From John Johnson, CCIM - Atlanta, GA | It has recently been made aware that the U.S. House of Representatives is likely to consider a tax increase on real estate partnerships next week with the U.S. Senate following the week of May 24th. If this legislation passes through the House and Senate, we expect it to be signed into law before Memorial Day. ICSC (International Council of Shopping Centers) recently reported to its members:
Archive for May, 2010
Tax Increase Alert: Carried Interest & Real Estate Partnerships
Monday, May 17th, 2010Unintended Consequences??
Monday, May 17th, 2010
by Bo Barron, CCIM | Owensboro, KY
One huge benefit of leasing is the ability to remain as liquid as possible and not affect your debt load on a balance sheet. Leasing is often called “off-balance sheet financing” and this fact is a critical factor in analyzing lease vs. buy decisions as well as sale-leasebacks. These accounting changes detailed in the www.globest.com article below would place lease expense on the balance sheet, and in my opinion, have unintended consequences for tenants everywhere.
Please click on the link below to view the entire article from globest.com.
http://www.globest.com/news/1663_1663/washington/185029-1.html
Commercial Real Estate Report 5.3.10: Leasing Information Network
Friday, May 14th, 2010From Walt Arnold, CCIM, SIOR - Albuquerque, NM
>>> Click here to listen to the Commercial Real Estate Report for 5-3-10 <<<
Bob Clark, News Radio 770 KKOB: Walt what do you have for us today?
Good morning Bob, I want to talk about the Leasing Information Network, a group of commercial real estate brokers that meets monthly to talk about leasing commercial space and LIN had its Roundtable session last Wednesday for the Albuquerque leasing market. In the office and industrial markets the size of the leasing deals over the fourth quarter of last year are slightly up in square footage, the number of transactions is also slightly up and the two most active submarkets continue to be the North I-25 area and the Uptown market.
What does ‘Moneyball’ have to do with commercial real estate?
Thursday, May 13th, 2010Steve Kawulok, Fort Collins CO | Major League Baseball season has opened, and fans everywhere have renewed hopes for their team making a pennant run this season. Some teams, like the New York Yankees, bolster their player ranks through buying sprees aimed at star players from other teams. Others hope that they can find the right balance of new promising rookies brought up through their farm system, and veteran players. The 2003 book “Moneyball: The Art of Winning an Unfair Game” highlighted such a baseball team strategy. Well, ‘Moneyball’ can apply to commercial real estate investing, too.
News That Prices Are Rising in Commercial Real Estate
Thursday, May 13th, 2010From John Johnson, CCIM - Atlanta, GA | We are hearing it more and more lately…
The good news in the CRE world from the last few weeks continues, as a recent Wall Street Journal article reported this week that the prices for quality net leased properties continues to rise:
Are you overlooking a commercial real-estate boom?
If your definition of the category is limited to splashy office parks and shopping malls, both of which took a pounding during the financial crisis and haven’t fully recovered, then you probably are.
Chicago Retail: Good News, Bad News
Friday, May 7th, 2010From Tom Vincent, CCIM - Chicago, IL | ChicagoRealEstateDaily.com recently reported on the vacancy rate for local retail properties and a rise to 12.1% in the first quarter, up from 11.9% - its highest level since at least the mid - ’90s.
The bright spot: “…in a sign that the woes of the retail real estate market may be easing, landlords’ average asking rents rose by a penny during the first quarter, the first such increase in six quarters.” Even though they are still about 1/3 off their peak, “…the smallest increase in rents may be a sign that the market is poised for a recovery.”
MetLife Expects Commercial Real Estate to Rebound
Monday, May 3rd, 2010From John Johnson, CCIM - Atlanta, GA | Even though outstanding delinquencies on commercial mortgages bundled and sold as bonds jumped by almost 10% in March, MetLife is bullish on top quality CRE, and that the drop in prices for top shelf properties is over. Moody’s Investors Service says the current total of such delinquencies was over$42 Billion in March, but MetLife thinks that prices have bottomed.
MetLife Inc., the largest U.S. life insurer, said there are signs of a recovery in the commercial real estate market after property values dropped about 40 percent from their peak.