Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
March 27, 2009
View of the Commercial Real Estate Market | paramountcapitalcorp.com
The commercial real estate market is in for some tough times. However, where there is chaos there is opportunity.
Will the Lack of Overbuilding Keep Office Markets Healthy?
March 25, 2009
Office Forecast: This Downturn is Different | www.globest.com
This article disputes the widely-held premise that lack of overbuilding will keep office markets healthy, or at least prevent a blood bath, during the economic downturn. Office vacancies are rising and rents are pulling back primarily because of unprecedented office job losses. Deteriorating fundamentals will mean lower building values, creating impending distress conditions and buying opportunities.
Don't Dock Your Money at Pier 1
March 24, 2009
Pier 1 to Close 80 Stores | blog.retailtrafficmag.com
Pier 1 has been flirting with bankruptcy well before the current recession. Now, under the cover of the recession, they are laying blame for all their problems to the bad economy and not to the lousy management decisions they have been making for the past 5 years. Additionally, the rent reductions that they are touting as evidence of smart management and possible significant improvements to their bottom line, are actually evidence of smart landlords agreeing to lower the rent rather than have a vacant space on their hands. The fact that so many landlords have agreed to lower rents is more of a comment on how close the company is to bankruptcy than any brilliant maneuvering by management.
A great example of how far things have deteriorated in the office market
March 16, 2009
Sears Tower To Be Renamed For New Tenant | www.chicagobusiness.com
This article provides some very sobering data demonstrating just how desperate owners of major office buildings have become in this depressed real estate market. Not only have both asking and offered rents declined precipitiously, but the value of "naming" an iconic building has virtually disappeared.
Now the Real Con Artists Will Get Their Money Back
March 16, 2009
Commercial Real Estate Bailout | blog.retailtrafficmag.com
The proposed bailout by the Federal Government to save the over-leveraged office buildings and shopping centers from failure in amounts equal to the subprime housing bailout, is a worthy topic of comment.
Recapitalization and acquisitions
March 9, 2009
Almost 2,000 UK commercial property companies face insolvency | www.propertywire.com
I work with leading major international investors and developers - Middle East, Russia, Europe, US. Equity/debt/mezz. Recapitalization, equity inject, acquisition of completed properties, development jv's with strong local developers.
consolidation and streamline of retail industry
March 9, 2009
Central and Eastern Europe is target for cross border retailer movement | www.europe-re.com
The conditions on the market warrant re-make and streamline of the industry. Inefficiency and insolvency of some of the operators/developers that spread themselves too thin over the last 8 years will produce opportunities for serious players to take advantage of the situation. Trend among some major retailers to go prime street retail and position themselves away from the competition signify new development and sale-lease-back opportunities with strong operators.
Retail Vacancy Rates Set To Soar Based On Unemployment Forecasts
March 5, 2009
Goldman Sachs Sees 10% Unemployment in 2010 | www.usnews.com
Rising unemployment has serious implications for retail property owners and investors. The U.S. retail vacancy rate has been closely associated with the unemployment rate for the last two decades. With Goldman Sachs and other leading economists calling for 10% unemployment in late 2010, retail vacancy rates are poised to soar to unprecedented levels.
Disconnect Between Public and Private Commercial Real Estate Markets
March 3, 2009
Commercial Property Activity Falls to 12-Year Low | www.cnbc.com
The slow down in commercial real estate transactions is a function of two things; the relative scarcity of acquisition financing and the large bid-ask spread between buyers and sellers. The recent drops in public REIT values are a harbinger of things to come in the private markets, and point to a more liquid market, dramatically reduced sales prices, and a higher volume of transactions towards the back half of this year.
A Credit Crisis Solution that can really work for the commercial real estate market
February 27, 2009
How Geithner Can Price Troubled Bank Assets | online.wsj.com
For those who understand the implications of the current credit crisis, this article must be read to learn how such a simple solution is so workable.
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