commercial real estate: Apartments, Hotels Hit Hard as CMBS Delinquency Rate Sets Record at 8.9%
- 09/13/10 02:58 PM
A recent article in the National Real Estate Investor I thought worth sharing. Highlights include: Delinquency rate for Commercial mortgage backed securities reached a record high in August Multifamily defaults hit 14.53% Hotel defaults hit 18.92% Paul Mancuso, VP with Trepp, indicated there is more to follow. Class A products are receiving Loan Modifications Read the full story: http://nreionline.com/finance/news/apartments_cmbs_delinquency_record_0908/ Lastly, I am NEVER too busy for your commercial client introduction and I am happy to pay a 25% referral fee. To learn more about: my background, visit Consult Pete my company services, visit Commercial MasterMinds group investments, visit Cash Flow … (0 comments)
commercial real estate: What do you wish you knew about Investment Real Estate?
- 09/10/10 09:23 AM
Hello, I am a commercial broker trying to get a feel for investor sentiment as it relates to real estate investments… As your time permits, please take a moment to comment on the following questions. Thank you in advance for your time and responses. How do you/your clients determine what makes a great real estate investment? What is most important to you/your clients about a real estate investment? What do you/your clients seek when searching for real estate investments? What are your/your clients’ expectations when investing in real estate? What is the hardest lesson learned you experienced/heard in real estate investing? … (0 comments)
commercial real estate: East Bay San Francisco; The Mood of the market September 9, 2010
- 09/08/10 10:36 AM
My business partner, Luis Garcia shared some interesting notes from the San Jose Apartment Brokers meeting today. Luis writes: According to the more senior brokers, Buyers are very hesitant to step in, unless they’re getting a very good deal. Sellers are selling, BUT only if they have to sell. Very little activity is taking place. There is NOT a lot of REO properties on the market right now. Joshua Howard, Executive Director for CAA- Tri County spoke at the meeting. These are the trends that Josh sees developing: 1) More taxes and fees coming our way. In Santa Clara County there … (0 comments)
commercial real estate: Commercial Real Estate declines February 5, 2010
- 02/05/10 05:40 AM
The Investor’s Marketing Forum (IMF) met this past Tuesday in Orinda. Our moderator Dave Carney facilitated an engaging conversation about the financial state of the commercial real estate economy. Jeff Shaddy of Pacific Capital spoke to share insights as to the amount of debt coming due in the next several years. Commercial Real Estate loans will need to be refinanced because most if not all commercial loans are amortized over 25 or 30 years BUT, the term is usually no longer than 10 years. That means a balloon payment at the end of the term. Shorter terms usually provide lower interest … (6 comments)
commercial real estate: Commercial Real Estate Loan Defaults contribute to Bank Failures, January 26, 2010
- 01/26/10 11:23 AM
A recent article in National Real Estate Investor described the rate of bank failures at an alarming pace. In fact the research firm Foresight Analytics reports that loan defaults are at an all time 18 year high. As was recently echoed by Brian Pretti of Mechanics Bank, the worst part is that these loan defaults restrict the banks from doing their business, that is make new loans. Banks are reluctant to accept write offs, even though the default rate is steadily climbing. The folks at Foresight Analytics predict that defaults will peak in 2011 with a slow return to fundamental lending. … (2 comments)
commercial real estate: Commercial Real Estate Analysis and Group Investors, January 24, 2010
- 01/24/10 06:46 AM
ANNOUNCING my first meetup for commercial real estate investors! I formed a meetup group on meetup.com called Commercial Real Estate Analysis and Group Investors. My goal is to share basic commercial real estate principals as they apply to buying commercial property, specifically buying apartments. A brief real estate analysis of other property types will be discussed as a case study. This meeting is intended for experienced and new real estate investors. Additionally, the concept of a group investment will be discussed. Bring your tough questions (I’ll bring my CCIM books) and your investment ideas and I look forward to an engaging … (0 comments)
commercial real estate: Apartment Rents make the news! January 21, 2010
- 01/24/10 05:53 AM
As owners of commercial real estate, East Bay commercial real estate specifically, you are no doubt aware of market rents and vacancy levels. Recently the trend has been a mild deterioration in rents coupled with a mild deterioration in vacancy. During the last Rental Housing Association of Northern Alameda County (RHANAC) brokers' meeting, hosted by Executive Director Steve Edrington and sponsored by Teresa Moss of Chicago Deferred Exchange Company, industry experts shared their view of the market place and confirmed the above statement. Most vacancies and the biggest rental losses are on the studios and one bedroom apartments. Brokers shared what … (2 comments)
commercial real estate: Economic Forecast by Brian Pretti, January 21, 2010
- 01/24/10 05:15 AM
Commercial Real Estate forecasts are always interesting to me, especially when presented by someone not selling a product or service. At the East Bay CREW meeting, 2010 President Tillie Ross of Old Republic Title introduced her guest speaker, Brian Pretti, CFA, CFP and senior Vice President of Mechanics Bank. The following is a summary of my notes and the handout provided by Brian.
