Power Tools for Commercial-Investment Practitioners

As the baby boom generation retires, senior housing is one sector that has remained strong even in the present downturn. National Real Estate Investor has an interview with Patricia G. Will, CEO of assisted living owner and operator Belmont Corp. who says the housing slump has made her life easier. With residential developers sidelined for now, there is less competition for land positions. And while some raw material prices remain high due to overseas demand, Belmont is finding it easier to negotiate with contractors and subcontractors for services. Although banks are demanding more equity and higher credit when making loans, Wells says the senior housing market has never been highly leveraged and construction loans are still affordable.

Posted on January 29 at 10:46 AM | Permanent Link | Add a Comment (0)

Although the credit crunch and pending economic downturn would seem to bode ill for job seekers with commercial real estate dreams, the majority of firms are still looking to hire. Two-thirds of firms responding to FPL Advisory Group's annual hiring and compensation survey reported that they were looking to add staff in 2008. Firms most often were looking to beef up areas that would "enhance the core value of their operations." Top priorities include asset/portfolio management and property management functions. FPL surmises that strong underlying fundamentals and the continued availability of equity capital are driving the demand for talent. Firms also expect salaries and compensation to rise at least moderately.

Posted on January 25 at 10:13 AM | Permanent Link | Add a Comment (0)

The February issue of Entrepreneur Magazine has tips on shopping for a commercial real estate loan. While focused on the business owner looking to finance his or her business, the ideas work just as well for anyone looking for cash to invest in a property.

• The article says to resist the urge to go to your existing bank off the bat. Review various loan terms from several lenders. Often you can get a better package from a lender with knowledge of your industry or the type of property you're looking to finance.
• Watch out for recall provisions in the loan which allow the lender to ask for immediate payment. An unwise investor might have to scramble to refinance at the wrong time.
• Although they charge a commission, it's sometimes useful to hire a commercial mortgage broker to help you find the best fit for your circumstances. They can often save time and money in the long run.
• Be sure to hire a real estate attorney to review the loan documents and terms.
• And finally, don't make your decision based on price alone - although important look at the whole picture and how your plans fit with the lender's.

Posted on January 14 at 10:50 AM | Permanent Link | Add a Comment (0)

Analyzing various factors, Grubb & Ellis analyst Bob Bach predicts that Los Angeles will be the top spot for commercial investment in 2008. Eliminating markets hard-hit by foreclosures and an oversupply of condominiums, Bach focused on cities with tight land supply, continued job growth, and cooperative zoning and regulation.

Los Angeles tops the Office, Industrial and Multi-family categories, and comes in second to Washington DC in retail. The complete list is available through the original Wall Street Journal article, available to members through ProQuest.

Posted on January 3 at 05:39 PM | Permanent Link | Add a Comment (0)