Cassidy Turley’s Tolliver: The grass isn’t always greener

 

Jason Tolliver

To really judge the strength of a commercial real estate market, you have to look at how it compares to similar cities across the country. That can be a challenge.

Jason Tolliver, director of research at the Indianapolis office of Cassidy Turley, mentioned this to me during an interview this week. I was talking with Tolliver about the state of the commercial real estate market in Indianapolis. You can read about his thoughts in the September issue of Midwest Real Estate News when we run a closer look at this key Midwest market.

During our conversation, Tolliver said that commercial activity in Indianapolis was holding steady. Every market segment was showing improvement. But, of course, the pace of the city’s commercial real estate economy wasn’t exactly brisk.

It’d be easy for brokers in this city — and in all the markets we cover for Midwest Real Estate News — to become frustrated by this. We all want commercial activity to rise at a much faster rate.

But then Tolliver said an important thing: When comparing real estate markets, it’s important to take a broader view.

“We are actually very fortunate in Indianpolis,” Tolliver said. “It can become difficult for any market to step back and take a look at how they are doing compared to other markets. It can be difficult to not be myopic. When we look at other Midwest markets and the action in them, we can see that we are doing very, very well. Activity isn’t as high as it was before the downturn. That’s true. But we are donig well compared to other markets.”

This is a valuable lesson. Undoubtedly, commercial real estate activity in your market isn’t occuring at nearly a fast-enough pace to satisfy. But if you take a look across the country, you just might find that things could be a lot worse.

– Dan Rafter

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One Response to Cassidy Turley’s Tolliver: The grass isn’t always greener

  1. mpclark says:

    Great perspective. The market is coming up as it has been, even here in Cincinnati OH. Ohio has been featured in major media as nearly ground zero for real estate.
    After the dull period immediately after 2008, I have seen small indicators that investors, foreign or domestic, are still interested in buying in to the market.
    I have had more activity from non-domestic investors who want to buy in residential housing vs commercial. It is less expensive and therefore less of a risk to them and partners. These are typically new investors seeking deals in a less expensive market. These investors would do well to stay where they are comfortable, moderate to lower rent ranges. We need that housing anyway here in Cincinnati for a variety of reasons. The demographics here would be obvious to an investor who had done some homework.
    I have heard that Indianapolis was a very good market and that was from a local broker here in Cincinnati. The impression I got was that it was a very active market compared to Cincinnati and that it had a good outlook. The word is out about Indianapolis and it is positive. I hope this continues for this local midwest market.

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