NAI Global Expands to Vail, Colorado with Vail Commercial Advisors
Mar 30th
NAI Global, the world’s premier managed network of commercial real estate firms and one of the largest real estate services worldwide, announced today that it is expanding its coverage into Colorado’s Resort Market with the addition of Vail Commercial Advisors. The firm will now operate as NAI Mountain Commercial.
Founded in 2006 to fulfill the unmet need of providing dedicated commercial property solutions in the region, NAI Mountain Commercial is the only full-service commercial real estate firm from Summit to Pitkin County. The firm is the leading regional provider of acquisition, disposition, leasing, tenant representation, property management and asset management services. NAI Mountain Commercial provides services for all types of commercial real estate assets including office, retail, industrial, hospitality, multi-family and mixed-use properties and works with many of the region’s largest owners and investors of commercial real estate.
Global Market Spotlight Videos from MIPIM 2012
Mar 22nd
MIPIM is the world’s largest business platform for real estate professionals to network, buy, sell, finance and learn. The event attracts top property developers, consultants, business brokers and real estate companies from around the world. Over 19,000 real estate professionals from 90 countries including 4,200 investors and representing 6,000+ companies attend MIPIM.
NAI Global always has a strong presence at MIPIM and 2012 was no different. NAI members from throughout the EMEA region, along with other international markets, attend the event to network with other professionals and share their market insight. NAI Global’s CEO, Jeffrey Finn, was able to interview several executives from NAI member firms throughout the EMEA region and understand what 2012 holds for their respective markets.
Russia, Germany, Sweden and Norway represent the markets discussed in the below videos.
NAI Global Chief Economist Evaluates Global Economy in Latest White Paper
Jan 30th
In his latest white paper, “Global Economic Round-Up”, NAI Global Chief Economist, Dr. Peter Linneman, evaluates the state of the global economy in Europe, Asia and the United States including the impact of the continuing European debt crisis, the rise of China and India and the current state of the U.S. economic recovery.
“The global economic recovery has been hindered by a massive game of Old Maid. Who will be forced to bear the losses generated during the downturn? Only when the losses are put behind us will the world be able to focus on creating new wealth,” said Dr. Linneman. “There is simply not enough European bank capital to cover the losses associated with Greece and any defaults by Spain, Portugal or Italy.”
C-III Capital Partners Completes Acquisition of NAI Global
Jan 25th
C-III Capital Partners LLC (C-III) announced today that it has completed its previously announced acquisition of NAI Global, the largest and premier network of independent commercial real estate firms worldwide.
C-III is led by CEO Andrew L. Farkas, who founded and was Chairman and CEO of Insignia Financial Group, Inc. (NYSE:IFS).
“The completion of this transaction represents a significant step forward in our strategy to build a fully diversified commercial real estate services company,” said Mr. Farkas. “With the NAI Global acquisition, we are gaining the world’s leading commercial real estate network and a tremendous foundation for future growth. As we begin a new year, we look forward to partnering with the NAI team to provide enhanced services to the commercial and institutional real estate markets they serve as well as continuing to take advantage of other opportunities to grow and expand our platform.”
“We are thrilled to be joining forces with C-III and excited about the opportunity to deliver an even broader range of services to our members and add greater value to our collective corporate and investment clients. We look forward to tapping into their great resources and expertise to help C-III clients strategically optimize their commercial real estate assets,” said Jeffrey M. Finn, President and CEO of NAI Global.
NAI Global will continue to operate as a separate company under its current management. NAI manages a network of commercial real estate firms comprising 5,000 professionals and 350 offices in the US and 55 countries throughout the world. NAI’s network members provide a full spectrum of corporate, financial, technology and project management services.
C-III commenced operations with the purchase of Centerline Capital Group’s institutional real estate debt fund management and commercial mortgage loan servicing businesses in March 2010. Since that time, C-III has successfully launched mortgage origination, investment sales and title insurance businesses, and expanded its principal investment, loan origination, fund management and primary and special loan servicing businesses, including acquiring the special servicing and CDO management businesses of JER Partners in August 2011. In November 2011, C-III acquired two affiliated multifamily property management businesses – U.S. Residential Group and Pacific West Management – which now operate on a combined basis under the U.S. Residential Group name.
Financial terms of the NAI Global acquisition were not disclosed.
About C-III Capital Partners
C-III Capital Partners LLC is a leading commercial real estate services company engaged in a broad range of activities, including primary and special loan servicing, loan origination, fund management, CDO management, principal investment, title services and multifamily property management. Our principal place of business is located in Irving, TX, and we have additional offices in New York, NY, Greenville, SC, McLean, VA, Chicago, IL, Dallas, TX and Nashville, TN.
