Good News For Investors

http://nreionline.com/finance/news/reit_stocks_jump_0310/

Despite poor commercial real estate fundamentals, retail and apartment real estate investment trusts (REITs) are enjoying a powerful resurgence.

For the 12-month period ending February 28, a key equity REIT index soared 95.19%, outdoing both the Nasdaq and Standard & Poor’s 500 index of stocks, according to a new report.
For the month of February, U.S. REITs gained more than 5%, according to the report by the National Association of Real Estate Investment Trusts (NAREIT), a trade group based in Washington, D.C. The gains were driven by investment in the retail and apartment sectors, according to the report.
“This has been a period of tremendous growth for REIT shares,” says Ron Kuykendall, vice president at NAREIT. “What it means, I believe, is that investors are betting on a recovery.”
The performance represents a remarkable contrast to the period from the market peak in early 2007 to the trough in March 2009, the lowest point for REITs. Share prices fell a devastating 75% during that period, says Kuykendall.
If investors indeed are betting on recovery, that could provide a shot in the arm to the commercial real estate industry across the U.S. Although REITs comprise just 10% to 15% of the total U.S. commercial real estate marketplace, they represent many of the largest companies and property owners across all property types — retail, multifamily, office, industrial and hotel.

Dealmakers get busy…contact Rose City Commercial Real Estate at 503.577.1034 or Rick@rosecitycre.com.

Continued…

A developing trend that factors into the recent investment in shares is that acquisitions are once again beginning to take place after the nation’s deep recession and credit shortage, particularly in the retail and apartment sectors.
“We have seen apartment companies like Avalon Bay and Equity Residential doing some strategic acquisitions. It has also begun to happen in the retail sector, where you have of course the General Growth situation,” says Kuykendall. Several rival REITs have expressed interest in buying mall REIT General Growth as it attempts to emerge from Chapter 11 bankruptcy.
“Equity One has been talking to Liberty about acquiring some of their retail shopping centers,” as well, says Kuykendall.
Over the past year, many REITs strengthened their balance sheets as they recapitalized, raising fresh equity through secondary equity offerings and paying down debt, says Kuykendall. The steps made them more attractive to investors.
“There were about $22 billion in secondary equity offerings in the REIT marketplace last year,” says Kuykendall. “That represented more shares coming onto the market.” The offerings followed a trend developing over the past year of share growth rather than a reduction in the number of shares outstanding.
Regional malls recorded an 11.9% return on the FTSE NAREIT Equity REIT Index in February, while shopping centers registered 8.9%. During the month, apartments also showed strong gains of 8.4%, a dramatic improvement from a year earlier. In February 2009, shopping center index returns declined 25.8% while regional mall returns dropped 21.1%. In the same period, apartment returns declined 24.7%.
This year, REITs are generating more optimism. “Investors have been looking forward to the returns that REITs are going to be able to generate by acquiring high-quality property at good prices,” says NAREIT economist Brad Case. “What we’ve seen in the last month is that those opportunities have arrived.”
The investors are driving the prices of REIT stocks up in anticipation of better REIT performance going forward, says Case. He notes that in addition to the improved returns for retail and apartments, lodging REITs recorded a 6% gain in February.
Tough year for fundamentals
The gains have taken place against the backdrop of a brutal climate for commercial real estate fundamentals. The vacancy rate for community and neighborhood shopping centers is projected to rise to 11.5% this year, according to New York-based data research firm Reis. That would represent the highest vacancy rate for the centers since at least 1999.
The shopping center vacancy rate is projected to rise to 12.2% next year. For apartments, Reis projects a vacancy rate of 8.3% in 2010, shattering records for the last 11 years.
Because REITs have been able to raise fresh capital through equity offerings, unlike private companies, they have not been hamstrung by banks’ unwillingness to lend money for acquisitions, says Kuykendall. That has made a crucial difference in their ability to grow as the nation attempts to shake off the effects of the economic slowdown.
Another problem for private commercial real estate companies is that many are weighed down by maturing debts, while banks practice a policy of “extend and pretend” rather than foreclosing on assets.
That’s why the investment marketplace has looked more favorably on REITs, says Kuykendall. Debt maturities still hang over the private companies, while REITs are positioned for opportunistic buys. “These are going to be the winners as banks come to a point where they are no longer willing or able to do the pretend and extend.”

