Posts tagged NAI Global Executives
CMBS Observations
Jun 25th
According to Trepp, the number of loans transferring to special servicing is growing exponentially. As of May 31, 2010, there was $81.3 billion (4,558 loans) in special servicing, compared with $12.5 billion (1,276 loans) at the end of January 2009. And, Fitch Ratings expects the number of loans transferred to special servicing will be approximately 20% of outstanding CMBS by 2012.
Fitch also notes that on a more positive note, during 2009, over 75% of the loans transferred out of special servicing were either returned to the master servicer as corrected or paid in full with almost no loss. This transfer percentage fluctuated from 60% in 2006 to 90% in 2009. The 2009 recovery rate for these loans was consistent with the results dating back to 2006. Many of the loans that returned to the master servicers were modified; it remains to be seen how well those modifications will prevent the loans from returning to special servicing. More >
Foreign Direct Investment in Indian Retail
Jun 24th
In the 1990s retail industry players lived in the mortal fear that online shopping and marketing portals would decimate them. Many internet experts predicted that website-based transactions will see the end of people moving out of their house to buy from shops. The 3D technology, secure transaction gateways and home delivery were slated to be a killer concept that would change the way people buy everything. But today we are older and wiser. Today, Indian players in organised retail business think that 100% foreign direct investment (FDI) in multi-brand malls will kill their prospects as well as their business. The fear is misplaced for many reasons. No foreign player has been able to replace an Indian market leader if the latter has been competitive in his offerings. But conversely, foreign players have also usurped the market leader position from Indian monoliths, which tend to carry a lot of luggage. The commerce ministry’s proposal to allow 100% FDI in multi-brand retail will open the doors for the likes of Wal-Mart and Tesco. Nonetheless, the ministry has suggested stiff local sourcing requirements and mandatory investments in backward linkages for all such foreign entrants. More >
FDI in Latin America
Jun 23rd
You may have already read the Foreign Direct Investment figures that came out earlier this year, however, I got around to reviewing them over the weekend – FDI to Latin America decreased in 2009 compared to the previous year 2008. No big surprise, right? But, what caught my attention initially is that the drop was just a bit less than half of the amount in 2008 – an almost 50% decline! However, upon further reflection of the depth of the economic crisis and seeing what countries are the top investors in the region, it was not such a revelation. First, let’s take a look at the numbers. More >
UK Coalition Government Gets Tough
Jun 23rd
The Chancellor of the new UK government, George Osborne, produced his much heralded ‘emergency budget’ yesterday. The task was to prevent a loss of confidence by reducing the deficit in the public finances and to rebalance the British economy away from its dependence on the public sector by stimulating the private sector. With the exception of Ireland, the UK has the largest budget deficit in Europe. The Chancellor elected to redress the balance, which amounts to £113 billion in cuts and tax rises, by 2014 – 2015, using an 80:20 ratio – 80% by reduction in spending and 20% by increased taxation. More >
Gulf Oil Spill Not Likely to Impact Commercial Real Estate
Jun 22nd
Gulf Coast Commercial Property Experts See No Long-Term Effect on Supply or Demand
The BP oil spill that has continued for more than 60 days has caused widespread environmental damage and is already affecting shipping, fishing and tourism, but commercial property experts in the region do not believe the accident will have a significant impact on Gulf Coast real estate markets, according to a special report released today by NAI Global.
Commercial real estate leaders from markets bordering the Gulf of Mexico and renowned economist Dr. Peter Linneman weigh in on how experts are quantifying the impact of the oil spill, and provide regional on-the-ground observations of how property markets are faring today. While some markets may see a temporary up-tick resulting from the cleanup efforts, most do not expect any long-term impact, positive or negative, on supply or demand, the primary factors influencing rental rates and property values. More >
