Recently, many buzz words have been thrown around social media and the news with regard to the Anchorage Economy. Words like “crash”, “panic”, and “disaster.” At the 2016 AEDC luncheon on July 27th, President and CEO Bill Popp was clear about the state of the economy and its outlook, “there is no doubt we are going to feel some significant pain in the next couple of years, but by no means is the Anchorage Economy headed for a disastrous time like the 1980s.” So far in 2016, Anchorage has experienced decline most heavily in energy markets with higher prices being seen in health care, housing, and apparel.
So, what does this mean for the Commercial Real Estate market? As a Buyer, there are still many options for low interest financing available, but that could begin to change soon. So finding the right property and getting financing is still a good first step. Sellers ideally want to sell while prices are high, and with a drop impending, a good time to sell is now. Landlords are interested in leasing all their vacant spaces and may be more interested in providing concessions to Tenants in order to get leases signed. Meanwhile, Tenants are looking for stable leases over the next couple of years.
Ultimately, the market is still moving along, shifting from a long-time Seller’s market to a Buyer’s market. Transactions are taking place and we, personally, are as busy as ever with sales and leasing. If you need commercial real estate services, in any aspect, please give me a call at (907) 273-7310 for a free consultation about how we can help you achieve your real estate needs.