By Mark Heschmeyer

To be certain, the number of property sales with price tags of $5 million or more still declined 16% in January from the number of sales in January 2009, according to CoStar Group Inc. And that was a steeper decrease than seen in November and December.

However, that decrease in dollar volume can be attributed to fewer deals and smaller properties being sold. The average size of the properties sold this past January was 5% smaller than a year ago, and the number of deals was down 15%. That helped raise, the average price per square foot being paid for institutional-quality properties from $141 per square foot to $149 per square foot January to January, the third month in a row that the average price paid was more than it was in the year-earlier period.

What’s more, multifamily sales in the $5 million and up category increased 50% over the year earlier. This was the second month out of the last three that multifamily sales had increased month over month. Apartment sales were up in November and flat in December.

Hospitality property sales also took a huge upward turn in January – up more than 250% over the year-earlier period. Although, it was the first monthly increase since the recession started, the trend over the last four months has clearly been improving for hotel properties. They were down 58% in October 2009 compared to October 2008, but down only 1% in the December-to-December period.

While no one is jumping to the conclusion that the results clearly indicate commercial real estate has turned a corner, they do appear to lend more credence to the belief that a painfully slow rebound may be in progress.

“We’ll see more transactions involving institutional quality property because buyers are beginning to understand that prices for top-quality properties may be at or near a bottom,” said Bob Bach, chief economist at Grubb & Ellis. “I think we’ll see a gradual increase in sales this year of perhaps 20% to 30% or possibly considerably more.”

“We’ll also see [more activity in] Class B and C troubled assets in secondary and tertiary markets because lenders realize there’s no reason to hang on for better prices because these properties will be the last to recover,” Bach said. “Prices are expected to drift moderately lower, more into the strike zone where buyers and sellers will start to make deals. But the pricing correction is [still] probably [only] two-thirds to three-quarters over with.”

In addition to attractive pricing and lenders more willing to sell, confidence from the resumption of job growth is also expected to stimulate the willingness among investors to seek outsized returns by taking on greater risk.

As CoStar’s Property and Portfolio Research (PPR) noted in its 2010 Predictions white paper, “Once we start getting a couple of months of positive job numbers, particularly if there is an accelerating trend, we’re going to see a lot of investors interested in cashing in on the opportunities that are out there, whether this means acquiring half-empty buildings or taking on assets with big lease-roll exposures.”

According to PPR, the best-performing opportunity funds from a vintage standpoint have been those that are executed in the last year of a recession or the first year of the recovery. Looking back to the last downturn, 2001 and 2002 vintage funds were the best-performing opportunity funds over the previous eight years.
Multifamily Investment Sales

“There has undoubtedly been an uptick in transaction velocity in multifamily deals, and I believe it is due to a variety of factors,” said Darron Kattan, partner and senior multifamily broker for Franklin Street Real Estate Services in Tampa, FL. “Multifamily is always the top choice of investment dollars and therefore there are a lot of buyers looking for deals. Nothing new in this cycle versus previous where multifamily is the first to recover due in large part to the availability of buyers. Multifamily was actually the first to hit the distressed radar screen, with the shortest term leases (outside of hotels), and therefore became the first to get hit hard by the downturn and land on asset managers’ desks at lenders and servicing companies, and therefore are the first working through the system.”

In addition, Kattan noted that AIMCO and Equity Residential were large net sellers in 2009 due to balance sheet and stock pricing issues. That, he said, opened the door for attractive deals to hit the market.

Tim Wang, vice president, senior investment strategist for ING Clarion in New York noted that Freddie Mac, Fannie Mae, and HUD have been dominating the multifamily financing.

“This is the only property sector that you can still lever up to 75% loan to value and have positive leverage to juice up investment returns,” Wang said. “The Fed plans to end its $1.25 trillion mortgage debt purchase program by the end of next month, which could potentially lead to an increase in GSE mortgage rates. So, there is a rush in the marketplace to take advantage of the attractive financing terms and do multifamily deals before this deadline.”
Hospitality Investment Sales

“Hotel demand is highly correlated with economic growth,” Wang said. “Historically, it is one of the first property sectors to recover after recession. The sector is definitely improving, albeit from probably the steepest downturn in the U.S. lodging industry history. We are seeing generally stabilized occupancy while the average daily room rate is still declining but at a slower rate. The major difference in this downturn is that there was excess hotel supply delivered to the market in 2008-2009. Consequently, the revenue per available room recovery this time around could be slower than in the past.”