One of the key macro issues the private sector is experiencing net debt contraction, otherwise known as deleveraging. Consumers are paying off loans and starting to save. This is the first time in decades that people are … (0 comments)
commercial real estate: East Bay Employment numbers, January 14, 2010
- 01/19/10 04:20 PM
Jobs, Jobs, Jobs- that’s how we will exit this recession/recovery! Unfortunately, the numbers from the East Bay Economic Development Alliance indicated a protracted stay in this recovery trench. The trend is headed in the wrong direction, thankfully, the total loss of jobs for the East Bay was only 400. Read the full report .
By my last rent survey, apartment rents are holding and vacancies are being held to a minimum, roughly 8%. I have not heard of anyone pushing rents. The commercial real estate market is very dependant on jobs. Jobs create Economic Confidence, something that is lacking in … (0 comments)
commercial real estate: California 2010 Recovery and Renewal byTapan Munroe, PhD December 9, 2009
- 12/22/09 01:47 PM
The Investor’s Marketing Forum (IMF) held it’s Holiday Luncheon and Marketing meeting at the Orinda Country Club today. It was a sold out event. Tapan Munroe was the guest speaker. Tapan is a past chief economist for PG&E. He served his post longer than any other chief economist. Tapan suggests that we as a state should focus on our strengths- namely the Silicon Valley. As a state, California is the 5th largest economy in the world and our Bay Area is the 20th largest economy in the world! The Silicon Valley is the nucleus of jobs and innovation. Innovation is propelling … (0 comments)
commercial real estate: What’s Driving the Stock Market? NoCal CCIM Meeting December 8, 2009
- 12/11/09 07:32 AM
An interesting discussion by Todd Weaver, the 2010 Vice President for CCIM Region 2 and President of Synergy Commercial Real Estate, Inc. was enthusiastically received as he spoke about the commercial real estate market conditions. Todd used a simple relation between Net Operating Income, Capitalization Rates and Present Value to explain the downturn in the commercial real estate market. How the numbers relate to each other is academic- it is why the numbers are moving and where our economy continues to move that sheds light on our economic future. Please contact me directly for further discussion. As Programs Director for 2009, … (0 comments)
commercial real estate: OVERPRICED LISTINGS November 3, 2009
- 11/14/09 11:12 AM
Wow the market has really made a correction! Probably not what a property owner wants to hear- HOWEVER, if you are selling your property wouldn’t it be best to hear that early rather than later?! So why would a trained professional real estate agent consider taking an overpriced listing? Consider the following scenario; Listing agent is being pressured by an Office Manager to “get listings”. The theory is; the more listings you have the more probability you have of closing a deal. Dutifully, the listing agent agrees to seller’s request for yesteryear’s pricing. Property is listed with bogus income and expense … (0 comments)
commercial real estate: Cooperating or NOT cooperating Agents October 11, 2009
- 11/14/09 11:07 AM
Recently, I experienced a property listed for sale and the listing agent is not sharing information because there is little or no fee to share. In most cases, the Seller is unaware that their property is being marketed to select individuals only- namely those buyers that are likely to work with the listing agent directly. How does that serve the Seller’s best interest? Good question! I wonder whose interest is really being served?! I wonder how many sellers of commercial real estate really understand how their listing agents operate after the listing agreement is signed?! A recent event caused me to … (0 comments)
commercial real estate: Jobless Recovery November 14, 2009
- 11/14/09 10:55 AM
Let me begin by saying- there is no such thing. I could think of a few oxymorons to go along with this idea; Larger half Almost exactly Genuine imitation Unbiased opinion Exact Estimate LOL! Since this “jobless recovery” is tied to the rallying stock market and housing sector, let’s begin by analyzing the cause of the recent stock market rally. What is fueling the stock market and causing the rally? One idea that stands out above all others has to do with the unemployment numbers. Media tries to put a positive spin on unemployment figures claiming the RATE of new unemployment … (0 comments)
commercial real estate: Split Tax role November 6, 2009
