Where are we today in our economy? Some feel that these things are all trivial. We beg to differ....to a point! We are on the edge of collapse. It's not the Great Depression, and luckily that won't happen becuase many either lived it, or heard about it and will not let the country fall back into that arena again. However, if something is not done...it will get worse. The good thing, which this is weird to say, in today's society is the pride is gone. People are not as concerned with the credit being bad and walking away from their home. Mainly becuase they were backed into a corner..it wasn't a decession they made!!! Well without the help of people selling them a great plan of what they can do with their lives. The Destin Florida Commercial Real Estate market along with the Destin Florida Real Estate market in general is beginning to see a pinch from this. Many of these resort communities are seeing a drop in tourism. People are scaling back from 2 or 3 trips a year to 1 or maybe 2. It affects everything. Again it gets back to what we are looking at on a monthly basis...income vs outflow of cash!
Daily Real Estate News September 23, 2008This is Not the Great Depression Comparing the current crisis to the Great Depression is just plain wrong, say historians and veteran financial experts."The nomenclature of the word 'crisis' has cheapened," says Roy Smith, a professor at New York University's Stern School of Business and former partner at Goldman Sachs .“The Great Depression had thousands of banks failing and people losing their life savings, 25 percent unemployment and social unrest and tent cities of the poor," says Allan Sloan, Washington Post and Fortune magazine columnist."With just 6 percent unemployment, we are having a debate as to whether we are even in a recession," says Richard Sylla, professor of the history of financial institutions and markets at New York University.Source: Reuters News, Robert MacMillan (09/22/08)
There are a few interesting points above and we would like to know your thoughts also. Please log into our forum section at http://www.investsmarter.com/ and let us hear from you. If you are curious about what properties are for sale from Panama City Beach to Destin Florida, please visit us online also at http://www.randbcoastalrealestate.com/ for these properties.
Wednesday, September 24, 2008
Thursday, August 21, 2008
Commercial Real Estate Index Softens
Daily Real Estate News August 20, 2008
Commercial Real Estate Index Softens
The softening of economic conditions in recent months should impact commercial real estate markets in the months ahead, according to a forward-looking index for the commercial real estate sectors published by the NATIONAL ASSOCIATION OF REALTORS®.The Commercial Leading Indicator for Brokerage Activity slowed 0.9 percent to an index of 117.9 in the second quarter from a reading of 119.0 in the first quarter, and is 2.1 percent lower than the record 120.5 in the second quarter of 2007; NAR’s track of the index dates back to 1990.Lawrence Yun, NAR chief economist, said commercial real estate activity, as measured by net absorption and the completion of new commercial buildings, is projected to weaken over the next six to nine months. “The pace of decline has intensified due to job cuts and very sluggish economic activity since the beginning of the year, particularly in those industries requiring commercial building spaces,” he said. “We anticipate the weakest commercial brokerage activity in nearly three years as a result.”Members of the Society of Industrial and Office REALTORS® indicate in their SIOR Commercial Real Estate Index, a separate attitudinal survey of approximately 600 local market experts, that they anticipate a lower level of business activity in the upcoming quarters. Analysis of the SIOR index implies that office and industrial market conditions are excellent for tenants and purchasers, but significantly less favorable for landlords and sellers.NAR’s commercial leading indicator is a tool to assess market behavior in the major commercial real estate sectors. That index incorporates 13 variables that reflect future commercial real estate activity, weighted appropriately to produce a single indicator of future market performance, and is designed to provide early signals of turning points between expansions and slowdowns in commercial real estate.The 13 series in the index are industrial production, the NAREIT (National Association of Real Estate Investment Trust) price index, NCREIF (National Council of Real Estate Investment Fiduciaries) total return, personal income minus transfer payments, jobs in financial activities, jobs in professional business service, jobs in temporary help, jobs in retail trade, jobs in wholesale trade, initial claims for unemployment insurance, manufacturers’ durable goods shipment, wholesale merchant sales, and retail sales and food service.More than 80,000 NAR members offer commercial services, and 60,000 of those are currently members of the REALTORS® Commercial Alliance, NAR’s commercial division.Source: NAR
For more information on Destin Florida Commercial Real Estate at http://www.investsmarter.com/ and http://www.randbcoastalrealestate.com/
Commercial Real Estate Index Softens
