Headlines
Economic Update - Glimmers of Recovery on the Horizon
Aug 10, 2009
In news that caught most everyone's attention on Friday, the U.S.
Department of Labor said that the nation's unemployment rate actually
went down 10 basis points in July, to 9.4 percent. It's being called a
sign of stabilization because monthly changes in the unemployment rate
that small tend to be revised out of existence eventually, but at this
point, "stabilization" looks pretty good.
Economic Update - Deutsche Bank Offers Grim View of U.S. Mortgages
Aug 07, 2009
Like a trailer for a monster movie, a new report by Deutsche Bank is promising scary things in the not-too-distant future. Assuming that housing prices continue a decline, the percentage of underwater mortgages might rise to 48 percent of the total, or roughly 25 million loans, by the first quarter of 2011. The bank is predicting that U.S. home prices will decline a further 14 percent from current prices by the first quarter of 2011.
U.S. Chain Store Sales Down 5% in July
Aug 07, 2009
Leaner inventories and a shift in state sales-tax holidays hampered
U.S. chain store sales in July, which were off 5 percent on a
same-store basis, compared with the same period last year, according to
the International Council of Shopping Centers.
Multi-family Mortgage Originations Down 54 Percent from Same Time Last Year
Aug 07, 2009
Commercial and multi-family mortgage originations haven’t escaped the trickle down of the recession and the credit crunch, with volumes 54 percent below last year's second quarter and 83 percent below the peak seen in the second quarter of 2007, according to the Mortgage Bankers Association's Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
Economic Update - Roundtable Survey Finds CRE in Poor Mood
Aug 06, 2009
The latest quarterly survey by the Real Estate Roundtable, released
Wednesday, found the commercial real estate sector in a funk, squeezed
by poor financing prospects, decreasing valuations and lower demand for
commercial real estate of all varieties.
Exclusive Yellowstone Club Sells for Only $115M
Aug 06, 2009
Bargain prices for namebrand merchandise. No, it isn’t a sale at Macy’s
or Nordstrom, it is the market for resort properties. The sale of the
exclusive ski lodge for the rich and famous in Big Sky, Mont. – the
Yellowstone Club – was finalized this week for $115 million. Reports
show that the resort could have sold for somewhere around $400 million
just a year ago.
SL Green Lands $145M for Refinancing of NYC Office High-Rise
Aug 06, 2009
Flying in the face of the still chilly credit market, SL Green Realty
Corp. has managed to get its hands on a $145 million leasehold mortgage
for the refinancing of the 1.2-million-square-foot office tower at 420
Lexington Ave. in Midtown Manhattan.
Economic Update - MIT/CRE Index Takes Hit in 2Q09
Aug 05, 2009
Commercial real estate took a drubbing in the second quarter, according
to Massachusetts Institute of Technology Center for Real Estate, whose
index tracking commercial properties sold by institutional investors
dropped 18.1 percent during 2Q09. The index is down 32 percent from the
end of 2Q08, and 39 percent from its mid-2007 (that is, bubble) peak.
CBRE Investors: The Time to Buy is Now
Aug 05, 2009
For the most part, the investment community has been holding back on
commercial real estate acquisitions, waiting and waiting for the market
to hit bottom. But according to a new report by CB Richard Ellis
Investors, while the bottom may not be at hand just yet, it's close
enough.
Fitch Ratings: Large Hotels Defaulting on Loans at High Rate
Aug 05, 2009
As the commercial real estate market continues its downward decline, a
new Fitch Ratings report indicates that large hotels lead loans of
concern for U.S. CMBS with eight newly defaulted loans greater than
$100 million entering special servicing, according to Fitch’s 'What's
in Special Servicing' U.S. CMBS report.
NJ Company Breaks Ground on Cold Storage Facility in China
Aug 04, 2009
Ground has broken on a 280,000-square-foot refrigerated warehouse at
Lingang Logistics Park in Shanghai, China, for Newark, N.J.-based
Preferred Freezer Storage. For China, the property will become the
country's largest and most sophisticated single-story cold storage
facility. For PFS, the build-to-suit structure marks the company's
entrée into China, as well as the beginning of its pursuit to
accommodate the burgeoning demand for cold storage facilities across
the country.
Sustainability Issue Holds Strong, RICS-CPE Report Finds
Aug 04, 2009
Though the intensity of the economic crisis may be in the process ofdiminishing, it continues to have a vice-like grip on countries aroundthe world. Yet for the commercial real estate industry, investment insustainability remains a priority--although not necessarily for themost altruistic reasons. According to the second quarterly RICS-CPEGlobal Commercial Property Sustainability Survey, despite financialchallenges, real estate industry players remain willing to pay money togo green today, particularly with regard to energy consumption, inorder to benefit from cost savings tomorrow..
More CRE Investment Projected for Remainder of Year
Aug 03, 2009
Foreign real estate investors project their investments for the rest of 2009 will substantially out-strip investments completed year-to-date,while equity investors expect they will place seven times more than current year-to-date investments, according to the results of a recent survey released by the Association of Foreign Investors in Real Estate.
McKinsey: Green Building Can Save US $1.2T
Jul 31, 2009
Investing in energy efficient buildings now will lead to as much as
$1.2 trillion in savings by 2020, according to a new study from
McKinsey & Co. In its new report, Unlocking Energy Efficiency in the U.S. Economy,
the management consulting firm forecasted just how valuable aggressive
green construction could prove to be for the United States.
Economic Update - Disney Weighs in on the Economy
Jul 31, 2009
Is Disney a major lagging indicator for the U.S. economy? Maybe. In any
case, Walt Disney Co. CEO Robert Iger sounded like a central banker on
Thursday during the company's second-quarter conference call: "We do
see signs of economic stabilization, but the pace and strength of
recovery remain uncertain, and we are managing accordingly," he said.
Office Vacancies Reach Highest Point in Four Years
Jul 30, 2009
U.S. office vacancy rates have reached their highest point in four
years, and rents are falling as a result, according to a report from
Cushman & Wakefield Inc. Vacancies reached 13.7 percent at midyear,
matching second-quarter 2005 figures, though they still trailed the
decade high of 15.5 percent, reached in the second and third quarters
of 2003.
Economic Update - Could Be Worse, Says Fed
Jul 30, 2009
The latest Beige Book from the Federal Reserve is out, and the
message is that the economy is still fairly bad, but not quite as bad
as it was, or could be. Employers are still laying workers off, but not
as quickly as before. Lenders are still reluctant to lend and borrowers
are still reluctant to borrow. but there's a modicum of activity.
