bridge1.png

TIC’s continue to grow in sales

by sfishome on May 17, 2008

Comfort with TIC’s is clearly growing…. sales of TIC’s have gone up every year.

2002 154 TIC sales
2003 269
2004 395
2005 539
2006 652
2007 722

In 2007 there were 5394 total individual unit sales (Single Family Homes, Condos, Coops, Lofts and TIC’s) so the 722 number is 13.4% of all sales. As more and more TIC home owners share what I expect to be largely positive experiences with their friends, colleagues, families and neighbors…. comfort with TIC’s, and therefore demand, should grow.

Yet, there continues to be a LOT of risk aversion to TIC’s, especially in buildings with 3 or more units. This risk aversion means there’s a big gap in prices between TIC’s in 3+ unit buildings vs. Condos or even TIC’s in 2-unit buildings. But if comfort with TIC’s grow, demand should grow, and the price gap should dimish. In other words, if you’re an “early adopter” of TIC’s (ie you buy now) and you sell when the “laggards” catch on, you should see far greater price appreciation vs. any other segment of the market.

Of course there’s an ulterior motive to this report…. my team and I, the SFisHome.com Group… have 2 current listings in a 3-unit building, and we’ve got 3 more TIC listings in two more buildings coming onto the market soon. Scroll down a bit, or click here, for the current listings, 357 3rd Ave and 355 3rd Ave.

Leave a Comment

Previous post:

Next post: