Commercial Real Estate Finance

Week in Review for February 4 – 10:

- Commercial property values will rise an average of 6% thanks to investor confidence and profitable REIT activity, says Green Street Advisors.

- Hotel REITs are undervalued, some say, despite an 8.2% increase in revenue per room. Though it was sluggish in 2011, hospitality investment may see a resurgence this year.

- As a consequence of last year’s relatively austere trading climate, decreased equity and capital access leave many smaller brokerages at risk of closing.

- REIT ETFs offer investors diversification, but with the danger of a price decline in the future, experts suggest investing conservatively.

- Griffin-American Healthcare REIT II buys three medical office buildings in the Southeast for $25.1 million.

- Widespread mall and shopping center vacancies lead some operators to find creative alternatives to retail, such as vegetable gardens, mini golf, and event facilities.

- Wall Street investors are becoming enthusiastic about single-borrower CMBS, which allow more reliable risk-assessments than CMBS tied to debt on multiple properties.

- Retail REITs such as Kimco Realty Corp.(KIM) and DDR Corp.(DDR) entice small-business and retail entrepreneurs to their shopping centers with “Set Up Shop”  initiatives.

- REITs enjoyed a strong January, outperforming the larger equity market and attracting new investors.

- Retail property rents are predicted to rise later in the year as store space, left vacant by numerous closures, is absorbed.

#CRE #finance #economy

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