If you are still struggling to look for some good news about investing in commercial real estate and commercial mortgage lending, you should know that there is scant little to be found, but one particular sector of the industry is thriving and represents a tremendous opportunity for real estate investors and developers; government buildings in Calumet City, Illinois. For good or for ill government is growing and growing fast.
The administration in Calumet City, Illinois at the moment appears particularly amenable to the expansion of government. The economic downturn that has devastated private business has proven to be a boon for the public sector. Over the next decade government agencies will all be expanding rapidly and with that expansion will come an incredible need for office space and administrative facilities. Around Costa Ivone, some departments will need to be up to date; there will need to construct modern houses, for instance, the courts, new regional distribution facilities and many more. There is a boom going on in real estate, it’s the government facilities boom and it represents some excellent opportunities for savvy investors.
In the past, it was common for a government agency to own the building it worked in, but today the trend is for the actual building to be owned by an investor or developer and merely leased to the agency. The government has realized that real estate ownership is not necessarily consistent with its core mission and that they would rather have free cash flow instead of dormant equity. New government buildings are being built to suit a particular government agency and then triple-net leased to that agency. In addition, the government is monetizing existing equity by executing sale and leaseback transactions whereby they sell buildings they currently own, grab the cash, and simply lease the building back from the new owner.
Developers that used to build hotels and shopping centres are now bidding on the construction of other facilities such as for instance the courthouses, post office warehouses and government office buildings. Investors who’ve recently been burned in privately owned commercial real estate are now lining up for the dependable income that comes from owning real estate that is used by the government.
Investing in government buildings in Calumet City, Illinois has great benefits. To start with, the government has never missed a rent payment and has never reneged on a lease. You will always sit to enjoy the highest possible credit rating; they have taxing power, and if that fails they have printing presses. Another benefit that makes it attractive is that financing of government buildings is readily available.
The economic downturn and corresponding credit crunch have devastated the real estate industry alike. There is no doubt that it’s tough out there, and recovery is going to take time. But opportunity can usually be found in the midst of crisis. One of the opportunities for real estate professionals is clearly to be found in government buildings. The unprecedented growth in the sector means demand will be there. Know all for you today.