Gordon L Wicker, chief operations officer for AXIA Real Estate Appraisers in Tucson, AZ, said, “with respect to the hospitality market statewide, average daily room rates and average daily occupancies remain well off 2007 numbers, so most sales activity in the larger regional/national market appears to be an increase in activity from REITs both as a long-term investment, and also due to a lack of attractive investment alternatives.”

Timothy D. Chamberlain, principal at Koda Ventures LLC, and senior director at Lee Kennedy Co. Inc. in Quincy, MA, also noted that hospitality, while still distressed, is becoming appropriately priced.

“Hospitality is discounted enough to start to move and apartments represent stabilized cash flow, which is what the market wants today,” Chamberlain said. “All other classes are getting kicked down the road and are not yet priced appropriately for a reasonable risk adjusted return.”
Office, Industrial and Retail Investment Sales

“There will be an uptick in volume in 2010, but not much,” Chamberlain said. “2011-’12 will be an active years for the industrial, office and retail food groups.”

Of the three primary commercial real estate property sectors, 2010 investment sales numbers seem to indicate that office properties have improved the most over 2009. For starters, the pace at which sales have been declining has slowed dramatically. October 2009 sales were 50% fewer than they were in October 2008. That dropped to 24% fewer for December 2009 over December 2008. And in January of this year, office property sales of $5 million and up were off just 6% from what they were a year earlier. Notably, the average price per square foot is down dramatically from what it was a year ago: $158 compared to $202.

Retail and industrial property sales were still way down from year earlier numbers. Retail sales in January totaled 38% less the year-earlier period and industrial sales declined 68% month over month.

“Retail will generally continue to struggle until investors can get a feel for when occupancy rates and net operating incomes will stop deteriorating,” said Mac McCall, senior director of Franklin Street Real Estate Services in Atlanta, GA. “With many retailers continuing to see declining sales, especially mom and pops, vacancy rates will continue to tick up without the added boost of increased employment in the overall economy.”

“Additionally,” McCall continued, “if you factor in the potential of bank-owned retail properties hitting the market in the coming years, buyers of this product will be able to get away with charging lower rents because their acquisition basis is much lower than their neighboring properties which were either built or acquired during the peak of the cycle and therefore have to charge higher rents to justify their mortgage payments. Both of these key factors make it a tough sell to a potential investor to invest in an asset with so much uncertainty regarding future cash flows.”

Manish Rajguru, who oversees the evaluation of CMBS and other CRE debt instruments at Red Pine Advisors LLC in New York, said that, “the industrial [property sector] should increase, especially those related to trade (exports in particular). The office and retail property sectors should continue to lag given uncertainty of growth in office using employment and consumer respectively (and General Growth Properties’ fallout as some malls will have to be repositioned/closed).”
Buyer Demographics

The buyer profile of institutional quality properties has shifted in the last four months from what it was a year earlier. Developer/owner and investment manager buyers continue to be the primary buyers of properties and, in fact, have increased their outlay year over year. Developer/owner purchases were up to about $7.3 billion in the last four months compared to $6.8 billion in the same period a year earlier; and investment manager buys were up to $5.5 billion from $3.7 billion.

REITs and corporate buyer have decreased their buying activity in the last four months from a year ago. REIT activity was down slightly from $5.4 billion to $5 billion; and corporate buying activity was down from $3.5 billion to $2.6 billion.

Notably, it appears that banks and financial institutions have stepped up their foreclosure activity. Bank/finance firms accounted for $1.9 billion in purchases in the last four months up from $480 million in the same period a year earlier.

Optimizing your investment

 
Cost segregation, though known by many real estate owners, is sometimes overlooked.

It is a methodology used to reallocate certain building costs into separate identifiable components that can be depreciated over shorter lives. The primary purpose of a cost-segregation study is to reallocate as much building costs between land improvements and tangible property. The more costs allocated to tangible property, the greater the desired tax benefit. Tangible property creates tax benefits because it is depreciated over five or seven years while normal building costs are depreciated over 27.5 or 39 years.

A cost-segregation study may be performed for real estate already in service, for new construction and acquisitions. Generally, it is easier to analyze a building’s cost structure during initial construction or expansion since building plans are readily available and can be utilized to identify various components that may qualify as tangible property.

Costs that may be reallocated to land improvements consist of, but are not limited to, certain landscaping, sidewalks and fencing which are depreciated over a 15 year recovery period.

