Investors have yen for real estate

Secondary U.S. markets are catching fire with investors as total office sales rise nearly 8% in the first three quarters. The commercial mortgage-backed securities market could reach $40 billion this year.

Move over, New York (and Chicago and Los Angeles). Real estate investors have their sights set on secondary cities and rents are rising accordingly, Bloomberg News reported Monday.

Real Capital Analytics Inc. found that 31% of real estate transactions this year have taken place in secondary and tertiary markets (cities other than New York, San Francisco, Los Angeles, Washington, Chicago and Boston). That's up eight percentage points from 2011.

Capitalization rates, which measure yield by dividing net operating income by sales price, in those cities are on the rise. In the first half of 2012 the average for secondary and tertiary markets was 7.7%, up from 6.3% the year before.

Investors looking for higher yield assets in a period of historically low interest rates are increasingly turning to commercial real estate, often beyond the nation's coastal hubs.

Real Capital's data show that office sales nationwide in January through September rose 7.7% from a year earlier, to nearly $48 billion, Bloomberg reported. If transactions for Manhattan's Worldwide Plaza and several other big-ticket properties go through, 2012 may close out with a deal volume of more than $70 billion. That would be the best year since 2007's peak of $212 billion.

Banks are issuing more securities backed by commercial mortgages. In September alone they issued $6.9 billion worth, the highest amount December 2007, Bloomberg reported. Total commercial mortgage-backed securities may reach $40 billion this year.

Primary markets, New York included, are also showing signs of life. Office prices in the six largest cities rose 16% in the first half of 2012 from the same period of last year. According to Cassidy Turley's Manhattan office market report for October, Manhattan rents are also rising. September's average asking rent was $56.52 per square foot, a 62-cent increase from August. That figure is still a far cry from the city's peak, which was $67.06 in May 2008.

Source: http://www.crainsnewyork.com/article/20121008/REAL_ESTATE/121009908

Cantor Commercial Real Estate Builds Its West Coast Operations

NEW YORK, July 30, 2012 -- /PRNewswire/ -- Cantor Commercial Real Estate (CCRE) announced that Kenneth Margala, previously an Executive Director at UBS Investment Bank, has joined as a Director and will be focused on loan origination. Based in Newport Beach, Mr. Margala will be helping to expand the firm's business in California and other West Coast markets. He reports to Anthony Orso, Chief Executive Officer of Cantor Commercial Real Estate.

"We are pleased to have a professional of Kenneth's experience working with us. His strong record of success, breadth of industry relationships and deep knowledge of the West Coast market make him an ideal addition to our team as we look to further build our commercial mortgage lending and securitization business," said Mr. Orso. "Kenneth's appointment not only strengthens our capabilities but also demonstrates our commitment to providing our clients with unparalleled commercial real estate services in key markets."

"I am delighted to become part of CCRE and look forward to contributing to driving the company's services to clients and success on the West Coast. CCRE is at the forefront of the commercial real estate finance market, and uniquely positioned to leverage its relationships and network to seize opportunities in this growing marketplace," said Mr. Margala.

Mr. Margala focused on CMBS, bridge and mezzanine transactions at UBS Investment Bank. Previously, he was a Real Estate consultant for several financial institutions including the FDIC evaluating and grading commercial real estate loan portfolios, refinancing, and acquisitions. Earlier, he served as a Regional Manager for the Merrill Lynch and Goldman Sachs conduit groups.

About Cantor Commercial Real Estate

Cantor Commercial Real Estate, an affiliate of Cantor Fitzgerald, L.P., is a fully-integrated commercial real estate finance company providing innovative financing solutions to the real estate capital markets. CCRE originates competitively underwritten fixed- and floating-rate mortgages and mezzanine loans secured by diverse asset types in most major U.S. markets. CCRE is capitalized by strong institutional sponsorship including affiliates of CIM Group and Cantor Fitzgerald & Co., and is led by an experienced team of real estate professionals with extensive track records originating, structuring, managing and distributing commercial real estate loans in various economic cycles. Its three founding partners are Anthony Orso, Steven Kantor and Michael Lehrman, who all worked together for over ten years managing a leading real estate lending and distribution platform before joining Cantor Fitzgerald. The CCRE management team includes seasoned professionals with a deep network of borrower, brokering, and banking relationships.

SOURCE Cantor Commercial Real Estate

CoStar: For commercial real estate, uncertainty hangs in the air

Uncertainty is in the air in the nation’s capital, and the impact on commercial real estate is clear, especially in the office sector.

While regional vacancy rates for retail and industrial property have been more or less in line with the broader national market, the region’s office vacancy rate has not followed suit. Office vacancy in the Washington region has increased even as the national office vacancy rate has been ticking down incrementally over the past eight quarters.

Federal spending austerity means that the General Services Administration is reducing its leasing footprint. Contractors heavily reliant on federal procurement are cutting their payrolls and returning office space in anticipation of a shrinking top line.

Northern Virginia has been the most heavily impacted in the region. In the Rosslyn-Ballston and Interstate 395 corridors, both teeming with government and contractor workers, vacancy rates have increased as tenants gave back nearly 3 million square feet, on the aggregate, during the past year.

A bright spot in the office market: the District is proving to be a tenant favorite. Vacancy rates in D.C. proper have slightly improved during the past year, despite nearly one million square feet coming on line. Over the past four quarters, tenants have soaked up 8.8 million square feet, and with downtown vacancies tightening up, landlords have gained a little pricing power, and rents are up 1 percent over the past year.

The same uncertainty affecting the GSA leasing sector also appears to be spooking investors, as year-over-year office sales volume has decreased each quarter since last year. Indeed, during the first half of 2012, office investors acquired $2.3 billion in property in the nation’s capital, off 40 percent from the $3.8 billion in investment activity during the first half of 2011.

Pricing is also cooling. So far this year, office properties are trading for an average of $305 per square foot, down 11 percent from the $344 average during the first half of 2011.

The prospect of reduced business travel and softer employment in the region may also be affecting investor interest in hotels and apartments. Multifamily investment activity is off by nearly $500 million this year in comparison to the same time last year, a 23 percent year-over-year drop. Buyers have been less active snapping up hotel properties this year as well, with investment activity off by 34 percent in 2012.

However, whether investors view the Washington’s commercial real estate market as being half empty or half full may well depend on one’s perspective. As risks weigh on the Eurozone and the threat of recession looms over China, some investors see the metropolitan area as a relatively safe haven.

Just last week, Brookfield Office Properties plunked down $106 million for 799 9th Street NW ($506 a square foot), a 96 percent occupied high-end office building. Earlier this year, The Trump Organization was selected to redevelop the Old Post Office Pavilion after committing to investing more $200 million in its conversion to a luxury 250-room hotel with restaurants, spa amenities and conference facilities.

Investors are clearly not as bullish on the nation’s capital as they were in 2010 and 2011, but it appears that the hazard of investing in commercial real estate here is perceived to be low compared to other international gateway cities.

Erica Champion is a senior real estate economist with CoStar Group in Washington.

Source: http://www.washingtonpost.com/business/capitalbusiness/this-much-is-clear-commercial-real-estate-faces-uncertainty/2012/07/06/gJQAZpLoWW_story.html

Oklahoma City Thunder ups the ante for commercial real estate

Major league city? Well, yes, by definition, Oklahoma City can wear the label legitimately, thanks to the Thunder and the NBA.

