the Editors of Commercial Property Executive
HSBC Finds Integrated Program Manages Risk
With the economy still feeling shocks from the subprime mortgage meltdown and the ripple effect it sent throughout the financial world, the importance of risk assessment is now clearer than ever. And as commercial property deals with its own upheavals, industry lenders and investors are taking steps to more closely and accurately evaluate the risk profiles of underlying assets.To that end, HSBC is utilizing a program from consulting and technology firm Risk Integrated in order to keep tabs on its commercial real estate loans under its European lending business. The program, dubbed the Specialized Finance System (SFS), is aimed at…
Effective Backup Systems for Today’s Technology
Q: What should be my top considerations in backing up my system?A: Backups are a critical component of proactive systems management and yet are quite often overlooked. Among the most common mistakes people make with backup systems:• Relying on backup systems that were set up years ago without verifying that they actually work. We’ve seen a large number of firms where someone blindly swaps tapes in and out on a daily basis, without once testing the tapes.• Having incomplete backups. When most users think of backups, they generally just back up their documents and files. We’ve seen a large number…
AIA Awards Use of Technology in Design
On April 29, the AIA Technology in Architectural Practice Knowledge Community will recognize use of technology in building design when it bestows five award citations and six honorable mentions during its fifth Annual 2009 BIM Awards Program in San Francisco. From a submission field of 34 entries, the standout award was the Cooper Union Advancement of Science and Art Building by Morphosis, which won in both the Creating Stellar Architecture using BIM and the Jury’s Choice categories.This is the fifth year that AIA’s TAP community has conducted its award program for use of building information modeling. In the view of…
With Demand Growing Nationwide, NY State First to Receive Stimulus Funding for Affordable Housing
Across the country, the economic crisis has bolstered demand for below market-rate residential rental accommodations, and New York State is hardly an exception. Governor David Paterson was the first governor to push for the inclusion of affordable housing project funding in the American Recovery and Reinvestment Act of 2009, and now the state has become the first to receive money–a total of $253 million in grants–for affordable housing from the stimulus package. The money will result in approximately 1,400 new or rehabilitated residences. An initial nine low-income housing projects have been identified to profit from the grants. Properties in the…
Apartment Sector Stability Falters, Vacancy Hits 3-Year High
A pair of new reports outline divergent futures for the apartment sector. While a report from Reis Inc. paints a dire outlook for apartment occupancy as job creation dwindles, another–by Marcus & Millichap Real Estate Investment Services–indicates the return of millions of households to the rental market after temporary homeownership along with the emergence of echo-boomer renters and a significant drop in new supply pipelines, all of which may ultimately lead to several years of strong rent growth. Reuters cited Reis in reporting that the vacancy rate for U.S. apartments hit a three-year high in the first quarter and asking…
As Hotel Firms Keep Focus on International Scene, Pair of Ramadas Planned for China
Despite the economy, the international hospitality sector continues to move forward, with Ramada Worldwide the latest to expand on the international scene. The firm has unveiled plans for two new hotels in China. While projects across the globe suffer as a result of the troubling economy, international hotel developers remain hopeful about the future. The Ramada announcement comes just days after Intercontinental Hotels Group revealed its plans to develop 31 hotels in IndiaCurrently under development on Hainan Island just off the south coast of mainland China, the 1,000-room, 24-story Ramada Hotel & Suites Boao is expected to open in December…
Economic Update – Consumers Credit Shrinks, Puts Further Squeeze on Retailers
The deleveraging of the American consumer continued apace in February, according to the Federal Reserve. In the report published on Tuesday, the Fed said that consumer credit outstanding decreased $7.5 billion during the month to $2.564 trillion. That’s the sharpest monthly drop since the Fed started tracking consumer credit more than 40 years ago, and represents a seasonally adjusted annual decline of 3.5 percent. The inability to borrow may be a factor in the decline, but just as likely is the reluctance to borrow in the face of job fears and income loss–an entirely rational reaction. In any case, the…
Empire State Building Latest Icon to Go Green
Although the real estate market is in a severe slump, the green trend remains a hot topic, and Jones Lang LaSalle is keeping the movement at the forefront with a new energy sustainability program that kicks off with the greening of New York City’s iconic 2.6 million-square-foot Empire State Building. The iconic tower is the latest high-profile property to go green, following on the heels of Chicago’s Merchandise Mart and the former Sears Tower–now known as Willis Tower–both of which enacted green programs earlier this year.The “Empire State Building, Leadership in American Progress in Stability” initiative was conceived in a…
Moody’s: M-F REITs Take Steps to Weather Sector Downturn
As the single-family housing market went kaput, the multifamily market picked up the slack, but with the economy in a freefall, even the rental market is on shaky ground. However, multi-family REITs, according to Moody’s Investors Service, have shored up their operations in an effort to brace for the worst.The apartment sector is beginning to lose much of its luster, as increasing job loss chips away at occupancy rates. However, many multi-family REITs have taken various steps to protect themselves. Among the list of strategic moves pursued is the reduction of development activities, the decreasing of asset sales, the increased…
New Urbanism Faces Challenges in Dallas, Nationwide
“New Urbanism” development–creating mixed-use projects where people can live, work and play–is less about money-making ventures and more about preventing urban sprawl and congested freeways, according to many proponents of the concept. New Urbanism was the subject of a recent presentation by Andrés Duany, founding principal at Duany Plater Zyberk & Co., at an event hosted by the Congress for the New Urbanism at Southern Methodist University in Dallas.“Dallas is a place that gets things done and looks forward to the future. That is one of the sad things about American culture now is that they are terrified of the…