Costs that may be reallocated to tangible property include movable partitions, furniture, removable carpeting and wallpaper, certain fixtures and window treatments. Support systems that are needed to run certain equipment or machinery could be considered tangible property under certain circumstances.

There are several internal levels of cost-segregation studies ranging from a detailed engineering approach through a less formal rule-of-thumb appraisal. The Internal Revenue Service prefers the engineering approach since it will produce the most accurate results.

All businesses that acquire, construct or renovate real property would benefit from a cost-segregation study.

The real benefit of a properly documented cost-segregation study is the enhanced depreciation deductions it yields. A major advantage of the study is not necessarily that it produces more depreciation deductions, but that expenses accelerate more rapidly, producing a greater benefit due to the time value of money.

The ability to write off specific components identified as they are replaced is yet another advantage. For example, when a study is performed, the cost of the roof would be specifically identified. As the roof will eventually be replaced, the remaining cost could be written off.

One disadvantage of a cost-segregation study is the potential triggering of depreciation recapture and possible understatement penalties a taxpayer could incur for studies that are too aggressive in classifying costs. To avoid penalties and pass IRS scrutiny, the study must be objective and supported by contemporaneous records. Studies supported by an engineering study add credibility and produce the most accurate cost allocations.

Overall, cost-segregation studies can produce tremendous tax savings for those who build, acquire any business that builds, acquires or renovates property. The increased tax savings increase cash flow, which in turn, businesses can reinvest.

Gary Anderson, a certified public accountant and senior manager at Reznick Group P.C. in Baltimore, can be reached at gary.anderson@reznickgroup.com.

The amount of distressed commercial real estate assets on the books of the nation’s banks and thrifts approached $60 billion as of year-end 2009. That is up from $52 billion just three months earlier, a 15% increase.

The $59.9 billion includes loans on multifamily and nonresidential income producing-properties that were 90 or more days past due, or in nonaccrual or foreclosure status.

The year-end numbers are contained in the Federal Insurance Deposit Corporation’s latest Quarterly Banking Profile, released this week. And they confirm that commercial real estate troubles are eroding the balance sheets of the nation’s banks.

As the CRE distress numbers went up, so did the number of troubled institutions on the FDIC’s “Problem List.” At the end of December, there were 702 insured institutions on the Problem List, up from 552 on Sept. 30. In addition, the total assets of “problem” institutions increased during the quarter from $345.9 billion to $402.8 billion. Forty-five institutions failed during the fourth quarter, bringing the total number of failures for the year to 140, the highest annual total since 1992.

The FDIC does not release the identity of the banks on its Problem List.

Loans on nonresidential income-producing properties that had been foreclosed on increased from $5.84 billion to $7.05 billion – a 21% increase.

Loans on multifamily properties that had been foreclosed on increased from $1.44 billion to $1.75 billion – a 22% increase.

Loans on nonresidential income-producing properties that were 90 days or more past due or were in nonaccrual status increased from $37.05 billion to $41.74 billion – a 13% increase.

Loans on multifamily properties that were 90 days or more past due or were in nonaccrual status increased from $7.75 billion to $9.39 billion – a 21% increase.

Reserves for loan and lease losses increased by only $7 billion (3.2%) in the fourth quarter, as institutions added $8.1 billion more in loss provisions to their reserves than they took out in net charge-offs.

Total net charge-offs totaled $53 billion, an increase of $14.4 billion (37.2%) over the same period in 2008. The annualized net charge-off rate rose to 2.89%, up from 1.95% a year earlier and 2.72% in the third quarter of 2009. This is the highest quarterly net charge-off rate reported by the industry in the 26 years for which quarterly data is available. Banks charged off 0.77% of their loans on nonresidential income-producing properties, up from 0.62% in the previous quarter. Banks charged off 1.11% of their multifamily loans, up from 0.92% in the previous quarter. This was the sixth increase in as many quarters in both categories.

For related CoStar coverage, see “http://www.costar.com/News/Article.aspx?id=6A579770FF5EC1CFD05D7036BE366D25”

The average coverage ratio of reserves to noncurrent loans and leases fell from 60.1% to 58.1%, ending the year at the lowest level since midyear 1991. In contrast, the industry’s ratio of reserves to total loans and leases rose from 2.97% to 3.12% during the quarter, and is now at its highest level since the creation of the FDIC.

