This is our first commercial market report, so we thought it might be helpful to begin by summarizing the fundamentals of the McCall commercial market environment and the constant attributes that will always be present in either a up or down cycle for any buyer or seller that is interested in the sector.
McCall is a “resort” town dependent on an influx of visitors and second home owners from surrounding areas and regionally during prime season and holidays. We can break the year down like this, give or take a few days… .
There are approximate. 42 “Prime” holidays where maximum revenue potential is possible – Thanksgiving, Christmas, New Years, Memorial Day and July 4th , Spring Break, Presidents Week, Labor Day.
There are approximately 120 “Peak” days where recreation is at its best - July, August , January, February- and weekend crowds are consistent.
That leaves the tough part that most businesses need to overcome and plan for - “Shoulder Season “ amounting to approx. 200 plus days or approx. 55% of the year when there is very few people in town. September, October, November, part of December, March, April, May. This can vary depending on when the Skiing starts and how early the summer begins.
Thus, most service/lodging/recreation businesses should have a very low cost basis of operation on fixed expenses to survive during shoulder season. Since the contraction in the real estate market , and the distress at Tamarack , non-service commercial (Light Manufacturing/Distribution Building Trades/Office Professional) that support that sector have been hard hit also.
This has presented some real opportunities for unique and scarce commercially zoned vacant land and properties that have historically never been available. The challenge is what kind of business will support the purchase while a drawn out recovery takes place, and how long before some inventory absorption takes place and appreciation begins on the real estate.
McCall Commercial Report
