Posts tagged property values
Distressed Real Estate Opportunities Increasing
Jun 13th
As we round the 3th quarter 0f 2011, we are seeing that lenders are increasingly willing to sell notes/assets to clear up their books. With the real estate recovery under way, more sideline capital are chasing the few opportunities on the market and The increased demand is prompting distressed debt owners to place more of their inventory on the market. More >
Auction Data Suggests Sales are Increasing
May 16th
In June 2010, I analyzed CoStar Group (CoStar) data on industrial, office, retail and multi-family auction sales over a 17 month period. I recently reached out to our friends at CoStar to check out the recent 10 month period, July 2010 through April 2011. The research provided by CoStar reflects auction sales of only those properties listed with CoStar.
So, what has occurred since then? What sectors are hot? More >
The Integration of Debt and Equity Brokerage – the Holy Grail
Apr 27th
The ideal real estate investment broker needs to be equipped with all of the tools necessary to provide the client with a complete solution to his real estate capital needs.
However, achieving that ideal has been elusive because there is an inherent conflict between debt and equity brokers. Simply said, the equity broker is programmed to seek a sale of the asset from the client while the debt broker would rather that the client refinances that very same asset. What is lacking here is a protocol that is in the best interest of the client which is identified before the debt and equity brokers begin selling their services. More >
Projecting Commercial Real Estate Values
Dec 15th
According to the Moody’s REAL Commercial Property Price Indices (CPPI), US commercial real estate prices have declined 42.7% since the market peaked in October 2007. However, in September the index posted the largest one month price increase in the index’s nine-year history, a 4.3% increase. Since bottoming out in the third quarter 2009, the index has generally flattened out with monthly volatility partly based on economic uncertainties and a lack of sales volume. The lack of sales volume is partly due to the lack of available mortgage funds. More >
Strategic Asset Determination
May 28th
Creation of a portfolio strategy for an organization begins with determination of what assets are strategic to the organization. For instance, the research and development laboratories of a pharmaceutical firm may be considered strategic or the factories of a pulp and paper manufacturer. On the other hand, the sales offices, warehouses and distribution centers are probably not strategic to these industry participants. For a firm whose business is logistics, then perhaps the warehouse is strategic. The concept is a firm most likely wants to control the strategic assets through fee ownership and lease the non-strategic assets. One can blur the lines a little by lengthening a lease term so that a leased asset has long term stability as if it were an owned asset.
-Ted Parcel
Ted Parcel is Executive Vice President of Corporate Services for NAI Global.
