Commercial Real Estate Prices

The Connection Between Average Homeowners and Commercial Real Estate

Posted on Wednesday, August 31, 2011

Introduction We all know all too well that there are troubles in housing. Folks cant afford to pay their mortgages and homes are going into foreclosure. But what about commercial real estate, the shopping centers, office buildings and warehouses local industry and the economy rely on? You see ...

Distress in Commercial Real Estate Sector Maintains Plateau

Posted on Thursday, May 05, 2011

The research firm Delta Associates says distress in the commercial sector is maintaining its plateau. The company’s analysts report that despite a $5 billion increase in the volume of commercial properties in foreclosure and lender REO over the last two months, the level of distress has remained i...

Commercial Real Estate Prices Fall Again Amid High Volume of Distressed Assets, Although Overall Rec

Posted on Monday, April 04, 2011

Although commercial real estate prices dipped in December and January after three straight months of gains, they are up 4.2 percent from an eight-year low in August, and the overall trajectory for a commercial real estate recovery remains positive, according to reports this week in Commercial Real E...

Interest rate swap

Posted on Tuesday, March 22, 2011

A swap is a derivative in which one party exchanges a stream of interest payments for another party's stream of cash flows. Interest rate swaps can be used by hedgers to manage their fixed or floating assets and liabilities. They can also be used by speculators to replicate unfunded bond exposur...

Commercial Real Estate Coming Back, but Unevenly

Posted on Monday, February 07, 2011

Commercial property took less of a drubbing than residential real estate in the recession but still faces a long and painful recovery. Banks have already taken $80 billion in commercial real-estate losses—about half of what they are expected to take as a result of the recession, according to the Fe...

Dramatic Decline in Hotel Capitalization Rates Reflects Shift in Market Sentiment

Posted on Thursday, January 27, 2011

The increase in hotel transactions and low cost of debt and equity have driven down rates of return to pre-recession levels. This article sets forth an overview of recent hotel cap and discount rate trends and provides an outlook for 2011. The hotel investment market has taken a 180 degree turn ove...

Foreign Investors Rank U.S. No. 1 in Commercial Real Estate

Posted on Saturday, January 15, 2011

The U.S. commercial real estate market is ranked the No. 1 choice for investment this year and viewed as the best opportunity for price appreciation, according to a survey of foreign investors by the Association of Foreign Investors in Real Estate (AFIRE). More than 60% of respondents indicated t...

THE ECONOMY & COMMERCIAL REAL ESTATE

Posted on Saturday, January 15, 2011

Fed’s Beige Book: Continued Pockets of Economic Distress, but Definite Signs of Recovery; Commercial Real Estate on the Mend, But Not Out of Danger Yet The Federal Reserve’s Jan. 12 “Beige Book” — intended to help guide the Federal Open Market Committee (FOMC) when it next discusses monetary polic...

Some Good Signs Appear in Commercial Real Estate

Posted on Wednesday, January 12, 2011

The commercial property market is an interesting economic indicator, shedding light on the overall strength of a metro economy — which segments are doing the best, and what is valued the most by job-creating businesses. The signals are mixed in the Bay Area, but they do suggest that a rebound is und...

2 Major Indicators

Posted on Wednesday, December 08, 2010

There are two major, recognized price indices for commercial property. The Moodys/REAL Commercial Property Price Index (CPPI) tracks price changes for commercial real estate properties1. The index methodology is based on the analysis of completed sales transactions through repeat-sales regression an...

Survey: CRE Down Payments Shut Out 1 in 5 Small Business Owners

Posted on Tuesday, November 02, 2010

Many a pundit has argued that the key to economic recovery can be found in small businesses. Distressed conditions in the commercial real estate market combined with historically low interest rates present an opportunity for small business owners looking to grow their businesses, but many are findin...

Moody's: U.S. Commercial Real Estate Prices Fall to New Cycle Low

Posted on Thursday, October 21, 2010

BY: CARRIE BAY Hearing declarations that recovery has taken hold in the commercial real estate sector, with property values and fundamentals on the upswing? Hold up – not just yet. Commercial real estate prices have slipped again and are now the lowest they’ve been since the beginning of...

Some Say Satabilizing, Banks selling CRE Assets

Posted on Monday, October 04, 2010

Stabilizing operating conditions, firming values and strengthening recovery rates will inspire lenders to increase their disposition of distressed properties, though a flood of liquidations will not occur. Many lenders extended loans or warehoused reclaimed assets through the downturn, waiting for v...

