While working on some Social Media updates this morning I ran across this blog that I have largely abandoned for the last 2 years. The last substantial post I had uploaded was a projection in October 2014 that we had at least 2 to 3 years of good times left in the commercial real estate world. Turns out I was right (don’t you love that?).

For the last 2 years I have been running non stop. Business has been good for my clients and for deals.  Some things have changed while other things have remained the same.

We still have rock bottom interest rates that punish savers and force investment into equities and real estate. This continued low interest environment is artificially pushing the prices of real assets higher. Buyers know this, but justify the cost increase with locking in low principal and interest payments.

The biggest change we have seen in the South Dakota region is a severe lack of good investment properties. 7 years of low interest rates have largely smoked all the great investment buys out into the open. Good investment deals occur more rarely now as strong fundamentals provide strong cash flows and lack of exchange options limit tax deferred moves for Sellers.

More to come… I promised not to wait another 2 years to post!