Tweet Nothing shocking here. Just a very well written and quantified report on the pending refinance crisis coming in commercial real estate. Some telling excerpts from the Deutsche Bank report (emphasis mine): While most attention in commercial real estate today is focused on the dramatic deterioration in term loan performance (i.e. the performance of loans [...]
Tweet Zero Hedge has a great post up about the offering of a $32.3 million interest in a $61.2 million senior mortgage loan secured by a 3-story mixed-use retail center at 8000 Sunset Boulevard. It appears the loan is held by Glodman Sachs and the property ownership entity is 8000 Sunset Boulevard Owner, LLC (owned [...]
Tweet Jamie Dimon, CEO of JP Morgan Chase & Co. comments on CRE during the JPM conference call this morning: Commercial Real Estate in the United States of America is going to get worse consistently over the next several quarters. That should not be a surprise to anybody……… It is a big deal for regional [...]
Tweet Not much to say here. Microsoft could have some cool stuff to check out. Microsoft’s Surface is an item that should wow most customers. (HT – Traffic Court)
Tweet I had to share this. I have been talking to a shopping center owner about selling his strip center in SoCal. I just got the rent roll and operating statement. On the rent roll is an additional 25% of GLA (gross leasable area) that is not even built yet! Better yet, they believe they [...]
Tweet I don’t know what is more brutal, a 44% decline in effective rental rates or the fact that office rates ever reached $70 PSF in the first place. Calculated Risk has the post here which summarizes an article from Rueters. I love the analogy put forth by the guy CR calls Brian in which [...]
Tweet I’ve been meaning to mention this for a while now but I’m just getting around to posting today. Electric motorcycle startup company Brammo has signed a distribution deal with Best Buy. This is interesting because there are several companies trying to capitalize on the soon-to-be electric vehicle craze (see here for a list of [...]
Tweet Goldman reported great 2Q numbers this morning with a 65% surge in earnings. A good portion of their profit came from recent underwritings of REIT offerings. On their press call this morning, Goldman disclosed a $700 million loss in commercial mortgage loans and a $500 million loss in RE principal investments – ouch. The [...]
Tweet Zero Hedge has a post up chronicling a recent trip to Europe taken by Tyler Durden (not his real name) in which he writes about his observations of the “Commercial Real Estate Apocalypse” occurring in Central and Eastern Europe. There are some pictures included which show some nice, albeit totally vacant office properties. Interesting.
Tweet Over the past 6 months or so, I have seen many brokers list deals at values that just save the hides of their owners. What I mean by this is that if the property sells at the listed price, the seller can get out and pay off his debt and maybe even walk away [...]
Tweet I have read some speculation lately that even in the wake of a heavy stream of commercial property foreclosure activity, many believe that banks will not be in any hurry to sell these assets. Why? Because they will not be willing to take the losses necessary to move the properties. The speculation is that [...]
Tweet The Summer 2009 issue of California Centers Magazine showed up in the mail today. I usually flip through the publication and only really look through the Real Estate Transaction section to see what leasing and sales activity has gone down. I was expecting what is usually a 12-14 page section to be about 2-3 [...]
Tweet This is an interesting article posted at Calculated Risk. A telling quote from the article: “Right now it looks like all signs are pointing to rents and vacancies, big components of income, getting shot down," [Victor Calanog, director of research for Reis] Inc said. "Until we see stabilization and recovery take root in both [...]
Tweet TechCrunch has a post up about a conference that took place in Seattle this evening called The Naked Truth 2009 hosted by Redfin. Four technology startups presented on the topic of revenue models. All examples are interesting; however, the Redfin numbers are of particular interest to me as a real estate professional and certified [...]
Tweet Today’s economic news in not good. Heavy job losses reported for June sent the stock market down. California is about to start issuing IOU’s and state workers have been ordered to take another (3rd) mandatory day off each month (the forced 3 day vacations translate to about a 14% pay reduction). Yesterday’s auto sales [...]