But “big league” city informally? As in “the most prestigious level of accomplishment”? Sorry, but no, not yet, when it comes to commercial real estate investment.

The tipping point could be under way, though.

The Thunder's appearance in the playoffs is getting “O-K-C! O-K-C!” just the kind of attention the city deserves for all of its other success stories.

Specifically, the Thunder could get Oklahoma City more than the usual slightest mention in the widely watched annual “Emerging Trends in Real Estate,” published by the Urban Land Institute and PricewaterhouseCoopers.

“Emerging Trends” is based on data as well as the perceptions of some 900 movers and shakers in property investment across the country. Playing co-host with Miami for the NBA Finals this week and next — after Dallas, Los Angeles and San Antonio, in turn — will make a genuine difference in how Oklahoma is perceived.

Having one of the healthiest single-family housing markets in the country didn't do it — not even during the most painful throes of the late housing bust, credit freeze and the Great Recession.

Having an enviable office market didn't do it — even when so much of the rest of the country's big office markets were hurting.

Having money seem to fall out of the sky looking for apartment properties when multifamily investors on the coasts found themselves wheezing — nope, it was no big deal to the people behind the big desks on those same coasts and other big power markets.

Not even Devon Energy Corp.'s dazzling tower, which crept up its 50 stories the past few years when construction everywhere in every property sector was down, down, down — not even Devon could do it.

This year's “Emerging Trends” had all of this to say: “Oklahoma City quietly benefits from energy sector performance.” That is almost damning with faint praise.

The mid-year update report had nothing to say, even in the “Markets to Watch” section where Oklahoma City usually appears; the compilers from PricewaterhouseCoopers and the Urban Land Institute, for the update, focused on just the top 10 of the 51 also-ran markets plus “hand-selected markets covering prime, secondary and tertiary locations.”

Boston and Houston got the spotlight because of stronger-than-average job growth. San Jose, Austin, San Francisco, Denver, Seattle, New York and others got nods, too. No accolades for Oklahoma City for maintaining some of the lowest unemployment in the U.S. during the late economic unpleasantness.

But now, thanks to the Thunder, Dallas, Los Angeles, San Antonio and Miami eyes see Oklahoma City in a different light — and those are some pretty powerful eyes in commercial real estate. Other eyes are upon us, too.

Eyes are opening not just because of basketball but in acknowledgement of the savvy it takes to land an NBA team, nurse it to greatness in just a few years and totally infect the general business community and general populace.

So, Thunder up, y'all. As fun as this ride is, and for all of the Oklahoma camaraderie it's engendering — Sooners and Cowboys living together! Cheering side by side! Peace in our time! (until late July or so anyway) — the Thunder isn't just personal.

The Thunder means business. It means a different kind of vision. It means the kind of national relevance that causes important, searching eyes all over the country to stop and focus.

Source: http://newsok.com/oklahoma-city-thunder-ups-the-ante-for-commercial-real-estate/article/3684925

Commercial Real Estate Showcase set for Tuesday

The Prince William Chamber of Commerce is hosting its annual Commercial Real Estate Showcase on Tuesday at the Hylton Performing Arts Center.

The event will run from 8:30 to 11 a.m. with a formal presentation to occur around 9:10. The showcase will provide an update of data on demographic and economic trends in the Prince William region.

Part trade show, part virtual tour, the event will feature a presentation that highlights available commercial real estate in Prince William County, Manassas and Manassas Park as well as up-to-date aerial and land photography of the region.

Attendees will receive inside information on new and current projects in the pipeline as well as companies planning to relocate to the region.

The event is sponsored by the Prince William County Department of Economic Development.

Nearly 200 commercial realtors, developers and other professionals are expected. Each attendee will receive a CRES guidebook with specifications of over 165 commercial properties in Prince William County and the Cities of Manassas and Manassas Park. They will also receive online access to an electronic version of the book and additional aerial photos by RWS Aerial Photography.

Showcase tickets, featuring admission to the event, breakfast, the guidebook and e-book login, are available for $75 for members and $95 for nonmembers. Access to the eBook will be made available for purchase following the event. Registration and event details are available at www.PWchamber.org/CRES.

Source: http://www2.insidenova.com/business/2012/may/21/commercial-real-estate-showcase-set-tuesday-ar-1930707/

Real Estate Sales, Prices Show Uptick in Most Arlington ZIP Codes in April

Among Arlington ZIP codes, the following real estate sales figures for April were reported by RealEstate Business Intelligence, showing increases in sales across most of the county.

The relatively low numbers of sales per month in individual ZIP codes across the county leads to larger swings than is seen in the countywide home-sales report.

22201: Sales for April totaled 44, up from 39 a year before. The average sales price of $651,863 was up 11 percent from a year before, and the median sales price of $577,000 was up 2.1 percent. Homes that sold in April spent an average of 42 days between listing and ratified contract, up from 34 days for homes that sold a year before.

22202: Sales totaled 12, down from 13. The average sales price of $493-458 was down 17.8 percent, while the median sales price of $457,500 was down 9.4 percent. Homes spent an average of 60 days on the market, down from 125.

22203: Sales totaled 23, up from 18. The average sales price of $476,785 was up 34.5 percent, while the median sales price of $500,000 was up 32.6 percent. Homes spent an average of 61 days on the market, down from 122.

22204: Sales totaled 39, up from 34. The average sales price of $407,182 was up 9.5 percent, while the median sales price of $395,000 was up 12.9 percent. Homes spent an average of 86 days on the market, down from 98.

22205: Sales totaled 28, up from 14. The average sales price of $734,279 was down 0.6 percent, while the median sales price of $688,705 was up 1 percent. Homes spent an average of 54 days on the market, up from 43.

22206: Sales totaled 29, down from 37. The average sales price of $364,162 was down 3.7 percent, while the median sales price of $375,000 was up 0.7 percent. Homes spent an average of 50 days on the market, up from 45.

22207: Sales totaled 49, up from 37. The average sales price of $786,814 was up 12.7 percent, while the median sales price of $751,000 was up 10.9 percent. Homes spent an average of 52 days on the market, down from 92.

22209: Sales totaled 18, unchanged from a year before. The average sales price of $803,125 was up 70 percent, while the median sales price of $729,900 was up 126.3 percent. Homes spent an average of 103 days on the market, up from 55.

22213: Sales totaled three, up from two. The average sales price of $875,300 was up 50.4 percent, while the median sales price of $645,900 was up 11 percent. Homes spent an average of 18 days on the market, up from 16.

Figures represent most, but not all, homes on the market. Figures are preliminary, and are subject to revision.

Source: http://www.sungazette.net/arlington/news/real-estate-sales-prices-show-uptick-in-most-arlington-zip/article_e4d6245e-9cec-11e1-a33e-001a4bcf887a.html

Red hot real estate market helped with city budget surplus

Toronto's red hot real estate market, city staff attrition and high-performing investments have all added up to a budget surplus that's almost double what Toronto City Council was led to expect when it set the city's 2012 operating and capital budget.

In total, Toronto's surplus sits at $292 million, according to a report to the city's budget committee next week. In January, council approved a budget that had just $154 million anticipated surpluses.

At the time, councillors opposing Mayor Rob Ford's budget said they suspected the surplus would be larger given the city's booming real estate market.

