With all the negative news about the residential loan markets and the fact that some of that “bleeds through” to the commercial loan markets it is nice to hear some good news about commercial loans. As investors who formerly bought bonds backed by residential loan portfolios have “fled to safety” in the form of U.S. Governmernt Securities they have driven the prices of those securities up and the yields down. One of those securities represented by the 10 Year Treasury Index has fallen from a rate of over 5.00% to […]
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REAL ESTATE VERSUS S&P 500
December 4, 2007 in COMMERCIAL R.E.
The National Council of Real Estate Investment Fiduciaries maintains an index of returns on institutional real estate investments and recently reported that the annual returns have averaged 12.7% over the last 10 years. This compares very favorably to the S&P 500 index over the same ten year time period of 8.4%. We believe that individual investors should be able to achieve similar returns if they are buying and managing properties wisely.
WORRY, DON’T PANIC
December 3, 2007 in COMMERCIAL R.E.
The article below was published recently by Torto Wheaton Research, the research arm of CB Richard Ellis. They are a well respected research organization in the real estate area. This article was written by Joh Southard, SVP, Director of Research & Chief Economist WORRY, DON’T PANIC Commercial real estate faces more challenges today than it has for several years. That said, however, the recent failures of the residential real estate market have led to far too much innuendo that commercial real estate is “next.” For those less familiar with the […]
MOODY’S REPORTS DECLINE IN U.S. PROPERTY VALUES
November 21, 2007 in COMMERCIAL R.E.
The following article from Moody’s was released yesterday (November 20) and discusses commercial property value changes. By Parke M. Chapman Nov 20, 2007 5:06 PM The impressive run-up in commercial real estate values may have finally run its course.  This week, Moody’s Investors Service reports that U.S. commercial property values posted a 1.2% decline in September. While the drop is relatively small, the monthly decline “might represent the inflection point in commercial real estate values given the ongoing liquidity crunch,â€? writes Moody’s. Unlike other surveys that process appraised values, Moody’s […]