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 mortgage-backed...
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 SimpleJobs = 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...
Posted by the Orange County Business Journal
In Case You Missed It: We’re in RecoveryBy Murray Coleman - 3/22/2010Orange County Business Journal Staff
Orange County’s economy is approaching a full year of recovery, though that may not mean much if you’re still struggling to restore sales and profits or are looking for a job.
Economists estimate the county’s economy has been growing since the second quarter of 2009, after declining for four straight quarters from early 2008 to early 2009, according to figures from Moody’s Corp.’s Economy.com.
But employment, which has been falling...
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 on full recourse,...
The O’Donnell Group, Inc.
Green Pearl Events - Los Angeles, CA - Feb 4th, 2010
The Green Pearl Event in Los Angeles was a very informative afternoon from the commercial real estate industries top professionals. I would definitely recommend attending the next event. (www.greenpearlevents.com)
In the next few years going forward there is an expected $1.3 Trillion in debt coming due and $40-$50B in commercial notes coming to market through 2012. There is an estimated $3-$5B in life insurance capital on the sidelines ready to deploy in second half of 2010. As so much product is on the horizon,...
The total number of containers handled in January at the ports of Los Angeles and Long Beach rose by +1.6 percent on a year-to-year basis (the second consecutive month of year-to-year increases), to 1,001,774 TEUs (twenty-foot equivalent units). The two straight months of improvement are encouraging as the total number of containers handled at Los Angeles and Long Beach (including empties) deteriorated by -17.6 percent in 2009 when compared to 2008. This was the seventh consecutive month of TEU totals above one million units after seven months of TEU totals below that mark.
The Port of Long...
CALIFORNIA ASSEMBLY BILL 2640: PROPOSED REPEAL OF SECTION 1031 AND OF OTHER NONRECOGNITION PROVISIONS OF THE INTERNAL REVENUE CODE EFFECTIVE JANUARY 1, 2010 California taxpayers who engage in tax-deferred transactions under Section 1031 and other provisions of the Internal Revenue Code should take note of Assembly Bill 2640 (“AB 2640”), introduced last Friday, February 19, 2010. If enacted, AB 2640 would repeal many nonrecognition provisions of the Internal Revenue Code, including Section 1031, for California...