Latest NAR Commercial Podcast From Bill Armstrong
The Commercial Real Estate 2Q Market Suvey shows market is stable and even improving in some areas of country. The survey provides an overview of market performance, sales and rental transactions.
Top Obstacle: Lending VS. Recovery
REALTOR®s define financing as the biggest obstacle in the marketplace now, followed closely by pricing. Despite these challenges, 7 in 10 commercial REALTORS® clsoed sales transactions during the second quarter. Sales volume grew 12% from a year ago and leasing activity is up 4% from pervious quarter.
This dovetals with May’s CRE Lending Survey; 75% mentioned lending standards are as stringent as or more stringent than a year ago. Adding to tight underwriting, down payment conditions also require hefty commitment; 72% of closed sales required a down payment above 20% to secure financing.
NAR Advocacy For Commercial Is Ongoing: FASB, Basel III, EB-5 Visas
Bill mentioned NAR is advocating for better lease accounting rules that will enable increased borrowing. NAR’s efforts have resulted in the FASB and IASB reexamining the potential economic outcomes of their proposed rule that would force many companies to capitalize commercial leases on to their balance sheets.
This month, NAR regulators to study potential impact on real estate of international capital and liquidity requirements for banks known as Basel III that require them to hold more capital back rather than making it available to lend. While their goals are commendable, said Armstrong, NAR supports efforts to ensure that Basel III foes not reduce liquidity.
This month, NAR joined a broader coalition of of real estate organizations asking Congress to support legislation that would re-authorize the EB-5 Visa. This provides visas to individuals overseas who invest in commercial enterprises and ceate jobs in targeted areas across the us.
NAR continues to push for legislation to increase liquidity in other ways. including raising the lending cap on credit unions. Also by creating a covered bond market and supporting the extension of the SBA’s commercial refi loan program, set to expire on September 27.
NAR Code Of Ethics Training Due December 31st; Centennial of COE in ’13
Bill reminded us to not forget that 2012 is also the year to complete NAR Code Of Ethics training, which comes up every four years. You have until December 31st to complete it. NAR’s COE is one of the things that truly sets REALTORS® apart from other real estate licesnsees. Asked Bill: “How many of you have done your training? I have and it’s pretty painless.” You can do the training thru your local association or online at realtor.org.
2013 also marks Centennial of NAR’s Code Of Ethics. The celebration of the centennial will kick off at the NAR Annual Conference and Expo, Nov 9-12 in Orlando. The celebration will continue through 2013.
Photo credit: MackintoshRealtors.Com