Page 40 - Trump University Commercial Real Estate 101
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TRUMP UNIVERSITY COMMERCIAL REAL ESTATE 101



                         Until you see that happen, leave your money in your pocket. Don ’ t
                   get stuck buying into that work of fiction that goes nowhere, and has a

                   sad ending.



                                          Buyers ’  Market, Phase II


                     If the city leadership is on the ball, new jobs will begin to emerge in
                   the city. Following the jobs, people will begin to migrate back to the
                   city. The market slowly absorbs its oversupply of properties. Rental

                   spaces fill up. Not only does occupancy increase, but there is a decline

                   in how long properties and retail and office space stay on the market.
                         As even more jobs come into the area, the pace quickens. Boarded - up
                   residential and commercial properties come to life as investors rehab
                   them and put them back on the market.
                         During the previous phase — Buyers ’  Market, Phase I — bank fore-
                   closures had risen to their highest levels. It ’ s typical in the later stage
                   of a Buyers ’  Market, Phase II, for competition for these bank

                     fore closures to become fierce. Both national and local investors now
                   realize that there is money to be made in this market. Word gets
                   around and both experienced and new investors circle this market on
                   their maps.
                         As the market continues to improve, properties morph from being
                   occupied by anyone who can fog a mirror and pay a few dollars in rent,
                   to fulfilling their  highest and best use . The quality of businesses and ten-

                   ants improves because they can afford to pay higher rent.
                         Rents and lease rates were at their lowest levels in the earlier
                     Buyers ’  Market, Phase I, but they ’ re now on the move. Because of this,
                   property values also rise. Commercial property values rise fairly
                   quickly, because they are largely valued as a function of their income,
                   which is getting better all the time.
                         This is the very beginning stage of an  emerging market . Any inves-
                   tor can see this new activity taking place. Only the savvy investors can
                   look at the earlier Buyers ’  Market, Phase I, and know that this Phase II


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