Property Performance Analysis

McCormick Place - Prescott, Arizona

McCormick Place - Prescott, Arizona

Post Sponsored by Donald Teel

What is the current state of commercial property ownership, user potential, performance and values in the Prescott, Arizona area?

Where is the commercial real estate market headed in 2009 and beyond and what should property owners be doing to focus on property performance going forward?

At Arizona Commercial, we believe it is critically important for owners of commercial property within the tri-cites of Prescott, Prescott Valley and Chino Valley to consider executing a thorough “Property Performance Analysis” or PPA, based upon changes taking place in the general market but especially with respect to changes taking place in commercial mortgage lending.

The Myth of Immunity

The tri-cities commercial real estate market is not immune from the impact of the economy on property performance in larger metro markets such as Los Angeles and Phoenix.

The local commercial market is directly impacted by the strength of the general ecomomy, unemployment, housing and most importantly, lending.

The decline in residential property values, a slowdown in new construction, the reversal of commercial appreciation rates and unemployment are all contributing to changes in the performance of all segments of the commercial real estate market.

Listen to a podcast about this topic:[audio:]

Property Performance Analysis

Arizona Commercial is currently engaged in conducting “Property Performance Analysis” (PPA) with commercial property owners as a FREE service designed to guage an owner’s financial objectives, the current financial performance of a property and the short and long term financing needs associated with the property.

Because we anticipate new challenges to commercial property performance as a direct result of the general conditions of the economy we think it imperative that owners assess their property performance situation sooner rather than later, and that they develop a sound financial plan going forward.”

Jim Pullaro – Broker, Arizona Commercial

Arizona Commercial’s PPA includes an assessment of and owners’s financial objectives measured against the quality of tenant mix, correct property use, lease performance, operating cost analysis, mortgage situation and estimations of user demand through 2010, with specific recommendations in each category.

Arizona Commercial’s PPA is like a property physical, in a sense. It measure the critical components related to the health of a commercial property and sets forth prognosis and treatment before problems begin.

Listen to a podcast about this topic:[audio:]

Refinancing and Replacing

Commercial property owners and investors are keenly aware of the need for quality “R and R” or, refinancing and replacing. These are the two keys to perpetuating long term performance.

Lenders are currently tightening requirement for new commercial loans and refinancing. Qualification requirements are more stringent and under-performing properties or, select segments (property types) within the commercial real estate market are finding it more difficult to secure financing.

A PPA can signal issues fan owner may face before they become critical and assist with pre-planning for mortgage refinancing, property replacement or, both.

Commercial real estate investments require monitoring, adjustments and sometime immediate changes in order to keep them performing. A PPA can flag areas where an owner can and should make adjustments in order to keep performance healthy.

Until recently, many properties were performing as a result of a strong demand and easy financing. Therefore, many owners ignored or postponed the need for regular property analysis. In today’s economy there is no guarantee that a property will appreciate or perform without careful “hands-on” attention and management of the components of performance.

Listen to a podcast about this topic:[audio:]

Email Donald Teel for a confidential Property Performance Analysis or, if you prefer, call him at 928.777.8100 and if you are out of state call toll free to 877.777.9100.

Arizona Commercial Launches Blog

Prescott Arizona Commercial is the official blog of Arizona Commercial, serving for Prescott, Arizona commercial real estate. The blog provides commercial property owners and potential investors with commercial property and real estate investment information for Prescott, Prescott Valley, Chino Valley and of course, all of the commercial real estate markets throughout central and northern Arizona.

Arizona Commercial is the area’s premiere commercial real estate company with a dominant market position and share.

“Our real estate team consists of experienced agents/brokers who hold the CCIM and CPM designations and more than 150 years of brokerage experience, making us uniquely qualified to represent commercial property owners and investors…the commercial blog is the logical next step for us to take in order to continue to provide people with the information they need and want,” said Jim Pullaro, Broker/Owner for Arizona Commercial.

Preview our properties or, if you have an investment need, contact us or call us at (928) 776-8460. If you are interested in our Real Estate Owned Services (“REOS”), please register for confidential inclusion, mortgage consulting services and bank owned property updates.

Has the Commercial Shoe Dropped?


Posted by Donald Teel, Arizona Commercial has been saying that the commercial lending industry was likely to become problematic for current owners and new investors. This creates cause for careful analysis and a strong look at what and where the marketing opportunities will be.

Some small investors need to take a hard look at their refinancing blueprint, especially those with notes coming due in the next 12-36 months. For those owners who are fortunate to be F&C on their properties I advise they give careful consideration to selling with carryback financing.

Listen to this report from Tom Fink, Senior V.P., TREPP, LLC and former CFO for North American Development Bank and then draw your own conclusions.

For more assistance or consulting services with respect to your commercial investment strategies email Donald Teel or, if you prefer, call me toll free at 877-777-9100.

Commercial Foreclosure – Next Exit

foreclosure-extiWe cannot ignore the serious potential for commercial foreclosures inherent in the financial market today. To do so would be disingenuous and a violation of ethical standards related to client fiduciary.

What is the state of the commercial foreclosure market?

Will we see mortgage defaults in the commercial sector? Will the degree of defaults parallel the residential market collapse.

Sand State Foreclosures. Nevada, Arizona, California and Florida, the so-called “sand states” are experiencing the beginning of what can only be described as a plummet (my word).

According to the Las Vegas Sun, April 2, 2009, 25% of Las Vegas commercial real estate is troubled and Commercial properties valued at a whopping $7.885 billion are in trouble in Las Vegas as casinos struggle under the weight of the recession and office buildings and shopping malls lose or are unable to find tenants.

This phenomenon is being replicated in each of the “Sand States” as the federal government’s promised mortgage financing relief continues to be illusive to commercial investors.
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