About NAI Global
NAI Global (www.naiglobal.com) is the largest network of independent commercial real estate firms worldwide, comprised of over 5,000 professionals in 55 countries in more than 350 offices. NAI advisors work in tandem with our global management team to ensure our clients strategically optimize their real estate assets. NAI offices complete over $45 billion in combined transactions annually and manage 300+ million square feet of commercial space.
Indian Commercial Real Estate Market Year in Review
Jan 25th
The global economic turmoil has had a ripple effect on the Indian commercial property market in the past year. The commercial office markets in India have shown mixed trends. Overall, rental and capital values have been stagnant with a downward bias. Chennai remains an exception, where office rents for Class A buildings have shown an upward trend.
The employment market in India has picked up for the IT/ITeS sector, pharmaceuticals, retail and hospitality sectors, whereas sectors such as real estate, infrastructure, manufacturing, engineering etc. remain subdued for 2011–2012. With inflation currently hovering above 12%, ever growing fuel prices and high lending rates, the general sentiment for both real estate investors and corporations is negative. Bank deposit rates were at an all time high of 10%+, discouraging real estate investors.
Office
The office market in Mumbai has witnessed oversupply. This, coupled with lower demand from corporations across all sectors, has negatively impacted rental values. Rental values have dipped in Andheri SBD by about 15-20% as compared to 2009-2010, while capital values are stable. This has resulted in lower yields. In certain pockets, such as Goregaon SBD and Thane SBD, both rental values and capital values have risen by about 10-15%.
US Commercial Real Estate Outlook for 2012
Jan 24th
As jobs are created over the next three years, pent-up households will form, with almost 55% (1.1 million) owning and 45% (865,000) renting. The rental proportion for the pent-up households is relatively high, due to the relatively young age of pent-up households. This is on top of the 3.95 million households that will form as the result of population growth of 9 million over the next three years (based upon the historical marginal household size of 2.28 people per household). Of these households, about two thirds (2.6 million households) will be single-family buyers and one third (1.3 million) will rent. Hence, over the next three years, we anticipate 3.8 million new single family households and 2.3 million renter households.
Based upon our statistical forecasts, we anticipate that about 1.8 million (~600,000 per year) single-family and about 800,000 (~270,000 per year) multifamily home starts will occur over the next three years. The net result will be that we burn through the excess inventory, even if household formation rates remain muted. Low single-family inventory levels will create strong upward pressure on home values, restoring some lost confidence in homes as an investment. In fact, a crazy but true research result is that many people use the past year’s home price increase to estimate future annual appreciation. This means that as home prices stabilize, so too will the belief in long-term appreciation.
Latin America and the Caribbean Commercial Real Estate Market Year in Review
Jan 20th
The region continued to grow and expand throughout 2011, despite the sluggish US recovery and turmoil in the eurozone. The initial Latin American growth estimate for 2011 was about 5%. However, due to the US and the European economic problems, it was adjusted down to 4.3% by mid-year. Even so, the region’s leaders all reported healthy growth figures and real estate markets grew unabated.
At the outset of 2011, there was fear that strong growth in the region would lead to economic overheating, increased inflation and subsequently higher real estate values. Most likely due to the slow recovery in the US and economic “congestion” in Europe, these fears did not materialize. In fact, even the precipitous climb in Brazilian real estate values over the last three years slowed considerably. The region benefitted from a significant increase in property investment by domestic funds, which had previously been deploying capital overseas.
Although the Latin American countries grew in 2011, growth in the Caribbean region was mixed. Cuba, Anguila, Curaçao and the Cayman Islands experienced a strong tourism recovery with close to double digit growth rates, while many other island countries experienced zero or negative growth. The region failed to exceed an overall growth rate of 2% due to declines in remittances and tourism.
Canadian Commercial Real Estate Market Year in Review
Jan 20th
The Canadian economy, led by exports and a strong commodity cycle, performed well through 2011. Anchored by a stable banking sector, the Canadian economy out performed most other developed economies. GDP growth declined slightly from 2010 and is expected to be about 2.1% for 2011. But the overall economy continues to face head winds going forward. In particular, a weak US dollar has driven the Canadian dollar towards parity, slowing Canada’s trade with its largest trading partner. And the faltering recovery in the US will temper Canadian growth prospects for 2012, now forecast at 1.9 %.
The Canadian economy has gained back all the jobs lost during 2008 and 2009, but the unemployment rate remains stubbornly high at 7.1%, down 90 basis points from 8% at the same time last year. There is modest employment growth forecast for 2012, but also considerable slack in the economy. As we enter 2012, the supply-demand characteristics of the real estate sector appear balanced in most markets and asset classes. Liquidity has returned, as evidenced by REITs and other publicly traded real estate investors having raised substantial amounts of equity capital in 2011. There is increased investment and construction activity, which bodes well for a slow, but steady recovery continuing through 2012 and more robust growth in 2013.
