Commercial Real Estate Finance

Posts Tagged ‘leases’

For years, the place where I got my start in the business, Marcus & Millichap, made a killing on single tenant net lease deals.  Most often, these deals were being sold by merchant developers who had great relationships with a particular retailer, be it Walgreens (WAG), CVS or Advanced Auto Parts (AAP).  In other cases, there were sale leaseback transactions.  Either way, Marcus’ ability to shift capital across geographic boundaries was unmatched because of the timing and financial pressure of 1031 tax-deferred exchanges.  Investors would buy deals well outside their geographic comfort area so long as the credit of the single tenant was good, the return was OK, the lease was long, and they could defer their capital gains.  But with the new accounting regulations in the financial reform we have seen of late, the onus for companies to do sale leasebacks is changing in a big way. Read the rest of this entry »

Most real estate professionals operate in a particular asset class because it is the one they know best.  Whether they happen to have been exposed to it first, or cut their teeth on it through experience, it seems to hold true.  But lets be objective here for a moment.  After having suffered what seems to be the worst of the economic downturn, and its subsequent impact on all types of commercial real estate, we sit in a very unique spot in terms of being able to assess which asset class is the most recession proof.  Let’s take a look at a few of the top candidates: Read the rest of this entry »

Barry Gosin, CEO of Newmark Knight Frank, one of the world’s largest independent commercial real estate firms, discusses the state of commercial real estate.