NetGain Year-End Report - The Affect of Record Crude Oil Prices on Real Estate Investment
Mountain View, CA (PRWEB) December 3, 2007 -- NetGainRealEstate.com (http://www.netgainrealestate.com), the leading Internet provider of independent, value-added income property analysis, has released a year-end report detailing the impact of record crude oil prices on commercial real estate investment (http://www.netgainrealestate.com).
The main ingredients produced from a barrel of oil affect both the business community and the consumer. Some of the company types affected in the business community are those that involve airlines, trucking, automobiles and all the cottage industries that support their activities. Although the impact on these businesses is significant, NetGain's real interest is the affect that crude oil prices will have on consumers. It is consumers that account for 70% of our Gross Domestic Product (GDP), and it is consumers who live, work and shop at the core types of commercial real estate: Residential, office and retail.
The record price per barrel will affect consumers two ways. First, more money will be spent to heat and/or air condition homes. Second, consumers will spend less time in their cars. The first means they will have less money to spend. The second means they will change how they spend their money. In other words, the American consumer has less money to spend and is changing their buying habits.
Those changes will have the most dramatic impact on retail properties. The consumer will still shop, but will have an alternative: The Internet. The most recent data from the Census Bureau of the Department of Commerce shows that the growth rate of e-commerce far outpaces that of traditional brick and mortar retail stores.
The financial impact on commercial real estate from the record prices at the pump is not coming tomorrow -- changes are already taking place. The International Council of Shopping Centers' U.S. chain store sales index was up just 1.6% in October, the weakest result since 1995. What's more, according to Thomson Financial, two-thirds of the nation's largest retailers missed sales estimates for the month.
In the end, comprehensive due diligence will make or break a commercial real estate investment. Future markets will not bail out poorly located income properties purchased with inadequate due diligence.
To access the full report on the affect of spiking oil prices on commercial real estate investment (http://www.netgainrealestate.com/index.php?q=affect_oil_commercial_real_estate), go to http://www.netgainrealestate.com
Net Gain Real Estate is a wholly owned subsidiary of NetGainR.E.Inc providing commercial real estate investment tools and income property analysis. In addition to capitalization rate recommendations, bi-monthly essays, a comprehensive due diligence checklist, and an extensive question and answer section, investors may also find a composite index of REIT data at www.netgainrealestate.com.
###
Related Articles:
Employers: You Can Save Money When You Buy Dallas Real Estate For Your Employees
Are you always sending your employees to Dallas for work If so, you?re probably paying thousands of dollars every year in hotel bills and other expenses for your employees
Free Listing of Real Estate Properties for Realtor's ....
Online-Listing.com offers Free Listing of Real Estate Properties to Realtor's worldwide! Realtor's can list their properties from month to month using 3 easy steps and save thousands of dollars in advertising cost's. Online-Listing.com network is rising up in google page ranking's and drawing lot's of attention in the real estate market. This exposure will be a good online presence for all realtor's worldwide. Realtor's can also advertise their office listings by setting up an account and contacting their local M.L.S. for direct feed setup. Online-Listing.com also has multiple advertising packages outside of free listing. Realtor's can contact: advertise@online-listing.com for the advertisin...
Tax Traps For New Real Estate Investors
Perhaps one shouldn?t be surprised that new real estate investors fall into the same tax traps again and again. Real estate burdens investors?especially new investors?with some tricky tax accounting.
How to Sell Your House in Miami Beach Real Estate Quickly
Do you want buyers to be interested with your home in Miami Beach real estate? Are you familiar with the right key to get the interest of buyers?
California Payroll Names Kim Hill Ward Director of Product Integration
California Payroll, a leading regional payroll services and HR software provider, has named Kim Hill Ward Director of Product Integration. Ms. Ward will be based out of the company's southern California office, working closely with California Payroll's operations and sales teams.
Myrtle Beach, S.C. Golf Courses Prepare For Vacationers Seeking Warm Weather, Lush Fairways And Smooth Greens
Tiger Woods is on a mission to break more records. He's matched Ben Hogan's record of 64 wins on the PGA TOUR and is just a few victories away from eclipsing the 73 wins owned by Jack Nicklaus. Golf's most revered course, Augusta National, is being readied to host The Masters. For many golfers this starts the beginning of their golf season. Some places in the U.S. and Canada are still shivering in the icy cold -- all the more reason to pack your bags and head for the warmth and hospitality of America's golf capital, Myrtle Beach, S.C. Whether piling in the car with buddies or hopping a flight, golfers can be teeing off on one of Myrtle Beach's hundreds of golf holes within a few hours. And, it won't cost an arm and leg to play them either.
RESPA: The Real Estate Settlement Procedures Act
The Real Estate Settlement Procedures Act (RESPA) is a consumer protection statute, first passed in 1974. One of its purposes is to help consumers become better shoppers for settlement services.
How to Cure a Golf Hook
If you've been battling a hook for a while you understand how frustrating they can be. Everyone else is, more than likely, slicing the ball, and you are playing from the opposite side of the fairway.
Talent Tree Adds California Operations to the Fold
Longtime national staffing company Talent Tree kicked off 2008 with its acquisition of CalStaff, a Sacramento-based staffing company. The sale included CalStaff's main staffing division, in addition to their specialty divisions: LawStaff, GraphXStaff, CalStaffMed, CalStaffIT and AccountableStaff.
Real Estate Investors Take Cue from Warren Buffett at Upcoming Mobile Home and Mobile Home Park Investing Conference
The sixth annual Mobile Home Millions conference is slated for April 18 through 20, 2008 in Austin, TX. This premier event for real estate investors and professionals will feature some of the biggest names in the mobile home and mobile home park investing arena.