This is important to anyone who is thinking about opening a new practice in the next few months or moving to a new site or renegotiating their lease. There has been a fear that there was a relationship between foreclosure volume and retail property delinquencies. The current wisdom is that if there IS a relationship, than the cost of properties will go up AND they will be more difficult to qualify for if the doctor is young, a new graduate and/or has a credit ding or two.
The good news is: there is NO relationship that we can find.
Detroit is the top market for home foreclosures. It had a 0.48% delinquency rate (which is pretty good) on commercial loans. This data comes from TreppLLC, a data and real estate analysis firm.
The next three highest-ranked markets for home foreclosures – Stockton, CA; Las Vegas, NV; and Riverside, CA – posted no delinquencies on retail loans. Just because I know you want to know, the highest commercial real estate delinquencies were in Indianapolis and New Orleans. That is some great new!
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2 comments:
Scott, is the opposite then true? Will we be able to negotiate better terms during these times?
Would this be an opportune time to buy some land and build my own facility?
I hate to sound like a whimp but the answer is, "It all depends." We want to make sure that the location of the building makes sense. BUT, on average, we believe that building your own facility can make a great deal of sense in MANY cases where new development is going on.
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