Todays Rental News » Commercial Property

Will a vacant factory rescue Detroit small businesses?

Tim Ballering — Sat, 17 Jul 2010 21:36:46 +0000

Dennis Kefalinos purchased the 2.2 million square foot Russell Industrial Complex for $1.5 million in 2003, gambling manufacturing or industrial tenants would appear. They haven’t.But seven years later, he has filled 25% of the factory with artists and small businesses who pay $550 a month, heat included, for 1000-square-foot studios / shops. And he didn’t pursue this angle. The tenants came to him, one at a time, at a rate now of one new tenant a week.

via Agent Genius

Is There a Bottom in Sight?

Tim Ballering — Tue, 06 Jul 2010 02:21:41 +0000

Charles Dickens began his classic, A Tale of Two Cities with the famous opening “It was the best of times …” That was the tone of the Mortgage Bankers Association’s (MBA) January 2007 assessment of the commercial market which was entitled “The Perfect Calm.” Indeed, everything looked calm and promising to the MBA.

via Seeking Alpha.

Year’s First Commercial-Mortgage-Bond Deal

Tim Ballering — Wed, 05 May 2010 20:26:55 +0000

The first commercial-mortgage-bond deal of the year is expected to be marketed to investors this week, according to sources familiar with the transaction.

The offer is seen as a sign of investors’ willingness to tolerate risk, despite the deteriorating fundamentals of commercial real estate, as long as a deal is accompanied by adequate protection and conservative underwriting.

via WSJ.com.

Dead Malls Are a Virus- Getting Creative With Repurposing

Tim Ballering — Tue, 04 May 2010 11:44:17 +0000

As new malls open in cities, the shine wears off of the older malls, patron shuffle over to the shiny and the older may end up closing as lease holders jump ship to newer areas. In other words, it dies. This typically happens in areas of town that are declining or that were overbuilt with retail space.

As Buildings Empty, Banks’ Credit Woes Pile Up

Tim Ballering — Sun, 02 May 2010 01:29:59 +0000

Commercial real-estate problems may be about to douse the recent rally enjoyed by regional banks

via WSJ.com.

Commercial Property Prices: The Downturn Continues

Tim Ballering — Thu, 22 Apr 2010 00:32:58 +0000

The latest release of the Moody’s/REAL Commercial Property Index showed a notable decline of 2.6% since January, breaking a three month streak of rising prices and continuing to suggest that the nation’s commercial property markets are experiencing a tremendous downturn with prices down some 25.81% on a year-over-year basis and a stunning 41.66% since the peak set in October 2007.

via - Seeking Alpha.

Shopping centers face lawsuits, unpaid rents

Tim Ballering — Mon, 05 Apr 2010 14:20:57 +0000

Now the company is notable more for its growing roster of lawsuits, some by lenders and others by subcontractors, all while it files lawsuits of its own against shopping center tenants that allegedly arent paying rent.Economists have warned that the commercial real estate market is the next crisis

via MiamiHerald.com.

[This is a situation many commercial property owners are facing as other businesses struggle to survive -- Tim]

Commercial Eviction Protection

Tim Ballering — Wed, 17 Mar 2010 21:22:08 +0000

Most businesses lease, putting them at risk of eviction if their landlord defaults. But as Todd and Myrna Dow, of Sisters, learned the hard way, a legal document — called a subordination, non-disturbance and attornment agreement — exists to protect against that very scenario, which has become more common with the down economy.

via The Bulletin.

Commercial Delinquencies Hit New Record

Tim Ballering — Thu, 11 Mar 2010 18:28:45 +0000

In January 2010, the delinquent unpaid balance for CMBS increased by another $4.3 billion, up to $45.94 billion from $41.64 billion a month prior.

via Mish’s Global Economic Trend Analysis

Commercial Real Estate Crisis; 3000 Community Banks at Risk

Tim Ballering — Thu, 04 Mar 2010 23:22:26 +0000

“There's been an enormous bubble in commercial real estate, and it has to come down,” said Elizabeth Warren, chairman of the Congressional Oversight Panel, the watchdog created by Congress to monitor the financial bailout. “There will be significant bankruptcies among developers and significant failures among community banks.”

via Mish’s Global Economic Trend Analysis