Capitalism Needs Capital!
Posted by CSH in Commercial Real Estate Lenders, Commercial Real Estate Loans, Government Programs on October 26th, 2009
Here’s an interesting commentary on the state of Capitalism in America, specifically as it pertains to commercial real estate. I have said often on the web site and in other writings that commercial real estate is a “capital intensive business.” That capital takes on two forms: Equity and Debt. Right now equity can be found in abundance. Unfortunately for larger projects, equity is not enough. To complete the capital picture, you need debt, and that is provided mostly by banks and other financial institutions. The problem though, is that natural capitalistic forces are being circumvented by regulation. Today, a federally chartered lender is caught in a viscous circle: Commercial real estate needs debt financing in order to be a viable business. Lenders are unwilling to lend on commercial real estate because prices are coming down and they don’t want regulators “dinging” them for making “bad” loans. The lack of capital drives commercial real estate prices even lower, forcing bankers to write down their assets more and be even less willing to make loans … regardless of how good the loan prospect is! And ’round we go … Get the regulators out of the way and Read the rest of this entry »
Commercial Loan Workouts?
Posted by CSH in Commercial Real Estate Lenders, Commercial Real Estate Loans, Government Programs on October 16th, 2009
Well, now the government wants to get involved in commercial real estate loan modifcations. Can bailouts be too far behind? Let’s stop the bailout madness. Write, call, fax, AND email your congressional representatives (both House and Senate) and tell them to STOP BLOWING OUR MONEY on these institutions. If they can’t manage their assets and liabilities, there is always bankruptcy. Click below for more information. Blair: Feds Finalizing CRE Loan Workout Guidelines – GlobeSt. com WASHINGTON, DC-Sheila Bair, chairman of the Federal Deposit Insurance Corp., told the Senate Subcommittee on Financial Institutions Wednesday that federal banking agencies are finalizing a guidance on commercial real estate loan workouts. Her comment …
Commercial Real Estate News 9-30-09
Posted by CSH in -Commercial Real Estate Investment, Commercial Real Estate Snapshots, Government Programs, Office Property on September 30th, 2009
Here are some interesting articles concerning the status of the commercial real estate industry from around the country.
Why this report is not a good Omen for the Commercial Real Estate … Gerson Lehrman Group
Once again the pundits got it wrong. The ever optimistic media and their un-named economists seem to have no clue about how bad the economy has been. Further, they have not figured out how this worst recession since the Great Depression will continue to affect people’s spending and saving habits. They certainly have no idea how the commercial real estate sector …
Fed’s programs continue to bolster real estate market Business Lexington
The overall economy and the residential real estate market have started to gain their footing with government help, but the commercial real estate market is still struggling and recovery will be sluggish, according to most experts. Programs such as the establishment of …
As long as offices are empty, economic recovery remains fragile … Medill Reports: Chicago
As companies lay off their employees, they need less office space. When big chunks of office space empty, it drives down the value of large office towers. This is reminiscent of how the residential real estate market affected the economy last year, and shows how the commercial real estate market’s viability holds a key to helping the nation’s economic recovery. That’s how one Chicago commercial real estate executive connected the dots …
TICs as a Retirement Vehicle
Posted by CSH in -Commercial Real Estate Investment, 1031 Exchanges, Estate Planning, Multifamily & Apartments on August 10th, 2009
Using the 1031 Exchange as an Exit Strategy
The TIC (Tenant in Common) segment of the real estate market has performed better than expected in the current recession, with the multi-family sector being more resilient than any other asset type. Financing for multi-family is relatively favorable, since Fannie Mae and Freddie Mac still provide some liquidity to the multifamily housing market, although they have tighted underwrtiting standards recently. In addition, lenders continue to view apartment projects as having lower risk than either commercial retail or office properties.
Anne Baber, a real estate broker with the Apartment Owners Association, Commercial Brokerage Division, who has over 20 years experience in apartment house brokerage, wrote an article that was published on www.aoausa in April. In it, she details her favorable Read the rest of this entry »
Commercial Real Estate Leasing Tips
Posted by CSH in -Commercial Real Estate Investment, Property Management on July 20th, 2009
Here are a few articles of interest for commercial real estate investors. Pay special attention to the Leasing Tips and the opportunity to find commercial real estate listings fo Commercial Real Estate Leasing Tips A comprehensive guide to leasing commercial real estate sponsored by The Center For Commercial Real Estate – very useful for tenants, landlords but also a quality resource tool for …. Online Commercial Real Estate Listings – For Sale and For Lease CIMLS is the leading free online commercial real estate property listing service. List and search for sale and for lease property listings for free … Network of Commercial Real Estate Women CREW Network, A professional women’s commercial real estate organization of more than 6,000 members located in 57 cities nationwide and Canada …