We are continually monitoring the Investment Climate and tracking the trends for commercial investment opportunities as they present themselves.
Californians are experiencing unprecedented returns on long held properties as cash remains cheap and cap rates making sense in the sub-five range for many investors. The appetite for 1031 Investments remains brisk and the robust demand for top retirement income generating returns is strong as baby-boomers opt for retirement and troll the Country for income as well as stability of principal.
I came across an article from the Business Insider (dated 8/4/15) and I thought it was really kind of interesting. It was a ranking of the top State economies from the absolute best to the worst.
In all fairness; there are a number of these tables, lists and surveys to explore. Forbes does a comprehensive list in the spring that I like to research to get their take on the investment climate.
What was interesting to me regarding the Business Insider was that North Dakota was ranked Number One as the Top State in the US Economy. Who Knew? The Oil Fracking Industry is going strong in that area, and the climate for investments in that area is worth noting.
Number Two on the list was Colorado. No surprise to me because I am bullish on that area; not only for the number of great businesses/companies headquartered there but also the robust amounts of revenue being generated by the Marijuana Industry .The Marijuana Industry is probing and thriving its way through antiquated mores and is developing from an underground business to a prolific business resource. It appears to be setting records in its ability to create a number of business opportunities from cosmetics to paper as well as adult recreational bars and places for entertainment.
Number Three was the District of Columbia, understandable as the seat of Government, but not a place I typically think of as a place to invest.
The rest of the top ten included (in this order) Texas, Washington State, Massachusetts, Utah, New Hampshire, New York, and Oregon.
Got you thinking?…I hope so. The World is rapidly changing, and opportunities abound for those willing to “step out of their box” and look to the future. Happy Investing!!!
Senior Real Estate Advisor