As it turned out, heavy trading in real estate had a lot to do with the surplus. The Land Transfer Tax, which Ford has pledged to cut, raised an additional $98 million. The city saved $80 million from a hiring slowdown. The TTC's ridership grew higher than expected, bringing in another $19.481 million from the fare box.

And the city's investment strategies meant a drop in debt servicing costs to the tune of $21.304 million and an increase in investment earnings of $22.108 million.

The money should, according to staff, mostly go towards paying for Toronto's new streetcar order and other TTC capital costs, with a quarter of it going toward operating budget issues.

Mayor Ford, who as a councillor was highly critical of surpluses run by his predecessor David Miller, said that this one was a result of sound fiscal management.

"That's how we found the $140 million," said Ford. "It's straightening the ship. This tax-and-spend mentality of the previous administration is over. People know I mean business; I was elected to find efficiencies and that's what I've done."

The late-in-the-year revelation of a higher-than-expected surplus has become an annual affair. In the last year of his mandate, Mayor David Miller boasted about a $367 million surplus (resulting from many of the same factors: fiscal restraint, strong investments and a robust real estate market).

In the face of this surplus, Ford has suggested in a memo to senior staff that the city should only be raising property taxes as a last resort and should be aiming for tax freezes in the last two years of his mandate.

Councillors who have opposed Ford in the past say that he would have little chance of getting such an agenda through.

"We saw what happened in the year that the mayor insisted on and pushed through a tax freeze," said Beaches-East York Councillor Janet Davis. "We fell behind. The city needs a long term tax plan that includes finding efficiencies but we have to ensure we have the revenues that we need."

Don Valley East Councillor Shelley Carroll said that the city needs to pay attention to the consistency with which budgets have shown a surplus.

"A city should have a surplus when they finish their financial statement, however we're now in the magnitude of $300 million on a regular basis, because we're not accurately projecting land transfer tax revenues, which means we're not letting council and the community weigh in on all the funds available to fund a working city," she said.

Source: http://www.insidetoronto.com/news/cityhall/article/1346560--red-hot-real-estate-market-helped-with-city-budget-surplus

Commercial Real Estate Market Sees Slow Start in 2012

The average vacancy rate for Class-A commercial office space in Fairfield County increased from 20.4 percent in the fourth quarter of 2011 to 21 percent in the first quarter of 2012, according to a report from commercial real estate firm Cushman & Wakefield.

According to the quarterly market report, Shelton and Stratford saw the largest increase in overall vacancy rates, each rising from 8.8 percent in the first quarter of 2011 to 13.6 percent in the first quarter of 2012.

In Shelton's case, the increase was in part due to 174,000 square feet of space that came on the market when Pitney Bowes moved its operations from 35 Waterview Drive to Danbury.

As the vacancy rates have inched up, so too has the average rent per square foot: According to the report the average rate in Fairfield County increased from $35.74 per square foot in the first quarter of 2011 to $36.57 per square foot in the first quarter of 2012.

According to the report, Shelton was one of the only Fairfield County towns in the past year to see leases signed for spaces of more than 20,000 square feet. CDW Government reportedly leased 29,100 square foot space at Two Corporate Drive and Clayton Holdings leased a 23,366 square foot space at 100 Beard Saw Mill Road.

Despite the increase in vacancy rates, "the investment sales market showed definite signs of improvement this quarter, with sustained increases in sales activity expected for the remainder of 2012," the commercial real estate firm emphasized.

"After a flurry of transactions that closed in 2011, the first quarter of 2012 was very quiet," said Jim Fagan, senior managing director and market leader of Cushman & Wakefield’s Fairfield and Westchester County regions. "Despite the lack of leasing activity and the increase in vacancy, however, asking rents, particularly in quality buildings, rose this quarter, as tenants seem willing to pay a premium for tenancy in these buildings.”

Cushman & Wakefield's third quarter 2011 report stated that Fairfield County vacancy rates were holding steady at around 21 percent.

Source: http://shelton.patch.com/articles/commercial-real-estate-market-sees-slow-start-in-2012

Kenya: Real Estate to Grow At a Slower Rate

Real estate activity in kenya is set for slower growth in coming months as financing constraints hurt the supply side.

Analysts say the currently high interest rates have had the most impact on developers who are now faced with an increasingly hesitant flock of potential buyers.

The already suppressed supply means rental prices will continue rising as demand for the available stock gathers pace. "Almost all developers have slowed building, postponed phases, or reduced the number of homes they are currently constructing," said Farhana Hassanali, the property development manager at HassConsult, on Wednesday.

"Most middle income housing developers rely on construction finance they can't access this now - this segment will most likely suffer," she said. House sellers however remain bullish and are raising the asking prices in bid to recoup their own higher costs in land, construction materials and financing.

"Inflationary pressure has also meant that bargain hunters have had no effect on prices because sellers are seeking higher prices to absorb high costs. Properties are not being discounted and sales have of course slowed down," said Nathan Luesby, managing director for real estate website Jenga Web.

Buyers are however unresponsive to the higher prices in the hope that prices will fall, widening the gap between asking and closing prices. The Hass Property Index for first quarter showed closing prices in the middle and upper market fell slightly by 0.7 per cent, while asking prices rose by 1.3 per cent on average.

HassConsult now forecasts continuing flat prices in the next 6-12 months. However, prices are expected to rise shortly after as there will be more people fighting for the limited stock that will be offloaded in the market.

"The impact is not visible currently to the rest of the economy but will be felt in coming months due to a slow down in supply of new-build," said Jenny Luesby, a consultant for the quarterly index.

Buy-to-let has become an attractive investment class as pent-up demand pushes up prices for rentals. Home buyers have kept away from mortgage loans as they fear the loan-to-value ratio may become slop-sided owing to current high interest rates ranging up to 28 per cent for direct home purchase.

The construction sector began experiencing slow growth in the last quarter of 2011. Data from the Kenya National Bureau of Statistics (Knbs) showed the quantity of cement produced declined by 0.6 per cent from 327,343 metric tonnes (MT) in November to 325,408 MT in December, while consumption fell by 3.6 per cent from 290,413 MT to 280,071 MT in the same period.

The value of building plans approved by the City Council of Nairobi for residential construction fell to Sh12.5 billion in December 2011 from a high of Sh16 billion recorded earlier in July.

Source: http://allafrica.com/stories/201204190280.html

Promontory real estate points to growth

There's a canary in the coal mine, but this time the indications are looking good. Promontory vacant land sales are pointing toward potential growth perhaps a resurgence in home construction or simply a bolster of support in the market as investments in real estate continue to crop up in the area.

According to documents from the Summit County Recorder's Office, in a single year, more than 40 vacant lots were snatched up by one person in Promontory. A real estate investment company based in California, started picking up lots after the owner decided to settle part-time in Park City.

While his number might outpace most buyers in town, the trend holds true to what Realtors are noticing, vacant land is a hot commodity in the Park City area.

"Inventory for homes is starting to shrink," said Kathy Mears, a Summit Sotheby's Realtor, "and suddenly there is a lot of interest in vacant land. We're seeing sales we haven't seen in a long time."

In 2011, the number of vacant land sales was up 23 percent from the year before according to the Park City Board of Realtors (PCBR), the largest increase among all property type sales, including home sales and condo sales. More than one Realtor agreed that vacant land prices have seen a bottom and demand is starting to heat up, especially in Promontory.

