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National
The latest results of the Moodys/REAL CPPI published by Moody’s during the 3rd Quarter show a return of negative 3.3% in August for the all properties national index.
The index has now fallen to a level that is only 0.9% above the recession low recorded in October 2009. The index has declined 7.3% in the past year, and has had a 35.9% drop in the past two years. The CPPI is currently 43.2% below the peak that occurred in October 2007.
Southern California
Southern California turned in a mixed performance over the past four quarters, with two property types, apartments and office, increasing in price and two property prices, industrial and retail, showing a decline.
Both industrial and retail in Southern California had declines in prices, dropping 7.9% and 15.0%, respectively. In the past two years, Southern California industrial and retail prices have fallen 22.2% and 35.5%, respectively.
Office buildings in Southern California was the other index to record a rise in prices during the past four quarters, gaining 1.1%. Office prices in Southern California have declined 25.0% in the past two years. Southern California apartment prices had the largest increase in the past year, gaining 2.9%. In the past two years the Southern California apartment index has also had the best result in the region, declining 11.4%.
________________
Michael Duhs, Managing Director
East West Commercial Real Estate
http://www.EastWestCommercial.com
(949) 939-8352
Serving Banks, Special Servicers, and Investors in Commercial Real Estate REO’s through its commercial brokerage and BOV / BPO services throughout southern California.
http://www.SanDiegoApartmentsForSale.com
http://www.LosAngelesApartmentsForSale.com
Brian Wood of Casey Research recently wrote an article titled “Inflation on the Brain.” It’s a good read and gives some perspective on the economy. He writes…
In case you were trapped in a cave away from all forms of news media on Wednesday, you’re aware that the Federal Reserve announced a new round of quantitative easing in an effort to spur economic growth by purchasing longer-term Treasury securities to keep interest rates artificially low.
Here’s a quote from the Fed:
“To promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to expand its holdings of securities. The Committee will maintain its existing policy of reinvesting principal payments from its securities holdings. In addition, the Committee intends to purchase a further $600 billion of longer-term Treasury securities by the end of the second quarter of 2011, a pace of about $75 billion per month. The Committee will regularly review the pace of its securities purchases and the overall size of the asset-purchase program in light of incoming information and will adjust the program as needed to best foster maximum employment and price stability.”
So far, the markets have responded as follows: (i) stocks are up; (ii) gold is way up; (iii) the dollar is down; and (iv) emerging markets are upset because they think the cash overflow will continue to push up their currency values, fueling concerns that asset price bubbles might be in the making in their countries.
The real takeaway from the Fed’s announcement is that it is inflation, plain and simple. Correctly defined, inflation is an increase in the monetary base, and higher prices are a result of that inflation. By creating money out of thin air to buy Treasury securities, the Fed is piling hundreds of billions of new dollars on top of an already seriously inflated base.
On average, our basic food costs have increased by an incredible 48% over the last year (measured by wheat, corn, oats, and canola prices). From the price at the pump to heating your stove, energy costs are up 23% on average (heating oil, gasoline, natural gas). A little protein at dinner is now 39% higher (beef and pork), and your morning cup of coffee with a little sugar has risen by 36% since last October.
So, despite what the Fed says about underlying inflation measures trending lower in recent quarters, we can see the truth in the numbers above.
The market’s assessment of the Fed’s QE II announcement – with gold prices skyrocketing to $1,380 per ounce and the dollar index approaching a one-year low as I write – appears to be spot on. Investors seem to grasp that pumping more money into the system is directly inflationary and will only serve to further destroy the value of the dollar.
________________
QE2 is complex, but the above helps shed light on what’s happening in our economy and with hard assets — the things we buy daily. So, my question is, “Is Commercial Real Estate Set to Inflate Too?” We will see in the coming years.
Michael Duhs, Managing Director
East West Commercial Real Estate
http://www.EastWestCommercial.com
(949) 939-8352
Serving Banks, Special Servicers, and Investors in Commercial Real Estate REO’s through its commercial brokerage and BOV / BPO services throughout southern California.
