Archive for the ‘Industry Commentary’ Category

Moody’s New Commercial Property Price Index

Tuesday, May 29th, 2012

Moody's recently conducted a conference call to summarize the changes to their Commercial Property Price Index (CPPI). The major enhancements to the index include: Two stage annual-to-monthly frequency conversion: more signal, less noise, no lag. Segmentation of the six major “gateway” markets versus rest of US for each property type. "Building block" indices equal-weighted ... More

CBRE Cap Rate Survey February 2012

Monday, March 19th, 2012

CBRE, Inc conducts one of the CRE industry's most thorough cap rate surveys. Below is an excerpt from their most recent: Investor demand for US commercial real estate assets expanded in 2011. A steady recovery in the leasing market conditions that drive income combined with both low rates of return and ... More

Commercial Property Prices in… 2017?

Monday, February 13th, 2012

In Moody's last CPPI report, they presented a forecast of commercial property prices that examined how much of the 2007 peak values may be retraced prior to the major CMBS refinance years of 2016 and 2017. shows the Six-City value series on the left as represented by the solid line. ... More

General Growth to spin off 30 non-core malls

Friday, January 6th, 2012

In Wednesday's Wall Street Journal, there was an article on GGP's plan to spin off 30 of its weaker malls and create a new publicly traded company, Rouse Properties Inc. General Growth executives tout the separation as a means for General Growth to focus its resources on its remaining 137 best-performing ... More

PwC Real Estate Investor Survey Q4 2011

Tuesday, January 3rd, 2012

PricewaterhouseCoopers has released the results of their 4th Quarter 2011 Real Estate Investor Survey. One of the most popular features of this report is the cap rate trend section. This issue reported the largest decline in Net Lease cap rates (recording a drop of 54 basis points). Larger declines were ... More

Sears store closings: Opportunity #1 in 2012?

Thursday, December 29th, 2011

One of the biggest news stories following the Christmas holiday was the release of a list of 79 stores Sears Holdings intends to close in 2012. While this may mean trouble for existing Sears and Kmart landlords, it spells opportunity for buyers and other big box tenants looking for deals in ... More

Emerging Trends in Real Estate 2012

Monday, December 12th, 2011

PricewaterhouseCoopers and The Urban Land Institute recently released their annual Emerging Trends in Real Estate report. As the theme for basically all of 2011, they note the demand for trophy assets in 24-hr gateway markets. But they also note that this once insatiable appetite for trophy deals in these ... More

C-III Capital invests $10M in Grubb & Ellis

Tuesday, November 29th, 2011

Not sure how I missed this one, but C-III Capital Partners continues to make strong moves in acquiring CRE service business lines. From an October 17th, 2011 press release: Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, announced today that it has entered into exclusive ... More

Cap rates hold firm as interest rates decline

Thursday, November 10th, 2011

As the 10-year treasury fell below 2 percent in September, core cap rates held firm at around 7.10 percent. Current cap rate to 10-year T-Bill spreads are 512 basis points, which is up 156 bps from the low of 356 bps witnessed February of this year. As depicted in the chart ... More

Uptick in CRE Transaction Volume

Thursday, September 29th, 2011

Sure enough, as soon as I comment on a slow down in transaction volume, there is an avalanche of new blockbuster deals. Just to note a few of the biggest recently announced: Blackstone’s Purchase of Equity One Portfolio Signals Confidence in Retail National Real Estate Investor - Sep 29, 2011 On Sept. ... More