Regarding real estate, some member banks--Atlanta, Cleveland, San
Francisco--reported rising real estate loan delinquencies.
$2.2T of Properties Currently at Risk, RCA Warns
Jul 30, 2009
There's a great deal of trouble on the horizon for a bevy of commercial
property owners faced with near-term refinancing needs--about $2.2
trillion in trouble, according to a new U.S. Capital Trends report by
global commercial real estate research firm Real Capital Analytics. The
practically inconceivable figure represents the properties purchased or
refinanced after early 2004 that have since experienced a decline in
value--a decline that will make the challenge of securing refinancing
in the inhospitable credit market all the more difficult.
New Firm Banks on NYC Multi-Family Market
Jul 29, 2009
The current economic climate is certainly putting a drag on many in the
commercial property business. But Kevin Salmon is betting that now is a
time of opportunity. To that end, Salmon has launched Salmon and
Marshall Real Estate Investments, a new firm that will provide
investment sales and consultation services in Manhattan’s apartment and
condominium markets.
Economic Update - Home Price Uptick? Sort Of
Jul 29, 2009
On the heels of news Monday that new home sales were up a little, home
prices inched up as well--at least, those measured by the Standard
& Poor's/Case-Shiller Home Price Index in its raw form. In May, the
index, which measures prices in 20 metropolitan areas, rose 0.5 percent
over April, following a 0.6 percent drop the month from March to April.
The movement is notable as the first time the index has moved up in
three years.
$1B HUD Infusion Could Give Jump to Stalled Affordable Housing Projects
Jul 29, 2009
When the credit markets froze, so did the development of much-needed
affordable housing across the nation, but the U.S. Housing & Urban
Development is making strides in tackling the issue. The agency, acting
through its new $2.25 billion Tax Credit Assistance Program, which is
funded via the American Recovery and Reinvestment Act of 2009, has just
approved the second dispensation of approximately $1.2 billion to state
housing finance agencies in 26 states to finance the resurrection of
various affordable rental housing programs.
Economic Update - New Home Sales See Uptick
Jul 28, 2009
New single-family home sales recorded an uptick in June, increasing 11
percent compared with May, to an annualized rate of 384,000. It looks
like a little pent-up demand for new homes is being unleashed,
especially since prices are still falling. The Commerce Department also
reported that the median price for a new house stood at $206,200 in
June, down 12 percent from last June.
$4.2B Semiconductor Facility in Upstate NY Likely to Spark New Opportunities
Jul 28, 2009
After three years of Silicon Valley-based GlobalFoundries and the State
of New York working together to lay the financial groundwork,
construction of GlobalFoundries' $4.2 billion semiconductor wafer
manufacturing facility at the new 1,400-acre Luther Forest Technology
Campus in Malta, N.Y., has just commenced. Officials expect the
GlobalFoundries development to create 1,400 new manufacturing jobs, and
they are keeping their fingers crossed that the 1.3-million-square-foot
Fab 2 will spur additional investment in the area.
Economic Update - Four More Years for Bernanke?
Jul 27, 2009
Economist Nouriel Roubini, also known as Dr. Gloom (or is it Dr. Doom?)
for his voice-in-the-wilderness prediction of the soon-to-pop bubble
back during the bubble's expansion phase, opined in the New York Times
on Sunday that Federal Reserve chairman Ben Bernanke deserves another
term after his current one expires in January, crediting him with
"decisions [that] prevented the Great Recession of 2008-2009 from
turning into the Great Depression 2.0."
Renovated Historic Building an Example of Condo Developers Thinking Outside the Box
Jul 24, 2009
In today's stalled condo market, many developers are looking for creative ways to attract buyers. To that end, Emanon Equities, a Long Island-based real estate development and construction firm, and Ramsgard Architectural Design have turned The Seitz Building, a collapsing historic building in Downtown Skaneateles, N.Y., into a luxury mixed-use condominium complex.
In Face of Rising Vacancy, Seattle Sees Biggest Office Renewal of Year
Jul 24, 2009
Despite more than 2 million square feet of new product completed this
quarter, Seattle’s office market saw one of the largest leases this
year when international law firm Perkins Coie L.L.P. renewed its
269,000-square-foot lease at 1201 Third Avenue, a 55-story tower in the
heart of the city’s Central Business District.
Economic Update - Housing Treads on the Bottom?
Jul 24, 2009
Could spring 2009 have been the housing bottom everyone has beenwaiting for since the pop of the bubble? Residential real estatespecialists hope so. According to the National Association of Realtors,U.S. existing home sales were up 3.6 percent in June to an annualizedrate of 4.89 million. That's more than economists were predicting, andthe most since October 2008.
Economic Update - Fed Paying Attention to CRE Time Bomb
Jul 23, 2009
Federal Reserve Chairman Ben Bernanke, wrapping up two days of
testimony to Congress on Wednesday, talked about a number of weighty
economic issues, including concerns about commercial real estate. The
ticking time bomb analogy didn't come up--pundits talk that way, not
central bankers--but the commercial real estate debt problem
nevertheless got a fair amount of attention.
With $210M Fund, Marcus Capital is Latest Firm to Seek Investment Bargains
Jul 23, 2009
Looking to take advantage of the current bargains to be had in the
investment market, Boston-based real estate investment firm Marcus
Partners has closed Marcus Capital Partners Fund I with $210 million in
capital commitments. The fund will cast a wide net, pursuing
diversified investments including office, bio-medical, medical office
and light industrial properties.
Parker, DEXUS Ink Medical Firm to 146,400SF California Lease
Jul 23, 2009
Making a splash in the sluggish office leasing market, medical
manufacturer Advanced Bionics has just signed a 10-year deal for
146,400 square feet of space in Santa Clarita, Calif. According to the
landlord, the office lease is Los Angeles County’s largest of the year
thus far.
Is East Asia's Vertical Retail Model Wave of Future for U.S.?
Jul 22, 2009
Vertical retailing--building retail destinations higher instead of
wider--has long been a success in cities like Hong Kong and Shanghai,
but the trend has yet to catch on in the United States. However, given
the country's growing population and dwindling pool of developable land
in major cities, the time may be just right for the nation's
metropolises to jump on the bandwagon, or so believes Charles Chan,
president of commercial real estate brokerage firm Harvest
International.
1.2MSF Project on Former Brownfield Site in California Earns LEED Certification
Jul 22, 2009
A 1.2-million-square-foot industrial park touted as the largest
speculative industrial project in the U.S. became one of the largest
overall projects in California to receive LEED certification. Developed
by Dallas-based Hillwood, the project was sold to CB Richard Ellis
Investors a year ago, but Hillwood staff recently completed the Silver
LEED certification process on behalf of the new buyer.
