- Beware of Loan Provisions
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The language in preprinted lending documents could cause you plenty of trouble.
When buyers purchase a property with financing or are refinancing an existing loan, they often see loan documents that are either preprinted or generated by a document assembly program. In either case, making changes to preset te
- Mining Gold
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Research from the likes of BDO and NAREIT finds that Real
Estate Investment Trusts are facing performance risks, potential market
volatility, and heightened attention from investors after outpacing the
Standard & Poor's 500 during most of 2016.
REIT fund managers can either follow or ignore guidance on the
financial opportunity that commercial building energy retrofits offer to
maximize earnings and sustain a competitive advantage. Ignoring
guidance presents major performance risks.
- Changing of the Guard
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Family-run firms make the leap to institutional fundraising.
In terms of large assets, the real estate investment landscape is dominated by a handful of firms. However, a great many more investment firms manage small funds or are run as a family legacy, encompassing multi-generational family members.
Like
- Savvy Gifting
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When Richard Juge, CCIM, had a property sitting on the market for some time, he found the best way to dispose of it was to donate it to CCIM Foundation, resulting in benefits for all parties involved.
- Lender Talk Tips
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Maximize your role in discussions with your financing partner.
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It's a good time to be a commercial real estate broker.
Sales volume for commercial real estate properties for the first half of 2015 was up 36 percent year over year, according to Real Capital Analytics. Vacancies c
- Defeasing CMBS Loans
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With the real estate market on a significant upswing and lenders across the U.S. loosening their purse strings, defeasance activity has picked up substantially over the past two years. According to industry reports, more than $13.2 billion of commercial mortgage
- FASB Changes Ahead
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New accounting rule will impact commercial real estate leases.
A proposed accounting rules change could substantially alter the way thousands of U.S. businesses treat leased real estate, which could have a seismic impact throughout the U.S. market and beyond.
The proposed change, which could take effect as
- Post-Bank Lending
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Are borrowers making a shift to alternative financing sources?
Before 2008, lending decisions were generally driven by the economics of loan volume. The priority of making money through loan origination was hard-coded into the commercial banking culture, as compensation was based on loan volume not loan perfo
- Cyber Scares
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Foreign Capital Buys Offices In 2014, foreign capital was particularly focused on office assets, purchasing $17 billion of U.S. office properties, according to CBRE. That amount represents 45 percent of last year’s foreign investment in U.S. commercial real estate. More
- Evolving Landscape
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In the ever-evolving regulatory landscape, a new CMBS bill, under the
Dodd-Frank Wall Street Reform and Consumer Protection Act, is slated to
take effect in December. This bill, comprised of a new set of risk
retention rules, will require CMBS lenders to retain a portion of the
value of the loans they issue as opposed to selling them off as bonds.
Commercial real estate brokers can capitalize on a growing market by understanding its unique needs and challenges.
Startups aren't exactly synonymous with big money for commercial real estate brokers. New businesses are often looking for small spaces and short-term deals. However, brokers would be wise to gi
- In Sync
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Should the Federal Reserve continue with gradual increases in interest rates, the market will adapt by making slight adjustments, which will be reflected in the movement of cap rates. However, most analysts are predicting that 2017 will see two interest rate adjustments by the Federal Reserve in response to rising employment and higher inflation rates.
- Entrepreneurial Mezzanine Financing Sources Offer Flexible Equity
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In recent years, mezzanine debt and equity financing has been growing steadily into a major source of funding for all types of commercial real estate projects. On a marketwide basis, the real estate mezzanine financing sector represents 10 percent of
- Financing Still Available for Well- Structured Technology Ventures
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Less than a year ago, landlords and lenders were trading warrants for security deposits and leasing space at exorbitant rents to technology tenants. Currently, with the Nasdaq below 2000 and capital spending for technology at a halt, corporate credit has
- Before the Build-Out
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In today’s competitive leasing market, build outs or other capital improvements are good ways for property owners to retain current tenants or attract new ones. Creating more open floor plans or providing additional capacity for new technologies can adapt older
- 1031 Timing
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Under Internal Revenue Code Section 1031, real property held for productive use in a trade or business or for investment may be exchanged and capital gain taxes deferred through a delayed exchange, which requires the taxpayer to sell the relinquished
- Capital Rescue
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Mezzanine financing rescues deals when traditional lending cannot bear the risk.
With conventional lenders both restricted by regulations and wary of riskier ventures, mezzanine financing is playing a stronger role in providing equity for commercial real estate developments. For example, a builder wanted
- Theft Alert
-
Research from the likes of BDO and NAREIT finds that Real
Estate Investment Trusts are facing performance risks, potential market
volatility, and heightened attention from investors after outpacing the
Standard & Poor's 500 during most of 2016.
REIT fund managers can either follow or ignore guidance on the
financial opportunity that commercial building energy retrofits offer to
maximize earnings and sustain a competitive advantage. Ignoring
guidance presents major performance risks.
- Silver Lining
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- Partial-Interest Plan
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Partial interest properties can seem like a myth in the real estate world. These properties are not only rare, but also notoriously difficult to sell. If you ever happen across a partial interest property, here’s how to work with the
- Learning from Experience
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Opportunity zones have plenty of potential, so here are lessons to be learned from the industry’s experience with EB-5 visas.
- Self-Rental Rule
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The only thing worse than incurring a loss on investment property is incurring a loss that cannot be deducted for tax purposes. Self rental property may cause this tax result for some property owners if rental arrangements are not strategically
- CMBS Maturity Wave
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Six years ago marked the beginning of the global economic crisis. Since that time lenders have been working at a rapid pace to resolve distressed loans that were coming into delinquency at record rates. Today, the economy has returned to
- Struggling Properties Can Exercise Workout Options to Improve Financial Health
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This year is shaping up to be the most active period for real estate workouts since the early 1990s, primarily due to the declining value and performance of commercial properties during the economic slowdown. Tightening capital markets have compounded the
- Loan Language
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Commercial real estate finance remains in a state of flux. Lenders are re entering the market with new policies and underwriting criteria. Many lenders have toughened the terms of their form loan documents. It is important for borrowers to understand
- Making It Work
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Investors soon may feel the effects of a cooling real estate market through subtle and not so subtle shifts in the way lenders view commercial real estate loans. The industry experienced strong surface growth last year National overall vacancy rates