11:23 PM, Dec. 21, 2011
By Aki & Jim Palmer who are commercial real estate brokers with Cassidy Turley Fuller Real Estate. Contact them at apalmer@ctfuller.com or jpalmer@ctfuller.com.
Summary: Capitalization rates help a commercial real estate buyer determine the relative worth of an income producing property. To calculate a gross cap rate, divide the property's net operating income by the sale price. Usually, the lower the cap rate, the lower the interest rate to purchase the property.
Key Quotes:
...Most investors value commercial real estate investment properties using a capitalization (cap) rate.
A cap rate is a ratio used to estimate the value of an income-producing property. In simple terms, a cap rate is the net operating income divided by the sales price or value of a property expressed as a percentage.
Investors, lenders, commercial brokers and appraisers use cap rates to estimate the purchase price for different types of income producing properties. Cap rates are determined by evaluating comparable financial data of similar properties, which have recently sold in a specific market.
Other factors used to determine cap rates include location, credit worthiness of the tenant(s), age of the building, length and type of lease(s) and building classification.
Read the full article at Cap rates key in valuing commercial real estate.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Thursday, December 22, 2011
Monday, December 19, 2011
New distribution center to open in January
December 18, 2011 - 12:37am
By
Summary: The Judge Organization opens a 266,700 square-foot warehouse and distribution center in the CenterPoint Intermodal Center in mid January.
Key Quotes:
“Savannah is really an attractive port because of the export business, and the ports and the Savannah Economic Development Authority provide a good climate for business. And Savannah has always had the connections to the Far East more so than other southern ports,” said the company’s executive vice president, Patrick Wynne.
Judge’s increased traffic through the port will create a ripple effect in terms of creating indirect jobs, SEDA President Steve Weathers told his board of directors in November.
Read the full article at New distribution center to open in January
Judge’s increased traffic through the port will create a ripple effect in terms of creating indirect jobs, SEDA President Steve Weathers told his board of directors in November.
Read the full article at New distribution center to open in January
Thursday, December 15, 2011
CRE Price Index Sees First Year-Over-Year Gain Since 2008
December 14, 2011
Summary: Commercial RE prices are up 2.2% since last October. First time prices are up year-over-year since 2008. 2012 will still be a bumpy ride.
Key Quotes:
CoStar’s monthly National Composite Index of commercial real estate prices increased 2.2% in October from the same period a year ago, the first year-over-year improvement since the economy took a sharp downward turn in 2008.
The year-over-year and monthly increases in October reflected long-awaited positive momentum in the composite index, which has now achieved a steady 1.3% average monthly growth rate over the six-month period between May and October 2011, according to this month's CoStar Commercial Repeat Sale Index (CCRSI),...
Read the full article at CRE Price Index Sees First Year-Over-Year Gain Since 2008
Mitsubishi Heavy plans Savannah, Ga., rotor plant
Dec. 14, 2011, 4:54 a.m. EST
By Mari Iwata
TOKYO (MarketWatch) -- Mitsubishi Heavy Industries Ltd. said Wednesday it will build a plant to produce rotors, a core component of gas turbines, at its facility near Savannah, Georgia, to take advantage of rising demand for gas-fired power plants in the U.S. and to dodge the impact of the strong yen. The company will begin construction of the new facility in the second quarter of 2012. With the completion of the rotor production facility, slated for the third quarter of 2013, Mitsubishi Heavy will able to produce 12 units a year of gas turbine combined-cycle power generation systems at the Savannah plant without importing any major parts from Japan, a company spokesman said.
Mitsubishi Heavy expects rising demand for gas turbine combined-cycle power generation systems in the U.S. as a large number of coal-fired power plants are reaching the end of their operational lives, while advancements in extraction technology have lowered prices of natural gas to levels that can compete with coal.
Read the original article at Mitsubishi Heavy plans Savannah, Ga., rotor plant
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Due diligence applies in commercial leasing, too
By Jeff Geoghan
Summary: In a commercial leases due diligence and disclosure provisions are frequently overlooked, if brought up at all. Solve this problem by asking for a commercial property disclosure and make sure experts do the inspections, etc during a due diligence or "free look" period.
Key Quotes:
There is a commercial property disclosure form available, but it is rarely used for lease situations. Often the owners of large commercial buildings avoid completing the form due to its level of detail and because they -simply don’t know — it’s not like they lived there, as in a residential situation.
Keep in mind that most commercial leases require the tenant to pay for the cost of maintenance and repair of the property unless otherwise stipulated — so why wouldn’t a tenant want know as much as possible about the property before entering into a long-term lease?
Read the full article at Due diligence applies in commercial leasing, too.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Summary: In a commercial leases due diligence and disclosure provisions are frequently overlooked, if brought up at all. Solve this problem by asking for a commercial property disclosure and make sure experts do the inspections, etc during a due diligence or "free look" period.
