Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
April 28, 2009
Opus South Files Chapter 11 | www.globest.com
The worsening of the economy is far from over. While the commercial sector is the next debacle, destination resorts, golf communities and others will follow. Residential prices will continue to fall.
How and why the mighty are falling
April 28, 2009
Opus South Files Chapter 11 | www.globest.com
The fact that a well respected usually conservative developer has filed for Chapter 11 protection under the Bankruptcy Code is another chilling example of just how far and deep this economic downturn has affected every corner of the commercial real estate sector.
The Bankruptcy of GGP and the Prognosis for Retail REIT Debt Management
April 27, 2009
Mall operator General Growth Properties files for bankruptcy protection | www.dallasnews.com
As in the case of GGP’s bankruptcy, debt structure issues will dominate amongst REIT default drivers over the course of the commercial real estate market adjustment. Defaults will exert downward pressure on property prices but will also facilitate an increase in transaction volumes by forcing sellers’ prices to meet buyers’ expectation of adjustments. Weakening fundamentals will coincide with debt-related distress during the process of price adjustment. Occupancy within GGP’s mall portfolio fell by a relatively modest 130 basis points between year-end 2007 and 2008. But a combination of bankruptcies, a drop in renewal rates on expiring leases, and violations of co-tenancy covenants will undercut mall fundamentals to a greater degree in 2009 than was observed in 2008. Going forward, the effective operation and management of space will prove to be of critical importance for REITs with lower leverage.
Office vacancy must mean different things to different people.
April 7, 2009
U.S. Office Vacancies Hit 15.2% -- and Rising | online.wsj.com
When Office Vacancy supply is being dumped on the market from layoffs rather than from over building, isn’t it the same set of dire circumstances the market has to deal with. Isn't vacancy just that vacancy? Of ocurse it is!
The Philippines property market declines but some areas still strong
April 3, 2009
Crisis curbs demand for high-end property | business.inquirer.net
The country's largest property developer, Ayala Land Inc. (ALI), gives its views on the current state of the country's residential and other real estate markets. This should give a good view of the present as well as upcoming real estate situation in the Philippines.
The Philippines property market declines but some areas still strong
April 3, 2009
Crisis curbs demand for high-end property | business.inquirer.net
The country's largest property developer, Ayala Land Inc. (ALI), gives its views on the current state of the country's residential and other real estate markets. This should give a good view of the present as well as upcoming real estate situation in the Philippines.
Soros is Predicting Yesterday's Weather
March 31, 2009
Soros Says Commercial Property Values Will Fall 30% | www.bloomberg.com
While the article does have some limited value to the GLG reader, it is comprised mostly of contradictory information and old news. I think it is important for the GLG reader to understand the basics of value for commercial real estate and not just respond to the pleadings of the most aggressive and highly leveraged investors who are lobbying the government for a bailout.
Value, Like Beauty, is in the Eye of the Lender
March 31, 2009
Soros Says Commercial Property Values Will Fall 30% | www.bloomberg.com
Commercial real estate values have dropped to a point where owners generally aren't sellers, so realized transaction pricing has not followed the value drop. But lenders will force transactions on overleveraged or defaulting assets in due course. But, depending on the product type and geography, the pricing and value implications of this will vary dramatically.
Better organizations actually stand to benefit
March 30, 2009
World respected property organisation falls victim to the economic downturn | www.propertywire.com
RICS and other similar organizations are actually in a position to benefit from the current restructuring, if they use this opportunity wisely.
The Reality of the Commercial Real Estate Market
March 27, 2009
Commercial Property Faces Crisis | online.wsj.com
The commercial real estate market is heading towards one of the worst crisis’ it has ever experienced. As the article empirically demonstrates there is no other conclusion that can be drawn.
The Current Real Estate Downturn is Different
November 4, 2009
Who is kidding who regarding a recovery in commercial real estate
October 18, 2009
U.S. Helps Commercial Real Real Estate Lenders Pretend and Extend
October 15, 2009
Why this report is not a good Omen for the Commercial Real Estate sector
September 29, 2009
September 23, 2009