"If the prices are good, people are going to buy more," said Mark Seltenrich, the statistician for the PCBR. These numbers indicate that we've probably passed the bottom of the market, and that the bottom for lots sales was last year.

"When all is said and done, I believe the median prices will be higher this year than last."

At the same time last year, PCBR recorded the median home prices at $125,000 for vacant land in Promontory. This year, that median price has soared to $202,000, a 62 percent increase.

"It's easy to see in retrospect, but anyone that has faith in the market would see it was a good deal. Half of vacant land sales fell below $125,000. For what you're getting, that's a decent investment."

Prices for vacant land in 2011 were 70 percent below the peak, Seltenrich said, giving buyers more than a two-thirds discount from only a few years ago.

"It does show that investors are out there looking to get good deals on real estate in general," Seltenrich added. "We're seeing a shift in the market."

Karin Wilson, a member of the Promontory Executive Team, said her vacant land sale numbers don't seem to be slowing down as interest in the area grows. In 2010, Promontory closed 71 real estate deals. That number grew to 95 last year and continues to add steam. mid-April, Wilson said 17 sales had closed, remarkable because the first few months of the year are considered an untraditional selling season for Realtors.

"Real estate is an investment," Wilson said. "People came out here, saw some tremendous values and bought a lot of distressed inventory."

"We have seen a real uptick in building," she added. "The number of properties that have started building is at 17 or 18 properties now, all under construction. And there are several more going through the design process."

As vacant land sales continue, more are popping up in some of the least expected places. Mears helped to close two vacant land sales in Hidden Oaks, an area that she said hadn't experienced a vacant land sale since 2007. Both sales were this year.

"There is a renewed interest in buying vacant lots right now," Mears said. "The land prices have adjusted to prices that make sense to build. The inventory on available homes has shrunk and opting to purchase and build as opposed to buying an existing property is on the rise."

Source: http://www.parkrecord.com/ci_20417814/promontory-real-estate-points-growth

Rental real estate rises in price

Kazakhstan’s commercial real estate rental prices increased by 2.1% in March 2012 compared to December 2011, according to a report by the Kazakh Statistics Agency.

The rental prices for commercial real estate have risen by 2.5% in the first quarter of this year in Kazakhstan compared to the same period last year, according to the State Statistics Agency. Rental costs of service points, industrial and business premises increased by 5%, 3.5% and 3% respectively. Currently, the rent of one square metre in an Almaty shopping centre is 600-800 US dollars and the prices are roughly the same in Astana. The rent per square metre is lower in the southern regions and small towns and costs shop owners 200-300 US dollars. However, the costs are worth it, market participants say.

Anna Nazirova, «Altyn Samruk» Store Manager

«Starting a shop is profitable in malls as trading is well developed now and linked to entertainment. When a family comes to buy food they go to see the movies and visit at least 2-3 shops in the mall. A shop should be placed at spots with high footfall rates.»

Market participants refer to the spring-summer period as not the best time for sales. Potential customers spend most of their money on leisure and entertainment at this time. Then again, people do not need as many clothes during summer and it costs less than winter trousers, skirts, sweaters, and down jackets.

Anna Nazirova, «Altyn Samruk» Store Manager

«August is the best season. In September and October people prepare for the winter and buy the most expensive items. People return from vacations and start to prepare children for school and themselves for work. It is a good season.»

Experts estimated the annual volume of Kazakhstan’s apparel market at about 5 billion US dollars. However, this estimate is rather arbitrary, since, according to representatives of the Kazakhstan Light Industry Association, about 60 percent of the local apparel market consists of illegally imported clothing items.

Source: http://caspionet.kz/eng/business/Rental_real_estate_rises_in_price_1334635088.html

In Two Years, Real Estate will Rock

Housing starts will nearly double by 2014, and home prices will begin to rise in 2013, with prices increasing significantly in 2014.

Those rosy predictions come from a new semi-annual survey of 38 of the nation's leading real estate economists and analysts by the Urban Land Institute's Center for Capital Markets and Real Estate.

 The economists foresee broad improvements for the nation's economy, real estate capital markets, real estate fundamentals and the housing industry through 2014, including:

• The national average home price is expected to stop declining this year, and then rise by 2 percent in 2013 and by 3.5 percent in 2014.

• Vacancy rates are expected to drop in a range of between 1.2 and 3.7 percentage points for office, retail, and industrial properties and remain stable at low levels for apartments; while hotel occupancy rates will likely rise;

• Rents are expected to increase for all property types, with 2012 increases ranging from 0.8 percent for retail up to 5.0 percent for apartments;

These strong projections are based on a promising outlook for the overall economy. The survey results show the real gross domestic product (GDP) is expected to rise steadily from 2.5 percent this year to 3 percent in 2013 to 3.2 percent by 2014; the nation's unemployment rate is expected to fall to 8.0 percent in 2012, 7.5 percent in 2013, and 6.9 percent by 2014; and the number of jobs created is expected to rise from and expected 2 million in 2012 to 2.5 million in 2013 to 2.75 million in 2014.

The improving economy, however, will likely lead to higher inflation and interest rates, which will raise the cost of borrowing for consumers and investors. For 2012, 2013 and 2014, inflation as measured by the Consumer Price Index (CPI) is expected to be 2.4 percent, 2.8 percent and 3.0 percent, respectively; and ten-year treasury rates will rise along with inflation, with a rate of 2.4 percent projected for 2012, 3.1 percent for 2013, and 3.8 percent for 2014.

The survey, conducted during late February and early March, is a consensus view and reflects the median forecast for 26 economic indicators, including property transaction volumes and issuance of commercial mortgage-backed securities; property investment returns, vacancy rates and rents for several property sectors; and housing starts and home prices. Comparisons are made on a year-by-year basis from 2009, when the nation was in the throes of recession, through 2014.

While the ULI Real Estate Consensus Forecast suggests that economic growth will be steady rather than sporadic, it must be viewed within the context of numerous risk factors such as the continuing impact of Europe's debt crisis; the impact of the upcoming presidential election in the U.S. and major elections overseas; and the complexities of tighter financial regulations in the U.S. and abroad, said ULI Chief Executive Officer Patrick L. Phillips. "While geopolitical and global economic events could change the forecast going forward, what we see in this survey is confidence that the U.S. real estate economy has weathered the brunt of the recent financial storm and is poised for significant improvement over the next three years. These results hold much promise for the real estate industry."

A slight cooling trend in the apartment sector – the investors' darling for the past two years – is seen in the survey results, with other property types projected to gain momentum over the next two years. By property type, total returns for institutional quality assets in 2012 are expected to be strongest for apartments, at 12.1 percent; followed by industrial, at 11.5 percent; office, at 10.8 percent; and retail, at 10 percent. By 2014, however, returns are expected to be strongest for office, at 10 percent, and industrial, at 10 percent; followed by apartments at 8.8 percent and retail at 8.5 percent.

The forecast predicts a modest increase in vacancy rates, from 5 percent this year to 5.1 percent in 2013 to 5.3 percent in 2014; and a decrease in rental growth rates, with rents expected to grow by 5 percent this year, and then moderate to a growth rate of 4.0 percent for 2013 and 3.8 percent by 2014. This may be indicative of supply catching up with demand.

