Western New York's changing investment real estate market

In the three years that I have been a commercial real estate agent, I have immersed myself in the happenings of the investment real estate market. I have found this segment of the market to be the area's strongest suit. A stable market and a steady rate of return has been the main draw, sending investors from all over the country and the world to WNY in search of deals. This interest, combined with a few other factors, has led to a tightening of the investment market in the area. Given that, there are still great deals to be had and this market remains one of the most attractive in the country for real estate investment. How can an area that is losing population and have such low real estate values be attractive? For one, Buffalo and WNY have a perception that is not entirely true. While we are losing people it is at a slower rate than in previous times, we also are seeing a re-birth of the urban core of the area, along with an influx of high-paying, high-skilled labor. Is there still an incentive to invest in the WNY market? The answer is yes. The market is still attractive to out of towner's as the CAP rates are still higher than the biggest markets, but opportunity lies in properties with up side. Recent numbers have shown that employment in WNY is on the upswing, with the economy have added over 2,000 private-sector jobs in the past year. With the economy on the move, an increase of population is sure to follow. The real estate investment upswing has done this market a favor, and has begun the swing back in favor of WNY. Once the jobs and people really start to flow, the investment market will present new opportunities that will help to revitalize WNY. This market should prove hot for real estate investment for years to come. David Doerr is a licensed real estate agent at Hunt Commercial Real Estate Corp., Buffalo, N.Y.