State Specific Lease Agreements, Forms and Notices: Residential and Commercial Lease Agreement, Sublease Agreement, Rental Application, Eviction Notice, Lease Purchase Agreement, Lease Guaranty, Home Inspection Checklist. Available for Instant Download.
Residential & Commercial Landlord Lease Agreement Forms & Notices
Basic Idea Of Commercial Real Estate Selling And Leasing
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Home Page > Finance > Real Estate > Basic Idea Of Commercial Real Estate Selling And Leasing
Basic Idea Of Commercial Real Estate Selling And Leasing
Posted: Oct 08, 2009 |Comments: 0
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Basic Idea Of Commercial Real Estate Selling And Leasing
About the Author
ForSaleForLease has made a brilliant career in commercial real estate. Thus has learnt the trade secrets of ICI real estate world. He is trying to impart his knowledge through his articles.
(ArticlesBase SC #1315795)
Article Source: http://www.articlesbase.com/ – Basic Idea Of Commercial Real Estate Selling And Leasing
Understanding the matters involved in commercial real estate is not just like eating a piece of cake. Though you gather a lot of knowledge and go through tutorials, hands on experience or live experience in ICI real estate market can get you better armed to fight the battle. Not everyone is interested in this commercial real estate but indirectly sometimes you get trapped in this ICI real estate world. For instance, if you are a home owner or you own a land scape, then it means that you own a real estate. Now, when you either try to sell it away or give it for lease – you are into the commercial real estate world.
Building For Lease:
If you are giving your building for lease, then understand how to get prepared for it. There will be a step by step format to assist you in preparing your building for lease. As a part of commercial real estate or ICI real estate, building for lease abides some specific set of rules for peaceful transaction.
Identify the basic building for lease charges:
The building for lease cost can be determined in two ways.
1. The cost of per square footage multiplied with the cost of square footage will give you the annual cost. Break it down or divide it with 12 months can give the exact monthly cost. This will be the monthly building for lease charges. You can also check the current commercial real estate or ICI real estate news and updates to find out the cost per footage.
2. This charges accumulates the surcharges called the common area maintenance (CAM). These charges are common for leasing real estate.
Charges generally included in case of lease:
• You pay the tax for the part of building occupied by you. It is a general real estate leasing condition.
• Maintaining the space outside the building (lawn mowing, parking lot repairing, snow removal, land scaping etc.).
• Utility services.
• Property Insurances.
When you are giving your commercial real estate for leasing, these are the common prime factor that should be taken care of. There will be several other charges based on the type of real estate you are dealing with.
Building for sale:
When you are selling your commercial real estate or transferring the ownership of ICI real estate then it is a multistep process. Before you try some other sources, place a big notice “Building For Sale”. You can get someone calling for purchasing the building. If you think that handling this commercial real estate or ICI real estate business is not your cup of tea, then interview some broker to get help for selling your commercial real estate. Neither depends on the broker completely nor go by his words. First of all evaluate the property and fix your price, then tell the broker what you want. The broker will of course keep his share which is not at all our look out.
Contact a good broker for getting the most from your ICI real estate matters. If possible take help from an advocate who is experienced in commercial real estate dealings.
Retrieved from “http://www.articlesbase.com/real-estate-articles/basic-idea-of-commercial-real-estate-selling-and-leasing-1315795.html”
(ArticlesBase SC #1315795)
Samantha Matthews –
About the Author:
ForSaleForLease has made a brilliant career in commercial real estate. Thus has learnt the trade secrets of ICI real estate world. He is trying to impart his knowledge through his articles.
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ForSaleForLease has made a brilliant career in commercial real estate. Thus has learnt the trade secrets of ICI real estate world. He is trying to impart his knowledge through his articles.