Price Waterhouse Survey

Posted on Thursday, September 23, 2010

Investor Appetite Strengthens for Core Assets, According to PricewaterhouseCoopers' Korpacz Real Estate Investor Survey® Market Uncertainty and Minimal Leasing Velocity Drive Flight to Quality For Commercial Real Estate Investors Average Overall Cap Rates Decrease in 26 of the Survey's 31 ...

Update

Posted on Wednesday, May 19, 2010

Commercial prices were down 5% in March, Almost 30% from March of 2009. And almost 50% from the peak....

Small Business Owners; Should You Lease or Rent?

Posted on Friday, April 23, 2010

Either way nows a great time. There's plenty of selection and the price is right. Lenders are also tripping over themselves to find deals that can get approved by their underwriters and owner-occupied CRE is at the top of the list. If you own your own business and want to buy an owner - occupied pr...

Conerns for 2010

Posted on Tuesday, April 06, 2010

Even Elizabeth Warren, head of the Congressional Oversight Panel overseeing TARP, is worried that about half of all commercial real estate mortgages will be underwater, and most are concentrated in regional banks. 2,988 banks are at risk over the next three years. Comptroller of the Currency ...

Investors

Posted on Friday, March 12, 2010

Private equity investors at the moment seem to be looking for deals with a 1 year to 18 month hold period and 25% IRR. Banks on the other hand are looking for investor slooking for deals with a 5 year hold period and 15% IRR. Hence there are not to many deals getting done...

December 2009 Looked Good But Banks Still Looking Down

Posted on Wednesday, February 24, 2010

Funny how you can pick up any paper today and read two or more articles related to the many indicators we rely on and predicting vastly different recovery time lines, patterns and outcomes. For example, on the one hand, CRE transactions were looking good in December, leading some to at least hin...

The February 10, 2010 Congressional Oversight Panel report on Commercial Real Estate Losses and Ri

Posted on Wednesday, February 24, 2010

The February 10, 2010 Congressional Oversight Panel report on Commercial Real Estate Losses and Risk to Financial Stability includes some noteworthy updates and new information and brings to mind some other factors that should be kept in mind but may not be obvious when considering the state of th...

Past Performance, Future Predictions

Posted on Tuesday, February 23, 2010

After 13 months of consecutive declines, overall commercial property values climbed 1%, according to the most recent monthly reading by Moody's/REAL Commercial Property Price Index. Estimates published last November by the Urban Land Institute and PricewaterhouseCoopers suggest that commercial real...

Decent Year End Numbers

Posted on Tuesday, February 23, 2010

Its seems commercial prices increased 4.1 % in December. This is a big increase relative to the past 10 years or so and is the second increase in a row. The number of deals also rose…over 75%. And the dollar value of the total deals was also up…a lot. But my personal feeling, and this is base...

Florida CRE Opportunities

Posted on Wednesday, February 10, 2010

A New Decade, a New Opportunity; Florida's New Frontier for Commercial Real Estate in 2010. It’s no secret that Florida is one of four states that has borne the brunt of the residential real estate bust. As we now move forward into a new decade, a once-in-a-lifetime opportun...

Loan Maturity

Posted on Thursday, December 31, 2009

For anyone who questions whether or not there is a looming commercail real estate crisis... Just under $400 billion in CRE matured this year and we are already seeing issues...many are only in the beginning stages of the default and forelcosure process now. Many presumed workouts will fail. A...

Commercial Indicators

Posted on Tuesday, September 01, 2009

If progress can be measured by folks wanting to participate in yet another bailout initiative then progress seems clear for the TALK program. Investors asked the Feds for $2.3 billion to be collateralized by those all too hard to sell/until Uncle Sam’s paying no one wants to buy CMBS created before...

Tips for Commercial Property Owners and Investors on How to Weather the Storm

Posted on Sunday, August 02, 2009

In the world of commercial real estate, it’s starting to rain cats and dogs. Winds are stirring from three inter-related directions; First, tenant stability, income and occupancy levels; Second, pressure from lenders; and, Third, preservation of asset valuation. But there are steps some prope...

Discounts On Re-Sale of Lender Commercial REOs

Posted on Thursday, June 18, 2009

Here's a quick recap of some of the ruors floating around out there about the extent to which lenders are discounting prices on the sale of commerciall REOs.... Miami-Dade County: Aventura: Bank-owned condo reduced by 52 percent. Bal Harbour: Bank-owned, oceanfront condo reduced by 33 percent....

Prices

Posted on Wednesday, January 14, 2009

I just read a prediction today that the commercial real estate market will worsen over the next two plus years. That I can see since that market's been lagging a few years behing residentil all along. But also predicted was that residential real estate prices two years from now will be less than the...

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