GLG News(sm): Real Estate

Where is the Silver Lining?

Robert Canter — Wed, 11 Nov 2009 10:35:10 EST

This article supports everything this writer and many others have been saying, there will be no descernable recovery until the unemployment rate begins to dramatically drop.

Not All Real Estate Is the Same - 4 Different Issues

John Salomone — Mon, 09 Nov 2009 11:42:14 EST

Real estate financing and refinancing poses 4 different levels of risk for lenders and owners, based on the project life cycle and its financing and overall structure. Broad statements about the looming problems are just that "broad statements" Real estate market participants must look at each transaction within the context of the 4 kinds of Real Estate Finance Structures, if they want to properly assess financing and refinancing values, issues and risk.

At Best, an Incremental Step In the Right Direction

GLG Expert Contributor — Fri, 06 Nov 2009 08:34:24 EST

The pending Developers Diversified ("DDR") transaction represents, at best, a marginal step in the right direction with respect to getting the CMBS machine back on track. The successful launch of a new CMBS transaction, and placement of the related bonds should be considered a victory given the dearth of CMBS deals over the past +12months. At the same time the nature/characteristics of the transaction and the requirement for government involvement highlight the challenges confronting the sector.

The Current Real Estate Downturn is Different

GLG Expert Contributor — Wed, 04 Nov 2009 14:24:35 EST

Unlike prior downturns where economic weakness compounded with addition of recently completed property supply contributed to commercial real estate downturn, the current downturn has been fueled by excessive use of creative debt financing. The unwinding of creative leverage will take longer than previously and could delay recovery.

Solar companies need cut installation costs

GLG Expert Contributor — Wed, 04 Nov 2009 08:39:37 EST

The article by Laura Insee correctly points out how cost cutting of solar panels is now focusing on the installation process. Much work has been done on the manufacturing process of the panel, and it is evident how further cost reduction is going to be way more difficult, law of diminishing returns.With 30% of the panels going to the residential market, building-integration should increase its market penetration.

Irish Commercial Real Estate - What is the Natural Vacancy Rate?

GLG Expert Contributor — Wed, 04 Nov 2009 06:45:12 EST

The 'natural' vacancy rate in Irish commercial property markets may be twice agents' current published estimatesImplies that the turning point in Irish office market could come sooner than expected

We know why Geithner isn't Worried about the Banks problems with CRE Credit

Robert Canter — Mon, 02 Nov 2009 14:15:49 EST

Last Week Secretary Geithner said "Commercial Real Estate Woes Won't Spark Crisis"Of course we now know why he isn't worried! It's called Systematic "Extend and Pretend".

German Investment Firms buying US properties at Discounted Prices

GLG Expert Contributor — Sat, 31 Oct 2009 19:38:02 EST

Deka an asset manager for German banks operates the country’s largest of open-ended property funds of around $28.24 B in property assets. In September, Deka bought a 12-story building in Washington, D.C., for $208 m at the top end of prime office space in the capital. Other German buyers of U.S. property included the insurance company Allianz SE which purchased a 50% stake in Boston’s Once Beacon Square from Beacon Capital Partners in a deal that is valued the building at $508 million.

Case-Shiller Report is Old News & the Information is Outdated

GLG Expert Contributor — Sat, 31 Oct 2009 15:33:22 EST

The most recent Case-Shiller report stated, that home price index has risen four consecutive months a sign of steady improvement and stabilization of the housing market. The August date compared to the same data (August 2008) was down about 11.2 per cent. There will be further softening of the Real Estate sales as well as home values.

Not good news for the Retailers and Shopping Center Owners.

Robert Canter — Fri, 30 Oct 2009 15:26:57 EST

This just confirms what this writer posted with the last three analysis'.With tight credit, high unemployment, and a continuing battered housing market, there is no relief in sight and the consumer is loudly sending the message.

If you believe the above statement, I have a bridge to sell you!

Robert Canter — Fri, 30 Oct 2009 12:18:59 EST

TheTreasury Secretary's remarks as reported in the subject article can not be believed.

Commercial Real Estate Still Alive but not neccessarily healthy

GLG Expert Contributor — Thu, 29 Oct 2009 15:13:13 EST

Banks and other lenders are ill equipped to operate a failed mall, office building or hotel, once they have foreclosed on this type of property.Shopping malls and other such buildings staying vacant brings no income and makes the property more difficult to sell.A good broker is the answer, One who can find a buyer, negotiate a sale and limit the damage to the bottom line and the structure, itself.

Good Insight Here

Kenneth Egan — Thu, 29 Oct 2009 15:07:37 EST

Government intervention eliminates the "Free-Market" concept.This is politics as usual...kicking the can down the road.Pres. Obama is not bringing about change(I am not against him).Cash for clunkers applied to home purchase will not fix the problem.

Case-Shiller Home Price Improvement Temporary

David Lereah — Tue, 27 Oct 2009 14:37:26 EST

According to a recent Case-Shiller home price report, the pace of annual decline in home values continues to decelerate and there are sustained monthly increases across many of the markets. Historic low mortgage rates and a government tax credit program have provided a favorable backdrop for housing activity throughout this year. Housing sector faces several obstacles that could weaken future home sales and home values.

This means more bad news on the commercial real estate sector

Robert Canter — Tue, 27 Oct 2009 11:19:20 EST

Consumer confidence fell unexpectedly...What gave it away? When you have unemployment hovering around 10% what should the experts expect?

PPIP is doing what it was designed to do.

GLG Expert Contributor — Sat, 24 Oct 2009 17:38:34 EST

The primary function/purpose of PPIP was to provide price support to institutional investors holding structured investments. PPIP was not designed to provide a market bid for "toxic" assets. If it were, the program would have permitted inclusion of all structured assets - not just those rated AAA; similarly the program would have supported the purchase of ReRemics - the true "toxic asset" class.

State of Real Estate

Harnath Sithamraju — Fri, 23 Oct 2009 08:15:12 EST

Customs and Practice define the rules of Real estate.Real estate is/has been real business since the Jurassic Age but Tech is recent.

No Credit No Economy

Robert Canter — Thu, 22 Oct 2009 18:59:30 EST

The folks quoted in this article have to be kidding. They must be the same people that didn't question the era of cheap money and low cap rates either.

...If This Isn't A Shoe, Is It A Boot?

GLG Expert Contributor — Thu, 22 Oct 2009 12:14:06 EST

The only good news is that most of the loans in question were not securitized and spread through the financial system as cash-equivalent.The bad news is multi-faceted.To expect REITs to be able to stop the fall, is to rely on a frayed shoe lace.

Record Deficit Bad News For Economy and Housing

David Lereah — Thu, 22 Oct 2009 10:48:42 EST

The federal budge deficit is now at an all-time record and is about 10 percent of GDP. The fallout of running excessive budget deficits will likely be higher interest rates and slower and erratic long-term economic growth. Both would provide an unfavorable backdrop for the nation's housing sector.