The Portland Metro Area (PMA) apartment market was experiencing low vacancy trends (5% and below in most areas) and increasing rental rates from 2005 through late 2008. Since that time; however, the rental market has seen steady decline in rental rates and increases in concessions and vacancy due to the national recession that has seen [...]
18
Aug
2009
Portland Apartment Market Trends
Tags: Appraisal, Assessor, CAP Rates, capitalization, Commercial Real Estate, Economics, MAI, News, PGP Valuation, Portland, Unemployment, Vacancy
27
Jul
2009
Capitalization Rates Without Market Activity
Tags: Appraisal, Assessor, Banks, CAP Rates, capitalization, Commercial Real Estate, Economics, Economy, financing, MAI, Oregon, PGP Valuation, Portland, Retail, Taxation, Valuation, Values
Woe is the market analyst who shoots from the hip. There is too much opportunity and rationale these days, or for that matter, at any time, for closer examination of the data, analysis, and conclusions set forth by appraisers reporting the decision-making processes of participants in the real estate market.
Who among us has not been [...]
22
May
2009
Financing Notes: Real Estate Is About Risk Shift
Tags: Appraisal, Assessor, banking, Banks, borrowers, Broker, CAP Rates, capitalization, Cohen Financial, collapse, Commercial Real Estate, decline, downturn, Economics, Economy, financing, Industrial, Jobs, MAI, mortgage, News, Office, PGP Valuation, Recession, Sales, sustainability, Sustainable, Unemployment, Valuation, Values
Do you think the collapse of the real estate market place is determinism (by design) or randomness (everything means nothing)? We can not deny that we have experienced a “bubble”. A bubble merely transfers a share of the future demand into the present. It’s linked with dramatic valuations and always debt funded. It is this [...]
21
Apr
2009
Let’s Find Out What The Market Thinks About Self-Storage
Tags: Appraisal, Assessor, Banks, Cohen Financial, Commercial Real Estate, debt service coverage, james elmore, PGP Valuation, ratio, self storage industry, self storage properties, value ratios
How have the Capital markets affected lending for the self storage industry?
Like most other income property classes, with the exception of apartments, financing for self-storage properties has been hard hit with limited capital available in today’s market. Because of the management intensive nature of self-storage, lenders including banks and insurance companies who once were willing [...]
06
Feb
2009
In Brief…Measures 47 & 50: Oregon’s Cut And Cap Tax Reform
Tags: added value, annual growth rate, Appraisal, assessment roll, Assessor, circumstances, Closing, Commercial, Commercial Real Estate, constitutional amendment, cooperative effort, department of revenue, exceptions, Industrial, legislation, legislative assembly, levies, Measure 47, Measure 50, new construction, News, Oregon, oregon voters, petitioner, PGP, PGP Valuation, Property, restricted growth, Subdivisions, tax reform act, Taxation, Valuation
Way back in November 1996, Oregon voters passed Measure 47. This was a constitutional amendment popularly referred to as the “cut and cap” tax reform act. The “cut” aspect of the legislation referred to a reduction in taxes for the 1997-98 tax year calculated as the lesser of the 1994-95 taxes or 90 percent of the 1995-96 taxes. Bonded debt would be exempt from the calculations. The “cap” aspect of the measure restricted growth in taxes to no greater than 3 percent annually after the 1997-98 tax year.
03
Feb
2009
Values Search For The Point Of Inflection
As many property owners are well aware, their properties have quite possibly lost value over the past year. Many of these investors are either (a) stuck holding their properties with blind hope that values will reach the inflection point (point where values change from decreasing to increasing) and begin to regain their recent losses or [...]