Economic Update - Panning for Gold in CRE Debt
Jul 22, 2009
Federal Reserve Chairman Ben Bernanke, high oracle of the U.S. economy,
began two days of testimony before Congress on Tuesday, and said that
things will slowly get better, eventually. He also noted that he and
his banking brethren are watching developments in the commercial real
estate industry--that ticking time bomb--with all the attention that a
ticking time bomb deserves. Meanwhile, down in the trenches, there's a
gold rush of sorts going on to find profits in real estate debt.
16-Property Healthcare Portfolio Snapped Up in $162M Cash Deal
Jul 21, 2009
Grubb & Ellis Healthcare REIT Inc., currently among the minority of
real estate investment concerns that have the cash on hand to make big
purchases, has signed an agreement to acquire a 16-building healthcare
property portfolio in metropolitan Greenville, S.C., from Greenville
Hospital System. The $161.6 million deal will allow the hospital to
lease back the portions of the 855,000-square-foot portfolio of medical
office and healthcare related facilities it currently occupies.
Prepping for a Turnaround, Hyatt Announces Plans for New Hotel in Suburban Houston
Jul 21, 2009
The severely wounded economy and ongoing job losses continue to inhibit
travel among the leisure and business sets, but the lackluster
conditions are not stopping Hyatt Hotels & Resorts from planning a
new 214-room Hyatt Place within the 190-acre mixed-use Lake Pointe
Towne Center in Sugar Land, Texas, about 20 miles southwest of Houston.
Economic Update - Green Shoots a Little Greener, but CRE Not Overjoyed
Jul 21, 2009
It was a good way to start the week, economically speaking. According
to the Conference Board, the U.S. index of leading economic indicators
rose 0.7 percent in June, marking the third rise in the index in as
many months. In the first half of 2009, the index improved at an
annualized rate of some 4.1 percent , a clear contrast to the way it
shrank in the last half of 2008 at an annualized rate of 6.2 percent.
JLL: Hotel Market Conditions Remain Murky
Jul 20, 2009
Even as more and more preconditions of a global economic recovery are
being met, the path toward a commercial property market rebound is
uneven and yielding divergent regional trends. Occupancy, ADR, property
values, transaction pricing levels, and debt availability are all
showing evidence of this uncertainty, according to a new report by
Jones Lang LaSalle.
Economic Update - Homebuilding Unexpectedly Perks Up, For Now
Jul 20, 2009
The residential market made a surprising turn on Friday, with the U.S.
Department of Commerce reporting that housing starts were up 3.6
percent in June when compared with May: an annualized total of 582,000
units versus 562,000 units. Economists weren’t expecting that many.
Economic Update: Retailers Term CIT Too Big to Fail; TALF Attracts Interest
Jul 17, 2009
As if the retail industry didn't have enough trouble, the prospect of a
CIT Group bankruptcy is blowing through the industry like an unexpected
squall. On Thursday, those new worries were reflected in the S&P
Retail Index, which fell 0.8 percent. If CIT does go under, many
smaller and mid-sized apparel retailers might also have trouble staying
afloat later this year, especially during the critical holiday season.
Construction Activity to Fall Through 2010, Says AIA
Jul 17, 2009
Nonresidential construction spending is expected to decrease by 16
percent in 2009 and fall another almost 12 percent in 2010, according
to the American Institute of Architects' latest Consensus Construction
Forecast. Commercial projects will see the most significant decrease in
activity.
Carter Alliance Speaks to Growth in Medical Office Investment
Jul 17, 2009
In a prime example of how medical office properties garner investor
demand by exhibiting considerable resistance to the economic downturn,
Atlanta-based commercial real estate firm Carter formed a strategic
alliance with Align Healthcare, which provides planning and program
management services to hospitals and health systems, to develop a slate
of new Healthcare facilities.
Economic Update - CalPERS Takes Rating Agencies to Task
Jul 16, 2009
Another California trend? CalPERS, the nation's largest pension fund, has filed suit against the three largest credit-ratingsagencies, essentially asserting that the agencies gave away highratings like gold stars to kindergartners back in the days when realestate only went up. Or to use the language of the lawsuit, "wildlyinaccurate and unreasonably high" ratings on various structuredinvestment vehicles caused the pension fund to lose a cool billiondollars.
Despite Improvements, Negative Overall Outlook for U.S. Equity REITs
Jul 16, 2009
The slightly less hostile financial market during the second quarter
cracked open the window for many equity REITs to begin making a bit of
progress in easing monetary woes, but according to Fitch Ratings' new
REIT Report Quarterly, a few significant obstacles continue to encumber
the sector.
760,000SF Sale a Jolt for Slow LA Industrial Market
Jul 16, 2009
Despite sale and lease activity in the Los Angeles industrial market
well off from just a year ago, Westcore Properties and Dune Real Estate
Fund II have purchased a seven-building portfolio containing more than
760,000 square feet of L.A.-area industrial properties.
Prudential Executives See More Pain but Some Improvements
Jul 16, 2009
With unemployment still rising, Prudential executives expect more pain
to come for the commercial real estate market, but they also see some
signs of better health, according to their assessment of the industry
during yesterday’s mid-year commercial real estate outlook.
ProLogis to Develop 554,000-SF BTS Project in the Netherlands
Jul 15, 2009
Like so many real estate companies, ProLogis isn't developing spec
projects these days, but build-to-suits are a different story. The
Denver-based global industrial REIT just agreed to develop a
554,000-square-foot distribution center in The Netherlands for
Hi-Logistics, and if ProLogis has anything to do with it, more
build-to-suit transactions will materialize.
Economic Update: On Cars, Gas and Lipstick Sales
Jul 15, 2009
Closely watched retail figures from the National Retail Federation show
that June retail sales took a small dip of 0.2 percent when compared to
May, and were down 3.8 percent when compared to June 2008. These
figures differed somewhat from those of the U.S. Department of
Commerce, which released its own retail sales figures last week that
showed a slight improvement in sales in June when compared with
May--growth of 0.6 percent. The difference is that Commerce includes
cars, gasoline and restaurant sales, . In fact, the only category to
have grown since this time last year was health and personal care
stores, up 3.7 percent since 2008. Could it be due to the "lipstick
effect"?
Manhattan Office Market Decline Slows
Jul 15, 2009
Manhattan leasing activity increased in June and the monthly vacancy
rate held steady for the first time since February 2008, which together
with some otherindicators and more may show some steadying of
commercial real estate, particularly in the office market, according to
a midyear report released by Cushman & Wakefield.