For the housing industry, the survey results suggest that 2012 could mark the beginning of a turnaround – albeit a slow one. Single-family housing starts, which have been near record lows over the past three years, are projected to reach 500,000 in 2012, 660,000 in 2013, and 800,000 in 2014. The overhang of foreclosed properties in markets hit hardest by the housing collapse will continue to affect the housing recovery in those markets. However, in general, improved job prospects and strengthening consumer confidence will likely bring buyers back to the housing market.

From Real Estate Economy Watch

Real estate agents expect housing values to increase

Livonia home sales are increasing and listed homes are spending less time on the market.

But the median sales price has declined for the first two months of this year versus last year.

For real estate agents, the statistics show that the housing market is turning around.

“There's an increased demand, the days that listed homes are on the market are falling, which means the homes are selling faster, and the numbers of sales are increasing,” said Gary Reggish, broker and owner of Remerica United Realty in Livonia.

Realcomp of Farmington released figures on Monday showing that metro Detroit's overall home sales have increased 15 percent in a six-county area, including Wayne, Oakland and Macomb counties.

Realcomp reported 104 sales in February in Livonia, up from last February's 68. This year's total is 193, up from 133 a year ago.

While that statistic shows the inventory of listed homes is moving, other statistics reveal that values have not turned around yet.

Home values showed a decline. The median sales price in Livonia was $81,500 for February, down from last year's $93,500. The median price for overall 2012 sales was $88,000, falling from $90,000 in 2011.

Homes are not sitting on the market as long as they were in 2011. A year ago, a home sat on the market for an average of 100 days for January and February; in 2012 that number for the first two months is 93.

Bidding wars

Lisa Hall, owner of Remax Dream Properties in Northville and Livonia, said agents are experiencing “extremely low inventories” for homes, except for foreclosures and short sales,

Both Reggish and Hall said bidding wars are starting to return as buyers seek homes, which also drives up the sales price, and will increase the value of homes listed for future sellers. They both indicated that they need homes to sell.

“If the home is well-taken care of, we are seeing several offers for it,” Hall said. “If a home four houses away from you sells for $65,000, it isn't out of the question that you can get $85,000 for your house.”

Reggish said the National Association of Realtors is putting pressure on the banks to lift the appraisals and get them to an accurate market value. Reggish serves on its board of directors, and on the state and local issues committee and the federal housing committee.

“It's fear,” Reggish said of the banks. “They fear that the market hasn't stabilized yet.”

Hall said the housing bubble burst, and that it will take at least 10 years to return the values back to where they once were. “You can stay, if you still have equity in the home or if you want to be moving up into a larger home, now is a good time to be moving up,” Hall said. Larger homes in foreclosure or short sales are good buys right now, Hall said.

And while homes have fallen drastically in value, the other side of that coin means that downsizing also brings a lower price beyond what existed a few years ago. Hall said she has listed a colonial in Livonia for a couple who want to downsize to a condo. “Those condos have fallen $50,000 to $75,000 in price,” Hall said.

Reggish believes Livonia is turning the corner. “The number of units is up so that shows the demand, and the homes are getting eaten up quickly,” Reggish said.

The average sales price in Livonia is about $115,000, give or take a few hundred dollars, Reggisn said. “That number speaks as a number that is stabilizing,” Reggish said.

Reggish believes homeowners are on the cusp of a market upswing and the market is ripe to buy. Home values are at their lowest levels, interest rates are at 4 percent for a 30-year mortgage and 3.75 percent for a 15-year fixed rate, Reggish said.

Reggish said his office showed a home in Livonia last weekend and 22 people showed up. One home in Northville listed for $575,000 received six offers and sold for $610,000.

Reggish said he is averaging 2 1/2 offers per house. “The buyers are out there; they just need product to buy,” Reggish said.

Livonia not as hard hit

Hall, who lists properties in Northville, Novi and Farmington Hills as well as Livonia and other western Wayne County communities, said she averages about three prospective buyers for each house she lists.

“Livonia is one of the best places to buy,” Hall said. “It wasn't hit as hard as other communities.”

At his recent State of the City, Mayor Jack Kirksey said it could take 11 to 15 years to return to 2007 property tax levels unless changes in state legislation occur, which is unlikely.

Taxable values are limited under Proposal A in Michigan to the consumer price index or 5 percent, whichever is less, unless the house is sold. Kirksey expects local governments will be limited to about 3 percent a year.

Kirksey said he was encouraged by some of the statistics about the housing market and that other factors tie into the decline in the housing value, such as foreclosures. Kirksey said he's spoken to real estate agents and is aware that homes are selling quicker.

“There's far fewer on the streets than a year ago,” Kirksey said.

Kirksey is optimistic, but knows that these sales figures are nothing more than a snapshot, and that overall sales at the year's end will need to be examined.

“It's virtually impossible for me to say whether we've bottomed out or not,” Kirksey said. “At the very least, it appears we've started to climb out of it.

“I don't know if that will continue, but I don't think we will fall any further. I am optimistic about it.”

Source: http://www.hometownlife.com/article/20120318/NEWS10/203180495

CBRE named top commercial real estate brand

BOSTON — CBRE Group Inc. announced the company was named the top global brand in commercial real estate, according to a survey of industry professionals worldwide by The Lipsey Co. CBRE has been named the industry's No. 1 brand by Lipsey for 11 consecutive years.

The Lipsey survey measures commercial real estate professionals' perceptions of the industry's leading brands. More than 50,000 U.S. and international professionals participated in the 2012 survey, including property owners, investors, lenders, occupiers, brokers and property managers.

"We are deeply honored that our clients and industry peers have selected CBRE for this recognition for 11 straight years," said Brett White, CBRE's chief executive officer. "Credit for this achievement really belongs with our 34,000 professionals around the world, who work diligently and creatively every day to exceed our clients' expectations."

The Lipsey Co. provides training and professional development services to the commercial real estate industry. CB Richard Ellis-N.E. Partners LP, a joint venture with CBRE Group Inc., has offices in Massachusetts, Connecticut, Rhode Island, Maine and New Hampshire. For information, visit www.cbre-ne.com.

Source: http://www.seacoastonline.com/articles/20120317-BIZ-203170303

Commercial Real Estate Bouncing Back

The commercial real estate industry in Utah is seeing a recovery, but some are worried that slow lending may stall future projects, according to a group of real estate experts at a Utah Business magazine roundtable Tuesday morning.

Most medium to large office spaces—10,000 square feet or more—are full, and even smaller spaces are beginning to fill up with the help of SBA loans, said Bob Chatfield, CEO of the Bank of American Fork.

Smaller deals are coming back, but it’s only been recently, said Brandon Fugal, Coldwell Banker Commercial executive vice president. Fugal said the last three months have seen an uptick in smaller offices getting leased.

Although things are going well, Fugal said he’s concerned that there isn’t enough building going on to meet future needs. “What I’m afraid of is Utah, by default, chasing companies away that would have otherwise located here because we have a lack of product and we have very few developers that really have the ability to go vertical quickly.”

Jake Boyer, president and CEO of the Boyer Company, said his company hears a lot about the supply shortage in commercial building, but they are willing, able and ready to build for a legitimate tenant.

Fugal said the problem with that is few tenants are looking the year to two years in advance needed to complete a large-scale commercial project. Many of the companies that are now driving the economy didn’t exist in their present form five years ago, so planning out that far in advance isn’t realistic.