Not surprisingly, the total amount of commercial real estate loans on bank books was flat. Banks posted only $2 billion more in CRE loans at $1.092 trillion. The total amount of multifamily loans decreased slightly from $216 million to $211 million.

Despite the troubles in their CRE portfolios, commercial banks and savings institutions reported an aggregate profit of $914 million in the fourth quarter compared to $37.8 billion net loss a year earlier. More than half of all institutions (50.3%) reported year-over-year improvements in their quarterly net income.

Almost one-third of all institutions (32.7%) reported net losses for the quarter, compared to 34.6% a year earlier. For the full year, banks reported net income totaling $12.5 billion – up from $4.5 billion in 2008.

Good news for real estate investors!

By Ben Johnson, NREI contributor

What did private equity investors, including huge institutional players such as pension funds, learn most from the recent collapse in commercial real estate values? They want more of the asset class.
A new study of 90 global private equity real estate investors by London-based researcher Preqin confirms that instead of fleeing to the hills, institutional investors intend to commit more capital to private equity real estate funds in 2010 than they did in 2009. And surprisingly, none of the participants in the survey conducted in the fourth quarter of 2009 has abandoned commercial real estate.
In fact, 41% of investors plan to increase their investment in the sector, while 29% expect to invest less than last year. Another 15% say that they will maintain their allocations, and the remaining 15% are unsure as they await the bottom of the market and recalibrate their strategies accordingly.  

Overall, the survey results suggest that “confidence is returning and investors are feeling more optimistic about the asset class,” says Forena Akthar, co-author of the Preqin study.

Hesitation lingers

Despite the apparent optimism, investors have not completely thrown caution to the wind when it comes to investing in real estate, whether making direct investments or committing capital to private equity funds. According to the survey, 55% of private equity real estate investors made no new fund commitments in 2009.
That helps explain the huge decline in private equity real estate fundraising activity. According to Preqin, the total capital raised in 2009 equaled just 31% of the levels reached in 2008. In all, 103 funds closed in 2009 with total commitments of $42 billion.  

Of those investors who plan to invest in commercial real estate in 2010, only 29% could estimate the number of funds they would invest in, and only 24% had an approximate figure in mind for the amount of capital they would commit.
These figures are much lower than in previous years, when most investors could more clearly predict both the number of funds and the amount of capital they would invest over the next 12 months.
When it comes to the long-term view, however, 75% of investors surveyed remain bullish on the real estate sector. “Despite the gloom, many investors did not lose confidence in the long-term benefits of investing in private equity real estate. They simply were not investing in 2009,” says Akthar, the survey’s co-author.
According to Preqin, returns from private equity real estate funds topped the S&P 500 Index by 35.8% over the past five years.
One long-time institutional advisor, Ted Leary, head of Los Angeles-based Crosswater Realty Advisors, thinks investors will cautiously re-enter the real estate game. He also notes that investors will be in a stronger position to dictate terms, including a reduction in fees, with their fund managers.
“The real estate investment manager community needs to regain the trust of their investor clients,” says Leary. “Some managers will, some managers won’t.”
When and where?
Nearly six in 10 investors (58%) plan to make their real estate investments in the first half of 2010. The remaining 42% are uncertain about when they will make a move in 2010.
And when they do pull the trigger, U.S. investors will likely stick close to home. That means potentially less capital for emerging property markets like China and India.
Not surprisingly, the vast majority of investors (73%) also are shifting their focus to target the two pillars of the commercial real estate industry — debt and distress.
“While investors are still attracted to value-added and opportunistic funds, a growing number of investors are looking to capitalize on opportunities presented by the dislocated real estate market,” says Stuart Taylor, a senior real estate analyst at Preqin.
The largest of these commercial real estate investors — targeting both mortgage notes and properties — include the Abu Dhabi Investment Authority with $62.5 billion in funding. Also in the mix is U.S.-based Allstate Investment Management with $20.7 billion, the California Public Employees’ Retirement System with $13.6 billion and TIAA-CREF with $13 billion.  

If you’re an investor wishing to re-enter the market, contact Rick Bean or Robert Poe at: 503.577.1034 

Why should you sign up for the Deal Room?

Simple:

1. Bid on off market deals.  You know…the ones where you hear that someone closed on a great deal and you say:  “Heck…I’d have bought that if I knew it was available at that price!”
2. The lowest proforma deal IRR currently is 20%.  Others are over 50%!
3. Currently deals are being loaded for:
   • Portland, OR
   • Phoenix, AZ
   • Dallas, TX

More cities and more deals are coming soon!

