Posts Tagged ‘consumer spending’
Did RE Metrics Fail the Industry?
May 24th, 2010 | 
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Much has been said regarding the economic downturn and its hard-hitting subsequent effects on the commercial real estate industry. When economic forces such as unemployment, consumer spending, and housing all converge negatively on us, most sectors of income producing real estate were hit hard. But why did we not see this coming? Or maybe the better question is: Why were we not better prepared for this? After all, real estate is cyclical and the good times could not have lasted forever. While real estate metrics like cap rates, cash on cash return and price per pound are all very simple, yet static tools, why did the more diverse and complex metrics like internal rate of return, specifically designed to take time and market fluctuations into account, seem to fail us? Read the rest of this entry »
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Posted in Banking & Finance | 
Tags: amortization schedule, asset, cap rates, capitalization rate, cash flow, cash on cash return, commercial real estate industry, consumer spending, developer, down payment, equity, future cash flows, internal rate of return, IRR, leverage, net present value, price per pound, principle loan balance, real estate cycle, real estate metrics, unemployment | 
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Why NNN Properties Weathered the Storm
In a recent article in the Wall Street Journal it is suggested that while malls and office parks have suffered from the real estate swoon that has been talked to death at this point, there is a sector of commercial real estate that really has not been hit all that hard. And it isn’t some niche asset class like medical office buildings or student housing, but rather a class of commercial assets defined by their lease structure, rather that the type of tenant they house. Read the rest of this entry »
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Posted in Niche Property Types, Retail |
Tags: 1031 exchange, asset class, caveat emptor, consumer spending, developers, lease structure, master lease, medical office buildings, Multi-Family, NNN, office parks, private equity funds, risk and reward, senior housing operator, shopping malls, Starker exchange, Student Housing, tax-deferred exchange, triple net lease, triple net properties, unemployment, Walgreens, Wall Street Journal |
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CRE Videos of the Week
Kimco CEO David Henry shares his thoughts on consumer spending habits…in his malls.
Pacific Sun’s Andy Martel tell us why Chinese Banks and Properties may be on the downswing.
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The Smartest Losers
Mr. Sillerman’s Luxury Resort in Anguilla, which he has lost $180 million on to date
“If your lifeguard duties were as good as your swimming, a lot of people would be drowning”:
-Simon Cowell
Simon Cowell said that on American Idol about a contestant’s stage performance. The quote should be used to describe the real estate investments of Robert Sillerman, who owns American Idol.
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Bottoms Up: Is the Recession Really Over?
Last week, the Wall Street Journal published an article citing a survey of 47 economists, the majority of whom said the recession is over and the economy had bottomed out. But the question remains: what does that mean?
Several key indicators must be examined in even considering whether or not a recession has ended. However, for the 247,000 additional people who lost their jobs in July, it seems more likely one could first find the bottom of a bottomless pit. This leads us to one indicator: unemployment. While the July unemployment rate dropped 10 basis points from 9.5% to 9.4%, this was due partially to a decrease in the labor force itself, as a greater number of workers have become so fed up with the job market they stopped looking for work entirely. Since then, the first two weeks of August have seen over one million Americans file for unemployment benefits. Read the rest of this entry »
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