However speculative building is almost nonexistent and getting financing to build without a significant part of the building pre-leased is nearly impossible, said Eric Smith, first vice president at CBRE.

Pentad Properties President Greg Shields said cities also need to have enough staff to address permits in a timely way. “If you want these national tenants, these jobs, these residents, you have to be able to move it along quickly—and I’m not saying give anything up—move it along quickly once these projects come. Or the people are going to go away if the process takes too long.”

The arrival of City Creek will cause some problems for Gateway and other properties for a while, but the attendees agreed that ultimately the new development will be a gain for downtown and draw more businesses away from the suburbs despite higher costs and longer timeframes for downtown projects.

The Commercial Real Estate roundtable will appear in the May issue of Utah Business magazine.

Source: http://www.utahbusiness.com/issues/articles/12176/2012/03/commercial_real_estate_bouncing_back

Dubai property prices are among fastest rising

Dubai’s residential real estate has not only stabilised, but house prices in the emirate rose an average 2.3 per cent in the final three months of 2011, according to global residential and commercial property consultants Knight Frank.

As per the consultancy’s Global House Price Index (GHPI), the increase in Dubai house prices during the last quarter of 2011 was particularly steep, and ranked on the last quarter’s rise of 2.3 per cent, Dubai stands at No. 12 worldwide in terms of house price appreciation among the 52 destinations worldwide where Knight Frank tracks house prices.

For the whole of last year, Dubai ranked No. 26 as per the GHPI, which tracks the performance of mainstream house prices wprldwide. Dubai house prices rose just 0.5 per cent for the entire year 2011, suggesting that they declined in the initial months of the year, and were more than countered by the last quarter surge.

Knight Frank’s rankings are supported by real-time asking prices on popular local websites where property is advertised, with asking prices going up in many well established and maintained locations in Dubai.

According to real estate investment and advisory firm Jones Lang LaSalle (JLL), Dubai’s property market is maturing and showing signs of polarisation, with differing prospects in 2012 for property based on location, quality and management.

“2011 was a difficult year for real estate investors with most sectors of the market moving in the favour of tenants, with lower prices and rentals.

While these trends appear likely to continue into 2012, the main trend for this year is likely to be an increasing polarisation within each sector of the market,” said Alan Robertson, CEO, JLL MENA, in a recent report on the UAE’s property market trends.

“As the performance of the best quality projects will improve, average prices are expected to decline further in 2012 within this increasingly two tier market,” he said. “Beyond investment valuations and rentals, we are continuing to see the evolution of a more mature marketplace in the UAE where valuations and property and asset management are becoming increasingly important for occupiers, developers and investors,” Robertson added.

“The local real estate market will continue be impacted by regional and global events during 2012 as, the UAE is not immune from the on-going impact of the Arab Spring and the economic troubles of the Eurozone. As we enter 2012, the real estate sector will inevitably be susceptible to any potential geo-political changes within the region, with the recent escalation of rhetoric between Iran and the West being the major cause of uncertainty. The worsening European debt crises and its impact on the global economy will be the other major external challenge to the UAE real estate market in 2012,” he said.

According to Knight Frank analyst Kate Everett Allen, “In the final quarter of 2011, prices fell in 60 per cent of the countries covered by the index.”

New entrant Brazil tops Knight Frank’s GHPI for 2011, with house prices rising 26.3 per cent in 2011. “Away from Europe and Asia, Brazil, a new addition to the index this quarter, tops the rankings with 26 per cent price growth in 2011,” said Kate. “This remarkable performance is being fuelled by strong population growth, rising household wealth and an expanding mortgage market,” she added.

An unsettled Europe formed the bottom of the housing market pyramid in 2011, with still-declining house prices in many of the European markets. “Unsurprisingly, all 12 of the bottom rankings are occupied by European markets with Ireland, down 17 per cent, in last place. However, not all European markets are in a moribund state,” said Kate.

“Estonia, Slovenia, Iceland, Norway, Switzerland and Germany achieved annual growth over 5 per cent, despite the precarious state of the Eurozone’s sovereign debt crisis,” she pointed out.

“A combination of global economic uncertainty, weak consumer confidence and strict mortgage lending criteria are dampening growth in Europe and North America while stringent government cooling measures in Asia Pacific are successfully curtailing house price inflation there,” she said.

“Asia’s downturn has proved highly influential. In 2007 China, Hong Kong and Singapore saw price rises of 42, 21 and 33 per cent, respectively. Last year, growth was -2, 11 and 5 per cent,” she elaborated.

“What the index makes clear is that the performance of global housing markets is far from uniform. While there is some cause for localised optimism, the overall trend for 2012 at least is unlikely to be positive.”

Source: http://www.emirates247.com/business/dubai-property-prices-are-among-fastest-rising-2012-03-11-1.447632

REAL ESTATE: What's your neighbor's house selling for?

ST. CLAIR COUNTY

BELLEVILLE

* 3705 Little Flower; from Department of Housing and Urban Development; to Bettie Elghannan; $18,000 mortgage, but no sales price available.

* 508 Springwood Drive; from First Bank; to James F. Schrader and Cindy A. Schrader; $144,000.

* 1103 Bel Aire Drive; from CPI Housing Fund LLC; to Ellen C. Thieleman; $20,000.

* 300 Country Meadow Lane; from Jason Lehmann and Katherine Kilcauski; to Kathryn E. Kirby; $45,000.

* 300 Brookhaven Drive; from Marc D. McCleary and Holly McCleary; to Douglas J. Meek, trustee, and Elizabeth S. Meek, trustee; $172,000.

* 220 18th Fairway Drive; from Elizabeth S. Meek; to Marc D. McCleary and Holly J. McClary; $495,000.

* 204 Todd Lane; from Deutsche Bank National Trust Co.; to Larry Glaenzer and Cynthia L. Glaenzer; $55,500.

* 33 S. 87th St.; from Michael V. Palmer and Norma J. Hosto Palmer; to Floyd Dale Johnson and Diana M. Johnson; $60,000.

* 5907 Memory Lane; from Department of Housing and Urban Development; to JT Dell Properties Inc.; $20,140 mortgage, but no sales price available.

* 33 S. 85th St.; from Kerley Properties LLC; to John Lewis and Edna Lewis; $98,500.

* 409 Hazel Ave.; from Laverne J. Will; to Branson Burris and Heather Burris; $40,000.

* 7 Signal Hill Blvd.; from Isom Handyman Services LLC; to Simon F. Herley and Jessica R. Herley; $189,500.

* 101 N. 47th St.; from Community First Bank; to Gina Bozza-Reilly; $85,000.

CAHOKIA

* 1103 St. Clement; from Department of Housing and Urban Development; to Kenneth E. Parrett; $13,050 mortgage, but no sales price available.

CASEYVILLE

* 8797 Sterling Place; from Carol Diane Sheer; to Brian K. Brown and Mandy Hoover; $30,000.

* 501 Old Caseyville Road; from Carmen M. Singleton-Bacon and Byron Bacon; to Mindy Baker; $79,000.

* 1004 Peeble Beach Drive; from John Logan Livers and Tammy Livers; to Wesley Cox and Julie Cox; $380,000.

COLLINSVILLE

* 1034 Villa Ridge; from Gregory K. Kellerman and Janet S. Kellerman; to Jennifer Hendrix and Tasha Rupprecht; $45,500.

