Commercial Real Estate Prescott Arizona
As the new school year begins for 2011, here are a few new commercial real estate rules to help guide you through the year. Let’s call this lesson, “Commercial Real Estate 101.”
Donald Teel is a Senior Associate and Principal with Arizona Commercial, an Arizona commercial real estate brokerage and property management firm, headquartered in Prescott, Arizona. Need more information? Please call 1-877-777-9100 or, if you prefer, you may email Donald Teel
Here is an opportunity to update your market knowledge via a recent online webcast sponsored by Marcus & Millichap, entitled “2010 Office and Industrial Market Outlook and Investment Strategies Webcast.”
The information provided here is better than the far-reaching and biased reports I have read, while giving some real signals as to where the commercial property and capital markets are headed.
Click the image below to be taken to the pre-recorded webcast.
This presentation is Copyright © 2010, Marcus & Millichap and is used for educational and editorial purposes.
Donald Teel is a Senior Associate and Principal with Arizona Commercial, an Arizona commercial real estate brokerage and property management firm, headquartered in Prescott, Arizona. Need more information? Please call 1-877-777-9100 or, if you prefer, you may email Donald Teel
After a few years in the business, things start looking the same. Property ads read the same…photos seem similar…on and on it goes. Of late, owners have been looking for ways to make their property stand out from the crowd as unique. Here’s another very simple leasing tip for owners of just about any size property of any variety.
Donald Teel is a Senior Associate with Arizona Commercial, an Arizona commercial brokerage and property management firm. Need more information? Please call 1-877-777-9100 or, if you prefer, you may email Donald Teel
My first Broker, the Del Webb Corporation, was big on fast failure. The principle and skill of what I now call Terminatio Simulatio Velociter was drilled into the head of each fledgling Sales Counselor whose job it was to meet, greet and qualify prospects who visited the Sales Pavilion in Sun City West.
Now, some nearly 25 years hence, I truly do recognize the importance of “sorting” and the notion of elimination has become more and more a part of representing my commercial real estate clients effectively.
Of late, and driven by market conditions, there has emerged a new brand of bottom-feeding. It’s a concept I call “LOI Shopping” or, maybe “Networking the Deal” for better terms.
There is no doubt in my mind that this carp-like behavior among prospective tenants is a product of too much inventory and the desire of often marginal tenants to continue their vain attempts to shrink or even collapse the pricing envelope.
[Read more…] about Terminatio Simulatio Velociter
Retail shopping center owners, tenants and consumers are experiencing an unprecedented economic crunch. In short, all three are drifting in the same boat.
The International Council of Shopping Centers (ICSC), publishes a “Shopping Habits Report” in the first quarter following the end of a calendar year.
As a retail leasing specialist, I digested the entire 2009 report, subtitled, How the Recession has Impacted Consumer Shopping Habits, and discovered that indeed center owners need to be on top of the consumer game.
The “2009 Shopping Habits Report” contains invaluable information about the future consumer trends that will impact center owners, whether large or small in size.
You can read the report for yourself and draw your own conclusions. However, three things stuck out to me in the report:
For those of you who are my clients, I want to briefly focus on the strip center/lifestyle traffic models, which run in the 70-75% repeat traffic level. In 2010 and 2011, my Company, is seizing on the concept of “life-styling” centers that have a higher than normal tenant mix by creating “Center Websites” that serve as a marketing destination point for Broker and tenant inquiries and present a center personality to the viewers.
[Read more…] about Consumer Shopping Profile = New Marketing Approaches
As we plunge into 2010, commercial real estate market knowledge and a grasp of trends has become an even more essential component to successful investment. If you are a commercial broker/agent it is a requirement.
Grubb & Ellis has put together a top-notch report that analyzes the commercial markets throughout the United States, region-by-region, major-market-by-major-market and property type by property type.
Not only is the data supporting the analysis accurate and well researched, G&E’s online presentation is perhaps the best I have ever seen and is a definitive tool for assessing the regional and local markets for investors and brokerage firms.
In short, I am using the online tool which features a drag-and-drop approach, allowing the user to select a regional sector, a local market and a specific property type report for immediate download.
For example, here you will see G&E’s 2010 market report for the retail sector in Albuquerque, New Mexico.
It’s a concise report that includes simplified graphics, it is easy to read and understand by any investor or broker and it lacks the typical long read format used in most commercial reports.
Another benefit of G&E’s approach is that users can also download the entire report or cherry pick the reports they want by region, state, property type, etc.
This report format model is an excellent approach, allowing those of us in the industry to locate the information we want in a precise and easy to follow manner.
Whether you are an investor or a commercial broker/agent the information has value and accessing it has never been easier. The limitation to the reports is seen in the fact that some markets are not included. However, use of the reports for trend analysis is but one obvious benefit.
Here is the link to the Grubb & Ellis online interactive 2010 report, including the national map of regions, states and major markets included in their coverage.
