Posts tagged NAI Global
The biggest challenge facing the U.S. and global economy over the next 2-3 years will be coping with the double-edged uncertainty of when rates will rise and of what happens when they do, says NAI chief economist Dr. Peter Linneman. In his new white paper, Dr. Linneman discusses his global outlook for the coming years. The following is an excerpt:
People correctly argue that other things equal, a rise in interest rates should cause cap rates to rise by increasing the weighted cost of capital. However, it is important to understand that “other things” do not remain equal as interest rates rise. In particular, as interest rates rise from artificially low levels, borrowers have a reduced incentive to borrow, and lenders have a notably increased incentive to lend. This incentive to lend manifests itself by changing “other things”, including offering: higher LTVs, slower amortization, longer periods of interest-only, reduced covenants, narrower debt spreads, reduced underwriting standards, etc. These factors result in an increased flow of debt as rates rise from artificially low levels. This results in a reduced weighted cost of capital and more money chasing a limited supply of NOI and properties, resulting in higher prices. This was the case many times in the past, including 2006-2007, when high interest rates stimulated a dramatic flow of debt. Read full white paper here.
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NAI Global is the single largest, most powerful global network of independent, owner-operated commercial real estate brokerage ﬁrms. Through our managed network of more than 160 brokerage ﬁrms with over 375 oﬃces and a team of 6,700 professionals on the ground, our global strength is built on our local leadership. The NAI Global network manages 380 million square feet of property throughout the world. Whether you need to buy, sell, lease, finance, or manage commercial property locally, across the US, or in Asia, Europe and Latin America, NAI Global is your local point of entry into a world of creative solutions in commercial real estate.
NAI Global, the world’s largest, most powerful network of owner-operated commercial real estate firms, earned the fifth spot in the 2015 Lipsey Survey of Top 25 Commercial Real Estate Brands. The survey was conducted among 100,000 commercial real estate professionals using a combination of ballot voting, phone interviews and focus groups to evaluate innovation, responsiveness and quality of service. NAI Global is the only commercial real estate network of independently owned and operated firms represented among the top five. This is the tenth consecutive year NAI Global has ranked in the top ten in the Lipsey Survey, four of which years NAI Global has been ranked in the top five.
The survey is conducted by The Lipsey Company, a leading training and consulting firm specializing in the commercial real estate industry. The 2015 survey results can be found here http://www.lipseyco.com/brand-survey.
As a member of NAI Global, NAI DESCO is proud that collectively, our strength and achievements are recognized by our industry, peers and colleagues and reflected in this year’s Lipsey Survey. NAI DESCO is a leading commercial real estate firm serving Central and Eastern Missouri and Southern Illinois. Founded in 2000 NAI DESCO has grown to a firm of 25 active agents with offices in Clayton, MO and O’Fallon, IL.
St. Louis, Missouri, January 30, 2012 — NAI Global, the global affiliate of local commercial real estate company NAI DESCO, announced that its previously reported acquisition by C-III Capital Partners LLC (C-III) has been completed. The transaction will help create a leading fully integrated commercial property services company that will operate in markets around the world.
NAI Global will continue to operate as a separate company under its current management. C-III will accelerate NAI Global’s growth by exploring business development opportunities in strategic locations, including New York, London, Singapore and other primary global business centers. It will also invest in the growth of the corporate solutions and capital markets offering, expanding asset/property management, project/facilities management and valuation services worldwide.
Mark Schnuck, president of NAI DESCO says the benefits of the acquisition are two-fold, “Our clients (NAI DESCO) will benefit from the strength of the relationships that will come from NAI Global’s new association with C-III.” He added, “In the real estate business, relationships are key and with this acquisition our network of contacts dramatically increases providing our clients with an expanded portfolio of opportunities. The infusion of resources, from financial to technology equipment and expertise, will enable NAI DESCO to pursue upgrades in services that will enhance our ability to meet and exceed the needs of our clients.”