Furniture Maker Snaps Up 439,000 SF of Industrial Space in California's Inland Empire
Jul 14, 2009
In what is being described by industry players as the second-largest industrial user-sale transaction in Southern California this year,Ashley Furniture Industries Inc. has acquired a two-building portfolio totaling 439,000 square feet in the Cooley Ranch Industrial Park in Colton, Calif., a submarket of the Inland Empire. Overton Moore Properties sold the vacant buildings about 18 months after purchasing them.
HUD Revises Program to Insure Pure Refinancing Loans for Hospitals
Jul 14, 2009
Acting through the Federal Housing Administration, the U.S. Department
of Housing and Urban Development is stepping up its efforts to assist
hospitals seeking refinancing at a time when private lenders remain
oh-so wary and tight-fisted. With the amendment of the Section 242
Mortgage Insurance Program for Hospitals, which previously included a
construction-element requirement, FHA will offer mortgage loan
insurance for pure refinancing deals.
Economic Update - CMBS Delinquencies Spike
Jul 14, 2009
U.S. Commercial mortgage-backed securities delinquencies grew in June
by a record $2.2 billion, according to Fitch Ratings. Last month there
was a 2.6 percent delinquency rate among U.S. CMBS, up 48 basis points
from the previous month. In June, at least, problems in retail
properties and the hospitality industry inspired much of the upward
bounce in delinquencies. But there's more to come, especially in the
beleaguered hotel sector.
Economic Update: No New Stimulus--For Now
Jul 13, 2009
Time for another round at the federal stimulus bar? Both President Obama and U.S. Treasury Secretary Timothy Geithner say no. In his weekly radio address on Saturday (recorded, since he was in Ghana), the president said that the initial plan "was not designed to work in four months," Obama said. "It was designed to work over two years."
Q2 Demand as Weak as Expected Across Sectors--Except M-F
Jul 13, 2009
The dismal economy continued its stranglehold on the commercial real
estate industry, as per CBRE Econometric Advisors' recently released
analysis, pushing up vacancies in the office, industrial and retail
property markets. But there was one surprise. Demand in the
multi-family sector, despite the ongoing job losses that are hindering
the formation of new households, was essentially unchanged from the
first quarter of the year.
Harrah's Cherokee Kicks Off Next Phase of $633M Expansion Despite Lackluster Gaming Market
Jul 13, 2009
With the recession in full swing, fewer people are taking chances at
the gaming tables, but that is not stopping the Eastern Band of the
Cherokee Nation from moving forward with its $633 million expansion of
the Cherokee Casino & Hotel in Cherokee, N.C. Tribal leaders just
broke ground on the 532-room hotel segment of the property's massive
upgrade.
Weighing the Costs, Benefits of Green Building
Jul 10, 2009
Sustainability is a buzzword for today’s consumers and likely a
requirement for them tomorrow, noted Bobby Bowling, president of
Tropicana Building Corp. and moderator for a National Association of
Home Builders multifamily webinar, entitled “Green Building: A
Cost/Benefit Analysis.”
Economic Update - Christmas in July to Boost Retail Sales?
Jul 10, 2009
As expected, June was a lousy month for retail sales--except at a few
retailers, probably including Wal-Mart Stores Inc., though the giant
retailer doesn't report monthly comparable-store sales. Target Corp.,
on the other hand, reported a 6.2 percent comp-store drop from June
2008, while Costco Wholesale Corp. dropped 6 percent. Major department
store chains took a comp-store drubbing as well: Nordstrom Inc., down
10 percent; Macy's, down 8.9 percent; J.C. Penney down 8.2 percent;
Dillard's Inc. down 14 percent.
Opus Group Bankruptcy Filings Mount
Jul 09, 2009
The struggling economy is making its mark on Minnetonka, Minn.,-based
Opus Group which now has a number of its subsidiaries filing for
bankruptcy. So far, Opus West Corp. and Opus South Corp. have filed
Chapter 11 bankruptcy. Opus East, meanwhile, has filed Chapter 7.
Austin’s Hill Country Galleria, developed by Opus West, filed for
Chapter 11, too.
With Robust Retail Demand on the Horizon, Work Begins on $100M Shopping Center at Fort Bliss
Jul 09, 2009
Development in the retail sector, which began its nosedive with the
collapse of the housing and credit markets, is hardly booming. However,
the situation is quite different at Fort Bliss in El Paso County,
Texas, where the Base Realignment and Closure Act of 2005 will bring an
estimated 127,000 new military personnel and family members to the area
by 2012.
Economic Update - Discount Retailers Still on Top
Jul 09, 2009
Even in a recession, there will be winners. Even in the retail world,
which has taken such a beating lately, there will also be winners--such
as Family Dollar Stores Inc., which reported its fiscal third-quarter
numbers on Wednesday. Its earnings spiked upward by 36 percent, which
the discount retailer attributed to strong sales of necessities.
Comparable-store sales, an important metric in the retail game, were up
6.2 percent.
Despite Hotel Sector Slump, W San Fran Commands $90M
Jul 08, 2009
The current economy, plagued by job losses galore and belt-tightening
on the business and leisure travel fronts, has been more than unkind to the
hospitality industry, to say the least. Despite the inhospitable
climate, Starwood Hotels & Resorts has nabbed a buyer for its W San
Francisco hotel. Keck Seng Investments (Hong Kong) Limited has agreed
to fork over $90 million for the 404-room property.
Economic Update - Loan Delinquencies Edge Ever Upward
Jul 08, 2009
It's an age of loan delinquency. According to a report released Tuesday
by the American Bankers Association, delinquencies on consumer debt --
those debt holders more than 30 days late -- stood at a record 3.23
percent during 1Q09. That's only up a little from 4Q08, yet still the
highest rate since the organization began tracking such things in 1974.
In Supply-Constrained Vancouver Market, 204,000SF Office Trades in Sale Leaseback
Jul 07, 2009
In the midst of the sluggish investment market, where most real assets
that are selling are on the smaller end of the spectrum, a major office
property in Vancouver has been acquired by Kingswood Capital Corp. The
21-story, 204,000-square-foot Grosvenor Building, located in the city’s
Downtown, was sold by property investor and developer Grosvenor
Americas, which will continue to make its home at the tower under a
leaseback agreement.
Baltimore Office Market Primed to Bounce Back Quickly Upon Economic Turnaround
Jul 07, 2009
Not a single office market has been spared from the ravages of the
cruel demise of the economy, but Baltimore, unlike most other
metropolitan areas, is in a position to get back on its feet right on
the heels of the highly anticipated economic turnaround, according to a
Cushman & Wakefield Inc. second-quarter report.