* 520 John St.; from Danil A. Engelmann and Scott A. Engelmann; to Gary J. Anderson; $5,000.

COLUMBIA

* 1578 Rueck Road; from William J. Summers II and Sara J. Summers; to John Potter; $210,000.

FAIRVIEW HEIGHTS

* 9111 Highland Park Drive; from Springleaf Financial Services of Illinois; to Mike Geolat; $13,000.

LEBANON

* 720 N. Monroe St.; from First Collinsville Bank; to Wendy J. Kelly; $110,000.

* 801 Scott Troy Road; from Janice K. Goepfert; to Gary Fausz; $61,000.

* 405 W. Randle; from Taffy Bequette; to Keith G. Rohling; $65,000.

MARISSA

* 310 N. Hamilton Ave.; from Jewelena Poole; to James Inman and Beth Inman; $11,000.

MASCOUTAH

* 216 Jackson St.; from Jason R. Kunz and Sheryl L. Kunz; to Hobbs Properties; $55,000.

* 103 W. George St.; from Dave Diecker; to Kyle S. Moll and Kayla M. White; $139,000.

MILLSTADT

* 730 W. Van Buren; from Robert Forbeck and Gladys Forbeck; to Becky S. Fults; $160,000.

* 415 W. Parkview Drive; from Robert Leyden and Darlene Leyden; to Andrew D. Dohrman; $164,500.

O'FALLON

* 141 Marigold Drive; from LF & Son Construction LLC; to Gerry Baird and Rose Baird; $365,000.

* 291 Eagle Ridge; from Stacey Russell; to Robert P. Meder and Elizabeth S. Meder; $65,000.

* 1205 River Birch Drive; from Tony Huff and Sue Huff; to John M. Roskom and Brenda S. Roskom; $210,000.

* 121 6th St.; from Department of Housing and Urban Development; to Roy Temsmeyer and Reba Temsmeyer; $37,554 mortgage, but no sales price available.

* 517 Longfellow Drive; from Marilyn Lippold; to Jerry Bradshaw and Carie Bradshaw; $180,000.

SHILOH

* 2281 & 2301 Country Road; from Reta L. Fleshren; to Derek Strunk and Dana Strunk; $27,500.

* 3232 Hunters Way; from Doris M. Rowden and Lou-Ann C. Schaefer; to Nicole R. White and Eric J. White; $155,500.

SMITHTON

* 4 S. Smith St.; from Bradley J. Delaria Jr. and Courtney R. Delaria; to Matthew E. Ludgate; $110,000.

SWANSEA

* 263 Melinda Court; from Margaret N. Riddle; to Henry L. Ward; $219,000.

* 1719 Naughton Way; from Maria Ortiz-Allen; to John J. Lincoln and Pamela A. Smith; $195,000.

TRENTON

* 11033 Midgley-Neiss Road; from Bobby L. Goodspeed and Dottyle L. Goodspeed; to Richard A. Henss and Sharon Henss; $21,000.

WASHINGTON PARK

* 2234 N. 49th St.; from Arthonia Strong; to Tamara Douglass; $3,000.

MADISON COUNTY

ALTON

* 3510 Old Straube Lane; from Randall G. Forsythe and Kathy Forsythe; to Allan C. Marlow and Dawn L. Marlow; $245,000.

* 2925 Edgewood Ave.; from Sprague Properties LLC; to Keith C. Brown; $22,000.

* 814 McKinley Blvd.; from Roberta Bechtold; to Alexander Robinson; $58,500.

COTTAGE HILLS

* 1217 East Drive; from Glenn Cauley and Shelley Cauley; to Joshua A. Smith and Linda M. Smith; $105,000.

* 246 Arbor Drive; from Robert B. Bettord; to TB Holdings LLC; $74,000 mortgage, but no sales price available.

EAST ALTON

* 560 Pine St.; from Michael Waters and Susan K. Waters; to Aaron B. Tite; $94,000.

EDWARDSVILLE

* 201 Third Ave.; from Melissa Durbin and Jared Staples; to Elizabeth M. Koonce and Carlyn R. Underwood; $117,500.

* 579 Clover Drive; from Debbie Huff; to Darrin R. Bonney and Spring M. Bonney; $163,500.

GLEN CARBON

* 8 Charles Drive; from Matthew Pringle and Sarah Pringle; to C. Michael Schmitt, Michael Schmitt and Beth Schmitt; $167,000.

GODFREY

* 109 N. Alby Court; from Michael D. Paslay; to Ralph G. Paslay and Marsha K. Paslay; $148,000.

* 5114 Williams Place; from Daniel P. Yamnitz and Karen M. Yamnitz; to Justin Manker and Amy Manker; $157,500.

* 5312 Dixon Drive; from Mary Ellen Fulkerson; to Thomas Juravich and Maralee Juravich; $174,000.

GRANITE CITY

* 6112 Old Alton Road; from Elona R. Mathis and John W. Mathis; to Patrick D. Sowell and Cherise M. Sowell; $161,500.

* 4817 Karen Drive; from Marcus J. Garley and Molly J. Garley; to Jonathan L. Birdsong, Amy M. Birdsong, Roy Logan; $207,000.

* 15 Mercer Drive; from Gerin Enterprises Inc.; to Charles D. Ingram; $114,000.

HIGHLAND

* 2035 Steinkoenig School Road; from Robert L. Simons and Sharon D. Simons; to Jeff Winter; $35,000.

MADISON

* 828 Alton Ave.; from Andrew Economy and Debra Economy; to Joseph Gerald Hamm and Sherry Hamm; $36,000.

TROY

* 913 Long Branch Road; from Matthew Hemann and Traci Hemann; to Phillip Solomon; $157,000.

* 118 Center St., West; from Regions Bank; to Greg Campbell and Carol Climino; $40,000.

* 215 Staunton Road; from Justin P. Manker and Amy Manker; to Ryan Trepka and Heather Trepka; $118,000.

* 301 Quail Lake Drive; from Greg Kappler, Gregory Kappler, Melissa Kappler; to Melissa S. Loveland and David A. Shaw; $228,000.

* 8400 Herrick Park Drive; from PM Office Park LLC; to Huntington Chase Homes Corp.; $47,000.

WOOD RIVER

* 77 Eastmoor Drive; from Mark Edward Osborne and Terri Lynn Osborne; to Paul A. Peters and Mary A. Peters; $125,000.

MONROE COUNTY

COLUMBIA

* 512 N. Metter Ave.; from Leroy A. Gummersheimer; to Cave Creek Properties Inc.; $67,500.

* 941 N. Main St.; from Marla S. Hinton, Danny L. Weihl, Marla S. Weihl; to Danny L. Weihl; $106,400 mortgage, but no sales price available.

* 1512 Clover Ridge; from Pete P. Szuba; to Alan J. Meitl; $375,000.

* 1036 Arlington Drive; from Emily K. Carter, Matthew Carter, Emily K. Pritchett; to Emily K. Carter; $142,500 mortgage, but no sales price available.

WATERLOO

* 114 Lincoln Drive; from Cheryl L. Dix and Steven C. Dix; to Cody J. Shields; $168,000.

* 3 Fawn Run; from Alice E. West, trustee, and Bobby L. West, trustee; to John L. Wirth Jr.; $310,000.