With the potential for higher taxes in 2011 property owners and investors are testing the water to see if they can get their price on selling their properties. As such, Michael Duhs of Commercial Broker Price Opinion BPO / BOV is seeing an acceleration of the number of properties it’s valuating. Commercial Broker Price Opinion BOV / BPO is still seeing an abundant of activity in California, Arizona, Nevada and Florida. For a quote on nationwide Commercial Broker Price Opinion BPO / BPO, call 949-939-8352 or visit http://www.CommercialBrokerPriceOpinion.com
http://www.Commercial-BPO.com
http://www.Commercial-BOV.com
Commercial Real Estate Investing
Any investment involves the commitment of funds to investment alternative with an aim to generate income. Commercial real estate investment in India is involved in generating income through rental, lease or capital appreciation. Real estate refers to immovable property, such as land, and everything else that is permanently attached to it, such as buildings. When a person acquires a real estate property, s/he also acquires a set of rights, including possession, control and transfer rights.
Understanding commercial real estate investment is crucial because it usually involves a substantial investment and a long-term one. Moreover, the commercial real estate market can be unpredictable, as there might be lack of buyers at one place and there may be pool of buyers at another place. Investors have many alternatives of investment in commercial real estate.
One can opt for real estate investment with an aim to rent the property. The owner earns a continuous stream of rent, but is responsible for paying the mortgage, taxes and any costs associated with maintaining the property. The owner also benefits from capital appreciation over the period of time. With the aim of renting the land, owner runs the risk of not finding a tenant and could suffer negative monthly cash flows, with mortgage payments and maintenance expenses still to be borne. One with the aim to gain only capital appreciation over the time and then selling it again then investor should have strong patience. With such aim generally huge cash is locked at one place for a long period.
Rental properties in India can be purchased with borrowed funds. This means that you can purchase a rental property by putting down only a percentage of the total value. Essentially, you can control the whole property and the equity it holds while only paying a fraction of its total cost. Also, the property you purchase secures the debt rather than your other assets.
Although commercial property investment has higher returns than residential property, the risks associated are usually higher as well. The main risks involved in commercial property investment are:
Risks Involved in Commercial Property Investment
Capital intensive – commercial property can be very expensive, and hence depend on the quality of your investment. There is less room for diversification within the sector unless you have large amounts of capital at your disposal.
Tenant default – although the rental income from commercial property is high, there is always a risk that the tenant will default on the lease. This is increasingly becoming a problem, with many tenants defaulting on leases as they go out of business due to high level of competition. However, it is possible to regain the income stream by re-renting the property, but this can take time and can stop the flow of funds.
Low liquidity – the value of commercial property can be greatly affected if you need to sell quickly.
No definite value – because property prices are generally decided by the opinions of experts and not the pure market forces of supply and demand, the property has definite value. The only way to truly know what the property is worth is by selling it. This means prices can fluctuate fairly often, and this may mean that you can lose money when selling.
Despite of so many risks involved in commercial property investment, it is still one of the most profitable investment sectors. If you find the right commercial property investment, you will get a good return from your investment.
Commercial Properties Developer India
Pacifica Companies Pvt. Ltd., is one of the leading real estate developers in India following such constructed procedure to finalize the deals to avoid the later discrepancies. We offer a wide range of future opportunities of commercial real estate investment in India. We specialize in providing the best deals for your commercial real estate projects and residential real estate projects like apartments, bungalows, townships etc. Invest on commercial projects or residential schemes in India and you are definitely going to enjoy the continuous cash flow yielding maximum returns on your investment if dealing with Pacifica – a leading real estate development company in India.
Real estate property development company, Pacifica Company offers residential properties, commercial properties, hotels projects, IT parks development, township development, mixed use development projects, land development projects etc. SEO services provided by Jigney Bhachech, CEO Opal Infotech, India.
Business and Commercial Lending Tool for Banks and Credit Unions
I am a junior in high school and looking to pursue a career in commercial real estate investments. I am lost as far as what classes and degree majors to focus on in college. Also, after and during college where do I need to start that will lead to commercial investments? Is selling houses the only way to work my way up to commercial?