Economic Update - Economy Ekes Out One More Green Shoot
Jul 07, 2009
Those economic green shoots, so eagerly awaited this spring, got a
blast of frost here in mid-summer when jobs numbers came in weaker than
expected for June late last week. Yet on Monday, the Institute for
Supply Management’s index of non-manufacturing businesses, which gauges
the pulse of about 90 percent of the economy, improved for the third
straight month.
Summers: Dallas/Ft. Worth is M-F's 'Golden Child'
Jul 06, 2009
"Anyone who follows the multi-family market knows that Dallas/Ft. Worth has been the golden child of the multi-family industry for a while," asserts Matt Summers, president of management at Kaplan Management Company Inc.
In Struggling Hospitality Market, Arizona Resort Moving Forward with $600M Renovation Plan
Jul 06, 2009
The currently anemic state of the hospitality sector has been well documented for some time now. Doubly stung by a sharp slowdown in both business travel and tourism—as well as the financing problems that have plagued the commercial property sector as a whole—it seems clear that the sector is in the midst of one of its toughest periods ever. The struggling state of the market, though, is apparently not discouraging the owners of the Arizona Biltmore Resort & Spa from moving ahead with a planned $600 million renovation project. Also undeterred is the Phoenix City Council, which okayed the plan late last week.
Economic Update - Home Sellers, Appraisers Quarrel Over Valuations
Jul 06, 2009
Writing in the Wall Street Journal late last week, Stan
Liebowitz noted that "the evidence from a huge national database
containing millions of individual loans strongly suggests that the
single most important factor [in foreclosures] is whether the homeowner
has negative equity in a house..." Blaming subprime mortgage lending
for the current housing crisis, he asserted, misses the point.
HUD Awards Over $1B in Recovery Act Funds to Jump Start Affordable Housing Construction
Jul 02, 2009
The U.S. Department of Housing and Urban Development is approving plans submitted by state housing finance agencies for $1 billion to jump start affordable housing programs in states throughout the country that are currently stalled due to the economic recession. Funded through the American Recovery and Reinvestment Act of 2009, HUD's new Tax Credit Assistance Program will allow 26 state housing finance agencies to resume funding of affordable rental housing projects across the nation while stimulating employment in the hard-hit construction trades.
Stable Skilled Nursing Sub-Sector Lures Health Care REIT into $55.5M Purchase
Jul 02, 2009
While many real estate investors sit on the sidelines waiting for
property prices to fall dramatically or the credit market to defrost,
National Health Investors Inc. is actively enhancing its portfolio in
one of the most stable property sectors in the current economic
climate-- skilled nursing, a subtype of the seniors housing sector. The
healthcare REIT just shelled out $55.5 million in cash for four
skilled nursing facilities, all of which will be leased back to the
seller and tenant, Legend Healthcare L.L.C.
Economic Update - Wal-Mart Takes Historic Healthcare Position, But Why?
Jul 02, 2009
It's a peculiar time in history when a retailer can influence the debate about national healthcare policy. Yet Wal-Mart is doing just that by coming out earlier this week in favor of the government forcing employers to provide health insurance to workers. It was seen as something of a surprise. The Wall Street Journal characterized the National Retail Federation as "flabbergasted" by Wal-Mart's decision. (Were NRF officials sitting around in conference rooms, being flabbergasted together?)
Economic Update - ProLogis Sells in Big Way to Deleverage
Jul 01, 2009
The difficult year 2009 is half over, and recent deals by one of the
world's largest landlords show two things about the current climate.
First, deleveraging is in. Second, there are buyers out there to help
sellers who want to raise some cash to do that deleveraging.
Record Central/Eastern European Deal Closes Despite Global Real Estate Downturn
Jul 01, 2009
Warsaw’s first certified green building also earned the recognition as
the largest commercial real estate transaction so far this year for
Central and Eastern Europe, selling for €117 million, or $164 million.
But commercial real estate markets in many parts of the world continue
to fact debt repayment issues, declining values and deteriorating rents
and occupancies in different combinations.
Research Facility in Boston's Healthy Life Science Market Attracts $350M Loan
Jul 01, 2009
Flying in the face of the frosty credit market, BioMed Realty Trust
Inc. has just gotten its hands on a $350 million loan secured by its
successful new 700,000-square-foot Center for Life Science | Boston.
John Hancock Life Insurance Co., TIAA-CREF, and Westdeutsche
ImmobilienBank AG stepped up to the plate to provide the financing.
With Fannie, Freddie Still Active, DC-Area Portfolio Fetches $79M in Financing
Jun 30, 2009
Throughout the credit crisis and their own internal financial trials,government-sponsored enterprises Fannie Mae and Freddie Mac have continued to steadily dole out loans in the multi-family market, and The Cafritz Cos. is among the latest firms to take advantage of the entities' willingness to lend. Cafritz has just secured $79.2million in permanent financing for a five-property portfolio in Metropolitan Washington, D.C., relying on Fannie Mae's multi-family lending programthrough M&T Realty Capital Corp.
Economic Update - Worldwide CRE Still Feels Recession's Reverberations
Jun 30, 2009
Sometimes lost in the din of bad economic news in the United States isthe worldwide impact of the current recession on commercial realestate. Markets everywhere have been affected to some degree, someworse than others, and players in those markets are only now beginningto sort things out, as they are here at home.
Blackstone Closes Latest European Real Estate Fund with $4.3B in Commitments
Jun 30, 2009
As is the case in the U.S., the commercial real estate market in Europeis in flux, but when those price tags begin to drop, as is widelyexpected, the Blackstone Group will be perfectly prepared to pounce onthose golden opportunities. The investment company has just completedthe final closing of Blackstone Real Estate Partners Europe III, with atotal of approximately $4.3 billion in equity capital commitments.
Downtown Miami Condo Market Showing Signs of Life--Contrary to Popular Opinion
Jun 29, 2009
Rumors of the Downtown Miami condominium market's death have beengreatly exaggerated. The Miami Downtown Development Authority recentlycommissioned the Residential Closings & Occupancy Study, whichindicates that industry talk about the area's stock of new condos beingcovered in cobwebs--or predominantly empty--may not be totallyaccurate.
Houston Mixed-Use Opens Amid Uncertain Economy
Jun 29, 2009
While Texas struggled later and possibly not as much as the rest of the country when the bottom fell out late last year, Houston’s office market continued to thrive until just recently with rising vacancies and more projects under construction. Recent delivery of projects like Citycentre’s mammoth 425,000 square feet of mixed use space right now might not be ideal timing, but developer Midway Cos. hopes to weather the difficult market.
