Continuing on the Path to Recovery
In an abbreviated edition of his semi-annual podcast to members of the CCIM Institute, RERC's Ken Riggs noted that while investors remain nervous about the volatility we are seeing in the stock and bond markets, much equity is still sitting on the sidelines "looking for a home." Commercial real estate—and the reduced amount of risk associated with this investment alternative—is looking decidedly more attractive. Even so, investors are taking the time to “get it right” during this prolonged recovery period…
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.)
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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.)
For those of us involved in the business of commercial real estate, stress has turned to distress. Reports of foreclosures on high-quality properties and failed banks occur almost daily. Property values continue to decline, along with occupancy rates and rents. With several trillion of dollars worth of commercial real estate outstanding, many owners are fighting to hold on, while others are throwing in the towel.
In the third quarter 2009 RERC Real Estate Report, “The Gauntlet Continues,” readers will note that institutional required pre-tax yield rates are up somewhat over the previous quarter for the office, industrial, and retail sectors. And as noted in the feature article to this report, “The Value Gauntlet,” RERC’s third quarter required cap rates are holding steady for the office, industrial, and apartment sectors, and have increased somewhat for the retail sector.
To purchase this report, call RERC at 319-352-1500, or click here.