Posts tagged Economy
Realtor Rally 2012: We were there!
NAI FMA Realty’s President Drew Stange was one of the 14,000+ Realtors in attendance at the National Association of Realtor’s (NAR) Rally to Protect the American Dream in Washington, D.C. on May 17th. Click here to see a picture from the Rally FanCam with Drew in the middle!
The Realtor Rally was part of NAR’s legislative outreach and provided opportunities for Drew and other Realtors to speak directly to our Congresspeople on specific issues facing property owners today. Why was this rally important? NAR reports that approximately $60,000 is pumped back into the economy with every home sale. Businesses want to be in a market that is vibrant and small businesses depend on a healthy housing market. All reasons why NAR advocates on behalf of Realtors and the communities they live in.
Congress heard from our representatives on a number of issues but those specifically affecting the commercial real estate market were:
- Further extension of the National Flood Insurance Program (NFIP) which provides affordable flood insurance. Floods are not just a costal issue; flood disasters have been delcared in all fifty states, and commercial properties are affected no less than residential. Take for example the floods last summer along I-29. NAR urges Congress to take up a five-year NFIP reauthorization measure to remove the uncertainty that has plagued the program as of late.
- Need for liquidity in the commercial real estate and multifamily markets. A shortage of available credit to small businesses and property owners can be by expanding credit unions’ small business lending and to create a covered bond market. A large wave of loans are set to mature in a few years and can result in higher loan defaults and delinquncies. Expanding access to credit is critical to allowing for further economic recovery.
NAR and Realtors…collectively working to keep the communities that we all live and work in vibrant.
NAI Global Chief Economist Dr. Peter Linneman just released his latest white paper titled Beware of Inflation.
In his latest white paper, Dr. Linneman questions how it is possible not to have inflation in the U.S. economy when healthcare and commodities prices are rapidly increasing and Federal and State governments are running record deficits. Dr. Linneman examines the impact of CPI increases, the Federal Reserve’s monetary policy, government deficits and other factors that will lead to massive inflation in the US economy.
The white paper analyzes the impact that inflation will have on commercial real estate, forecasts the direction of interest rates and provides investment and financing strategies for property owners seeking to shield themselves from inflation’s destructive power.
Dr. Peter Linneman, NAI Global’s Chief Economist and Principal for Linneman Associates, stated in his quarterly economic outlook seminar yesterday that the dynamics are in place to see a surge in the US economy. He sighted a number of positive signs that conditions have stabilized and that will help create a surge by year’s end:
- 1,000,000 jobs were created
- Retail sales are up
- Pent-up demand for new households
- Corporate profits are at all-time highs though very few are distributing it in the form of dividend payments, stock buy-outs, etc.
- Households and businesses that were very leveraged by 2007 have now decreased their debt to show improved finances and balance sheets
Job growth is key. As jobs are created, new households form, consumer confidence rebounds, corporate profits go up and the economy stabilizies. The momentum building so far points to a hopeful outlook for 2011.
To participate in the next Global Economic Outlook web conference with Dr. Linneman, mark July 13, 1-2 pm EDT in your calendar.
Business activity in the U.S. unexpectedly accelerated in September, a sign manufacturers are still at the forefront of the recovery. To read the entire article, click here. (Source www.bloomberg.com. Picture by Jim R. Bounds.)
Capitalization rates averaged 7.22 percent in the second quarter, or 4.29 percentage points higher than the yield on 10-year government bonds. Read more..
(Source: REALTOR® Magazine-Daily News)
Rent discounts and other favorable conditions in commercial real estate markets make it a good time for expansion moves by businesses, a NAR report suggests. Read more…
(Source: REALTOR® Magazine-Daily News)
PRINCETON, NJ, June 22, 2010 – 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.
NAI Global, the world’s premier managed network of commercial real estate firms and one of the largest real estate services providers worldwide, has a presence in markets all along the Gulf Coast, including New Orleans, LA, Pensacola, FL, Mobile, AL, Fort Myers, FL, and Houston, TX.
While there is no questioning the potential environmental impact, Dr. Linneman, NAI Global’s Chief Economist, suggests that political activists are inflating the economic impact of the oil spill, and that the impact on the Gulf Coast’s economy in general and real estate in particular will probably be minimal.
“This spill is the most overhyped problem we’ve seen in the past six months,” said Dr. Linneman. “The overall economic impact to the nation will be trivial.”
Forbes.com recently ranked Lincoln #9 out of 200 mid-sized metropolitan areas for being one of “America’s Most Livable Cities”. Out of all of the 200 cities surveyed, Lincoln had the lowest unemployment rate at 4.9%. Omaha ranked #5.
Angelos Angelou, the founder of AngelouEconomics, answered questions on the current state of site selection for Forbes.com. In one of the questions where he was asked what metro areas are site selectors finding attractive, he mentioned Lincoln as one of the top metro areas. The other metro areas were Albuquerque, Austin, Colorado Springs, Nashville, Phoenix and Atlanta.
Angelou Economics was hired by the city a few years back to provide input towards the city’s economic development efforts. I think he has given some valuable information to the city on how to develop a solid economic development plan to attract new businesses to the area.
Join NAI Global Chief Economist Dr. Peter Linneman for a discussion on the economic recovery, the big lessons we’ve learned over the past 10 years, when jobs will return, why 2010 is a point of inflection for commercial real estate and why inflation is the big wildcard. Dr. Linneman will also be available to answer your questions during this free event. Register today!