Commercial Real Estate Prescott Arizona
Jones Lang LaSalle Americas CEO Peter Roberts, CEO of Jones Lang LaSalle Americas, discusses the commercial real estate rebound and what investors are doing to prepare for it with FOX Business.
Donald Teel is Senior Associate with Arizona Commercial an Arizona commercial brokerage firm. Need more information call 1-877-777-9100 or, if you prefer, you may email Donald Teel
Seldom can it be said that the market is both a ‘buyers’ and a ‘seller’ market simultaneously. But this seems the case as we prepare to enter the second half of the 2009 commercial market.
Pinching down on Buyers is the absence of simplified capital lending, something necessary to their investment strategies. Sellers are experiencing what I call “refi shock” as banks tighten their rules for lending qualification in the wake of declining property values.
The conundrum is realized as buyers and sellers are forced to work in a market that favors both. The conundrum is one of uniquely creative transaction partnerships, where neither the buyer nor the seller can pop the cork on a Champaign bottle and light-up a victory cigar.
This paradox of market realities or, clash of interests, is actually a moment of investment opportunities where banks can become the third party servants to buyers and sellers.
[Read more…] about Buyer vs. Seller Conundrum
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 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:https://commercialwebpage.com/wp-content/uploads/2009/05/az_comm_ppa.mp3]
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:https://commercialwebpage.com/wp-content/uploads/2009/05/az_comm_ppa.mp3]
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:https://commercialwebpage.com/wp-content/uploads/2009/05/az_comm_ppa.mp3]
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 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.
CommercialWebPage.com 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.
The Northern Arizona commercial real estate market is tracking with the national markets. Leases were up by about 50 percent in 2008 over 2007 while the sales transactions over the same time period decline by about 45 percent.
Prescott, Arizona commercial transactions were weak in the first quarter, in line with Flagstaff and Sedona. The larger commercial real estate market throughout the Central and Northern geographic area continues to show a softening of price with increasing vacancies, especially within markets with smaller retail users.
The investment market is ripe with opportunity and top lenders such as Wells Fargo are making money available to qualified investors on performing properties.
Contact Donald Teel, Arizona Commercial by email or by calling toll free 1-877-777-9100.
