Tag Archives: Commercial Real Estate

While the common mantra for real estate is location, location, location, an expert at private equity investment firm Siguler Guff & Company says commercial real estate investors should be focused on "timing, timing, timing." With real estate markets historically moving in cycles, the investment boutique says there are great opportunities between the valuation of a property at the bottom of the cycle and the value of that property when it comes to the top.

Most economists agreed that the broader effects of the shutdown should be minimal, assuming that the shutdown is short-lived.

DebtX, an online marketplace for commercial real estate (CRE) debt, reported that CRE loan prices were little changed in July. According to DebtX, the estimated price of whole loans securing the commercial mortgage-backed securities (CMBS) universe fell to 90.7 percent, down from 90.8 percent in June. Loan values were 88.1 percent on July 31, 2012. "The secondary loan market remains active and little changed in terms of price. Loan values are essentially right where they were a year ago," said managing director Will Mercer.

Vacancy rates in commercial real estate (CRE) markets are projected to continue declining at a moderate pace as rent grows modestly.

According to the Real Estate Roundtable, the latest survey continues the "basically flat" trajectory of the past several quarters, with the Current Conditions index staying at 71 and the Overall and Future Conditions index each rising a single point to 70 and 68, respectively. Respondents also noted increased planning and construction in asset classes outside the multifamily segment and greater investor interest outside of "red hot" metros such as New York, San Francisco, Dallas, and Houston.

Commercial and multifamily loan originations are up both quarterly and over the year, according to MBA's Quarterly Survey of Commercial/Multifamily Originations.

DebtX, a full-service loan sale advisor, reported a slight drop in loan prices securing commercial mortgage-backed securities (CMBS) in June.

The vast majority--95 percent--of residential appraisers surveyed in May and June reported an increase in demand for their services compared to last year, according to a report from the Appraisal Institute. Although the outlook for services appears strong, the hiring of trainees is expected to remain weak, especially among residential appraisers. According to the institute, commercial appraisers account for less than one-third of practicing appraisers, yet they were much more active in hiring trainees.

Commercial and multifamily mortgage debt outstanding decreased for the first time in five quarters during the first quarter of this year, according to the Mortgage Bankers Association (MBA).

The Real Estate Roundtable's outlook for commercial real estate (CRE) remained "modestly optimistic" in Q2 even as public policy uncertainties cloud the future, the group revealed in its Q2 2013 Sentiment Survey. The survey's "Overall Index" reading stands at 69 in the most recent release, unchanged from the previous quarter. That score is based on the average of two indices: the Current Conditions Index (which read 71 for Q2, an increase of one point over Q1) and the Future Conditions Index (67 for Q2, unchanged).