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Tenants have the edge in most of the world’s major office markets, concludes an analysis by CB Richard Ellis Inc. Class A rents are sliding dramatically and vacancy is ticking upwards in nearly every region, according to the study published last week. Office occupancy costs in 173 global markets declined 2.8 percent in the 12 months ending March 31. That represents a dramatic change in direction from the 12-month period ending September 2008, during which costs grew 8 percent. In the United States, vacancy has increased 130 basis points during the past two quarters. In the 15 European Union countries,…

Despite the ongoing weakening of industrial market fundamentals, banks are warming up to certain players like First Industrial Realty Trust Inc., which has just managed to get its hands on $154 million in the form of three loans secured by assets encompassing a total of 6.3 million square feet. Putting up for collateral 27 assets accounting for a total of 2.6 million square feet, First Industrial closed on a $77 million, 10-year loan at a 7.87 percent fixed rate with John Hancock Life Insurance Co. The Chicago-based REIT nabbed an additional $62.5 million, secured by 23 properties totaling 3.1 million…

Many hotel owners are looking at a troubling two years or so, as a large portion of their loans are coming due for refinancing in an environment of declining RevPar. In other words, many owners will be asked by lenders to contribute more equity into their loans, just when that money may be very hard to come by. In this environment, and with many owners unlikely to be able to transact a sale because of the continuing credit freeze-up, there has been more of a premium put on successful asset management. Two management companies announced their plans to beef up…

Turns out that the recession is still on, at least if the latest numbers from payroll firm ADP accurately reflect the state of hiring and firing in the nation. According to ADP on Wednesday, U.S. companies cut an estimated 532,000 employees from their payrolls last month, with goods producers laying off 267,000 workers, and service providers shedding 265,000 positions. ADP doesn’t always agree with U.S. Department of Labor figures, however. Labor will be releasing its May unemployment report on Friday. Whatever the April numbers from the government later this week, unemployment is clearly bedeviling the nation’s cities. In a separate…

Despite overall sales figures down double digits from last year, transactions are still move forward, albeit in smaller amounts. Another good sign of real estate activity is the re-equitization of the REIT industry that continued in May as more companies deleveraged their balance sheets with equity capital raised in the public markets. Thus far in the second quarter, Tulsa-based net leased sale broker Stan Johnson Co. closed 13 deals, as compared to nine deals the entire first quarter. The company recently completed the sale of a 5,900-square-foot free-standing medical property leased 100 percent to Fresenius Medical Care, located in West…

A major part of bankrupt carmaker General Motors’ plans to fast track its reopening as a new, sleeker firm in 60 to 90 days, are a number of real estate-related decisions that could have an effect on commercial property industry, especially the industrial sector. GM plans to close two assembly plants this year. The firm will close its Wilmington, Del., assembly plant in July and its Pontiac, Mich., assembly plant in October. At the end of this year, GM will also close its service and parts operations and warehousing and parts distribution centers in Boston, Jacksonville and Columbus. Stamping plants…

The weakening economy and continued credit crunch led to increases in commercial/multifamily mortgage delinquencies during the first quarter of 2009, according to the latest Commercial/Multifamily Delinquency Report, released by the Mortgage Bankers Association. “Multifamily mortgage delinquency rates continued to rise in the first quarter,” says Jamie Woodwell, vice president of commercial real estate research at MBA. “Delinquency rates on multifamily mortgages held by banks and thrifts, by Fannie Mae and in commercial mortgage-backed securities (CMBS) are all now at levels higher than at any time since the 2001 recession. First quarter delinquency rates on commercial mortgages held by life insurance…

When it comes to saving energy, windows constitute the weak link for buildings. Despite heavily insulated walls and ceilings and the popularity of low-e glass, 25 to 35 percent of the energy used in buildings and homes is wasted due to inefficient glass. In fact, it should come as no surprise that glass is responsible for greater than 10 percent of the total carbon emissions in the United States annually and is a major contributor to global warming.New technologies, however, can improve this picture—and they are acknowledged in initial revisions to the Department of Energy’s Energy Star® window performance standards,…

With an eye on the impending onslaught of maturing debt in the real estate marketplace, Steadfast Cos. has just kicked off Steadfast Capital Markets Group L.L.C., a new securities and financial services division. The Newport Beach, Calif.-based diversified real estate investment concern’s new division will give investors the opportunity to join forces with the company and take advantage of the increasing opportunities presented by the existing real estate cycle. J. Grayson Sanders, former CNL Fund Advisors Co. president, has been tapped as CEO and will head up development of investment products and supervise sales and distribution activities. Aaron Cook (pictured),…

Signs of growth in distressed properties are mixing with evidence that the U.S. and global real estate markets are starting to stabilize, according to a recent analysis by Jones Lang LaSalle Inc. The issue of distressed assets in the United States presents a contradictory picture. Loan defaults are at an 11-year high, and lenders and borrowers face the daunting prospect of refinancing commercial real estate loans valued at $1.3 trillion over the next four years. By April, the unpaid balance of CMBS loans in special servicing hit $24.5 billion, a total 10 times as high as it was in March…