NAI Global Executives
Bullish on Investment in Multifamily Property
Apr 23rd
Why are we so bullish on multifamily as an investment property? Multifamily fell off a cliff during this recent super recession. Multifamily vacancy rates are quite high. Of course it depends on what markets you are in, but vacancy rates are in double digits, low double digits or very high single digits in most markets. But we are only producing about 100,000 multifamily units. That’s not enough to even replace those units that are being burnt, destroyed, by floods, fires, etc. We need about 320,000 units a year for that. What really has happened to multifamily is that the loss of 8.5 million jobs has caused people to double up. Instead of forming new households, they are doubling up. More >
Tenants Looks More Closely at Landlord’s Balance Sheet
Apr 22nd
If you show me yours, I’ll show you mine-(balance sheet that is!)
Traditionally, financial information has flowed in one direction only. It was standard procedure for the Landlord to assess credit risk by reviewing the Tenant’s financial information before entering into a lease agreement. Nowadays, in this topsy-turvy market, the rules of the game are being rewritten by savvy tenants (and the brokers who represent them).
Tenants are taking advantage of leasing incentives right now, but they are not rushing in blindly. One of the most common scenarios of caution involves the tenant improvements, which are largely funded up front by the Landlord. Any delay or failure of the Landlord to deliver the premises as promised could be detrimental to the operations of the Tenant’s business. Even if the Tenant is released from the lease obligation, they would be hard pressed to find a new location on such short notice. More >
Choose Wisely – Tips for Selecting a Franchisee
Apr 21st
We are often asked whether it is better to work with large companies and conglomerates where your brand is just another spoke in the wheel or with young, hungry entrepreneurs. In working worldwide with leading franchisors, franchisees, retailers, landlords and companies large and small, I’ve seen start-up ventures get lost, delayed and mismanaged in big companies and entrepreneurs who didn’t have sufficient capital and resources to properly grow the brand. Finding a balance between these two extremes is critical.
Big or small, one area that should never be left to chance or dependent on the franchisee/partner is real estate. A new venture can ill afford one or two bad locations; this will kill the brand’s successful launch and introduction to the market. The ability to provide franchisees/partners with extensive global real estate expertise and resources needs to be among a franchisor’s core competencies and services. It is not a coincidence that the world’s largest F&B chain, McDonald’s, has historically devoted as much or more resources toward real estate development as franchise development. More >
Vacant Buildings and Land Gaining Popularity at Auction
Apr 20th
On March 23, I went from the NAI Global Market Outlook in New York City back to New Jersey to attend an auction in Woodbridge for five multifamily properties in New Jersey and Pennsylvania. I’ve been watching the auction scene very closely as we ramp up for upcoming NAI PowerSales™.
The results were good but they didn’t surprise me. All five properties sold during less than 25 minutes of active bidding, with three going to the same bidder. There were about 60 active bidders in a room with more than 200 people including brokers, reporters and curious spectators. Prices were good with some cap rates actually surprising. More >
NAI Global to Host Global Economic Outlook with Dr. Peter Linneman
Apr 16th
NAI Global is hosting its quarterly Global Economic Outlook web conference Friday, April 17 at 1:00 p.m. Eastern. Chief Economist Dr. Peter Linnemna will provide insight into the commercial real estate industry, the challenges we face in today’s economy, the impact of the PPIP and TALF/TARP programs, what defines a “bottom” and where we go from here.
Register now to attend this free, live web conference by clicking here.
The iPad Ain’t Much… or Is It?
Apr 16th
Early first blush from the non-Apple PC community is that the iPad is pretty, but not much included and no one can really figure out what it does besides reading a book. It is not really a computer, you can’t use it as a cell phone, and it’s too big to fit in your pocket. And the real price after adding likely needed capabilities is closer to $1,000, not $500.
But what this means to commercial real estate professionals is that this is a noteworthy first shot in interesting remote computing to assist CRE professionals and service providers in a variety of tasks in the field, instead of being chained to their desks back at the office. Typical smart phones and PDA devices have just been too small to really see enough information on tiny screens. A tablet type PC would finally allow people in the field, sitting at an airport or train station, or walking around a new property doing a BOV and condition assessment, to do their work more quickly and efficiently on a device easily carried in a briefcase or handbag. More >
NAI Global Promotes 4 Senior Executives
Apr 14th
NAI Global, the world’s premier network of commercial real estate firms and one of the largest real estate service providers worldwide, announces the promotion of four key members of its management team.
Rhyne Brown has been promoted to Executive Vice President of Client Development. Brown manages NAI Global’s North America Sales Team and is part of a team driving NAI business development strategies and actions. He was previously Senior Vice President of Client Development. More >
Effective REO Strategies
Apr 14th
One distinguishing feature of banks and servicers that do a good job in selling notes and REO is that they develop an effective strategy to respond to offers once they are received. Selling the bank’s interest in distressed assets places many banks into a situation that requires a higher level of responsiveness to close a transaction than banks are used to. Banks are not built for speed, they are built to ensure that risk is property identified and to try and insure good investment decisions for shareholders.
When offers come in the marketplace assumes a timely reply. There are a limited number of quality buyers with the equity and depth to close in the market. We have seen quality offers to buy REO assets fail because a bank could not act or even reply in less than 60 days. Our advice to the banking community is to have a process that answers or rejects offers in 10 days or less. As all those contracts say, “time is of the essence.” More >
NAI Global Forms Project Management Unit
Apr 14th
Melina, Tuck Join NAI Global to Lead New Project Management Services
NAI Global, the world’s premier managed network of commercial real estate firms and one of the largest real estate services providers worldwide, announced today it has formed a new business unit to address growing client demand for Project Management Services.
Operating within NAI’s Corporate Services group, NAI Global Project Management Services offers comprehensive project management solutions from initial strategic planning through to build-out and move-in. David Melina and Fred Tuck, industry veterans with over 55 years of combined experience, have joined NAI Global to lead the new operation. They both are based in NAI Global’s New York City office. More >
