Commercial real estate prices posted major gains in July across all segments to further support the widely held view that we are at the beginning of a broad based recovery. The two broadest measures of property pricing in this month’s CoStar’s Commercial Repeat Sales Indices (CCRSI) shows big gains for both high end investment grade properties…
As prices get stupid for the product of choice – the triple net or absolute net, S&P BBB or better, single tenant retail, it starts pulling up secondary and tertiary markets and slightly weaker credit single tenant retail. Multi tenant won’t be far behind. We’re now in a broad based recovery that is pulling the…
I’m going to do a real quick, hopefully brief ‘Cliff Notes’ summary of these two important documents. This of course applies to not only retail, but any commercial transaction where there is a tenant and a lender involved. Anyone who has survived the commercial loan process knows about these two documents. Tenant estoppels and SNDA…
I attended a seminar last week sponsored by the Columbus Board of Realtors with one of our largest regional banks, and I want to disseminate some of what I heard. Banks once again have production goals, so that could benefit you , the investor or owner user, IF you fit their profile. Huntington Bank as…
True, many banks are still working through their distressed property pipeline, but many have recently decided that it’s time to jump back into commercial lending, and yes, even for development and construction financing. It must be noted though that this is one area that brought down more banks during the downturn than any other. The…
It was just announced by Mark Heschmeyer at CoStar News that Blackstone, DRA Advisors and AEW Capital invested in large industrial portfolios valued at a total of $1.5 billion. That’s over one third of all industrial sales completed this year. The industrial segment has been healing nicely this year with vacancy falling almost a full point…
Dublin Ohio’s 800 acre core has been slated for a massive redevelopment effort along Bridge Street from Frantz Road to Sawmill Road. Now, Dublin has a plan that will redevelop the corridor “into a mix of high density uses – an urban, walkable community that will include new options in housing, entertainment, retail and areas…
As primary markets get ridiculously overpriced and the much preferred single tenant, triple net or absolute net corporate leased retail properties more and more unavailable, investor focus is shifting to secondary markets such as this one, Columbus, and Seattle Dallas, Phoenix and even Detroit. Solid deals are around in these markets and with interest rates…
It’s a mix of both moderately good news and some bad news. Starting with the bad news is that we had a major drop off in construction and development funding from $321 billion last to $240 billion this year. I was pretty optimistic back during the second and third week of January when I was…
Commercial real estate lenders are expecting to build on a very good 2011 with a stronger 2012. Barring international shocks such as a war with Iran or disruption in oil supplies, 2012 should see a loan volume in the range of $230 billion, up 17% from 2011, and continue to rise to $290 billion by…
For the first time in five years, a majority of banks are considering growing their loan portfolio due to improving conditions in just about all sectors of the economy. There’s neither an overwhelming consensus nor a large gain in activity, but most banks feel that they are through the worst of the write downs and…
Given that fee simple, single tenant, single parcel, national credit, long corporate triple net or absolute net leased retail opportunities are as hot as they are for 1031 exchanges, buyers are looking at alternatives such as purchasing leasehold interests or a fee simple ground lease. I’ll cover leasehold interests in this post and get into…
I’ve written several times in the past year about the September 2010 newly launched SBA 514 program, and like so many government programs as of late, has been a failure. How could this happen so quickly? It has gone in one year’s time from considerable fanfare in September 2010 to dormant today. Only about $50,000,000…
The CRE burden eases to the nation’s 7584 insured banks and thrifts. The total of distressed commercial real estate assets are $171 billion and that’s only 1.3% of all bank assets. As distress eases, banks set aside fewer dollars to deal with losses, and funds available for lending will increase. This is the sixth consecutive quarter…
The recovering capital markets are helped by the improving economy and consistent job growth. Manufacturing is expanding and corporate profits are up strongly so the spigot is on again. Life companies are quite active again; new CMBS offerings and syndicators are assembling new CDO offerings. Even commercial banks are reporting loosening of commercial lending standards…
Although, I’ve written about this in February, I thought it might be a good time for reminder, that as of April 6th the SBA Small Business Administration will open its 504 refinancing option to businesses with commercial real estate balloon payments due after that date. “With the collapse of the real estate bubble, many small business…
This is a tale of two very different worlds. Moody’s Investor Services reports that larger properties in major markets are recovering nicely while distressed properties remain well off of their October 2007 peaks. The Moody’s/REAL Commercial Property Price Index (CPPI), demonstrates a major variance in property values depending on asset quality. The CPPI shows prices…
Outstanding commercial debt fell by $12.1 billion in fourth quarter 2010. It was the fifth consecutive quarterly drop since the recession began, although the decline was less severe than past quarters as lenders get back into the game. blogs.wsj.com – Developments – Commercial Real Estate Debt Levels Fall Again
CMBS activity is way up with $6.5 billion in new securitization coming to market in the last few weeks. The activity to date in February is 2/3rds of the total CMBS deals offered for all of 2010. Additionally, Freddie Mac brought two multifamily offerings totaling $1.86 billion to market. This is reminiscent of 2006 and…
The United States SBA for the first time is allowing for the temporary extension of the 504 loan program to allow refinancing of existing commercial real estate debt. The SBA will start accepting loan applications Feb. 28. The program will end Sept. 27, 2012. Much more detail at the link. SBA 504 Loans Approved for…