Economic Update - Consumer Spending, Saving Up; Will Retailers Benefit?
Jun 29, 2009
This might count as good news: U.S. consumer spending and personal income both rose in May. Spending jumped by a small but noticeable 0.3 percent when compared with April, and personal income spiked upward by 1.4 percent, the strongest jump in more than a year, according to the U.S. Department of Commerce. The question now for retailers and their landlords is how much of that is going to go toward buying things.
Green Building Council Steps Up LEED Requirements
Jun 29, 2009
With an eye toward maintaining long-term sustainability, as opposed torewarding good intentions, the U.S. Green Building Council has justadded a new requirement for owners pursuing LEED Certified status fortheir properties.
Q&A with Steve Bram: Shortfall of Supply When Recession Ends in 2011
Jun 26, 2009
Steve Bram is president & co-founder of George Smith Partners Inc. An expert on multi-family finance, he has personally arranged over $2.5 billion of financing in over 150 transactions during his 25 years at George Smith, including all types of construction, bridge and permanent financing on commercial and residential properties along with joint venture and equity placements. He recently spoke with CPN’s sister magazine Multi-Housing News about what lies ahead for the multi-family market.
Economic Update - CRE Still Faces Stress, Distress
Jun 26, 2009
Not-quite-so-bad news still passes for good news: the U.S. Department
of Commerce has revised its estimate of the annualized contraction of
the American economy in the first quarter of 2009 to 5.5 percent,
instead of the 5.7 percent previously estimated. Still, paired with the
4Q08 annualized contraction of 6.3 percent, the six months between last
October and this March represent the poorest economic performance for
the U.S. economy in over a half century.
Office Tenants Now in the Driver's Seat
Jun 26, 2009
Even before the financial meltdown last fall, most U.S. office markets
were going noticeably soft. In particular, vacancies were rising as
businesses downsized, reorganized or otherwise felt skittish about
committing to any new use of office space. Now that the worst recession
in at least a generation is under way, what was once only a worrisome
trend for U.S. office landlords is full-blown reality.
UN Moves Forward with Next Phase of $1B Renovation of NYC Headquarters
Jun 25, 2009
With the country well ensconced in a recession and debilitated by the
credit crunch, the clatter of construction equipment on the streets is
not an oft-heard sound--unless you are at the site of the United
Nations headquarters in New York City. In the face of a global economic
meltdown, the international organization has not missed a beat with its
$1 billion Capital Master Plan for the sweeping renovation of the 2.6
million-square-foot complex. And now that Skanska USA Building Inc. has
kicked off the next phase of the project, the comforting buzz of
building activity is not going to stop anytime soon.
Economic Update - No Green Shoots in New Home Sales
Jun 25, 2009
Earlier this week, there were glimmers of green shoots in existing home sales, which have been trending upward lately. No such shoots have been sprouting in new home sales, however, to the apparently surprise of economists forecasting an uptick. Compared with April, new home sales in May were actually down 0.6 percent, according to the U.S. Census Bureau on Wednesday.
Angling to Capitalize on Future Apartment Market Changes, Industry Vets Form New Firm
Jun 24, 2009
The apartment market held up relatively well during the early stages of the economy's descent--but even it is now in decline. And while many investors are shying away, industry veterans Jim Butz and Greg Lamb are jumping in with both feet. The two former principals of leading multi-family developer JPI East have teamed with office and mixed-use developer Akridge to launch Jefferson Apartment Group with the intention of acquiring--and eventually--developing apartment properties in the Mid-Atlantic and Northeast regions.
Economic Update - Homebuyers Slowly Returning to Existing Home Market
Jun 24, 2009
Homebuyers seem to be returning to the existing-home market this summer, according to the latest report by the National Association of Realtors on existing U.S. housing sales. The sales of single-family homes, condos and coops rose 2.4 percent in May compared with April, coming on top of a gain for that month compared with March, thus marking the first back-to-back monthly increase in existing home sales since 2005.
While Industrial Sector Struggles Nationally, Fort Worth Complex Already Beats 2008 Leasing Figures
Jun 24, 2009
National numbers show the industrial market tanking, but the Alliance Global Logistics Hub in Fort Worth, Texas, has already leased 1.9 million square feet this year compared to a total of 1.1 million square feet at Alliance in all of 2008. While the industrial market nationwide took a turn for the worse in the first quarter of 2009, with vacancy rising rapidly and absorption and construction activity plummeting, tenants are taking advantage of the situation—as evidenced by the half-million-plus-square-foot lease renewals ATC Logistics & Electronics just inked at Fort Worth’s Alliance.
Public Real Estate Firms Reward Responsibly, FPL Study Finds
Jun 24, 2009
While Wall Street executives took excessive bonuses even while their companies were failing and the government has since received flak for not curtailing this enough, public real estate companies have been much more controlled when it comes to executive compensation, according to a study by FPL Associates L.P.
Economic Update - Housing Reports See Short-Term Funk, Long-Term Hope
Jun 23, 2009
The residential refinancing boom that budded so promisingly in the spring has wilted, according to the latest predictions by the Mortgage Bankers Association. Back in March, the organization predicted refi activity to the tune of about $2.75 trillion nationwide by the end of 2009, spurred by historically low interest rates. Now that those low rates have evaporated, MBA says that total originations for the year will probably come in just above $2 trillion.
Anticipating Future Demand, Dallas Approves $514M Bond Sale for Convention Center Hotel
Jun 23, 2009
For the most part, banks still aren't lending and business and leisure travelers--inhibited by economic decline and job losses--have not exactly been escalating their travel plans, but such conditions are not stopping the City of Dallas from moving forward with its plan to develop a large luxury hotel. In a unanimous vote, the Dallas City Council has green-lighted an ordinance that paves the way for the sale of $514 million in municipal revenue bonds for the development of the $346 million Omni Dallas Convention Center Hotel, which is now scheduled to deliver in 2012.
Net Lease Market Sluggish, But Not Comatose
Jun 23, 2009
The net lease marketplace is hardly what it used to be, with deal volume at only a fraction of what it was during the mid-2000s boom years. But net lease never did quite grind to a halt, and there’s some evidence that the market is climbing out of the trough it found itself in during the last quarter of 2008.
NBA Renewal Marks Big Win for Midtown Manhattan
Jun 22, 2009
Multiple landlords attempted to lure NBA Properties to other locations
in Manhattan and across the Hudson River but Olympic Tower Associates’ signed NBA Properties Inc. to a 10-year, 153,000-square-foot renewal at 645 Fifth Avenue.
