The FED Rate and CRE

commercialwebpage.com fed reserveFinally, the Federal Reserve acted on the interest rate hike by bumping the rate upward by a quarter-point.

Long overdue, say most economists. An economy cannot be sustained indefinitely by a zero-based lending system coupled with a massive quantitative easement printing of trillions of dollars. It’s a formula for eventual disasters.

The rate increase is good news for Commercial Real Estate and will unleash some of the pent-up, sidelined investment. Another benefit is derived by CRE lenders who need margin to lend, not to mention that nasty word “profit.”

Janet Yellen, Federal Reserve Chair, stated, “…this action ends an “extraordinary 7 year period during which the Federal funds rate was held near zero.”

There will be no panic in the stock market… adjustments, yes. The rate will begin to impact the cost of money but also the savings return rates for the consumer.

What will occur between now and 2018 is an increase in the cost of products and services… inflation. According to the Federal Reserve, we are likely to see inflation at about 2.00% sometime in 2017.

Commercial real estate values will not be immune to the resulting ripple caused by the rate increase. My belief is there will be a return to a more predictable relationship between appreciation, property value and the cost to purchase and refinance.

My advice is quite simple. [Read more…]

New Rules for a New School Year

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.”

commercial real estate 101

Content is Copyright © 2011 – Donald Teel. All Rights Reserved.


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

The Michael Lewis Interview

Michael Lewis says, “People see what they get paid to see.” Wall Street experts, according to Lewis, are paid to not see certain things, as well. Is Wall Street’s bonus culture unsustainable? Has Wall Street been designed to win when it loses?

The following “60 Minutes” interview is an amazing story from the inside of the mortgage securities industry and how experts made money creating a disaster and are now making money cleaning up the disaster. Imagine being paid to run your organization into the ground…watch it.


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

Meet My “Cooperating Competitors”

oxymoronIt’s not often that you will find me promoting my competitors, much less endorse them as cooperative.

Yet, in this case the endorsement is a necessary and complimentary one that serves the interests of commercial real estate investors in the greater Prescott, Arizona market area.

Although oxymoronic, please meet my “cooperating competitors.”

The Prescott Area Commercial Group (PACG) is a non-profit real estate (is “non-profit real estate” an oxymoron) consortium that promotes investment, training and networking of property information among central and northern Arizona commercial brokers and agents.

The Power of Disciplined Focus

PACG represents a disciplined focus on commercial real estate investment and property performance among perhaps the most experienced and highly trained professionals who know and understand the fundamentals of investing in real estate.

PACG was originally formed as a commercial networking group that met to discuss Prescott, Arizona’s commercial real estate market, properties and opportunities. Now PACG is more than a quiet group meeting over coffee to exchange listing and sales information.

The commercial real estate market demands a disciplined focus in order to stay on top of the rapidly evolving trends.

Risky Business or Cooperative Competitors?

PACG is now the most prominent and perhaps “connected” group of commercial specialists in the northern Arizona real estate market.

Having met with most of the PACG Members and interacted with them, I can state without reservation that they are a qualified and trustworthy group that any owner or tenant can call on for assistance. PACG members know their stuff and they work hard to consistently improve their skills and knowledge in order to meet the needs of each client.

Introducing competitors may be regarded as a bit risky, however, in today’s volatile market I believe having a network of trusted colleagues who can provide a kind of “brain trust” is an asset that can be called upon and tapped into for solutions.

Sounding Rusty and Eroded

At the risk of sounding old or, at least rusty, dated and eroded, I’m going to reach back in time and drag an old principle forward. In decades long gone the industry where I have made my mark and enjoyed my gains (and honestly, some losses too) was one built upon trusted associations where business resulted largely from shared information gained from a trusted network of professionals.

Yes, some of this has been eroded over time, which is why I find my association with PACG PACG members refreshing, non-threatening and beneficial to both me and my clients.

I don’t mind if you meet my trusted competitors.


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