Sacramento’s commercial real estate market has seen increased activity as 2012 draws to a close. The push is on to complete transactions before possible tax hikes come into effect in 2013.Valerie Baldo, president of Placer Title, has commented that her company has been “crazy busy” and that the level of activity is unlike anything they have seen for a while.
Higher capital gains and health taxes are the reason for the push to get deals done before the calendar turns over on December 31. The last few days of the year are always a crunch time for commercial real estate companies but this year has seen activity increase by 30-35 per cent in some cases.
If the buyer and seller are comfortable with each other, it is possible to push through a transaction relatively quickly. In some instances, the two parties have dealt with each other before and a repeat deal is easier to negotiate than one where the two sides have just met. Closing a transaction in less than a month is something that can definitely be accomplished but there are reports of some deals being completed in as little as 10 days.
Commercial real estate office employees are prepared to put in longer hours during December to get the deals completed. January and February tend to be slow months in the industry. In 2013, they could be even slower if transactions which would normally be closing early in the New Year are completed in December.
Title and real estate companies have been busier in 2012 than in previous years. Some of them have even hired additional staff, which has been good news for the local economy but even with the increased activity, the market is still smaller than it was during peak of the last real estate boom.
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