As many companies are looking for a business strategy to stay afloat during these difficult economic times, Cincinnati-based Neyer Properties
is plotting what they expect to be their fastest growth period in company history.
Neyer Properties president Dan Neyer sees opportunity in acquisitions as much of the market experiences a decline in value.
"What we're trying to target is well located and modern facilities," said Neyer. "In the market today you don't want to buy the cheap location. You want to position yourself properly to get a good producer, and buy based on value, not necessarily price."
In previous years, Neyer Properties' business model focused on development providing about 80 percent of their business, and only 20 percent from acquisitions. In 2010, Neyer says they plan on 90 percent of their business resulting from acquisitions and only 10 percent from development due to current market opportunities and projections.
"With development slowing down we decided to move towards more acquisitions," said Neyer. "This is where the value is going to be created over the next few years, and we're trying to be where the market is, instead of where it is not."
He believes that the next three years will represent the fastest growth for Neyer Properties over their history based on the ability to buy under-performing properties while also incorporating energy conscience LEED components.
Neyer Properties is looking at well located properties throughout the Cincinnati and Dayton region, but are also looking at expanding into the Louisville, Lexington, Columbus, and Indianapolis markets.
"We thought it was worthwhile to explore properties in these other cities due to their same core value as Cincinnati," said Neyer. "It also sets the stage for us to expand further if we're able to purchase properties in those locales."
Neyer expects the company to grow over the coming years from its current 18 full-time employees, include two full-time employees working in acquisitions. He attributes this growth in part because of the company's well leased properties that boast long-term tenants as well as financing that is allowing the company to bridge the devaluation in real estate.
"Our low percentage of debt to capital is very workable with the credit squeeze," said Neyer. "We have had no problem and will have no problems with getting loans for our existing properties."
Writer: Randy A. SimesPhotography Provided
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