Living in Orlando offers its residents many luxuries you just can’t find elsewhere. You have year round tropical weather, wonderful attractions, an endless supply of fabulous restaurants, countless outdoor activities and sports to choose from and so much more. It just so happens that Orlando is also home to one of the hottest commercial real estate markets in the country.
According to Real Capital Analytics, Orlando ranks #6 with a 68% growth in terms of year over year percentage increase in sales volume. Capital from all over the world is pouring into Orlando’s commercial real estate market. This influx of investment, combined with Orlando’s booming economy will only lead to further increases in property values. Savvy investors will use this golden opportunity to capitalize on this red hot real estate market. You know what they say about opportunity, opportunity doesn’t go away, opportunity just goes to someone else.
Speaking of opportunities, let’s talk about a few of the amazing opportunities that our clients have taken advantage over the last year. One client acquired a deal that included three buildings that totaled 51,000 square feet on Sand Lake Rd. for $1,850,000. Within four months of closing, they were able to sell one of the buildings for $2,350,000. Now they are left with two buildings totaling almost 30,000 square feet and they got all their initial investment back and then some. In Vegas, they call this playing with the house’s money.
Another client acquired a 149,000 square foot shopping center on 15.5 acres for $1,525,000 in January of this year. This shopping center had some very well known national tenants and a Mcdonald’s ground lease. With only 50% occupancy, some investors might have seen the glass as half empty. We saw the glass as half full and believed this asset had nothing but potential. That potential didn’t take long to realize as we have taken the net operating income from $166,000 a year to almost $300,000 a year. Not to mention the Mcdonald’s ground lease has just been listed for $1,500,000 dollars. Mcdonald’s ground leases don’t last long since they are as safe as an investment gets. It is only a matter of time before this investor is playing with the house’s money as well.
When investing in real estate, you make your money on the day you buy it. That is if you bought it right. The 2008 economic crash drastically affected real estate values all across the country. Prices are still very low and there is plenty of opportunity out there. With investment real estate, it is imperative that you know what you’re doing. In the coming months, we will discuss all of the critical steps to making a successful acquisition. Whether you are a seasoned investor or you are a rookie investor, if you follow these steps the reward will drastically outweigh the risks.
5956 Turkey Lake Rd. Ste. 1
Orlando, FL 32819