2010 June | Real Estate Ambassador by Ark Rhowmine

Archive for June, 2010

Halftime Pep Talk | Commercial Real Estate Market | Wausau Wisconsin

filed under: Commercial Real Estate Market posted on June 25th, 2010

Halftime Pep Talk : We are at the midpoint of 2010, and the economy and the commercial real estate markets are trudging ahead. It’s not a V-shaped recovery, unfortunately, nor does a double-dip recession appear likely – see the chart below showing GDP forecasts from economists at three large financial institutions. Real Capital Analytics says that property sales volume year-to-date through May is 56 percent higher than the same period last year though sales remain low by historic standards. Demand is focused at either end of the quality spectrum – core assets in primary markets or deeply discounted troubled assets. Broad pricing metrics such as cap rates and repeat-sale property indexes have stabilized. Leasing market fundamentals have stabilized for apartments while the office, industrial and retail markets are nearing a bottom.

Grubb & Ellis Chart Early in the year, the economy appeared to be firming rapidly and the stock market surged ahead, so it looked like the recovery would proceed quickly. But in the second quarter Europe swooned, the U.S. economy hit some speed bumps and Wall Street fizzled. When you average it out, we’re getting exactly what most analysts expected at the beginning of the year – a gradual recovery.

It doesn’t feel like a recovery, but neither did it feel like a recovery in 2002 and 2003 though the prior recession ended in November 2001. Nor did it feel like a recovery in 1992 and 1993 despite the fact that the prior recession ended in March 1991.

One big difference between now and the early 1990s is that today there is plenty of capital chasing commercial real estate or waiting on the sidelines to do so. The industry retains its popularity as an investment asset class, which was not really the case in the early 1990s when word on the street was that the market would not need any new space until after the millennium, a forecast that proved far too pessimistic.

Fear not, readers; though the economy is not roaring ahead, commercial real estate is attracting more investor interest than we could have hoped for a year ago while the leasing market is finding its footing. The recovery is going according to plan.

Have a great weekend.

Source: Robert Bach ,SVP, Chief Economist ,Grubb & Ellis , 312.698.6754

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For your Commercial and Investment Real Estate needs hire the professionals. Grubb & Ellis | Pfefferle is the ONLY National Commercial Real Estate Broker in North Cenrtal Wisconsin. Independently Owned and Operated

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For more Commercial Real Estate Market Issues:

Financing for Commercial Real Estate is Starting to Thaw

Don’t Blame Canada

Where Will The Jobs Come From

Bellwethers – FedEx, Considered a Bellwether for the Economy

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Bellwethers – FedEx, considered a bellwether for the economy | Grubb & Ellis | Wausau Wisconsin

filed under: Commercial Real Estate Market posted on June 18th, 2010

Bellwethers – FedEx: Bellwethers – FedEx, considered a bellwether for the economy, yesterday reported strong results for its fiscal fourth quarter ending May 31^st. The company made a profit of $419 million or $1.33 a share on revenues of $9.43 billion, up by 20 percent from the year-ago quarter. FedEx forecasted earnings for its new fiscal year of $4.40 to $5 a share. Notably, it reported no slowdown in its European business despite the financial turmoil and economic concerns clouding the outlook for the region.

Another bellwether, the Conference Board’s index of leading indicators rose 0.4 percent in May while April’s reading was revised from -0.1 percent to flat – so no sign of a double-dip recession.

Have a great weekend.

Source: Robert Bach , SVP, Chief Economist , Grubb & Ellis , 312.698.6754

Personal Note From Ark:

For those of you who are receiving ”Good News Friday” for the first time, and those who have been right along, approximately a year ago Robert Bach, Senior VP, Chief Economist of Grubb & Ellis, started writing GNF to help readers find GOOD in the economy. Some days it has been a little difficult for him. But all-in-all he has been able to share good news with us. With permission, I have picked this up and have been forwarding GNF on to my friends and business contacts for about year now. I have received positive feedback from many of you. I hope to continue this service and that you continue to enjoy and gain from it.

If you would like to receive Good News Friday, please feel free to contact me direct at arkr@gepwi.com and I will place you on the distribution list.

Thank you for allowing me into your office,

Ark Rhowmine

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View Ark Rhowmine’s Commercial Listing.

For More Good Morning Friday Articles:

Financing for Commercial Real Estate is Starting to Thaw

Don’t Blame Canada

Where Will The Jobs Come From

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Don’t Blame Canada | Grubb & Ellis | Wausau Wisconsin

filed under: Commercial Real Estate Market posted on June 11th, 2010

Don’t Blame Canada: Canada did many things right before the run-up to the credit crisis and during the crisis itself, and now the Canadian economy is recovering more quickly than the U.S. and Europe. First quarter GDP grew at an annualized rate of 6.1 percent, the sharpest increase in more than 10 years and the fastest growth among G-7 countries. Total employment in Canada fell by 2.7 percent versus a peak-to-trough decline of 6.1 percent in the U.S. Since bottoming in August 2009, Canadian employers have added 115,000 net new jobs, recouping 28 percent of the 407,000 jobs lost in the downturn. More conservative financial institutions and a stable housing market helped cushion Canada’s economy from the crisis while global demand for commodities has given the recovery a leg up.

Back in the U.S., The Wall Street Journal ran a must-read editorial yesterday on why fears of a double-dip recession are overstated – see attached.

Source: Robert Bach , SVP, Chief Economist , Grubb & Ellis , 312.698.6754

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Why Use a Commercial Real Estate Broker | Wausau, Wisconsin

filed under: Ask the Broker, Commercial Real Estate Broker, Commercial Real Estate Market, Real Estate Investment Strategies posted on June 4th, 2010

Why Use a Commercial Real Estate Broker?

Commercial Real Estate Brokers are Business Minded people who understand there commercial clients’ needs and are driven by the economics of a transaction.

Commercial Real Estate Brokers have an in-depth knowledge of commercial properties, valuations, financial alternatives and available economic incentives. In addition, they are connected with the decision makers of the community and work regularly with Towns, Villages, Cities and the State regarding zoning, conditional use, wetlands, CSM’s and building permit processes.

Commercial Real Estate Brokers have developed sophisticated property databases and have access to a wide variety of material that will assist them in marketing, searching, negotiating and representing their clients in the most professional manner possible.

Commercial Real Estate Brokers are professionals who specialize exclusively in commercial real estate.

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Ark Rhowmine Grubb & Ellis | Pfefferle PO Box 865 Wausau, WI 54401 Direct/Cell // 715.297.1953 ArkR@gepwi.com