24th Annual Global Market Report
Tenants, Investors to Take the Reins in 2010
Commercial real estate markets around the world experienced the full impact of the global economic recession in 2009, according to the 24th annual Global Market Report released by NAI Global. Rising vacancy rates and declining rental rates were evident in virtually every market sector and geography, with weak demand and a growing supply of sublease space further eroding market fundamentals.
2009 was tough! The mantra for 2009 was “I will survive”. For most of us we are glad to say that we’ve been there, done that, and it’s time to move on.
The predictions for 2010 are peppered with cautious optimism. The speculation is that the bottom for the residential real estate market will be reached by mid-year. However, there are mounting concerns over the large number of commercial loans coming due. The still looming banking crisis and the lack of capital in the market will throttle the recovery.
I just wrote this headline to make myself feel better. I am so tired of reading about the demise of the commercial real estate market in every publication that crosses my desk and their projections for the rebound of our industry which run from late 2010 until the middle of 2012. For individuals whose livelihood depends on the health of the Charlotte Commercial Real Estate market, it is tough to come to work everyday with the hope that today might be the day that a client has a need that he can no longer put off, that the banks will finally begin taking ownership of distressed properties and will need help restructuring these assets, or that the three or four clients who are actually looking to do something can find the financing to make a transaction a reality. Click to continue »
I don’t know who first spoke that line, but I have a vision of an old-time, cigar chomping sales manager, wading into the sales bullpen with his sleeves rolled up, and kicking his reps out onto the street with a “don’t come back until you’ve sold something!” follow up. Times have changed, but I don’t think the wisdom behind this message has gone out of style. Click to continue »
In these times of budget optimization, expense reductions, tightening the belt, etc. it is important that owners and managers do protect the capital investments in their properties. The manager should not let short term financial goals impact the long term asset. The term used to define maintenance that should have been completed but has been put off is called deferred maintenance. Although deferred maintenance may result in improved cash flow for the short term, the impact on the asset could be long reaching. A good example of this concept would be the often forgotten about Click to continue »
Buyers are sniffing around again and are particularly looking hard at stronger credit leases with longer terms. Scheduled rent increases are especially attractive as is assumable in-place financing. Click to continue »
In today’s market, there is a lot of uncertainty in all sectors of real estate and now it has hit the medical market too. It used to be that medical office was almost immune from what the market was doing, but no more. Click to continue »
Today’s economic environment has challenged all of us who are charged with providing timely real estate solutions for our clients. Recently I have had two assignments that reflect the depth of services offered by our firm. Click to continue »
The Great Recession has officially ended and recovery will be far more robust than anyone can imagine, according to a new white paper from NAI Global Chief Economist Dr. Peter Linneman. The paper examines the economic recovery and Dr. Linneman provides insight into the leading indicators that the market is stabilizing and investment activity is on the rise. Click to continue »
We all are aware that it is currently a “buyer’s market” in commercial real estate, and I spend time everyday trying to educate Tenants and Landlords on how their expectations compare to reality. Oftentimes I am explaining to Tenants why the rental rate is higher than expected. Click to continue »
During these challenging economic times, it is rare to watch CNBC or read The Wall Street Journal and come away feeling bullish about the commercial real estate industry. All indications are that the next few years are going to be very tough. Click to continue »
In today’s down market, when landlords of commercial buildings are striving to keep their asking rates by being extremely liberal with rental concessions, rental rates can be extremely deceiving at first glance. Click to continue »
Having been a member of the Charlotte Real Estate Community for a little more than three decades I have benefited, along with my peers, from the perspective gained by living and working through a number of business cycles and seeing how the Charlotte real estate market has faired when compared to the other cities and regions in our State and across our Country. How we come out of our current economic crisis is still to be seen. Click to continue »
The Charlotte retail market has experienced record development in recent years due to solid population growth fueled by an excellent business environment. Unfortunately, these catalysts abruptly changed in the 4th quarter of 2008 amidst the global economic tsunami that has continued to steamroll through the first half of 2009, leaving the retail market gasping for air. Click to continue »
Commercial office, industrial and retail tenants are asking whether or not they should sign a long term lease in the current market. The answer is “it depends…”
“It depends”, in large part, on how you answer some or all of the following questions: Click to continue »
John Smith has been in business in Charlotte for nearly 20 years and has an established customer base that has made it possible for John to purchase real estate for investment purposes. He has two freestanding buildings with four retail tenants that have provided extra income to pay for two kids to attend college. Click to continue »
Unfortunately, in today’s economy marketing periods can be longer than anyone desires. Six to 12 months is not uncommon. When a building becomes vacant, and during the time it is available for lease or sale, many owners believe that it does not need to be managed. Click to continue »
NAI Southern Real Estate’s Jade Paunovich is quoted in the CoreNet Global article examining how successful commercial real estate professionals are using social networking. Jade and George Mennen are a team in NAI Southern Real Estate’s Mooresville office. Contact Jade at jadep@srenc.com with questions.
One of today’s greatest challenges facing the property manager of a Medical Office Building (MOB) is cleaning. Cleaning a MOB is very different from cleaning a typical office building. Whereas the typical office building will have basically the same types of space utilization such as office spaces with carpeted floors, painted walls etc., the MOB may be made up of a combination of different space types each requiring different levels of cleaning. These varying levels of cleaning quality within the same building make it difficult for the property manager to develop specifications for the property. The types of space that may be in a MOB may include: Click to continue »
The Sale of an Office Building Located at 3626 Latrobe Drive, Charlotte, NC
Sometimes the most improbable situations can lead to a desirable outcome. Consider the following set of circumstances: Click to continue »
While doing research for an Industrial land listing, I was reminded of the water and sewer issues that still exist in Union County. Union County is still under a water allocation policy and is suffering from demand for water and sewer services that far exceed their capacity for supply. They are still operating under the rule of 1 water tap per residential tract/lot. That tract/lot can be 200 acres or 1/2 acre. All you will receive is 1 tap. Click to continue »
NAI Global ranked 4th on National Real Estate Investor’s Top 25 Brokerage Survey
National Real Estate Investor conducted a “Top 25 Brokerage Survey” via email in February and March 2009. Brokers will asked to provide the total dollar value of leasing transactions and investment sales globally in 2008. NAI Global was ranked 4th with a total of $42 billion of leasing transactions and investment sales. Click to continue »
The Charlotte commercial real estate market is not immune to the challenges facing the rest of the country, so we are excited to report the closing of a strategic property in Midtown. CPCC paid roughly $77 per square foot for the land which is one of only five Midtown properties that has closed this year. Read the article below from the Charlotte Observer for specific details. Click to continue »
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