values have dropped between 15 percent and 20 percent overall in the Dayton area.

All sectors have felt the drop, from retailers closing locations, to companies cutting employment and manufacturers decreasing production. No sector of commercial real estate has come away unscathed.

But the decline offers those with the finances the chance to find a good deal.

“If you’re a tenant who needs space, you couldn’t be in a better position,” Daley said.

Owners are using incentives and renewing leases early to lock in tenants, while tenants are getting lower lease rates.

Daley said another opportunity coming up soon is from out-of-town investors who purchased property in the past five years using adjustable rate or interest-only loans. As those loans get ready to re-set, investors may be able to buy property for a discounted price or wait for the property to go back to the lender.

Echemann said the devaluation is going to attract savvy buyers.

One type of property Echemann said investors should look out for is retail strip centers. As more tenants close up because of the down economy, center owners may be looking to unload a property that no longer pays the bills.

About Colliers International

Colliers International is a global affiliation of independently owned commercial real estate firms. The organization's 10,092 employees span the world in 267 offices in 57 countries. On a worldwide basis, Colliers manages 672,945,918 square feet, and has revenue of $US 1,620,958,349.

Contact Information

 back to top