Commercial real estate's bright side: Firms buy buildings for own use
Philadelphia Business Journal reports: The investment market for commercial real estate is way off except for one segment — those buying properties to use for their own businesses.
Called the user-buyer, these real estate investors are able to get something many prospective buyers aren’t able to these days: money from a bank to spend on purchasing a property. If they don’t need a loan, they already have earmarked their own funds for such a purchase. This allows these user-buyers to buy a building despite the credit freeze and wary lenders. The number of user-buyer transactions climbed between June 2008 and last month, according to Real Capital Analytics. During that timeframe, of the 40 office and industrial sales in the region, 25 percent were made by users.
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Posted by: Nina Turner