* 606 S. Market; from Marvin A. Gruber and Devin E. Gruber; to Karen Gruber; $140,000.

* 400 S. Library St.; from Jack A. Dependahl; to Russell A. Walster; $75,000.

Read more here: http://www.bnd.com/2012/02/26/2071917/real-estate.html#storylink=cpy

Source: http://www.bnd.com/2012/02/26/2071917/real-estate.html

With inventory lower, properties sell faster

Inventory levels for single-family homes and condominiums in the Boston area are at an all-time low, signaling a shift to stability in the Hub’s housing market.

In Boston proper, real estate inventories are down 17 percent from last year, according to data from Multiple Listing Services Network PIN. In neighborhoods such as Back Bay, South End, the waterfront and Beacon Hill housing inventories are down 10 percent, 19 percent, 36 percent and 36 percent, respectively. These lower inventory levels also accompany fewer days on market — down 12 percent from last year — and median prices that are on the upswing with a 10 percent increase citywide.

Real estate expert cite several factors driving these downtown market trends. The downtown Boston market has not seen any large-scale residential condominium projects since 2007 because funding has been non-existent for the past several years.

According to Yanni Tsipis, a lecturer at the MIT Center for Real Estate and senior vice president at Colliers International, “We are largely through this period of distress. In the downtown market, as existing inventory of newer construction burns off, it appears likely that there will be a build-up of demand for new production and upward pressure on pricing.”

Tsipis also said many of these potential sellers in the downtown market are also “move up” buyers or buyers who move to the newest building or development in the city from their existing one. With construction just beginning on several downtown projects, these “move up” buyers have won’t have any new large-scale buildings to buy into for the next several years.

In cities and towns surrounding Boston there is a similar trend. Cambridge’s housing inventory is at an all-time low of 126 housing units, down 43 percent from last year with a 4 percent decrease of days on market to 110. Arlington’s inventory is down 21 percent from last year and days on market are down 33 percent, from 118 days to 79 days. Inventory in Quincy is down 6 percent, with days on market down 4 percent from last year to 150.

“Massachusetts has not been hard hit as other areas, and the market is stabilized. We don’t have the amount of foreclosure’s the rest of the country has seen,” said Nicolas Retsinas, a senior lecturer in real estate at the Harvard Business School and director emeritus of Harvard University’s Joint Center for Housing Studies.

With regards to the lower inventory levels, Retsinas added, “Sellers have been spooked by the decrease in prices in the past. We are seeing a lag in inventory because of it.”

Strict lending requirements continue to strain the market. “At the moment we are going through a very tight period for credit and we should have more of a demand today given the demographics,” Retsinas said. “We are on the verge of recovery because of the tightened credit.”

Source: http://www.bostonherald.com/business/real_estate/view/20220224with_inventory_lower_properties_sell_faster/srvc=home&position=also

Global real-estate markets continue promising trend

While economic uncertainty still affects the main commercial real-estate centres around the world, global real-estate markets are showing steady improvements, according to Jones Lang LaSalle's new suite of global forecasting reports.

The firm's Global Office Index reveals the fourth quarter of 2011 marked the eighth consecutive quarter where prime office rents have risen, up a further 0.8 per cent over the previous quarter and representing 6-per-cent growth over the fourth quarter of 2010. Global vacancy is edging down to the lowest point for the past two years at 13.6 per cent.

"The majority of global leasing markets are holding firm, and many are showing remarkable resilience, especially among the BRIC countries [Brazil, Russia, India and China], as well as robust showings from Canada, Australia, Germany and the Nordics," said Jeremy Kelly, director of Jones Lang LaSalle's Global Research team and author of the firm's Global Market Perspective. "While leasing markets in the major financial centres are softening, the limited supply pipeline should ensure that they do not move significantly out of balance."

Jones Lang LaSalle's Global Office Index tracks the rental performance of prime office space across 81 major markets in the Americas, Asia Pacific and Europe. Key findings of the Jones Lang LaSalle's Fourth Quarter 2011 Global Office Index include:

_ Rental growth rose the most in the Americas at 1.2 per cent in the fourth quarter over the third quarter of 2011, as landlord leverage gradually increased in the majority of markets.

_ Asia-Pacific markets saw rental growth decelerate from 2.5 per cent in the third quarter to just 0.9 per cent in the fourth quarter as corporate demand began to slow.

_ Despite the negative economic backdrop, Europe's office markets showed some improvement over the fourth quarter with growth picking up to 0.4 per cent from a virtual halt in third quarter 2011.

_ Leasing volumes will be steady in 2012 with positive rental growth expected in most major office markets. Beijing, Toronto and San Francisco are expected to top the charts with potential double-digit increases.

Investors, already wise to the resilient fundamentals in the commercial real-estate sector,

continue to choose real estate given its attractive investment status compared with alternative investments.

The Global Market Perspective shows robust capital market investment volumes in the fourth quarter 2011. A total of US$411 billion (Bt12.68 trillion) was transacted in full-year 2011, up 28 per cent on 2010. 2012 transaction levels are set to match 2011, with upside potential in the Americas.

Arthur de Haast, lead director of the International Capital Group at Jones Lang LaSalle, added that the markets are witnessing a "flight-to-quality", traditional in times of uncertainty, as investors pivot towards core assets in those major cities with strong economic fundamentals and/or with "safe-haven" characteristics. While there is capital available for commercial real estate, debt financing around the global will be more constrained in 2012. We're seeing capital appreciation slowing as yields flatten, and spreads between core and secondary assets widen.

While commercial real-estate expectations for 2012 have been tempered, barring significant financial system shocks, commercial real estate investment and leasing volumes are likely to be maintained at 2011 levels.

Source: http://www.nationmultimedia.com/business/Global-real-estate-markets-continue-promising-tren-30175734.html

U.S. demand for commercial real estate loans up, but lending standards not loosened: Fed report

While nationwide demand for commercial real estate loans is up, banks are not loosening lending constraints, it would appear, reviewing figures from the Federal Reserve’s quarterly Senior Loan Officer Opinion Survey on Bank Lending Practices report, released yesterday.

The 56 domestic banks surveyed reported that their lending standards had changed little but that they had experienced “somewhat stronger loan demand, on net,” over the past three months.

A “moderate fraction” of domestic banks surveyed said that demand for commercial real estate loans had strengthened, on net, over the past three months, but they reported little change in their lending standards, which spells bad news for many owners who will be in need of refinancing this year. U.S. branches of foreign banks reported that they had even tightened their lending standards in some cases, according to the report.

The five- and seven-year commercial real estate loans originated during the boom are beginning to come due in 2012, and many observers have speculated that even borrowers who are not distressed could have trouble refinancing in the current climate. New regulations such as those that demand higher equity ratios, are constraining banks’ lending.

In the past year, some domestic banks reportedly raised their maximum commercial real estate loan size and many domestic banks “trimmed loan rate spreads,” the report says. A few large domestic banks also reported that they had lengthened maximum loan maturities.

Approximately 15 percent of foreign lender respondents said they had increased maximum loan sizes, but a similar percentage also said they had tightened debt service coverage ratios.

Generally, however, the terms of commercial real estate loans were unchanged, the survey indicates. — Guelda Voien

Source: http://therealdeal.com/blog/2012/01/31/u-s-demand-for-commercial-real-estate-loans-up-but-lending-standards-not-loosened-fed-report-says/