Commercial Real Estate Opportunities here now
OK....let's get something straight off the bat. I am NOT talking about the REOs, hidden commercial notes on the balance sheets or the 40-45% of the Two Trillion in paper coming due from now till 2012............
I am talking about something MUCH BIGGER................
There is currently talk by our leaders which could CHANGE THE DEDUCTIONS and TAX STRUCTURE for companies that lease commercial space. There is a possibility that this could occur this year!
In a nutshell (and very basically explained here...please consult your CPA), the proposed rule would make corporate companies keep the same amount of reserves on the balance sheet as a credit to reflect the same amount of expenditures of THE FULL LEASE paid in order to deduct amounts paid against gross income! WOW! This is HUGE! This would in effect COMPLETELY ELIMINATE THE BENEFIT OF LEASING IN A SWIPE OF A PEN! The company's would simply BUY their spaces instead of LEASING and depreciating 100% of build out costs.
Light bulb go off yet?
Think of it like this.........
All the companies that lease, i.e., Wal Mart, Target, Restaurants, Groceries, your local retailer, Auto Malls, etc...would receive NO BENEFIT to leasing and would have to place THE FULL LEASE amount in reserves to be able to get a deduction.
Answer....they will.
Thus supply vs. demand will shift dramatically to demand as corporate America rushes to eliminate supply.
This could be the single LARGEST change in commercial real estate that we have seen in our lifetimes. It is too large to overlook. It could be this single item that could catapult us into a new GROWTH SURGE that could last 20 plus years!
Now you know....only question is...what will you do with it?