Blog Archives

We would like to thank everyone that has replied and commented on our recent newsletters. The purpose of these newsletters is to bring an opinion to the market and not just reiterate the sea of sameness coming from leading news sources. In response to many of our readers; this week we plan to shed some positive light on the market. Many of us may feel like this gentleman pictured below however now is not the time to grab a cardboard sign. We are seeing positive market data being released and plan on seeing some great buying opportunities coming later this year. There is $1.4 Trillion of debt...

---

Great Article by Rueters. The $1.4 Trillion coming due is only going to hurt the market further. We do not expect to see CMBS loans level out for some time. The Market is still trending downward and will continue to do so until the demand can absorb some of the inventory. On a positive note, Port traffic is up along with transactions and some news of job growth. A little good news is always welcome in this sea of bad news. Tue Jan 5, 2010 4:25pm EST http://www.reuters.com/article/idUSN056649220100105 NEW YORK, Jan 5 (Reuters) – The delinquency rate for loans underlying commercial...

---

Link: Unemployment: More Than 3 Million Americans Jobless For Longer Than A Year, An All-Time High Unemployment: More Than 3 Million Americans Jobless For Longer Than A Year, An All-Time High (CHARTS) More than three million Americans have been out of work for at least a year, according to a new analysis of unemployment data. That represents 23 percent of the roughly 14.8 million Americans out of work and looking for a job — a post-World War II high. For those 3.4 million Americans, the consequences from such a long time out of work — a cost of the Great Recession — can be calamitous. “[T]he...

---

Economy dipped in half of U.S. in last 3 months Article from Huffington Post 4/1/10 (credit Grace Kiser) Despite widespread hints that the recession has ended and a generally rosy outlook for tomorrow’s job numbers, economic activity fell in half of U.S. states over the past three months, according to this great map that Calculated Risk pulled from the Federal Reserve Bank of Philadelphia. In its monthly report, the Philadelphia Fed reported that while the coincident index rose nationally and in 18 states over the quarter, it also dropped off in 25 states. (A coincident index...

---

We do not generally answer a question with a question however this is one on the mind of everyone recently. Answer this? Are you a yield or per square foot buyer? Case Study -Class A Industrial Building -756,000 sf, Inland Empire, CA, 50% leased -Purchase Price $35 or Replacement Cost of $55 a foot -Ingoing yield 4% “As Is” -100% Leased Yield 8.6% If you are a price per square foot buyer this building would be cheaper to purchase than to build. If you are a yield buyer, you would be able to acquire a existing class A building 50% occupied with a current 4% yield. Taking into...

---

We do not see the market recovering until a few major indicators begin to rise such as jobs, port traffic and more jobs. The economy is going to have a very difficult time recovering without a rise in employment. The latest figure is pointing unemployment around 12% however we feel it is closer to 20%. To Keep it Simple Jobs = spending Jobs = vacancy absorption Jobs = a recovery in the economy A recent article from By Wanfeng Zhou at ABC, NEW YORK (Reuters) – “Consumer confidence rebounded in March, while home prices rose in January for the eighth straight month according to a closely...

---

Very Interesting facts and figures on REIT’s from Blue Vault Partners. BLUE VAULT PARTNERS, LLC ANNOUNCES THE RELEASE OF ITS 2010 NONTRADED REIT ANNUAL SUPPLEMENT ATLANTA, Georgia (March 22, 2010) – Blue Vault Partners, LLC has announced the release of its annual supplement highlighting significant events that took place within the publicly registered, nontraded real estate investment trust (REIT) industry in 2009. This annual supplement is provided to all subscribers of the Blue Vault Partners Nontraded REIT Industry Review but is also being made available to the public as an independent...

---

There has been some major buzz the past 3 months in the Commercial Lending sector that debt is AVAILABLE. We have attended a few different seminars in 2010 listening to panels and panels of lenders talk about the amount of capital that they need to deploy here in 2010. The questions is: Where are lenders lending, on what deals and where. We know that debt is not easy to come by even if the lenders are advertising. So what do you do if you are a asset seeking debt that is coming due? The answer is: -National Lenders are Lending on 50% or less LTV at current or forecasted values...

---

Link: JLL: Industrial real estate close to market bottom TUESDAY, MARCH 09, 2010 JLL: Industrial real estate close to market bottom by Chicago Industrial Properties Reports Economic indicators such as trade flows, manufacturing production and consumer sentiment indicate the United States industrial sector is nearing bottom, according to Jones Lang LaSalle’s North America Industrial research report. The 2009 report, which tracks 40 American markets, shows that overall industrial demand remains weak and occupancy losses in many markets during 2009 could prolong the length of the industrial...

---

Link: Online Ad Spending to Surpass Print in U.S. This Year March 8 (Bloomberg) — U.S. advertisers will spend more on digital marketing than on print this year for the first time, boosting overall ad sales, according to research company Outsell Inc. Print will make up 30 percent of total advertising and marketing spending in 2010, compared with 33 percent for digital, Outsell analysts Chuck Richard and Sheila King wrote in a report released today. Last year, print spending accounted for 32 percent of the total, compared with 30 percent for online. Spending on Web sites and other...

---