Archive for August, 2010
42 Feet and Climbing!
Aug 31st
A 42 foot clear warehouse… and it has created a dilemma for a broker in the Northeast. More >
Sale Leasebacks – a Timely Alternative
Aug 30th
In financial markets such as we are experiencing now, financing real estate for operations or investments can be a challenge. An excellent alternative that remains attractive for corporations and investors is the Sale Leaseback. Essentially, the sale leaseback enables a corporation to make use of the captive equity in its real estate at a cost that is generally lower than its return on equity or long term debt costs. Utilizing long term leases with renewal options, the corporation maintains operational control of its facilities without having to tie up its capital. Further, a sale leaseback provides 100% leverage in comparison to mortgages that generally provide 60% to 70% leverage. From the standpoint of the investor, the sale leaseback offers several advantages: More >
What are Strategic Assets?
Aug 30th
If you reside in an organization such as a company, government or religious organization, what assets should you consider strategic? There does not necessarily have to be a set of strategic assets, but if an asset is strategic it must be key to the business. Examples would be a church for a religious organization, perhaps R&D facilities for a pharmaceutical company, truck terminals for a freight firm and restaurants for a chain of food providers. Key assets tend to be utilized for a term that is long. Therefore ownership is preferred to leasing. Non strategic assets are therefore all other classes of real estate and should thus be leased. More >
Panama’s Rising Infrastructure – A Plan for all Reasons
Aug 27th
One of the areas of development that still lags behind in Latin America is that of Infrastructure. Certainly in all other asset classes there has been tremendous, and in some cases, explosive growth. Unfortunately, the region’s countries have not worked hard enough for infrastructure to keep pace with the office, residential and industrial development demands. The only exception is in the tourism sector that caters to foreigners where they have experienced, until 2009, strong hospitality growth; there, infrastructure is generally proactively planned and implemented. Unfortunately, governments tend to place a higher importance on the comfort of non-native tourists, and the resulting generation of income, than they do on supplying adequate services to their own citizens and taxpaying constituents. One glaring example we can consider is Brazil. If it were not for the fact that it is host to the future Olympic Games and the World Cup in a few years, a significant number of the announced projects would not be occurring. Unfortunately, the other countries in the region do not have the benefit of such useful and motivating impetus. Nor do they seem to have the sufficient foresight and or will to pressure their political systems/populace into such a time consuming and capital investment intensive process… all, perhaps, excluding Panama. Panama is the country that gets it. More >
Key Elements to Successful Client Management
Aug 26th
Client relationships are complex and can exist throughout the organization in many different ways with many interested parties with specific interests in their areas of responsibility. More >
