Arriving at a decision on the best strategy for how to successfully navigate the commercial real estate market during these challenging economic times is vexing to many an investor. Do I, or don’t I??? That is the conundrum facing most commercial real estate investors in today’s market. Do I, or don’t I liquidate my portfolio (or at least my non-performing assets)? Do I, or don’t I stand on the sidelines and wait-out these turbulent times? Do I, or don’t’ I get aggressive and take advantage of the decline in property values and the spike in acquisition cap rates? In the text that follows I’ll put forth counsel based not upon the emotions of the times, but rather the forthcoming advice is based upon my years of experience in successfully advising clients in both advancing and declining commercial real estate markets.
22
May
2009
Finding The Bottom Vs. Finding Value
Tags: Appraisal, blog, capitalization, CCIM, circumstances, Closing, Commercial, Commercial Real Estate, decline, Economics, Economy, financing, Industrial, intricacies, liquidity, Multifamily, News, Office, Oregon, Property, Retail, Sales, sior, Vacancy, Valuation, Values, Washington
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 [...]
23
Apr
2009
Manufactured Housing REITs Perform Best in 1Q 2009
Tags: apartment owners, apartment reits, Commercial Real Estate, decline, equity reits, liquidity, manufactured housing, office vacancies, real estate fundamentals, recession proof, shopping center
By Greg Sukenik, Senior REIT Analyst, Zacks & Co.
Despite a slightly rally on April 6th, equity REITs posted a 32% decline in the 1st quarter (FTSE NAREIT Equity Index). In March, REITs we up about 4%.
Shopping center and Industrial REITs were the worst performing sectors, each declining about 41% in the quarter. Manufactured Housing was [...]