The softening of economic conditions in recent months should impact commercial real estate markets in the months ahead, according to a forward-looking index for the commercial real estate sectors published by the NATIONAL ASSOCIATION OF REALTORS®.The Commercial Leading Indicator for Brokerage Activity slowed 0.9 percent to an index of 117.9 in the second quarter from a reading of 119.0 in the first quarter, and is 2.1 percent lower than the record 120.5 in the second quarter of 2007; NAR’s track of the index dates back to 1990.Lawrence Yun, NAR chief economist, said commercial real estate activity, as measured by net absorption and the completion of new commercial buildings, is projected to weaken over the next six to nine months. “The pace of decline has intensified due to job cuts and very sluggish economic activity since the beginning of the year, particularly in those industries requiring commercial building spaces,” he said. “We anticipate the weakest commercial brokerage activity in nearly three years as a result.”Members of the Society of Industrial and Office REALTORS® indicate in their SIOR Commercial Real Estate Index, a separate attitudinal survey of approximately 600 local market experts, that they anticipate a lower level of business activity in the upcoming quarters. Analysis of the SIOR index implies that office and industrial market conditions are excellent for tenants and purchasers, but significantly less favorable for landlords and sellers.NAR’s commercial leading indicator is a tool to assess market behavior in the major commercial real estate sectors. That index incorporates 13 variables that reflect future commercial real estate activity, weighted appropriately to produce a single indicator of future market performance, and is designed to provide early signals of turning points between expansions and slowdowns in commercial real estate.The 13 series in the index are industrial production, the NAREIT (National Association of Real Estate Investment Trust) price index, NCREIF (National Council of Real Estate Investment Fiduciaries) total return, personal income minus transfer payments, jobs in financial activities, jobs in professional business service, jobs in temporary help, jobs in retail trade, jobs in wholesale trade, initial claims for unemployment insurance, manufacturers’ durable goods shipment, wholesale merchant sales, and retail sales and food service.More than 80,000 NAR members offer commercial services, and 60,000 of those are currently members of the REALTORS® Commercial Alliance, NAR’s commercial division.Source: NAR
For more information on Destin Florida Commercial Real Estate at http://www.investsmarter.com/ and http://www.randbcoastalrealestate.com/
Monday, July 21, 2008
When will it end? Not looking that great for Investors on the Commercial Front
We start this off by having to say....what is next? Great deals are becoming harder and harder to make work! We are seeing this now creep into the Commercial Sector also. The days of turning these properties may be more and more difficult as time goes on. Take some time to look at the Destin Florida Commercial Real Estate market online and see what is going on locally. There are some positive angles and luckily if you are in a pretty strong cash position, there are some great opportunities.
Commercial Loans Requiring More Collateral
After a decade of non-recourse commercial real estate loans for which a lender accepts the property itself as the only collateral, recourse loans are again becoming common. If a borrower can’t pay off a non-recourse loan, he simply hands the building's keys to the lender and walks away. The bank can take control of the building and sell it to pay off the loan The borrower’s other holdings, including personal assets such as homes and boats, remained intact.Now, with falling valuations, a building could be worth less than the debt on it. Banks want a way to make up the difference, so they are asking borrowers to pledge other assets, including personal ones."Oftentimes, it's either sign personally or you don't get the loan," said Donald Isken, a real-estate attorney at Morris, Nichols, Arsht & Tunnell LLP.
Source: The Wall Street Journal, Lingling Wei (07/20/2008)
So take some time to look online at www.InvestSmarter.com and pay attention to our forum section. If there is something you would like to discuss just let us know. We are constantly getting more people online discussing what is hot in real estate. Specifically in the Destin Florida Commercial Real Estate Market.
Commercial Loans Requiring More Collateral
After a decade of non-recourse commercial real estate loans for which a lender accepts the property itself as the only collateral, recourse loans are again becoming common. If a borrower can’t pay off a non-recourse loan, he simply hands the building's keys to the lender and walks away. The bank can take control of the building and sell it to pay off the loan The borrower’s other holdings, including personal assets such as homes and boats, remained intact.Now, with falling valuations, a building could be worth less than the debt on it. Banks want a way to make up the difference, so they are asking borrowers to pledge other assets, including personal ones."Oftentimes, it's either sign personally or you don't get the loan," said Donald Isken, a real-estate attorney at Morris, Nichols, Arsht & Tunnell LLP.
Source: The Wall Street Journal, Lingling Wei (07/20/2008)
So take some time to look online at www.InvestSmarter.com and pay attention to our forum section. If there is something you would like to discuss just let us know. We are constantly getting more people online discussing what is hot in real estate. Specifically in the Destin Florida Commercial Real Estate Market.
Friday, July 4, 2008
Office Vacancies Go Up
When we thought it was only an issue with Residential Real Estate, investors are starting to see the full picture! Offices vacancies on the rise. This is to be expected though when you really start looking at the over all cost to the individual. When you are at a loss of income, you shut down. Plain and simple.
