Posts tagged Commercial Real Estate
Trophies vs. Trash – it’s just one way to explain what is happening in today’s commercial real estate market. The Trophies are those main-and-main, big city stabilized assets that are the envy of every serious institutional owner. And because the number of those assets is finite and the capital chasing them seemingly endless, prices–believe it or not–are going up and cap rats are being compressed.
The sales of those few Trophy assets are also the ones that major publications report on when they declare that the worst is over. The recent sale of the Pritzker/Hyatt Office Building in downtown Chicago is an example of a trophy selling to California-based The More >
New NAI Global Reports Compare Commercial Property Prices, Trends & Business Practices in International Markets
NAI Global, the world’s premier network of commercial real estate firms and one of the largest real estate service providers worldwide, today announced the release of two new reports for corporate decision makers and investors that highlight global commercial real estate trends and provide insight into transaction and occupancy practices around the world.
NAI Global’s 2011 Global Property Prices & Trends report provides key demographic highlights along with current rental rates and investment yields for 140 global markets. The report provides prime net rental rates, investment yields and rental rate comparisons by property type for Office, Retail and Industrial properties.
The 2011 NAI Global International Property Guide provides insight into key local business customs and practices for 60 countries More >
Commercial real estate increasingly is becoming global in terms of the property owners/investors and capital players, yet in many ways it remains a local business. Local supply and demand takes precedence over regional demand and local practices still dominate markets. Therefore, it is important to have local representation when participating in a real estate transaction.
Can’t a broker I trust from another market handle things for me?
You would probably not trust your foreign car to a local gas station because the standards and practices needed to complete the work require a special set of tools, unique understanding of the automotive asset and specialized training. Similarly, local agents understand the dynamics of the local market in a way that outside agents do not appreciate. Local agents typically have grown up in the market; they have made their career in the local market. They may have gone to high school with the mayor and/or the local planning and zoning leadership. As a result they have an in-depth understanding of the properties that are on the market, the reasons they have not sold, the concessions that made to complete other local transactions, concessions that other owners may accept and the properties that may become available under the right conditions.
Why then would you utilize less than a local expert for any local real estate transaction?
While working with a US-based client on a series of property acquisitions in the Caribbean, he had the idea of performing a couple of nifty 1031 exchanges in Puerto Rico. Emotions were running high that he could achieve this with a significant amount of tax savings. I warned him to be a bit more circumspect. If there is anything my international real estate experience has taught me, it is not to take anything for granted. I suggested that we confirm that a 1031 exchange is possible. A good thing I did. We conferred with a renowned local Puerto Rico tax expert, Manuel López Zambrana of Manuel López Zambrana, PSC (firstname.lastname@example.org), and More >
In today’s complex market, most commercial real estate disposition assignments are executed using the services of a qualified broker to analyze the market and the property and to sell the asset for the highest possible price in a timeframe that is consistent with the specific needs of the owner/client.
If no obvious choice exists, most owners interview two or three brokerage firms and then make an informed selection, based in part, on the following:
- The firm’s national reputation;
- The firm’s presence in and knowledge of the immediate local market; and More >