Southern California Office Real Estate Blog

INVESTORS STILL LIKE REAL ESTATE

November 3, 2008 on 12:03 am | In Fascinating Information, Funny...Money, Investment Opportunities, Trends, Uncategorized |

INVESTORS STILL LIKE REAL ESTATE

A survey of more than 1,000 private and institutional real estate investors reveals that the majority are looking to invest more funds in the commercial real estate sector, according to the 2008 Real Estate Investor Outlook, conducted jointly by National Real Estate Investor, Marcus & Millichap and Countrywide Commercial.

“To see that a majority of investors are still planning to increase real estate holdings and that the percentage is higher than last year is a strong validation that they are separating

capital markets issues from commercial real estate fundamentals,” says Harvey Green, president and CEO of Marcus & Millichap Real Estate Investment Services.

The Investor Outlook survey reveals that 62 percent of respondents plan to increase allocations in real estate over the next 12 months compared to 60 percent in 2006, 69 percent in 2005 and 74 percent in 2004. Only 7 percent of real estate investors plan to decrease their investments in real estate over the next 12 months.

“Investors are going to invest more in real estate because pricing is more attractive and they’ll be able to get slightly higher yields,” says Chris Tokarski, managing director of Countrywide Commercial’s real estate finance group.

Of the investors who plan to increase their real estate holdings, the average estimated

increase is 21 percent.

The theory: “Availability and cost of debt may have changed, but healthy occupancies, rent growth, lack of overbuilding and moderation in prices are the drivers behind the optimism,” adds Green.

Investment sales activity in 2007 is on pace to eclipse 2006’s $356 billion, according to Real Capital Analytics Inc. As of October 1, the New York-based research firm, which tracks all deals $5 million and above, had recorded $356 billion in sales of the five main property types (office, apartment, retail, industrial and hotel).

Respondents have an average of 19 years’ experience in the industry and an average of

$36.6 million invested in real estate. On average, 62 percent of respondents’ portfolios are allocated to real estate.

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Pingback by INVESTORS STILL LIKE REAL ESTATE · Real-Estate-Investing.ExplainedOnline.Net — November 3, 2008 #
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[...] Investment sales activity in 2007 is on pace to eclipse 2006’s $356 billion, according to Real Capital Analytics Inc. Read more [...]

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[...] unknown wrote an interesting post today onSouthern California Office Real Estate Blog Â» INVESTORS STILL LIKE …Here’s a quick excerptA survey of more than 1000 private and institutional real estate investors reveals that the majority are looking to invest more funds in the commercial real estate sector, according to the 2008 Real Estate Investor Outlook, … [...]

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[...] unknown wrote an interesting post today onSouthern California Office Real Estate Blog Â» INVESTORS STILL LIKE …Here’s a quick excerptcapital markets issues from commercial real estate fundamentals,” says Harvey Green, president and CEO of Marcus & Millichap Real Estate Investment Services. The Investor Outlook survey reveals that 62 percent of respondents plan to … [...]

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[...] unknown wrote an interesting post today onSouthern California Office Real Estate Blog Â» INVESTORS STILL LIKE …Here’s a quick excerptA survey of more than 1000 private and institutional real estate investors reveals that the majority are looking to invest more funds in the commercial real estate sector, according to the 2008 Real Estate Investor Outlook, … [...]

Pingback by Finest Real Estate Info » Blog Archive » Southern California Office Real Estate Blog » INVESTORS STILL LIKE … — November 3, 2008 #
Real estate goes up by people’s desire to own. Ocean-front property. Manhattan. Europeans, South Americans, Asians want to own it. It goes back to supply and demand. If a lot of people want to own it, prices will go up. If nobody cares about it, the price isn’t going to go anyplace.

Comment by John Catsimatidis — March 7, 2009 #
Commercial property sales activity has increased since the start of the year, but the ratio of newly-listed properties to closed sales has increased even more.

The investment sales data from Real Capital Analytics clearly quantifies the general sense that it has become more of a buyer’s market and the trend shows no sign of reversing itself.

Roughly $2.7 billion worth of commercial properties traded hands in February, up from about $800 million in January, according to the New York research firm, which monitors transactions of at least $5 million. Meanwhile, the ratio of new offerings to closed sales increased to about 5-to-1 in February from 4-to-1 in January, and slightly more than 2-to-1 in December.

Comment by CRE News — March 30, 2009 #
The residents of Miami, Fla. fully felt the effects of the real estate crash, including a 12% decrease in hotel occupancy for the first quarter of 2009, an increase in unemployment to 8.5% in March 2009 and a 9% year-over-year increase in foreclosures for April 2009. Yet, on average, Miamians owe more of their personal income to credit card companies than those in any other area of the U.S.

While the median household income is a moderate $43,333–the national average is $50,233–average credit card debt in each home is $9,797.38. That means to pay off outstanding credit card bills, debtors would have to forgo 22.61% of their incomes.

Other areas where Americans continue to spend far more than they earn include Tampa, Fla., where the average household owes 17.1% of its total income; Los Angeles, where it’s 16.81%; Jacksonville, Fla., which owes 16.38% on average; and Orlando, Fla., indebted by 16.37%.

Comment by ABC News — July 11, 2009 #
Check out the Huffington Post’s entertaining – but might I add somewhat discouraging – slideshow of New York’s greenest buildings. Note that of the ten buildings, only one existing structure – the Empire State Building — is offered as an example. This reinforces what we’ve understood for awhile now. There is the widespread perception that to be truly green, a building has to be new.

You can vote for the greenest building in NYC. Right now the Empire State Building is No. 8… let’s go for No. 1.

http://blogs.nationaltrust.org/preservationnation/?p=5227

Comment by Patrice Frey — July 14, 2009 #
Under a plan developed through the William J. Clinton Foundation, participating banks would provide up to $1 billion each in loans that cities or private landlords would use to upgrade energy-hungry heating, cooling and lighting systems in older buildings. The loans and interest would be paid back with savings accrued through reduced energy costs.

Comment by William J. Clinton Foundation — September 12, 2009 #