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10-big-commercial-real-estate-busts

2010-04-08T06:48:00.001-07:00

As acute as the pain has been in the U.S. housing market, commercial real estate has been no stranger to trouble. Here is a glimpse of some high-profile victims that have been claimed so far. [...more...]

Would You Live in an Abandoned Mental Hospital?

2010-02-25T11:03:00.001-08:00

condo conversion to the extreme? so, would you live here?

Would You Live in an Abandoned Mental Hospital? | Sustainability | Fast Company

Timed perfectly with the release of Shutter Island, Kjellgren Kaminsky Architecture plans to turn one of Sweden's old, ugly mental hospitals into a sustainable apartment complex. Dubbed Parkour, it offers a sense of community to residents. [...more...]

Commercial real estate tries a head fake - Feb. 4, 2010

2010-02-18T08:41:00.001-08:00

"Extend & Pretend" seems to be a good title...can it hold water long-term?

At the encouragement of industry regulators, banks have extended the terms of many of their commercial real estate loans, hoping that property values or occupancy levels will improve before long.

"There is an element of 'extend and pretend' going on," said Tanya Azarchs, credit analyst and managing director for Standard & Poor's. "It is in their [banks'] interest to do that." [...more...]

Retail Tenants Appeal for Rent Relief

2010-02-10T14:00:00.001-08:00

Re-negotiations...the wave of the present...

Requests for rent concessions soared in late 2008 and during the first four months of 2009, says Casey. Currently, about 5% of the company's tenants, 100 out of 2,000, receive some form of rent relief. The number of requests for help is higher than the amount granted, however. An estimated 10% to 15% of the REIT's tenants seek relief, the executive says. [...more...]

Cash remains elusive for Arizona startups

2010-01-24T20:39:00.001-08:00

Venture-capital investing in Arizona slid more than 70 percent in the fourth quarter of 2009, providing a lackluster bookend to one of the worst deal-making years in recent history.[...more...]

In Valley, 80 mil square ft. of business space is vacant

2010-01-10T20:53:00.001-08:00

The Valley's real estate boom-and-bust cycle left an almost unimaginable 80 million square feet of excess office, retail and industrial space on the rental market at the close of 2009 - the rough equivalent of 1,600 football fields.[...more...]

In 2010, Will Investors Who Hesitate Be Lost?

2010-01-06T16:51:00.001-08:00

...The imbalance should result in a further decline in commercial real estate valuations. Over the next six months, Rogers predicts that property values will decline another 4% to 9%, on top of the 39% drop that's already occured since the peak in December 2007...[...more...]

Gilbert Restaurant for Auction

2009-12-27T05:27:00.001-08:00

Nice, fully-equipped restaurant for auction...

The former GrainBelt GrillHouse in downtown Gilbert is heading to auction Jan. 11, and 15 to 20 serious buyers, many of them restaurateurs, are reportedly gunning for the building. [...more...]

Proposed Tax Change for Real Estate Partnerships Has Investors Seeing Red

2009-12-23T07:39:00.001-08:00

Commercial real estate groups contend that the Tax Extenders Act of 2009 (HR 4213) would more than double the taxes on carried interest received by general partners in real estate partnerships because the carried interest would no longer be taxed as capital gains at 15%, but as ordinary income with rates as high as 35%.[...more...]

FDIC’s Recommendations for Commercial Real Estate Loans Begin to Ease Borrowers’ Woes

2009-12-02T11:43:00.001-08:00

The FDIC recommendations might prove helpful because today a large number of defaults in the commercial real estate sector are due to an overall decline in property values, rather than to missed debt payments or bankruptcy situations, says Suzanne Mulvee, senior real estate economist with Property & Portfolio Research (PPR), a Boston-based real estate research firm. That means that in many cases, a two- or three-year extension might save borrowers from defaults and lenders from having to recognize large losses. [...more...]

‘Phantom’ Vacancy Haunts Office Market as Job Losses Mount

2009-11-11T14:06:00.001-08:00

Amid rising unemployment and weakening demand for space, the U.S. office vacancy rate rose to 13% in the third quarter. But it could climb as high as 19% if companies consolidate their space to reflect smaller workforce levels.[...more...]

Will New FDIC Bank Rules Help or Harm Commercial Real Estate?

2009-11-04T14:16:00.001-08:00

. . . The new guidelines issued by regulators allow lenders to classify loans as performing even though market values of the underlying real estate have fallen by as much as 40%. A key to assessing a loan portfolio, according to the guidelines, is whether borrowers are current on principal and interest payments . . . [more]

Commercial Real Estate Debt Won't Be the Next Shoe to Drop, Economists Say

2009-10-21T06:54:00.001-07:00

For months, the buzz has been that commercial real estate—with $3.4 trillion in outstanding debt, $1.4 trillion of which is coming due by the end of 2012—would precipitate the next leg in the credit crisis and possibly derail the broader economic recovery. To some, that mountain of debt coming due represents a clear parallel to the trillions of dollars in residential loans that helped destroy more than 100 banks and made the current recession the deepest and longest since the Great Depression.[...more...]

