Commercial Real Estate Market Trends

Archive for Commercial Real Estate Market Trends

Commercial Multi-Family Interest Rates Still Hover Around 5%…

Steven Wiltshire of Marcus & Millichap Capital Corporation gave us this great information:

July 8, 2010

Multi-Family Loan Programs > $3 Million

Fixed Rate

Agency Lenders

Term

LTV

Interest Rates

5 Yr.

55 to 80%

4.35% to 4.80%

7 Yr.

55 to 80%

4.78% to 5.23%

10 Yr.

55 to 80%

5.04% to 5.49%

15 Yr.

55 to 80%

Portfolio [...]

Apartments Are Winners in the Near Future

This is an interesting article published by IREM that is quite consistent with my local and regional take on the market.
Vacancy rates continue to rise in most commercial sectors and are not expected to level out in most markets until the end of this year or early 2011, according to the National Association [...]

Clarifying “Like Kind” Exchanges

Recently, Bob was asked about like kind exchanges:
“The more I think about it, it seems that ” like kind ” property is a very loose term. I guess the ” character” of the property more important than it’s use. I mean if you have a duplex and you exchange it for an apartment [...]

Potiowsky’s View of the Oregon Economy

by Doug Marshall, CCIM
Tom Potiowsky, the State of Oregon Economist, recently presented his most current status of the Oregon economy to the Oregon SW Washington CCIM chapter. His presentation titled, “Oregon Economy: Up the Long, Long, Long Road to Recovery” aptly summarized his findings. The good news: the economy, which bottomed out last [...]

Mortgage delinquencies still climbing for hotels, retail, apartments in January

By Ryan Frank, The Oregonian
February 12, 2010, 2:41PM
From the Wall Street Journal (via Calculated Risk)
The delinquency rate on CMBS conduit and fusion loans increased by more than 50 basis points in January,bringing the total rate to 5.42%. The total delinquent balance is now more than $36 billion, a $3 billion increase over the month before. [...]

Cap Rates for Apartment Complexes Along the I-5 Corridor of Oregon

PART ONE: THE BASICS

Cap Rates – A Hot Topic: For apartment investors and apartment brokers, the subject of cap rates is critical right now.
Why Now: Cap rates are starting to change at a pretty good rate in response to the current recession and changes in apartment financing interest rates.

First – Some Background Information
[...]

Strategic Decisions When Purchasing Multi Family Properties

The Purchase Decision: When considering the purchase of an apartment complex (or any income generating rental property), there are several critical features to consider.
1. “Attractive”:
a. general “curb appeal” (important to tenants and buyers)
b. overall security for tenants
c. income generating capacity that would support the asking price Why: Nelsonian Theory has it that “Before you buy, [...]

Evaluating Your Current Real Estate Portfolio

As real estate prices continue to drop it may be a great time to buy another piece of real estate. However, it is always important to evaluate your current portfolio first to make sure it as recession proof as possible.
Here is the Nelsonian Theory on things to do RIGHT NOW….
1. Evaluate your investment portfolio
a. What [...]

Rene Predicts Eugene Real Esate Trends

Rene responds to Ben Bernanke’s announcement about keeping interest rates low and looks into her crystal ball.

Smart Investment Opportunities for the Recession

Many investors ask us our opinion of the market, when do we feel we will be out of the recession, and what is the right kind of property to buy right now.
First off, if we could predict when we will be out of this recession then we would be sitting on a beach on our [...]