That is a pretty broad question. I can’t say for sure for every single product type nor do I really care about CAP Rate trends for multi-tenant office/industrial/multi-family/etc. buildings in the midwest/south/east/etc. I can make an intelligent guess and say no, CAP Rates are not heading back down, they are continuing to rise – industry-wide. [...]
I have been receiving numerous emails from CREOBA every single day for a very long time and just archiving them for some future post or action that I have yet to think of. Today’s email does require a quick mention though. Apparently, CREOBA has decided to start offering their hugely valuable (ha!) courses via webinar! [...]
Enjoy.
(HT – Calculated Risk)
This morning, CoStar published an article entitled Institutional Investors Throwing Big Money Around Class A Quality Retail Property. The article highlights several recent large transactions that have taken place and interviews guys from CBRE, Marcus & Millichap and Jones Lange LaSalle for opinions. A few of the points/quotes caught my attention and I thought I’d [...]
Bill Gross, PIMCO’s revered managing director, has just published his most recent investment outlook. In it, he calls the end of the recent market rally and warns of a necessity to come to grips with the fact that a new normal is headed our way. The closing sentences sum up his point nicely and he [...]
DealBook has an article up today about the office sublease market in NYC and the impact lower offering rates are having on space offered directly by building owners. Every time I read about NYC rents my head just spins. The numbers are just astronomical. According to the article, average asking rents for Class A office [...]
Standard & Poor’s had downgraded 15 classes of bonds backed by a $425 million loan secured against the Four Seasons Hotel in New York and 3 other luxury resort hotels. The action was triggered by a drop in cash flow which was 46% below S&P expectations. Surely, the expected cash flow figure had already been [...]
I wanted to make another quick point on CRE underwriting as it relates to vacancy. Some of the more “with it” sellers have begun allowing vacancy factors underwritten into their offering memorandums. What is often overlooked is the actual relation of the vacancy factor to operations. Often you will see a vacancy factor of 3% [...]
I received a marketing brochure today that, quite frankly, left me a bit shocked. The property is a multi-tenant retail building in a power center in Southern California. The shocking part of the offering was that the seller and broker were NOT attempting to capitalize income from the vacant suites. Maybe CRE practitioners are starting [...]
Here’s a great email I received from a friend at Citibank this evening:
Dow 10K: Celebrating 10 Years of 0% Return
Congratulations investors. The Dow has hit 10,000 on October 14th, 2009. You now have made officially 0 percent return if you invested in this index when the Dow first hit this magical level in 1999.
Time to [...]
