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By Alex Zylberglait, December 21, 2009 6:28 pm

Financing, pricing gap and wait for distressed sales are blocking the path for commercial real estate investors.

According to an exclusive survey produced jointly by National Real Estate Investor and my company Marcus & Millichap, buyers are preparing to forge ahead with acquisitions in 2010. Two-thirds of investors (65%) who responded to the 6th Annual Investment Survey plan to boost their investment in commercial real estate over the next 12 months. That figure is up from 56% in the third quarter and 51% a year ago. The fact that buyers are once again returning to the table is a huge vote of confidence for a commercial real estate industry that has been slammed in the past year by falling property values, occupancies and rents. Respondents to the annual survey who do plan to expand existing portfolios anticipate an average increase of 26%, up from 24% in the third quarter and 22% a year earlier.

Contact me to receive the full report.

Are you one of the 65% of investors who are looking to expand portfolios and go ahead with acquisitions on bargain commercial real estate properties in the next 12 months? Contact me in advance for me to find a good strategic acquisition for you.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By Alex Zylberglait, December 18, 2009 10:15 pm

Price declines in the commercial property sector around the nation are dwindling slightly according to a report by the CCIM Institute and the Real Estate Research Corporation. And that a potentially meaningful recovery is projected to in about six months, the report said.

The quarterly report noted volume increases in the office, retail, apartment, and hotel sectors on a quarter-to-quarter basis, but it is still declining overall on a 12-month trailing basis.

In its 2010 forecast, the report said that credit is projected to remain stiff, and as more loans reach its due, bank foreclosures are expected to swell.  Commercial real estate sales volume and transactions are expected to increase as more entrepreneurial and opportunistic funds will flow into the market.

Contact me if you want to explore and seize opportunities in commercial real estate across the nation as I find the best investment strategy and the best fit between investors and property assets.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, December 17, 2009 2:30 pm

In a report by Reuters, Bank of Canada Governor Mark Carney said that about the U.S. real estate that: “It is going to be a difficult situation for a period of time but it is not going to be a shock to the system. And there’s a big difference between the two.”

Meanwhile, Wells Fargo Securities said in its 2010 outlook report that  the economy will rebound, but will take a couple of years to return to levels seen a few years ago.

“Housing and commercial real estate are central to the recovery. It has been complicated by the stimulus programs. The future will be determined by the fundamentals, it is not likely to improve until employment and income improve, ” said Mark Vitner, senior economist at Wells Fargo. “We expect a 20 percent rebound in 2010 and 2011,” he said.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, December 16, 2009 2:37 pm

Moody’s Investor Services, learning from lessons received 20 years ago, predicts in a report that U.S. life insurers will suffer a less due to commercial-mortgage losses compared to banks. The commercial real estate market last went through a crisis 20 years ago which resulted in major losses for the life insurers.

“Life insurers’ portfolios today demonstrate that they have learned from past missteps dealing with commercial real estate,” said Senior Vice President Jeffrey Berg. Right now, the sector has only moderate exposure to commercial loans and these loans were well-diversified across geographies and property types as well as these loans were conservatively underwritten and maturities were well-distributed.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, December 15, 2009 11:17 pm

The Federal Deposit Insurance Corp. revealed today a significant increase in budget to deal with banks’ escalating woes which is at its fastest pace since 1992. The FDIC will boost its budget by 56% from $1.3 billion this year to $2.5 billion in 2010. They said thay will aslo increase staff by 1643 to handle bank failures.

“It will ensure that we are prepared to handle an even larger number of bank failures next year, if that becomes necessary, and to provide regulatory oversight for an even larger number of troubled institutions,” FDIC Chairman Sheila Bair said in a statement.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, December 14, 2009 11:02 pm

Bridger Commercial Funding announced today that it will resume originating new commercial real estate loans on income-producing properties. Loans made under Bridger’s new program will be underwritten to eligibility standards for securitization under the Federal Reserve’s Term Asset-Backed Securities Loan Facility, or TALF. Separately, Bridger also announced that it has hired the personnel from Whitegate Advisors, a New York-based real estate capital markets specialist firm, in order to support its new CMBS origination activity.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, December 11, 2009 1:17 pm

Commercial Real Estate Investment: The latest results of the Moody’s REAL Commercial Property Index continue to indicate that our country’s commercial real estate markets are definitely experiencing a tremendous downturn, with prices plummeting at a whopping 42.70% since the peak set in October 2007.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, December 10, 2009 7:48 pm

The 2010 Emerging Trends in Real Estate, released by PricewaterhouseCoopers and the Urban Land Institute, forecasts that commercial real estate values will bottom in 2010 and that values will decline an average of 40 percent from their peak in 2007. The survey called this fall the worst commercial decline since the Great Depression and said it would overshadow the 1990s savings-and-loan crisis.

This is a great opportunity for cash investors to go for quality assets and realize returns as the economy bounces back.

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By AZ Advisory Team, December 9, 2009 5:32 pm

Concrete Framing Systems

Concrete deterioration will, in most cases similarly to relate to rebar corrosion possibly abetted by the presence of salt-water aggregate or excessively permeable concrete. In this respect, honeycomb areas may contribute adversely to the rate of deterioration. Columns are frequently most suspect. Extensive honeycomb is most prevalent at the base of columns, where fresh concrete was permitted to segregate, dropping into form boxes. This type of problem has been known to be compounded in areas where flooding has occurred, especially involving salt water. In spall areas, chipping away a few small loose samples of concrete may be very revealing. Especially, since loose material will have to be removed even for cosmetic type repairs, anyway. Fairly reliable quantitative conclusions may be drawn with respect to the quality of the concrete. Even though our cement and local aggregate are essentially derived from the same sources, cement will have a characteristically dark grayish brown color in contrast to the almost white aggregate. A typically white, almost alabaster like coloration will usually indicate reasonably good overall strength. The original gradation of aggregate can be seen through a magnifying glass. Depending upon the structural importance of the specific location, this type of examination may obviate the need for further testing if a value of 2000 psi to 2500 psi is sufficient for required strength, in the event that visual inspection indicates good quality for the factors mentioned.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, December 8, 2009 6:30 pm

So here’s a continuation of our topic: Forty Year Inspection Requirements

Floor and Roof Systems

Cast in place reinforced concrete slabs and/or beams and joists may often show problem due to corroding rebars resulting from cracks or merely inadequate protecting cover of concrete.

Patching procedures will usually suffice where such damage has not been extensive. Where corrosion and spalling has been extensive in structurally critical areas, competent analysis with respect to remaining structural capacity, relative to actual supported loads, will be necessary. Type and extent or repair will be dependent upon the results of such investigation.

Precast members may present similar deterioration conditions. End support conditions may be important. Adequacy of bearing, indications of end shear problems, and restraint conditions are important, and should be evaluated in at least a few typical locations.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.