To be notified in advance of off market distressed properties becoming available, contact us to get your free pass to the Deal Room!

Rick M. Bean and Robert H. Poe

Rick@rosecitycre.com

503.577.1034

As with any investment there is an element of risk.  Purchaser is should perform a complete Due Diligence Inspection before closing any deal.  Best of luck to you!

FOCUS ON MULTIFAMILY: Mr. Mark Barry will be the featured speaker at the Portland CCIM’s monthly luncheon on January 6, 2010 at the MAC Club. His focus will be current local apartment trends and 2010 projections. With over 4,000 appraisals completed, he is widely held as the leading apartment appraisal specialist in the area; Mark’s opinions carry great weight in the commercial real estate community. TIME: 12:15 to 1:30 PM on Wednesday, January 7, 2008.

LOCATION: The Multnomah Athletic Club is located at 1849 SW Salmon St. At over 550,000 Sq. Ft., The MAC is the worlds largest indoor athletic club. Phone: 503.223.6251 Web: www.TheMac.com CCIM: There are fewer than 9,000 professionals worldwide that have earned the designation; many industry insiders refer to CCIM as the “Doctorate of Real Estate.” The CCIM Institute provides cutting edge training on a broad range of Real Estate Investment topics, as well as signifcant networking opportunities. The Portland Chapter meets at the MAC on the first Wednesday of each month. Brokers network and share “Haves and Wants” from 10:00 am to noon; top tier industry specialists speak at the luncheon, 12:15 to 1:30 PM.

CONTACT RICK BEAN: PH-503.577.1034; EM- rick@rosecitycre.com If you would like:

• A copy of Mr. Barry’s 2010 Apartment Trends Report.
• Information on joining the CCIM Institute.
• To list your multifamily property.
• To discuss commercial property tax liability reductions.

Taxes, Taxes, Taxes

The last couple of years have taken a toll on investment properties. With vacancy rates climbing and weakening Cap Rates, some properties have lost 30% or more of their value.  Regrettably, property taxes on commercial properties have not been adjusted to reflect this new value. As such, already strapped owners are paying an even higher percentage of their revenues to property taxes.

The rule I have always given my teams is don’t present me with a problem…unless you also have a solution.  Having identified a problem…here’s a great solution: Prime Property Tax Negotiation, LLC.  Prime PTN was formed to be an advocate for property owners that have been over-taxed. They will evaluate your taxes at no charge to you and fight for a lower assessment on your part.  There are no up-front fees.  Here’s the very best part: There’s no cost to you unless they are successful. 

Contesting assessments that overstate a property’s value is an extremely important component of wealth management.  I worked on a multifamily project in Phoenix, AZ that had an assessment that inflated the assessed value well over what it was really worth. By contesting the assessed value we reduced taxes and created over $150,000 in additional profits in one year.

How much will you benefit? To discuss potential savings call 503.336.6382 and ask for information about Prime Property Tax Negotiation, LLC.

We are fully prepared to assist you in identifying a property to exchange into.

Financing is already handled…we can support a quick close before the end of the year. Stop reading and start dialing 503.336.6382 now!

 

One of the great ways to improve NOI is to minimize concessions. 

Remember that in a 8% Cap market that each dollar of NOI translates into $12.50 of imputed value.  $25K of concessions equals a $300K reduction in value.  This can make a material difference when selling the propertyor negotiating a new loan.  Of course if you are keeping the property, the $25K goes to the owner.

Gracehill has done it again:  they are offering free training on a subject that all multifamily management pros need to understand.

DATE/TIME: Thursday, November 12, 2009 – 4pm ET, 3pm CT, 2pm MT, 1pm PT

SESSION DESCRIPTION: Don’t slash your rents until you take the time to participate in this chat forum aimed at selling value versus concessions.  If you’ve heard the old adage, “You get what you pay for,” then your customers have too!  Learn from the industry’s leaders how offering specials is rarely the best answer and how reducing them is quite often the way to go.

COST: Absolutely free, thanks to Spherexx.com.

RSVP: Visit us at www.gracehill.com and look for the details of this event on our home page.  Click the RSVP link to sign up and receive Chat Event Instructions.  Then, login to Grace Hill about 10–15 minutes prior to the event and click on the Chat Room link, under the chat description, to be delivered to our Chat Room.