Office Rents Flatten, Vacancies Creep Up Rents for U.S. office space have stalled, rising 0.7 percent in the second quarter to $25.16 a square foot, according to real estate research firm Reis.At an annualized rate, rents are growing just 2.9 percent, a fraction of the 10.6 percent seen last year. The vacancy rate rose slightly, up 0.2 percent to 13 percent, the highest rate in more than a year.Although the weakening rental rates and rising vacancies are modest compared with the downturn after the dot.com bust, Reis sees the trend as problematic. With inflation running roughly 1 percent a quarter, rent growth is effectively wiped out. "Landlords are having to concede ground on rents and tenant improvements," says Sam Chandan, Reis's chief economist. "The balance is tipping in the favor of tenants in many markets."Source: Reuters News, Ilaina Jones (07/03/2008)
www.Destin-Florida-Commercial-Real-Estate.com provides more information on current lease rates, commercial property, and other information surrounding the Destin Florida Real Estate Market. Stop by today to see if there is something there that can be benificial to you!
Office Rents Flatten, Vacancies Creep Up Rents for U.S. office space have stalled, rising 0.7 percent in the second quarter to $25.16 a square foot, according to real estate research firm Reis.At an annualized rate, rents are growing just 2.9 percent, a fraction of the 10.6 percent seen last year. The vacancy rate rose slightly, up 0.2 percent to 13 percent, the highest rate in more than a year.Although the weakening rental rates and rising vacancies are modest compared with the downturn after the dot.com bust, Reis sees the trend as problematic. With inflation running roughly 1 percent a quarter, rent growth is effectively wiped out. "Landlords are having to concede ground on rents and tenant improvements," says Sam Chandan, Reis's chief economist. "The balance is tipping in the favor of tenants in many markets."Source: Reuters News, Ilaina Jones (07/03/2008)
www.Destin-Florida-Commercial-Real-Estate.com provides more information on current lease rates, commercial property, and other information surrounding the Destin Florida Real Estate Market. Stop by today to see if there is something there that can be benificial to you!
Tuesday, April 22, 2008
Rental Demand Pushes Rates Up
Daily Real Estate News April 22, 2008
Rental Demand Pushes Rates Up
It’s getting harder for renters to find an affordable place to live with rents rising and availability falling.The median asking rate for rentals has jumped 14 percent, from $591 a month during the fourth quarter of 2003 to $673 a month in 2007, according to the U.S. Census Bureau. Vacancy rates are down from last year, and average rent is projected to rise 5.3 percent in 2008, up from a 3.1 percent increase in 2007, according to the NATIONAL ASSOCIATION OF REALTORS®."We've seen demand for rental housing go up," says Mark Obrinsky, chief economist at the National Multi Housing Council. "The ownership side is retrenching, and we're seeing the demand going to the rental side. There's a lot of hesitancy to buy. Others can't get (financing), so they're remaining renters longer."Here are median rents for the first quarter of 2008 in 12 major metropolitan areas: Atlanta: $986Austin: $907Boston: $1,645Chicago: $1,355Las Vegas: $1,056Los Angeles: $1,699Miami: $1,368New York: $1,751Phoenix: $939San Francisco: $1,810Seattle: $1,211Washington D.C.: $1,687Source: Rentometer and USA Today, Mark W. Williams (04/22/2008)
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
www.Destin-Florida-Commercial-Real-Estate.com
Rental Demand Pushes Rates Up
It’s getting harder for renters to find an affordable place to live with rents rising and availability falling.The median asking rate for rentals has jumped 14 percent, from $591 a month during the fourth quarter of 2003 to $673 a month in 2007, according to the U.S. Census Bureau. Vacancy rates are down from last year, and average rent is projected to rise 5.3 percent in 2008, up from a 3.1 percent increase in 2007, according to the NATIONAL ASSOCIATION OF REALTORS®."We've seen demand for rental housing go up," says Mark Obrinsky, chief economist at the National Multi Housing Council. "The ownership side is retrenching, and we're seeing the demand going to the rental side. There's a lot of hesitancy to buy. Others can't get (financing), so they're remaining renters longer."Here are median rents for the first quarter of 2008 in 12 major metropolitan areas: Atlanta: $986Austin: $907Boston: $1,645Chicago: $1,355Las Vegas: $1,056Los Angeles: $1,699Miami: $1,368New York: $1,751Phoenix: $939San Francisco: $1,810Seattle: $1,211Washington D.C.: $1,687Source: Rentometer and USA Today, Mark W. Williams (04/22/2008)
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
www.Destin-Florida-Commercial-Real-Estate.com
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