NAI Global - Commercial Real Estate Blogs

Calm Before the Storm

As the haunting sound of the Vuvuzela becomes a distant memory, is this the calm before the storm? Is a breakup of the Eurozone looming on the horizon?

Confused About Bolivia’s Credit Rating? So Are a Lot of People

Either some of the credit rating people are utilising one of Bolivia’s more controversial agricultural byproducts or I do not fully understand how credit rating truly functions. Bolivia, led by a far-left, bitter, anti-capitalism President, just received an upgrade in its credit rating from B- to B with the added recommendation of a positive outlook. Hellooo!? Have you heard of ALBA? Are you aware of what is happening in Venezuela, Bolivia’s economic and political soul mate? I do not think that the folks at S&P are paying attention to current events; President Evo Morales has nationalised the hydrocarbons sector, the country’s telephone company and is threatening (promising?) to wrest other companies and “strategic” sectors from the hands of those evil, conspiring free marketers that attract investment and create jobs. Talk about counter-intuitive logic.

Multifamily Development Gains Momentum in Southern California

Los Angeles developers have unveiled plans for 900 new multifamily units, some already under construction, indicating that multifamily building has remained strong while other sectors have stalled during the recession.

Brokers Build “Green” Expertise

With an ever increasing number of “green” commercial properties populating the national landscape, many real estate brokers are developing the expertise necessary to discuss the impact of energy efficiency with their clients.

NAI Global Arranges 5 Year Lease of Manufacturing Facility at Keystone Industrial Port Complex

CSC Sugar to Use Facility to Refine and Produce Liquid Sugar for Food Industry

 

CSC Sugar has leased the Bar Mill building in the Keystone Industrial Port Complex (KIPC) in Fairless Hills, Pennsylvania. CSC Sugar will use the industrial property to import raw sugar in bulk via ship and rail, and refine the sugar into a liquid product called Sugaright that will be provided to food manufacturers as an additive in beverages, gums, candies and other foodstuffs.

FDI in Latin America on the Rebound

According to news from the UN Economic Commission on Latin America and the Caribbean, FDI is roaring back into the region after last year having dropped by 42% (US$76.7 billion) over the previous year (US$131.9 billion). Investors are confident that the region is indeed healthy and rebounding where it needs to. The commission foresees an increase in FDI of between 40-50% and should surpass US$100 billion. This would be at least a 20% increase over the region’s FDI in 2009, but still below the US$131.9 billion record achieved in 2008. Although the Commission attributes the increased FDI to improved monetary policies that boost domestic demand and higher commodity prices, I attribute it also to the political and economic stability and their institutionalisation within most countries in the region, the diversification of industry within the region’s larger and some medium–sized economies (e.g. Brazil, Mexico, Chile, Colombia, Argentina, Costa Rica) and slightly improved fiscal and investment policies. If truth be told, most of the companies now increasing or beginning their investment in the region had their sights set on it even during the deepest point of the economic crisis. They could not tactically or financially divert investment funds to Latin America.

Restructuring Process Slows as More Distressed Properties Enter Special Servicing

Lenders and servicers continue to be inundated with properties entering special servicing, expanding from multi-family housing to office, retail and other commercial assets. As we originally anticipated, 2012 will be the major year for defaults in commercial properties, especially office properties throughout the United States. Momentum has slowed as servicers are bogged with the influx of properties. 

Robust Recovery in 2010 Will Just Return U.S. to Middling Economy, Says NAI Global Chief Economist Dr. Peter Linneman

Strong, steady economic growth over the next two years will just return the U.S. economy to a pre-2008 level, giving us back what we needlessly lost due to government-induced panic and poor lending practices, according to a new white paper from NAI Global Chief Economist Dr. Peter Linneman.  The white paper examines the overall outlook for the job market and provides a forecast for the next three years.

Manhattan Sees Decline in Vacancy Rates

For the first time in more than two years, office vacancy rates in Manhattan are on the decline. Vacancy rates dropped from 11.6% in the first quarter to just 10.8% at the end of the second quarter as nearly 7 million square feet of space was leased across the market.

 

There are still millions of square feet available, and buyers/tenants currently have the upper hand in sale/lease negotiations. With an uncertain economic recovery ahead, it is unknown if this drop in vacancy rates signals the start of the end of a difficult market, or if a double-dip recession will further delay a recovery market-wide.

Smart Phones – The Plot Thickens…

With the likely demise of the Palm OS for smart phones, there remain four major robust players in the smart phone market: Blackberry, iPhone, Android and Microsoft.  And even the Palm may make a comeback if purchased by Lenovo or another offshore company.  This is incredible and a great boon to all of us with so many choices and new features and new capabilities and new colors and best of all, price competitiveness.  Holy moly and thanks to the techie gods in the Cloud for the good times we live in.