Key Quotes:
There is a commercial property disclosure form available, but it is rarely used for lease situations. Often the owners of large commercial buildings avoid completing the form due to its level of detail and because they -simply don’t know — it’s not like they lived there, as in a residential situation.
Keep in mind that most commercial leases require the tenant to pay for the cost of maintenance and repair of the property unless otherwise stipulated — so why wouldn’t a tenant want know as much as possible about the property before entering into a long-term lease?
Read the full article at Due diligence applies in commercial leasing, too.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Should a Business Buy Its Own Building?
Summary: You should consider purchasing a property for your business if it means you still have a diversified portfolio. Purchasing a building and then working harder to pay it off means you've put all your assets into your business, which is unbalanced and not advised by most investment professionals.
Key Quotes:
Since [January], vacancy rates have dropped a little in most markets and rents have stabilized. However, very little new construction has been completed, and what has been built is almost all owner-occupied or build-to-suit. Almost no speculative real estate has been constructed this past year. Thus when the economy improves, rents will rise immediately. Normally developers see this coming and put up new buildings in anticipation of better conditions, but that isn’t happening.
That’s the argument for our small business owner buying his own building, but there’s another side to consider. This fellow has almost his entire net worth tied up in his company. Like many other entrepreneurs, he’s thinking about buying a building as a personal asset or through a separate company. Then his business would sign a long-term lease for the property.
Many business owners have succeeded with this approach, but there’s a large risk. This owner is thinking about retiring in a few years, selling his business at that time. Many small businesses are sold with seller financing, meaning he would get a portion of the price up front, and then the buyer would pay the rest of the purchase price from company earnings over the next few years. Now suppose that the buyer fails at running the business. The original owner gets a double whammy: he is not getting paid for his business, and his building just lost its only tenant. Ouch.
Read the full article at Should a Business Buy Its Own Building? by Bill Conerly, Contributor + Follow on Forbes
Since [January], vacancy rates have dropped a little in most markets and rents have stabilized. However, very little new construction has been completed, and what has been built is almost all owner-occupied or build-to-suit. Almost no speculative real estate has been constructed this past year. Thus when the economy improves, rents will rise immediately. Normally developers see this coming and put up new buildings in anticipation of better conditions, but that isn’t happening.
That’s the argument for our small business owner buying his own building, but there’s another side to consider. This fellow has almost his entire net worth tied up in his company. Like many other entrepreneurs, he’s thinking about buying a building as a personal asset or through a separate company. Then his business would sign a long-term lease for the property.
Many business owners have succeeded with this approach, but there’s a large risk. This owner is thinking about retiring in a few years, selling his business at that time. Many small businesses are sold with seller financing, meaning he would get a portion of the price up front, and then the buyer would pay the rest of the purchase price from company earnings over the next few years. Now suppose that the buyer fails at running the business. The original owner gets a double whammy: he is not getting paid for his business, and his building just lost its only tenant. Ouch.
Read the full article at Should a Business Buy Its Own Building? by Bill Conerly, Contributor + Follow on Forbes
Tuesday, December 13, 2011
Slow Growth in 2012 and Commercial Real Estate Investing Strategies for the 'New Normal'
Summary: The "new normal" is limited growth for 5 more years, income producing property is key, be prepared to reduce lease amounts to meet changing market conditions.
Key Quotes:
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Key Quotes:
- We are in a balance sheet recession that likely will limit economic growth for 5+ years. Ubiquitous acquisition strategies targeting 15% to 20% IRRs driven by terminal valuations may not be viable;
- Projections for new tenants in vacant space and lease renewals remain challenging with a potential slowdown in the U.S. economy. Consider focusing your investment thesis on cash-on-cash returns supported by existing leases;
- Segment your asset projected cash flows and handsomely value in-place leases and whack pricing related to vacant space and lease renewals;
- The 10-Year Note and 30-year Bond yields, at approximately 2.1% and 3.1%, respectively, are likely to stay comparatively low. If your projected cash flows are largely dependent on in-place leases, IRRs in the 10% to 15% range may be ample with a conservative capital structure;
- Four and five handle capitalization rates do not work as in most cases cash flow growth will be insufficient to save pricey acquisitions from adverse factors;
- All real estate is local and pricing will vary, but the majority of buyers should be targeting 8 to 11 caps for most non-core properties to accommodate an apparent lack of prospective cash flow growth and the potential of higher interest rates in 5+ years;
- This is a Buyer’s Market. As such, there is rarely need to accept unreasonable P&S contract language that became common during the real estate bubble of 2006-2007;
- Due to capital markets liquidity risks, financing contingencies should include a requirement that banks can and will fund at closing; and
- Shopped deals are now okay. In many markets, the transaction volume is so limited, price discovery created by a brokered deal is necessary for Seller’s to understand reality and not waste your time.
