Posts tagged investment activity
Commercial Real Estate Returns – Leading Indicators, Return of Debt and Brokerage Activity
Sep 23rd
America and the world’s economies were thrown into the sharpest recession ever by the overnight disappearance of debt. The appetite for debt among the world’s investors instantly vanished and remained absent for 18 months. This of course caused the smoothly running real estate machine to seize. The deal making world became barren. No one knew where to turn or what we could do to spark transactional activity. More >
Due Diligence Pointers
Sep 16th
For the Seller, the Due Diligence process is one of the most critical parts of an investment sale transaction and could make or break a deal, depending upon how it’s handled. As such, an informed Seller can be prepared to respond to most situations raised by the Buyer. More >
Proposed FASB Lease Accounting Changes Will Impact Sales Market
Sep 15th
There are changes afoot in the world of accounting dealing with how companies should treat their leases – for both lessors and lessees. Those changes will have an immediate impact on the sale of investment properties. There are several areas where the impact will be manifest, including:
- Tenants may be incented to sign shorter leases;
- Tenants will be less likely to sign renewal and expansion options into their leases; and
- Corporate users may find it more favorable to buy than to rent properties they wholly occupy. More >
The ISG Team
Aug 25th
Since this is the NAI Global Corporate Blog, I feel it’s incumbent upon me to brag a little about NAI Global’s Investment Services Group.
NAI Global completes over $45 billion in transactions in a typical year, including over $10 billion in investment sales. These transactions range from large institutional-quality assets and portfolios to mid-size and smaller properties suitable for regional and local private investors. To best serve its institutional and sophisticated private clients, we created our Investment Services Group (the “ISG”), which is composed of NAI’s most senior investment advisors throughout the U.S. More >
Loan Sales Take Off
Aug 9th
Loan sales represent a large volume of the distressed asset transactions that have been closing so far in 2010. Lenders and special servicers’ decisions to hold or sell specific loans are generally based on a net present value (NPV) analysis of each asset. This critical analysis accounts for the respective costs to the lender if the loan is held or acquired as REO; the capital required to then stabilize and manage the asset; and the time required to foreclose (in some states, this can be longer than a year). With certain markets and asset values of some property types continuing to deteriorate, the conclusion is often that a loan sale makes more sense to the lender than a hold. More >
