Many speakers try and give you tips and know-how of negotiations but few have the first-hand, global experiences, that Signature Series speaker Barry Elms can provide. From the Middle East to Midwest from the federal government to General Motors, Barry Elms discusses what his real life negotiations have taught him and will share some of those lessons learned to our Commercial Intelligence Briefing (CIB) listeners.
More on our speaker- Barry Elms, President of Strategic Negotiations International, is acclaimed by many as “America’s business coach in negotiation skills.” In the last 20 years, Barry has given more than 2,000 presentations to corporations and associations worldwide, including the National Association of REALTORS®. Click on the link to listen to this edition of the CIB as well as past recordings.
While it is true that credit markets remain uncertain and that high unemployment is still with us, there are many signs that commercial real estate markets are on the mend.
Unlike a leading indicator such as residential RE, commercial real estate tends to trail mainline economic indicators. CRE tends to grow as a result of economic growth, not vice versa. With cautious optimism reappearing across the broader economy in recent months, what are the signs the CRE cart is following the general economy’s rejuvenated horse?
An M&A study by Mergermarket found a 23.6% increase in the total value of commercial real estate deals for 2010 compared to 2009. In the United States, the value of M&A activity in the real estate sector increased from $3.8 billion in 2009 to $11.0 billion last year. The number of deals that took place almost doubled, climbing from 20 to 36.
The economic downturn’s longest-lasting effect is in the chilling of the credit markets. Without the lubricating capital to finance acquisitions, expansions and development, the commercial real estate economic engine sputters or halts. Loud concerns about unavailable credit were heard from nearly every commercial RE pro in attendance at NAR’s annual this past November. Yet, as 2011 approaches, there are strong signs of the engine turning over again. Will we leave the ditch behind?
TNP Strategic Retail Trust Inc. entered, through certain of its wholly owned subsidiaries, into a secured revolving credit facility with KeyBank National Association. The facility has an initial aggregate leading commitment of up to $35 million. It replaces TNP’s existing $15 million credit facility, which matured on Dec. 17. The new facility includes an accordion feature that allows for an increase in commitments of up to $150 million as the company continues to grow. It has an initial maturity date of Dec. 17, 2013, subject to extension.
The facility will be secured by certain TNP-owned properties and will be subject to a number of financial covenants, including minimum and maximum limits on the company’s total leverage ratio, interest coverage ratio, fixed charge coverage ratio, liquidity and tangible net worth. TNP may use the facility for acquisitions and investments in real estate-related assets, capital and tenant improvements at existing and future properties, debt refinancing and other general working capital purposes.
“We are pleased to expand our relationship with KeyBank and appreciate their continued support and confidence in our company,” said Anthony W. “Tony” Thompson, CEO of TNP, in a statement. “Additionally, we expect that this increased flexibility and borrowing capacity will allow us to compete for almost any [appropriate] property.”