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San Jose CA Commercial Real Estate - Local Market Conditions

Questions to ask about Local San Jose Market Conditions:

• Do local economic conditions match national trends? If not, what special conditions prevail?
• How does the income from a prospective investment compare with other comparable properties in the area on a per-square-foot basis?
• Is competition anticipated at existing rental rates? At what rate will it begin?
• Is there potential for future competition at or below the property's rental rates?
• What new construction is planned or underway?
• What has happened to land values over the last several years? Comparable building values?
• What is the vacancy factor in the area?
• What is the absorption rate?
• At what point in the real estate cycle is the local market?
• What is the financial community's attitude about commercial real estate investments?
• What equity requirements do lenders have?
• What property type preferences have they shown?
• Are financing prospects better for existing properties than for new construction?

 

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