August 2009

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Commercial property becomes the new fear in real estate

Submitted by jbonica on Wed, 08/05/2009 - 16:01

Bubblenomics

The problems of residential property are being pushed aside by what might become bigger challenges presented by the commercial real estate sector. The collapse of commercial real estate is a global phenomenon, sparing no major economy in the world. Downturns in the commercial arena don't pass quickly. They can last for years, or in the case of Japan, decades.

Visit Commercial property becomes the new fear in real estate

Fed Survey, Economic Data Signal Recession Is Easing

Submitted by jbonica on Wed, 08/05/2009 - 14:40

Bubblenomics

.ArticleInteractive GraphicsCommentsmore in Economy ».
BY KELLY EVANS
The pace of decline in economic activity has "moderated" or "begun to stabilize," the Federal Reserve's latest survey of regional economic conditions found, and a Commerce Department report showed the steep drop in U.S. business-investment spending appears to be bottoming out.

Both reports reinforced expectations that the recession that began in December 2007 may be nearing an end.

By KELLY EVANS

Real Estate Slowly Improving: Beige Book

Submitted by jbonica on Wed, 08/05/2009 - 14:22

Bubblenomics

By AUSTIN KILGORE

While residential real estate remains weak overall, many local markets are showing signs of improvement, according to the Federal Reserve’s Commentary on Current Economic Conditions, also known as the Beige Book.

Sales volume is up, especially in the Fed’s Minneapolis and San Francisco districts, and with the exception of the St. Louis district, sales declines are letting up.

U.S. commercial property index sets record decline

Submitted by jbonica on Wed, 08/05/2009 - 14:19

Bubblenomics

NEW YORK (Reuters) - Despite a pick up in sales, commercial real estate prices posted a record drop in the second quarter, according to an index developed by the Massachusetts Institute of Technology Center for Real Estate.
With an 18.1 percent drop, the index, which tracks commercial property sold by major institutional investors, is now down 22 percent year-to-date, 32 percent from a year ago and down 39 percent from its mid-2007 peak, according to the report released on Monday.

Real estate transactions

Submitted by jbonica on Wed, 08/05/2009 - 14:15

Bubblenomics

HOUSTON CHRONICLE

Sales
LAND: The Harris County Housing Authority purchased 10 acres at 15403 Kuykendahl. The deal was brokered by Clay & Co. for the seller, Texas Community Bank. Re/Max Realty Center acted as a cooperating broker.

LAND: Sire Enterprises purchased 4.2 acres at 1302 Humble Westfield. The deal was brokered by Clay & Co. for the seller, a family estate. Realty Associates acted as a cooperating broker.

Selling commercial real estate short: A risky business

Submitted by jbonica on Wed, 08/05/2009 - 14:13

Bubblenomics

Q: In my investment club I suggested we sell commercial and industrial real estate short. Is there an ETF that does that, since I don't want to put the money in just one stock?
A: If you take a stroll down many commercial districts, it's easy to see why you might bet against commercial real estate.

Weak consumer demand and a sluggish economy have been brutal for managers of commercial property. Vacancies are up in many cities as strip malls, office buildings and other property go unrented.

Commercial Real Estate Meltdown, Why Your Nearby Mall Could Soon Close

Submitted by jbonica on Wed, 08/05/2009 - 14:09

Bubblenomics

By Ian Cooper

Well. . . better late than never.

Sure, the Dow broke out, catapulting stocks from the summer doldrums. . . but what those with short attention spans forgot is the other side of the "hurricane-like" storm wall: commercial real estate.

Everyone's coming out, claiming there's an end to the recession. . . that we're having a "V" shaped recovery. . . but they're about to get walloped.

Yep, it's time to get out of the water, folks. . . and fast (just as Steve and I have been warning readers).

Commercial Real Estate Market Teetering Like a Jenga Tower

Submitted by jbonica on Wed, 08/05/2009 - 14:06

Bubblenomics

In the classic Milton Bradley/Hasbro game of skill, players take turns removing a wooden block from a tower of such blocks and balancing it on top, creating a "higher and increasingly unstable structure as the game progresses." The game ends when the tower falls in any way, with the loser being the one who made it happen.

Bids Start at $300,000 for Chicago’s Old Post Office

Submitted by jbonica on Wed, 08/05/2009 - 13:59

Bubblenomics

After 13 years of failed redevelopment efforts, the United States Postal Service is giving up and auctioning off its largest vacant property: the hulking 2.7-million-square-foot old central post office of Chicago, The New York Times’s Robert Sharoff reported.

The suggested opening bid for the auction is $300,000, which is less than an individual condominium goes for in many of the surrounding downtown buildings.

Trying new things: Stuck in a downturn, commercial real estate sector works to diversify

Submitted by jbonica on Tue, 08/04/2009 - 15:50

Bubblenomics

There was a time when the commercial real estate business was, if not easy, at least somewhat straightforward. Develop a niche, promote your expertise and win your share of work in an expanding market.

Those were the days. Nearly two years into a real estate recession that many fear may have the worst still in store for the commercial sector, Triad engineers, contractors and brokers are working to develop new skill sets and tap into new markets to help compensate for the overall lack of demand.

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