If it’s one thing that markets hate, especially commercial real estate, that’s uncertainty. Also, election really matter and this one made the situation more uncertain. In fact, it’s going to be worse than it has been in the prelude to the election given that Obama still holds the Whitehouse and the Democrats the senate and…
The National Association of Realtors sums it up pretty well in the attached August 2012 Commercial Real Estate Outlook when they opine that the economy has gone on vacation. That’s pretty much how I would describe it too. True, the triple net or absolute net, single tenant, national investment grade credit tenant retail is still…
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…
Below is the first post in my series regarding retail as a triple net or absolute net tenant. I get most of my calls from investors looking for exactly the same property type backed by the same type of lease. The commercial real estate flavor du jour is a triple net retail, single tenant, single…
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…
CoStar’s monthly National Composite Index of Commercial Real Estate posted gains in eight of the last nine months for January 2012. True, it’s March 15, 2012, but it takes them around 45 days to get the numbers out to us. With the gain in January the national composite index is now 1.9% above January last year….
Randyl Drummer from CoStar news writes, and I agree, that retail rents will begin to rise this year. It’s not so much a huge increase in demand as much as there is virtually no increase in supply. The supply / demand balance is tipping in favor of the landlord. Construction financing is still a pain…
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…
It’s back! Business is cranking again and the phone is ringing. CoStar news reports that the dollar volume of commercial real estate transactions are back up to historical long term average and that’s with a lousy third quarter 2011, due mostly to the debt limit impasse That’s a total of $291.6 billion last year, which…
The unseasonably warm January weather has helped keep many of the new Columbus Ohio commercial real estate downtown projects on or ahead of schedule. Walker Evans from Columbus Underground brings us up to date on many new downtown projects such as the new apartments at Grandview Yard, The Columbia Gas Building, FBI Building, Nationwide Offices, Hilton…
This came up twice this morning while talking with clients so I thought maybe I should try to bring a little clarity to this again since it’s about 50 posts back. Under IRS Section 1031, cash or other non-like kind property actually or constructively received by the taxpayer in a tax deferred exchange (commonly referred to…
CoStar’s monthly National Composite Index of Commercial Real Estate increased for the seventh consecutive month in November 2011. I know its January 19, 2012, but it takes them around 45 days to get the numbers out to us. Leading the price recovery again has been investment grade property. There’s nothing new there as I’ve been writing…
I think 2012 will be a considerably better year for commercial real estate and an improved year for single family residential. I’m working with out of state retail buyers looking for out of state, single tenant, triple net leased or preferably absolute net leased with a long corporate lease, so in this manner, business is getting…
This is old news that this was coming given what the banking industry has been through over the last 3 ½ years. However, since I have several clients looking at buying bank branches with some of these folks as tenants, I thought it would be a good idea to put this out there. S&P has…
I’ve written plenty about triple net, in fact absolute net, single tenant, national credit, long corporate lease retail over the last few months, but what if the purchase is for a buyer under the gun of a 1031 upleg. I’ve known buyers under a bunch of stress during this process It’s actually a very good…
This is a follow up to what I posted back on the 13th. I’m not going to editorialize too much on this article from Mark Heschmeyer at CoStar News, but to second what’s he’s saying in that this segment of the market, single tenant, NNN, long corporate lease, is real hot and real competitive. …
Here’s another one from Mark that follows on what I just wrote in the last post. And by the way, I need this kind of product for both buyers and from sellers. See my contact page. It’s the cheap money, decent returns and relative safety that’s driving this market. Costar has confirmed $29 billion in sales…
There’s plenty of money out there, but with a huge aversion to risk. Question is where to put it. You can’t make anything on money market, bond yields are way down, Europe is still in meltdown, stock market is all over the place so what’s left. Single tenant, single parcel, NNN absolute, corporate backed long…
The CMBS recovery was coming along so strongly in the first two quarters of 2011 that conservative estimates were $35 – $40 billion and some predictions as high as $50 – 55 billion in originations for the year versus $10 billion for all of 2010. Then we had the stock market, job growth and debt…
This has become an annual legislative fight since the Democrats regained control of congress in 2007. Just the uncertainly alone casts serious doubts and further delays the commercial real estate recovery. This is not a matter of nudging a rate two or three percent, but instead from 15% to 35% on the carried interest portion…