GO TO THE GRUBB & ELLIS ONLINE 2010 MARKET REPORT
Donald Teel is Senior Associate with Arizona Commercial, an Arizona commercial brokerage and property management firm. Need more information? Please call 1-877-777-9100 or, if you prefer, you may email Donald Teel
Like many who find themselves connected to the lifeblood of the commercial real estate market, I have been listening, researching and studying the myriad voices and have come to the conclusion that we are entering 2010 in a state of conflict.
Two camps have emerged. The first is what I will refer to as the “Disaster Camp” and the second is the “Recovery Camp.”
The Disaster Camp (DC) is the illusive analysts whose cryptic research clearly indicates we are entering an era of melt-down. The DC guys and gals come at us armed with their complex charts and narratives that prove conclusively that we are headed into doomsday.
The Recovery Camp (RC) is equally persuasive with their slick, bullet-pointed PowerPoint presentations. The RC camp trumpets phrases like “sidelined investor capital waiting to be spent” and “Bond money waiting to pounce on market opportunities.”
After all is said and done, more will have been said than done! I’m conflicted as a result of the plethora of combative voices that leave me feeling as if I have just stepped off a wild roller-coaster and cannot gain my bearings.
As we enter 2010, I’m a lot like many of my clients, nauseated and bewildered and I am vowing here and now to never ride that roller coaster again.
For at least the opening stages of 2010, I am going to go back to trusting the basic fundamentals of investment and my instincts. In the early part of 2010 I’m resolving to delete all of the emails that are in the DC and RC camp. Away with the charts and the PDFs that tell many tales.
Here is what I am going to do in 2010…return to trusting me, myself and I. Oh, I will be forced to gaze at many more PowerPoint prophets and read many more detailed documents designed to either scare me into sleeplessness or fill me with the phony messages of hope beyond reason.
My thought is that 2010 is going to be a year of disaster AND recovery. We will eat at both sides of that aweful table made up of vinegar and sugar. That is why I am going to return to trusting myself and to a healthy avoidance of investment extremism. I’m inviting you to do the same.
Donald Teel is Senior Associate with Arizona Commercial, an Arizona commercial brokerage and property management firm. Need more information? Please call 1-877-777-9100 or, if you prefer, you may email Donald Teel
If you are a commercial real estate specialist, education is paramount to ongoing success. The best commercial broker/agents I know are those with the CCIM designation. That is why I am pursuing the designation myself. Visit CCIM.com for more information.
Donald Teel is Senior Associate with Arizona Commercial, an Arizona commercial brokerage and property management firm. Need more information? Please call 1-877-777-9100 or, if you prefer, you may email Donald Teel
The following video features Harry Dent discussing the current market recovery and warns about the ticking time bomb…aka, loan defaults, foreclosures and unemployment and their relationship.
Dent predicts that we will see a foreclosure impact in the first quarter of 2011, 48% will have negative equity positions (mortgage principal higher than the market value) and 50% of those will be “severely” over-levereraged. We have $17 trillion in financial sector debt…all of it based upon leveraged borrowing.
Dent predicts unemployment, mortgage defaults and the worst of the crisis will be early to mid 2011.
According to Dent, “We are going to see the economy worsen again…we are seeing a recovery but it is not sustainable…next year is not going to be the year of recovery that most economists are promising.”
WATCH THIS and post a comment.
Everyone, everywhere, is talking about the real estate market. Even people who do not know anything about the real estate market are talking about the real estate market.
Understandably, much of the discussion remains negative. After all, some estimates tells us that the net value of all commercial real estate in the United States has plummeted by as much as 30% since 2006. I would like to address the shiny side of this very ugly coin.
As we come to the end of 2009, how can we successfully invest in commercial real estate?
Many small to intermediate investors have been discovering that buying was the easy side of commercial real estate investment coin…the shiny side! Managing and turning properties in the volatile environment of 2009 has proved to be the tarnished side of our coin.
With respect to the fundamentals of investment, nothing has really changed. Yet, we all know much has changed and continues to change, especially with respect to the acquisition and cost of capital and sustained values. For the purpose of this article, I would like to place a market spin on what I think are the 10 most important principles for small commercial real estate investors to follow in 2010 and beyond.
Property Type. Who could have predicted that the multi-family sector would be where it is today based upon our assumptions ten years ago. We must remind ourselves that our assumptions are merely momentary conclusion based upon ever-evolving data and that the moving data is almost always something over which we have most likely, no control.
Type-casting isn’t just a Hollywood phenomenon, it’s imperative with every real estate transaction these days and in the case of multiple tenant revenues each lease will need to be sifted and ground down in order to determine its viability and value going forward. There are “leases” and there are “Leases” and there are “LEASES.” Nothing works well if the tenants don’t!
Inventory, absorption rates and occupancy rates and CAP rates are imperative to the investment equation. There is no negotiating these issues and they are deal breakers.
Still, it’s Location. It appears that the newest and perhaps safest strategy for small to medium investors is to get big by investing small all over. Just as mix of property types is essential to a sound investment strategy, so also is the principle of multiple locations based upon regional economic dissimilarities. Atlanta’s medical office values and projected demands will be different than those of Seattle and it would be ridiculous to compare Phoenix multi-family to say Manhattan multi-family.
[Read more…] about How 2s for Investment Today