- 11/14/09 10:31 AM
*** RED ALERT – SPLIT ROLL PROPERTY TAX INITIATIVES FILED *** The following message is from Rex S. Hime, President & CEO, California Business Properties Association- reprinted with permission. CBPA Board Members and Advisory Board Members Affiliate Member Leadership (ICSC, BOMA, NAIOP, IREM, CDA, RILA, CCIM) This is a Red-Alert to let you know that this past Friday, November 6,2009, the hammer finally dropped and two initiatives have been filed for Title and Summary with the Attorney General’s Office to change Proposition 13 and end tax protections for commercial real estate by enacting a Split Roll Property Tax. It is reported … (0 comments)
commercial real estate: Bob Kramer, The Foreclosure Specialist, October 6, 2009
- 10/08/09 07:50 PM
The Northern California CCIM chapter meeting had its share of excellent speakers and presenters this month. Bob Kramer of Robert Kramer & Associates shared his 35 years of experience in representing bidders at Trustee’s Sale. Our attendees were sitting on every word that Bob spoke. Bob averages three to five bidding efforts each day! He covers Alameda, Contra Costa, San Francisco, Marin and Sonoma counties. His knowledge and experience is unparalleled. Of course, bidding on Trustee’s Sales is not for the faint of heart and reserved for those with cash assets in excess of $100,000. Steve Edrington of Edrington & Associates … (0 comments)
commercial real estate: Smart Negotiation in Commercial Real Estate by Terry Hird, October 6, 2009
- 10/08/09 07:38 PM
This month’s guest speaker at the Northern California CCIM chapter meeting was Terry Hird, founder of Negotiation International. His firm was created to provide individuals and organizations with the tools they need to obtain enhanced outcomes through the art of negotiation. Post Terry’s presentation I heard SUPER REVIEWS- I have seen his presentation before and was no less impressed the second time at the various approaches to negotiations. Several colleagues have expressed interest in learning more and you can learn the same on Terry’s website- his next class starts November 14, 2009. You can also sign up for Terry’s newsletter … (0 comments)
commercial real estate: Apartment Vacancies Holding steady, Rents decreasing October 6, 2009
- 10/07/09 09:37 AM
Today I attended two marketing meetings; The Investor’s Marketing Forum IMF and the Certified Commercial Investment Member CCIM meetings. A general discussion of the marketplace revealed that rents are soft but thankfully occupancy is holding steady. I specifically asked Joe Lawton of Castle Property Management (925) 328-1240 whether the softness in rents was only on certain property class- Joe responded that it was safe to say the softness in rents is across the board. See the Wall Street Journal article below for a national overview. What does this mean to apartment owners? Now more than ever, owners must consider operating costs … (0 comments)
commercial real estate: Millions of mortgages with significant flaws September 30, 2009
- 10/03/09 06:48 AM
A recently discovered article discusses the ramifications of foreclosing on mortgages that were split up into tiny fragments when sold on the Mortgage Backed Securities, MBS market. “There is no evidence before the court as to who is the present owner of the Note. The holder of the Note must join in the motion.” See the complete article and learn of the possible ramifications. I welcome your comments and feedback. Thank you to my listeners and readers for providing their feedback. To learn more about my background, visit Consult Pete. To learn more about my company strategy, visit Commercial MasterMinds. … (2 comments)
commercial real estate: 1031 Exchanges, Teresa Moss July 22, 2009
- 10/02/09 07:47 AM
I had the opportunity to meet with Teresa Moss, Teresa.Moss@cdec1031.com of Chicago Deferred Exchange today. She discussed the 1031 Exchange rules and it was an excellent presentation for first time exchangers as well as seasoned veterans.
Highlights of her presentation included: Chicago Deferred Exchange separates themselves from the rest of the industry by establishing a separate Qualified Trust Agreement for each individual client. That means your exchange dollars are held by a Trustee with the client named as the beneficiary. Your exchange dollars are not lumped into a huge account with other exchange clients. THIS IS HUGE. The exchange industry … (0 comments)
A recent article in the National Real Estate Investor I thought worth sharing. Highlights include:;)
;)