Dynamic Duo? Apartments, Industrial Gain Favored Status

2009-06-16T06:20:00.001-07:00

“Bleak” may be one of the most common descriptors for the national commercial real estate market outlook in 2009. But according to new research, apartment and industrial properties are expected to rebound sooner than other sectors.[...more...]

Economic growth will rebound in the second half of 2009

2009-05-27T06:33:00.001-07:00

...Housing: New and existing home sales are close to their lows, with 72% of NABE panelists expecting sales to hit bottom by the middle of 2009. More than 60% of those surveyed said housing starts would also bottom out at the same time.

The panelists were split on the issue of when home prices will hit their lows: 30% said it would happen by the third quarter of 2009; 30% said the fourth quarter; and 40% said declines will continue into 2010 or later. The median prediction is that home prices will rise 1% in 2010, the report said. [...more...]

Has the Office Vacancy Rate Become Irrelevant?

2009-04-15T19:24:00.001-07:00

The U.S. office vacancy rate has not broken through the 13% barrier for 14 years since the end of the great oversupply build-up of the late 1980s and early 1990s. Even now after 15 months of the most severe recession since the 1930s, the U.S. office vacancy rate still hovers manageably below 12.5%.

In its First Quarter 2009 Office Review delivered this week, CoStar Group asked the question: "What's wrong with this picture?"[...more...]

WACHOVIA TOPS LIST OF COMMERCIAL/MULTIFAMILY LOAN SERVICERS

2009-02-13T13:18:00.001-08:00

Looking to get into a multifamily property this year? Wachovia serviced the most loans last year, might be a good place to start. Or, you could get into one of our Seller-Financed properties...

Wachovia Securities was the nation’s largest commercial real estate loan servicer in 2008 with $412.9 billion in loans serviced, a new report shows. Wachovia Securities serviced 91,591 loans with an average value of $4.5 million, according to the annual ranking of commercial and multifamily loan servicers by the Mortgage Bankers Association (MBA).[...more...]

BAILOUT FATIGUE?: DEVELOPERS SEEK FEDERAL ASSISTANCE

2008-12-23T14:58:00.000-08:00

Will the bleeding stop? Now, the developers go in...

Fearing an onslaught of troubled commercial real estate loans in 2009 in the absence of normalized credit markets, leaders from trade associations across the industry have banded together to request federal assistance. But is there enough political will at the U.S. Treasury to rescue once high-flying lenders and developers on the heels of bailouts of the banking and auto industries? [...more...]

STORE CLOSINGS COULD DOUBLE IN 2009

2008-11-07T09:05:00.001-08:00

Circuit City’s announcement Monday that it was closing 155 stores, or 21 percent of its 721 U.S. locations, and planning to start lease renegotiations for others, will be echoed by numerous retailers throughout 2009, with the total number of stores shuttered in the United States expected to double the figure predicted for this year.

By the end of 2008, store closing announcements will total 6,100, according to an October forecast from ICSC. [...more...]

DESPITE RESCUE BAILOUT, INSTITUTIONS WAIT

2008-10-13T13:25:00.001-07:00

The spread between asking prices and buyers idea of "market value" may still have a ways to go. For those who are waiting to sell, lowering prices and carrybacks may be ways to create buying pressure.

Despite Rescue Bailout, Institutions Wait on the Sidelines

For more than a year, transaction volume, particularly in the office sector, has been stuck in a bid/ask logjam. Closed sales of downtown and suburban office properties year-to-date through August fell by 70% from a year ago, according to New York-based research firm Real Capital Analytics.[...more...]

REGISTER TO VOTE!

2008-09-29T21:35:00.003-07:00

BE HEARD!

Office Subleases Portend Softening Fundamentals

2008-09-25T14:10:00.001-07:00

It's a tenants market...

Landlords across the nation are competing for tenants not only with other property owners, but also with tenants that are offering space on the cheap for sublease. While the amount of subleases available today isn’t alarming, researchers say it is a growing trend that signals softening fundamentals today and declining rental rates ahead. [...more...]

REAL ESTATE RECOVERY EXPECTED IN 2011

2008-09-03T12:03:00.001-07:00

The nation is in for more than a year of stagnant job creation and tepid economic growth that will set the stage for marked improvement in 2011, according to two of academia’s respected authorities on the economy and commercial real estate. [...more...]

INDUSTRIAL MARKET IS SOFT BUT NOT SOUR

2008-08-15T09:39:00.001-07:00

Weakened demand for warehouse and distribution space contributed to a rise in the nation’s industrial vacancy rate in the second quarter, but rents are still rising in some major metros and port cities, researchers say. [...more...]