New RERC Real Estate Report Released
While it is in our nature to view with optimism the opportunities of a new year and a new decade, the industry-changing events of the past years have left us all more cautious than before. Older and wiser, we have learned the lesson that if something seems to be too good to be true, it probably is. RERC's fourth quarter 2009 pre-tax yield rates increased slightly over third quarter rates, while capitalization rates are mixed… (Click here to purchase 4th quarter report)
Delinquent CRE Loans Could Sidetrack Recovery
Don Burns, CRE, FRICS, MAI, and managing director for RERC in the Atlanta office, reminded attendees of the Georgia Society of CFAs meeting that commercial real estate lags the economy, especially in the recovery phase. In a presentation to the group last week, Burns discussed how the deficit and high unemployment are already placing a huge drag on the economy, and that growing commercial real estate loan delinquencies put the economy at further risk. (Click here to access presentation.)
2010 Forecast Published in CIRE
Although the large institutions already have worked through a lion's share of repricing issues, the same cannot be said for the broader commercial real estate market. The year 2010 will be a year of reckoning for many investors who up to now have been able to defer their issues to a later date. Those playing the "blend, extend, and pretend" game may be forced to look ahead and see how daunting the road to recovery really is. "The Road to Recovery," by RERC's Ken Riggs as published in the Jan./Feb. 2010 issue of the Commercial Investment Real Estate magazine, discusses property trends and buy opportunities for 2010. (Click here to access article.)
The Gauntlet Continues...
With investors summoning the strength and courage to continue their quest for returns, look to the fall 2009 RERC Real Estate Report, “The Gauntlet Continues,”for the latest cap rates, yield rates, investment conditions ratings, and other criteria. (Click here to purchase.)
Hotel Investors Look to Cap Rates for Sign of Stabilization
With little good news in the hotel market of late, investors looking for any ray of light at the end of the tunnel may be seeing it in capitalization rates. According to data presented in the summer 2009 issue of the RERC Real Estate Report, unleveraged going-in and terminal capitalization rates on an institutional level declined slightly, to 9.8 percent and 10.4 percent, respectively, during second quarter.
2010 To Be Another Tough Year
RERC's Ken Riggs notes that while institutional real estate has been forced to mark to market and prices are close to bottoming out, the broader commercial real estate market still has a ways to go and it will take some time to "come clean." Listen to Riggs' view of what the industry and investors should expect in 2010 and beyond.
Dealing with a Distressed Market
As the process of repricing and an increasing number of distressed properties create more uncertainty for investors, commercial real estate is facing its greatest challenges since the 1990s. What should investors expect over the near term?
The Impact of Cap Rates on Values
From a pricing and value perspective, the institutional commercial equity real estate markets are facing headwinds that were never imagined a couple years ago. RERC's required cap rates have increased and now stand at 8.4 percent, which is very close to the level recorded in first quarter 2004. The question is, how much further--if at all--will they increase? (The complete article, "Valuation Navigates Steep Cliffs," is provided in the summer 2009 issue of the RERC Real Estate Report.)
2Q '09 CRE Investment Trends
Ken Riggs paints a sobering picture of the market and provides more insight from the second quarter 2009 edition of the RERC/CCIM Investment Trends Quarterly. Riggs predicts a recovery may be 4 quarters away, given the lag time involving commercial real estate sales and rents. But he’s optimistic that there are opportunities, and he predicts the industry will be stronger in the long term.