Market Trends
Uptick in Auction Sales Should Continue Through 2011
Oct 29th
Over the past 60 days, NAI Global’s alliance partner for outcry auctions, Higgenbotham Auctioneers, has sold more than 90 properties at auction in Florida, Georgia, Louisiana, Texas, Delaware and throughout a number of Midwest states. In addition, they have scores of upcoming auctions scheduled before year end in Florida, Michigan, New Jersey, Illinois, Texas, South Carolina, and Georgia. More >
Acquisitions – Confirming the Rent Roll
Oct 28th
It is hard to say which single document is the most essential to review when purchasing an income property. However, as the prime source of property revenue, the rent roll is clearly one of the most critical. More >
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 >
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 >
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 >
Commercial and Multifamily Mortgages on the Rise?
Aug 19th
According to the most recent Mortgage Bankers Association Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, commercial and multifamily mortgage loan originations increased 35 percent in the 2nd Quarter 2010 compared to the 1st Quarter 2010, and they are up 1 percent from the 2nd Quarter 2009. More >
Major Changes in the Distressed Asset Marketplace
Aug 17th
In just two weeks we’ve seen some major changes in the distressed asset marketplace. Not only is activity increasing as the year goes on, but where we once found the number of assets far outweighing the number of willing investors, we’re now finding more investors per property than ever before. More >
CoStar reports Auction Sales since Early 2009
Aug 9th
Open the Wednesday real estate section of The Wall Street Journal or an email communication from one of the major real estate business journals and you can’t miss seeing that dozens of commercial real estate auctions occurring weekly throughout the United States. More >
Loan Sales Take Off – $1B Portfolio Now Available
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 >
Restructurings Remain Active
Jul 27th
As the market continues to evolve, it appears the only remaining business activity is restructurings. Some things are starting to thaw in the leasing and occupancy rates across the country. Rental rates in multifamily retail are starting to creep up while office rates are stabilizing in different markets nationwide. More >