Economic Update - Tesco Completes Sale-Leaseback, CMBS Deals
Jun 22, 2009
British retailer Tesco Plc. inked a sale-leaseback of 14 properties. The sale-leaseback followed on the heels of the company's successful
completion of the sale of commercial mortgage-backed securities. The offering by Tesco may mark the glimmering beginnings of a new, simpler CMBS market.
Interest in Assisted Living Undeterred by Troubled Economy
Jun 22, 2009
No part of the commercial real estate industry has been spared by the economic crisis, but the senior living sector has been less brutally impacted than others have. And according to a new report issued jointly by a quintet of industry groups, the assisted living sub-sector is achieving the seemingly impossible these days--high occupancy levels.
Economic Update - Unemployment Numbers Mixed, But Outlook Promising
Jun 19, 2009
Despite jobless number climbing yet again, there appears to be some light at the end of the tunnel as the number of already unemployed workers filing claims dropped for the first time in more than six months. Couple that with the four-week average of job cuts at its lowest since mid-February and you’ve got a one-two punch of what passes these days as some very positive news.
MBA: Outstanding Mortgage Debt Remains Unchanged in First Quarter
Jun 19, 2009
The level of commercial mortgage debt outstanding remained relatively unchanged in the first quarter, at $3.48 trillion, according to the Mortgage Bankers Association analysis of the Federal Reserve Board Flow of Funds data. The $3.48 trillion in commercial/multi-family mortgage debt outstanding recorded by the Federal Reserve was a decrease of $33 million from the fourth quarter of 2008. Multi-family mortgage debt outstanding grew to $908 billion, an increase of $5 billion, or 0.6 percent from the fourth quarter.
The Green Mandate for Commercial Real Estate
Jun 19, 2009
Green building standards may not seem to be on the front burner of commercial real estate as much this year as last, simply because very little new development is breaking ground these days. Yet planning and policy shifts regarding sustainable real estate go on, anticipating the day when development will begin again.
While Other Projects Languish, $500M Suburban Boston Film Studio Takes Next Step
Jun 18, 2009
The frozen credit market and shattered economy have caused the interruption or outright cancellation of development project after development project across the country, but such is not the case for an unlikely 1.8 million-square-foot mixed-use endeavor in Plymouth, Mass., about 40 miles south of Boston. Having just secured the Plymouth Planning Board's approval of a master site plan, developers of Plymouth Rock Studios can now proceed with on- and off-site activities for the fully funded, $500 million film and television studio compound.
Economic Update - Obama Unveils Financial Overhaul Plan
Jun 18, 2009
Responding to the economic crisis facing the United States, President Obama has proposed vast regulatory changes, including the creation of a new consumer agency aimed at guarding against the kinds of lending abuses which resulted in many Americans being saddled with far more mortgage debt than they could handle.
Opportunistic CRE Investment Heats Up
Jun 18, 2009
Back in the days of the early '90s real estate depression, Sam Zell became known as a gravedancer, and it's one of the reasons he's the billionaire he is today. Now that the commercial real estate has swung into the deep doldrums that follow an enormous bubble, the distant tom-tom of a new generation of real estate gravedancers isn't so distant anymore. Investors are out there looking for distressed properties and the future profits they might offer.
In Stalled Development Market, New Firm Aims to Help Banks with Non-Performing Loans
Jun 17, 2009
With development projects stalled across sectors, the need to deal with loans that have gone bad is one of the few growing niches of the commercial property industry. To that end, Diversified Properties has formed a partnership with industry veteran Jonathan Stein to form Diversified Realty Advisors, a real estate advisory and turnaround group providing lenders with interim portfolio or individual asset management services during the workout or foreclosure stage, as well as long-term strategies such as asset and construction management, acquisition support and disposition services.
Economic Update - Recovery or Continued Slowdown?
Jun 17, 2009
Is the economy picking up or continuing to struggle? It seems to depend upon who you talk to and when you talk to them. While many reports gave a variety of accounts Tuesday, most supported bets that the pace of the recession is slowing.
With Little Opportunity in Domestic Hotel Market, MGM Eyes Cairo
Jun 17, 2009
As the U.S. hotel market continues to tumble hand-in-hand with the flailing economy, many hotel concerns are finding opportunities for projects in less hindered travel destinations abroad, and MGM Mirage is no exception. The Las Vegas-based gaming and hospitality company has just announced a partnership with Egypt's New Giza for Real Estate Development to develop a new resort just outside of Cairo, Egypt.
RCA: Global Property Sales Volume Nears Rock Bottom--But Recovery Remains Intangible
Jun 16, 2009
As the recession continues to grip nations around the world, commercial real estate property transactions are still moving along at a snail's pace and, in general, without the premium price tags seen just two years ago. Global research and consulting firm Real Capital Analytics concludes in its most Global Capital Trends report that, while sales activity is likely to pick up soon, a full recovery is still a long way off.
New Owner of Atlantic City's Tropicana Somewhat of a Surprise
Jun 16, 2009
Tropicana Atlantic City Casino & Resort is set to come under new ownership, just over one year after owner Tropicana Entertainment L.L.C. filed for Chapter 11 protection. But it's not a big-name gaming company that will take over the property's reigns. The United States Bankruptcy Court in Camden, N.J., has green-lighted a "stalking horse" asset purchase agreement calling for pre-petition lenders--a group that includes billionaire investor Carl Icahn's Icahn Capital--to take hold of the asset in return for forgiving $200 million of debt owed by Tropicana.
Starwood Capital Bulks Up With Golden Tulip Hospitality Buy
Jun 15, 2009
Starwood Capital is finalizing negotiations to acquire the Switzerland-based multi-brand hotel company Golden Tulip Hospitality, creating an alliance between Starwood's budget hotel division Louvre Hotels and the Golden Tulip brands.
New Firm Aims to Help M-F Industry Weather Storm
Jun 15, 2009
In the apartment market, job losses are starting to exact a high cost in terms of declining rents and rising occupancy levels, and for holders of multi-family debt and equity, there's more bad news on the horizon as loan maturities on overvalued assets begin to take hold over the next few years. In an effort to assist those facing the impending challenges, two industry veterans have just launched apartment consulting firm Caldera Asset Management, based out of Denver and Atlanta.
Stocks, Retail Sales Rise, But So Does Unemployment
Jun 12, 2009
Stocks were higher Thursday closing at highs for recent
months with hopes that economic recovery is on its ways, while investors
concerned that the government’s spending spree and mounting debt will lead to
inflation caused treasuries to surge as an $11 billion sale of 30-year bonds
drew the highest yield in almost two years.
