Many people think that the residential real estate crisis and its impact on banks and the secondary mortgage market have set the table for an even bigger implosion in commercial real estate.\u00a0 But if you believe that opportunities often come dressed as problems wearing work clothes, maybe that isn\u2019t so bad.<\/p>\n
In studio today to take a look at the State of Union in commercial real estate are:<\/p>\n
With so much focus on the residential real estate and mortgage markets, which is of much greater interest to the main street consumer and news outlets which cater to them, we thought it would be interesting to take a look at the commercial side of real estate.\u00a0 Many observers think that there are dark days head for commercial properties, but what are the current trends?\u00a0 More importantly, where are the best opportunities today and in the future?<\/p>\n
We start out by taking a look at the sales and pricing trends in retail real estate.\u00a0 What affect is the soft economy and subdued consumer spending having on retail occupancies, rents and cap rates?\u00a0 Will money be available to purchase and refinance these properties?\u00a0 Will there be buyers?\u00a0 Inquiring minds want to know!<\/p>\n
Sticking with the discussion of concerns about the availability of funding, we delve into a discussion of what\u2019s happening in multi-family where government subsidized money has been plentiful.\u00a0 With the pressure on Fannie Mae, will multi-family residential funding remain available?\u00a0 What if it dries up?<\/p>\n
Another side effect of a soft economy is financially weak or insolvent tenants.\u00a0 Are commercial tenants starting to walk away from leases like homeowners are walking on upside down mortgages?\u00a0 And how likely are they to accept rent increases?\u00a0 It seems to be a tenant’s market right now.<\/p>\n
Now there are lots of facets to commercial real estate and we can\u2019t possibly cover them all in one show, so we decided to wrap up with some talk about office – and what\u2019s happening to vacancy and rental rates in today\u2019s \u201cjobless\u201d recovery.\u00a0 If that isn’t an oxymoron, it should be.\u00a0 It’s like saying “reliable copier”.<\/p>\n
Of course, we can\u2019t talk about all the challenges without remembering that problems often bring with opportunity – for those willing to think independently and outside the box.\u00a0 As always, there are no magic formulas or one-size-fits-all solutions.\u00a0 Challenging markets require courage, creativity and the kind of capital that comes as much from time, talent and relationships as it does from credit lines and cash deposits.\u00a0 The good news is that when the going gets tough, most of the competition goes off and follows the herd to “greener” pastures.\u00a0 If you believe the real estate “grass” will grow again, then it might be a good time to stake out some new territory.<\/p>\n
Listen Now<\/p>\n