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.

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!