the Editors of Commercial Property Executive
Map It Out
The most impactive technological breakthroughs usually have less to do with new information and more with new packaging. Innovative ways to compare, contrast, synthesize and combine existing data sets enables those manning the keyboards to do more with less, making more informed and dynamic decisions.Thus, The Reinvestment Fund, a community investment firm based in Philadelphia that aims to revitalize urban neighborhoods, set out to harness the data it uses in a fluid, visual format and ended up with the Web-hosted PolicyMap service at www.policymap.com.The working theory was that accessing data via a map format would drive more effective decisions on…
Why Use Cables Today?
Q: Why do I need cables when I can do everything wireless?A: Great question. First, a quick overview of what “wireless” networking really means:When users say “wireless,” they generally refer to “wi-fi,” technically known as 802.11a, 802.11b/g or 802.11n networks. You can use consumer-grade access points (wireless routers or bridges) available at any retail store, or you can use enterprise-grade access points (APs) from Cisco, 3COM, et cetera. The difference between consumer-grade and enterprise-grade lies in manageability, security options and cost of deployment.Wireless is a great solution for small networks. But from a developer or owner’s perspective, the flaws in…
Short-Term Goals; Long-Term Vision
Last week, more than 800 members of the American Institute of Architects from around the country met with their local congressional leaders with suggested strategies to rebuild the economy through construction-related provisions in the stimulus bill currently being debated.Our main point of emphasis is that any stimulus plan must include a long-term vision. The AIA recommends providing funding for construction projects across 24 months, which will ensure a steady stream of funds for job creation over the likely life of the recession. The longer planning and design periods for projects also helps ensure that they are carried out in the…
Job Losses Hit Commercial Real Estate–Hard
January was a bloodbath for the job market with 598,000 losses. The staggering number has the obvious immediate negative consequences–and then there is the secondary impact. With the slashing of jobs comes the slashing of occupancy rates in most sectors of commercial real estate. Hessam Nadji (pictured), managing director of research services with Marcus & Millichap Real Estate Investment Services, spoke to CPN about how employment’s devastating nosedive is impacting commercial real estate. CPN: The consequences of massive job losses have trickled down to the real estate market, but have all sectors of the industry been equally impacted? Nadji: The…
Silver Linings for Commercial Real Estate
While commercial real estate like other asset classes has been suffering in this recession, there are silver linings, according to Jay Brinkman, Mortgage Bankers Association chief economist, and Jamie Woodwell, vice president of commercial real estate research, speaking during the second opening session of the MBA’s Commercial Real Estate Finance/Multifamily Housing Convention & Expo yesterday. For one thing, the absolute levels of loans are well below what they were in the late ‘80s and early ‘90s, Woodwell noted. What makes things more difficult this time is the higher levels of complexity brought on by the greater splitting up of risk…
Economic Update — Can Geithner Plan Deal With Toxic Assets?
What’s the money quote from Treasury Secretary Timothy Geithner’s speech introducing his plan for all that money Congress allocated last year to TARP II? Maybe it’s that the plan will “cost money, involve risk and take time,” which he said Tuesday morning. Investors didn’t much like that, perhaps because Geithner was a little short on specifics, especially on how to value those pesky toxic mortgage-related assets that Geithner’s public-private scheme would seek to take off the hands of banks. Maybe that’s what the Secretary was talking about when he said that “we will go through periods in which things get…
Archstone Joins Ranks of Firms Launching Advisory Groups in Down Economy
With the ever-growing uncertainty of the economy, real estate firms are looking for ways to cash in by offering advisory services to developers. Denver-based Archstone is the latest to join the move with its unveiling of Archstone Real Estate Advisory Services, which is designed to help lenders and investors maximize the value of their multi-family and mixed-use assets. Archstone’s new group will focus on asset strategy, development, construction management and asset management. And Archstone is certianly no stranger to the multi-family sector, having developed and operated multi-family portfolios with more than 80,000 apartments and completed more than $30.8 billion of…
Economic Update-Property Investors Now Looking for Bargains?
Commercial real estate is experiencing sluggish deal volumes, uncertain valuations and the gathering clouds of properties that need refinancing toward the end of this year and 2010–without the assurance that lenders will actually want to step forward and do those deals. What’s a potential property investor (there is money out there) to do in such a climate: sit on the sidelines or assess the risks, and wade into the market? “There are absolutely risk takers today, but they’re mitigating that risk somewhat by looking for deals,” Peter Lynn, co-founder and co-principal of Chicago-based brokerage Building Equity, which specializes in commercial…
RCG Longview Remains Positive, Closes Fourth Debt Fund at $602M
The list of real estate debt investors daunted by the frosty lending climate is a long one, but New York City-based RCG Longview is not one of them. The real estate opportunity manager has closed RCG Longview Debt Fund IV L.P., having raised $602.5 million in equity. Like the previous three investment vehicles, Fund IV will target a variety of real estate transactions ranging from bridge loans and mezzanine loans to bridge mortgages and preferred equity opportunities across the country. In terms of leverage for purchasing, given that RCG Longview typically plays a mezzanine role, which is usually 10 to 15…
Another Major Office Deal in Northern New Jersey
While the commercial real estate industry as a whole has suffered a major downturn as of late, the Northern New Jersey region may be bucking that trend. The past few weeks have seen a spate of activity in the region, with the sales, investment and leasing markets all seeing some action. In the latest move, Inland American Real Estate Trust has acquired a three-building office property in Bridgewater in a $230 million deal. The complex, 55 Corporate Drive (pictured), serves as the headquarters for sanofi-aventis USA Inc., one of the world’s largest pharmaceutical firms, which occupies the entire property under…