Redevelopment of Former Auto Dealerships a Tough Prospect
Jun 11, 2009
In May, both Chrysler and General Motors cut loose thousands of dealerships --
some 789 by Chrysler as part of its bankruptcy proceedings, and then about
another 1,100 by GM even before its bankruptcy. The moves were part of the
aggressive scaling back by both companies to meet the stipulations of the
federal government's Auto Task Force.
While Hotel Investment Activity Languishes in the U.S., Market Remains Viable in Brazil
Jun 10, 2009
Plagued by the global recession that has slashed both business and
pleasure travel, the hotel market is suffering on an international
level and investors have backed away from buying or building in most
locations, with a few exceptions--like Brazil. According to a new
report by real estate services firm Jones Lang LaSalle Hotels, the
positive long-term growth forecast for Brazil is popping up on the
radar of those who are in the position to invest.
Economic Update - CRE Defaults Head for High Ground
Jun 10, 2009
A new report by Real Estate Econometrics, based on FDIC data, puts thecommercial real estate loan default rate at its highest level in morethan a decade and a half, at least those loans held by regulateddeposit-taking institutions—banks and thrifts, for the most part. Thedefault rate soared from 1.62 percent in the last quarter of 2008 to2.25 percent in the first quarter of 2009. That rate doesn’t includedefaults on loans associated with multi-family rental properties, whichReal Estate Econometrics put at 2.45 percent in the first quarter of2009, up 68 basis points from the previous quarter.
Despite Office Market Slump, 1M-SF Connecticut Campus Trades in $72M Deal
Jun 09, 2009
It's an office trade of such a size that has not been seen in
Connecticut, no less challenged by job losses and economic malaise than
most other markets, in quite a while. Matrix Connecticut L.L.C. has
just taken over ownership of the 1 million-square-foot Danbury
Corporate Center in Danbury, Conn., from GERA Danbury L.L.C. in a $72.4
million merger transaction. The deal is a coup for Connecticut, as well
as its neighbors, as it marks the largest multi-tenant office
transaction in the suburban New York Tri-State area so far this year.
Filene's Basement Assets Snapped Up by Men's Wearhouse in $67M Auction
Jun 09, 2009
Clothing retailer Men's Wearhouse has emerged victorious from a
feverish nine-hour auction of assets belonging to off-price chain
Filene's Basement, which fell victim to the retail market's downward
spiral and filed for Chapter 11 bankruptcy protection in early May,
just two weeks after its purchase by Buxbaum Group affiliate FB
Acquisition II. Acting through its affiliate, K&G Acquisition
Corp., Men's Wearhouse put forth the winning bid of $67 million for 17
to 20 of Filene's store leases, as well as the leases on the company's
Massachusetts corporate headquarters and distribution center, its
Maryland storage facility and-- possibly most important--the Filene's
Basement trade name.
Economic Update - Fast-Track Chrysler Reorganization Stalls
Jun 09, 2009
The Chrysler reorganization and sale to Fiat, which
was to have been a model of a quick turn-around, has hit a snag in the
form of a court order by U.S. Supreme Court Associate Justice Ruth
Bader Ginsburg. Pension funds that hold some of Chrysler’s secured loan
are objecting to the goings-on, claiming it isn’t fair to them, and so
petitioned Justice Ginsburg for the measure. It isn’t clear how long
the temporary stay will delay the sale, or whether it will kill the
sale, or whether the full court will reverse the stay in a few days.
It’s unlikely, though, that the legal wrangling will affect the fate of
the Chrysler dealerships slated for closing, or change the amount of
real estate their closing will put on the market.
Economic Update - Starwood Eyes Distressed Sector with $500M Fund
Jun 08, 2009
Yet another deep-pocketed real estate entity has jumped into the grave-dancing game—only please, don’t call it that, but rather strategic investment in distressed properties. The player is a newly formed investment company called Starwood Property Trust Inc., a creation of Starwood mogul Barry Sternlicht, which filed with the Securities and Exchange Commission late last week for a public offering that aims to raise half a billion dollars to do the distressed-property boogie. It will invest in not only physical properties, but mortgages and mortgage-backed securities.
Amid Continuing Market Decline, First Industrial Nabs $154M in Financing
Jun 08, 2009
Despite the ongoing weakening of industrial market fundamentals, banks are warming up to certain players like First Industrial Realty Trust Inc., which has just managed to get its hands on $154 million in the form of three loans secured by assets encompassing a total of 6.3 million square feet.
CRE Mortgage Starts Plummeted in '08: MBA
Jun 05, 2009
After seeing phenomenal commercial mortgage originations in 2006 and 2007, figures from 2008 show a 65 percent decrease in volume, according to the Mortgage Bankers Association's 2008 commercial real estate/multi-family finance report.
Amid Troubled Hotel Sector, Companies Look to Boost Management Portfolios
Jun 05, 2009
Many hotel owners are looking at a troubling two years or so, as a large portion of their loans are coming due for refinancing in an environment of declining RevPar. In other words, many owners will be asked by lenders to contribute more equity into their loans, just when that money may be very hard to come by.
Economic Update - Retailers See May Malaise
Jun 05, 2009
May comparable-store sales numbers are filtering down from various retailers, and the results aren't inspiring confidence in the prospects for recovered consumer spending. Actually, most analysts expected average retail same-store sales to decline in May 2009 when compared with May 2008, but the trouble was they declined more than expected.
Lack of Leverage Lends Strength, REIT Week Panel Maintains
Jun 05, 2009
The bad news is, the United States is in a Great Recession and the commercial real estate market is likely to feel continued pain during the next two years as corporate cutbacks result in weaker fundamentals. The good news is, the public equity markets have been improving in the past few months, with returns bouncing back substantially and multiples back down to more reasonable levels as the market has responded to REIT success at raising capital through secondary offerings.
Signs of Life in 2Q as Sales Volume, Capitalization Jump
Jun 03, 2009
Despite overall sales figures down double digits from last year, transactions are still move forward, albeit in smaller amounts. Another good sign of real estate activity is the re-equitization of the REIT industry that continued in May as more companies deleveraged their balance sheets with equity capital raised in the public markets.
M-F Mortgage Delinquencies Increase in Q1, Says MBA
Jun 03, 2009
The weakening economy and continued credit crunch led to increases incommercial/multifamily mortgage delinquencies during the first quarterof 2009, according to the latest Commercial/Multifamily DelinquencyReport, released by the Mortgage Bankers Association.
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