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The commercial real estate industry is now expected to linger in recession through 2011, with recovery beginning in 2012, according to a recent survey released by Price Waterhouse Cooper. Rather than affecting all asset classes at once, the recovery will take hold in different segments at varying times. This most likely relates to the level of distress within each segment, as more distressed assets will take longer to recover.
First through the gate is predicted to be the multifamily property sector, which will begin to see recovery in 2010, with progress continuing through 2012. Next, the industrial and office real estate sectors will see recovery emerge in 2011 but not truly take hold until 2012. Finally, retail properties, dragging its feet through the door, will observe “slight recovery” in 2012. These predictions are precisely what one would expect to see in the market. As people regain their footing, shelter will undoubtedly be first priority, followed by office space as more people go back to work and finally retail as people begin to spend again.
Interestingly enough, 2012, the year commercial real estate is forecasted to see an industry wide recovery, is also the year $153 billion of CMBS loans come due. This creates a seemingly unlikely coincidence, as defaults are projected to be prevalent amongst those maturing loans. In-fact, according to Deutsche Bank, $100 billion of those loans (around 65%) will default, creating a crisis. How a recovery and crisis can simultaneously exist within the same industry is a little hard to fathom but there is a chance the market will see this as an opportunity rather than a threat. If the industry truly is on stable footing by 2012, perhaps the appetites of buyers will be large enough to absorb those defaulted properties. If not, the year earmarked for recovery could be marred by a financial tempest. ____________________Guest Blogger: Calkain Companies
Calkain Companies, Inc. is a national, boutique commercial real estate firm, focusing on net lease investments, that provides brokerage and consulting services for both private and institutional clientele.
Last week LoopNet attended the ASVB (Association of Silicon Valley Brokers) annual golf tournament at the Cinnabar Hills Golf Club in San Jose, CA.
Over 200 local commercial real estate professionals came together to participate in the 18 hole tournament!
As a hole sponsor, we had the opportunity to mingle with local brokers and other professionals while they teed off in our marshmallow contest. Although having fun seemed to be the theme of the day, several brokers were successful in hitting a marshmallow hole in one! Not only was it great opportunity for brokers to network in their local market, but they were also golfing for a charitable cause. Overall it was a great day on the course!
On September 16th LoopNet employees sprinted to the finish line to help support the YMCA of San Francisco's Kids to Camp Program. Over 20 LoopNet employees joined about 300 other Bay Area companies to take on a 3.5 mile course which ran throughout Chrissy Field to complete the JP Morgan Chase Corporate Challenge .
The JP Morgan Chase Foundation made a donation for each entry that was ear-marked specifically for Camp Jones Gulch, situated on 930 acres in the Santa Cruz Mountains.
Last week LoopNet exhibited at the ICSC Western Division Conference in San Diego, CA. Over 2,900 commercial real estate professionals attended the conference. As LoopNet Premium Members visited our booth, we helped them activate their Enhanced Listing Web Sites. Here is a San Diego retail property with one activated. If you haven’t already read about this free Premium Membership feature, make sure to check it out!
What is our favorite way to use an Enhanced Listing Web Site? Add the link to your marketing materials and it will look like you spent a fortune on a flash-based web developer to feature your listing.
Here’s how:
Step 1: Log in to http://www.loopnet.com/. In “My LoopNet”, click the “My Listings” tab.
Step 2: Locate the listing for which you would like to create a web site and click "Create Web Site".
Step 3: Choose one of the six templates and click “Create Site”.
Do you have an active Enhanced Listing Web Site? Post the link in our comments to share it!
What are you doing? The question millions of people answer daily in 140 characters or less on Twitter. But the real question is why do people take time out of their day to not only answer this question, but also read how other people in their network are answering this question? A poll taken by Smartbrief showed the majority of followers use Twitter to stay on top of breaking news and trends.
While there is much debate over the effectiveness and sustainability of Twitter, here are 3 advantages of taking time out of your day to answer the infamous question, “what are you doing?”1. Declare Expertise – Post insightful knowledge about your expertise or market. You will gain respect and trust among your commercial real estate network and in return be privy to their breaking news and market information.2. Promote Listings –Instantly broadcast your commercial real estate listings or other broker’s listings of interest from the LoopNet property profile. Be respectful of your network and only tweet a listing once unless there is a significant change with the listing.3. Announce Wants/Needs –Inform your commercial real estate network of specific properties you or your clients are in the market to lease or purchase.Do you have a Twitter tip to share? Post a comment below or tweet us at twitter.com/LoopNet.
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