By Buddy Norman, President, Keller Williams Commercial
The commercial real estate downturn skirted the sidelines for the first three years that residential markets were declining in 2006-2008, but once it hit, it hit hard. This CPI chart indicates commercial property values were on a steady uphill climb throughout most of the past decade – peaking in February of 2008, and then dropping precipitously through 2010.
High unemployment levels and vacancy rates continue to put pressure on commercial real estate values, which have plunged nearly 45 percent from their peak in 2007. Consequently, many regional and community banks have increased their capital reserves in order to offset their risk, especially ones with high concentrations of commercial real estate loans.
As a result, many small businesses – including companies that are credit-worthy and making their monthly mortgage payments on time – have encountered difficulty refinancing their maturing commercial mortgages.
By Paul Howard Director, Center For Medical Progress, The Manhattan Institute
It used to be “location, location, location.” But as the economy moves deeper into the IT age, commercial real estate – at least in certain sectors – is likely to become more about “information, information, information.” Take health care.
Closing More Deals, More Quickly with eSignature Technology
The commercial real estate market has been hit hard by the economy. Times like these give us opportunity – and reason – to look at our businesses and find ways to drive efficiency, reduce cost and close more deals, more quickly. Fortunately technology offers solutions to help commercial real estate agents and brokers be even savvier to succeed in this troublesome market.
NAR Midyear Legislative Meetings and Trade Expo
From May 9 – 14 in Washington D.C., REALTORS® from across the country, along with NAR staffers, will visit Congressional representatives to keep key industry messages top-of-mind with policy makers. The visits are just one initiative in the on-going advocacy efforts to help ensure passage of legislation that is favorable to the practice of real estate.
To see all advocacy efforts, visit: http://tinyurl.com/Hill2011
In a recent speech, I was asked about my perception of the then-current debt ceiling and deficit discussions. I mentioned that this “crisis” over the debt ceiling is like a tornado drill. When I grew up in Wichita, Kansas, each Monday at noon, the tornado sirens would scream across the city. The sky was clear, but school children were marched into the hall and told to sit down and face the wall. When the sirens stopped, the exercise was over and normal activity resumed. It was just a drill.