The dislocation in the commercial real estate capital markets that exists today in the second quarter of 2009 has frustrated users of capital and left them feeling hopeless. The small universe of debt and equity providers that are willing and able to provide capital today want to advance less loan dollars on your deal while also taking on less risk. Most of the time that means that it’s a deal you cannot make. Thankfully, after successive quarters of bad news, most of us are past the denial stage and are making attempts to exist in a broken market. The leverage being offered by capital providers today would make sense if cap rates were closer to double digits, but unless and until that market correction happens, there will be further frustrations as both borrowers and lenders are fighting to preserve their equity and maintain returns seen earlier in the decade. The following are some survival tips that could help your deal:
Survival Tips For Real Estate Investors Seeking Capital In 2009
Cap Rates on the Rise for Walgreens
On April 15th, we posted an article that described some of the financial difficulties that Walgreens is experiencing, and how this company is retooling to ensure long-term sustainability given current economic conditions. The recent struggles with this company along with scarcity of loan dollars and decreased market demand for all triple net properties are causing [...]
10 Ideas to Increase Your Self Storage Facility’s Value
Market Intelligently
Don’t Give it Away for Free
Leverage Zoning
Maximize Unit Efficiency
Image Is Everything
Put Your Best Face Forward
Track Your Performance
Know Your Neighbor
Utilize Security
Storage Income is not Everything
1.) Market Intelligently – Are you maximizing your marketing dollar?Are you thinking outside the box? A variety of marketing tools exist intoday’s self-storage industry. In addition to traditional media types such as [...]
Walgreens No Longer Enjoying The View From The Top
Walgreens is a national, retail drugstore chain that sells prescription and non-prescription drugs and general merchandise. General merchandise includes, among other things, beauty care, personal care, household items, candy, photofinishing, greeting cards, seasonal items and convenience food. Walgreens’ sales of pharmaceutical items account for approximately two-thirds of all sales.
Walgreens was founded in 1901, and as [...]
The Role Of An Appraiser
“VALUATION TECHNIQUES FOR COMMERCIAL REAL ESTATE AMIDST A WORLD OF CHANGE”
Introduction
There is broad sweeping change in the mindset of the World economy caused by the credit crisis, economic downturn and long-term uncertainty, which is having a profound impact on the real estate market. Our job as appraisers is to interpret what is occurring in the [...]
Scarcity in Capitalization Rate Examples? An In Depth Approach To Find The Right Cap Rate
Capitalization Rate Analysis
In this article, a capitalization rate for a strip center is analyzed based on (1) market extraction; (2) national survey; and (3) debt coverage/equity dividend analysis. This is an in-depth analysis that shows how a capitalization rate can be derived when little data is available in a market area. This presentation is an [...]
Renegotiate or Terminate, A Look At Landlords vs Tenants
Unless you have been living under a rock for the past year, you know we are in a recession. This recession has impacted everyone from the average Joe to leaders of fortune 500 companies. We know that the recession has hit retailers hard; but how bad is this situation affecting landlords?
Many retailers are searching for [...]
Welcome to Retail News Blog
Thanks for popping in and checking out our real estate blog. We are just getting this project off the ground so be patient as the site evolves over the next several months. Our long-term goal is to provide a unique real estate experience where users participate in discussion topics, have access to a broad range [...]