- Distribution hubs and ports will lead the industrial recovery in 2012.
- Total investment transaction volume to increase by 15 to 20 percent to $190 billion in 2012 – a slower increase than the last two years.
- Businesses will take real estate into greater consideration in 2012, focusing investments on efficiency and productivity. Additionally, businesses will consider corporate real estate as a greater contributor to corporate social responsibility initiatives in 2012, shifting investments from new construction toward retrofitting existing assets.
- Hotel demand is expected to continue to rise in 2012, but likely on a more cautious trajectory than in 2011, with private equity groups at the forefront of asset bidding.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Friday, December 9, 2011
Rise in commercial mortgage delinquencies is feared
Bloomberg News
In Print: Friday, December 9, 2011
Summary: $19 billion worth of commercial mortgage notes will start coming due in less than 30 days. How/if those notes are honored is causing uncertainty. With Europe in turmoil (see There's About To Be A Massive Real Estate Crash In Central Europe) and the U.S. economy sputtering along it is doubtful that refinancing will be an option for many.
Key Quotes:
About 43 percent of the $44 billion in loans packaged into bonds that come due next year were arranged in 2007 before property values tumbled 42 percent, according to Bank of America. The largest deal ever, a $7.3 billion issue by Goldman Sachs and Royal Bank of Scotland Group, has $586 million of loans maturing in 2012, Bloomberg data show.
"These loans were done at the peak of the market," said Julia Tcherkassova, a commercial mortgage debt analyst at Barclays in New York. "They will have trouble refinancing today."
Loans packaged and sold as bonds typically have terms of five or 10 years. Borrowers with five-year mortgages are finding it "much tougher" to repay, according to a Nov. 10 report from Wells Fargo Securities. About 39.4 percent of five-year loans packaged into bonds were able to refinance in 2011, compared with 80 percent of 10-year commercial mortgages, the report said.
The surge in 2007 loans coming due won't necessarily lead to higher defaults as loan servicers choose to extend the debt rather than foreclose, according to Alan Todd, a New York-based analyst at Bank of America.
Read the full article at Rise in commercial mortgage delinquencies is feared.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
In Print: Friday, December 9, 2011
Summary: $19 billion worth of commercial mortgage notes will start coming due in less than 30 days. How/if those notes are honored is causing uncertainty. With Europe in turmoil (see There's About To Be A Massive Real Estate Crash In Central Europe) and the U.S. economy sputtering along it is doubtful that refinancing will be an option for many.
Key Quotes:
About 43 percent of the $44 billion in loans packaged into bonds that come due next year were arranged in 2007 before property values tumbled 42 percent, according to Bank of America. The largest deal ever, a $7.3 billion issue by Goldman Sachs and Royal Bank of Scotland Group, has $586 million of loans maturing in 2012, Bloomberg data show.
"These loans were done at the peak of the market," said Julia Tcherkassova, a commercial mortgage debt analyst at Barclays in New York. "They will have trouble refinancing today."
Loans packaged and sold as bonds typically have terms of five or 10 years. Borrowers with five-year mortgages are finding it "much tougher" to repay, according to a Nov. 10 report from Wells Fargo Securities. About 39.4 percent of five-year loans packaged into bonds were able to refinance in 2011, compared with 80 percent of 10-year commercial mortgages, the report said.
The surge in 2007 loans coming due won't necessarily lead to higher defaults as loan servicers choose to extend the debt rather than foreclose, according to Alan Todd, a New York-based analyst at Bank of America.
Read the full article at Rise in commercial mortgage delinquencies is feared.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Tuesday, December 6, 2011
Georgia DOT Awards Contract for Port of Savannah Connector
Summary: The design and construction of the Jimmy DeLoach Parkway Connector is awarded to Archer Western Contractors of Atlanta. The company submitted a bid of $72,772,000.
Key quote:
The project calls for the design and construction of a new limited access, median barrier-separated, four-lane highway between S.R. 307/Bourne Avenue and the Jimmy Deloach Parkway. The 3.1-mile roadway will be built east of and roughly parallel to S.R. 21.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Key quote:
The project calls for the design and construction of a new limited access, median barrier-separated, four-lane highway between S.R. 307/Bourne Avenue and the Jimmy Deloach Parkway. The 3.1-mile roadway will be built east of and roughly parallel to S.R. 21.
This unofficial image is my own idea of what the extension (in yellow) could look like and is for illustration purposes only. Click the image for a larger size.
Read the full article at Georgia DOT Awards Contract for Port of Savannah Connector.
The blue star at the south east corner of 30 and Crossgate is a property of 1.57 acres for sale for 1.5 million. The listing can be found on CommercialIQ. Or call me for details at 912-352-1222.
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Sunday, December 4, 2011
Just Listed- Four Marsh Front Lots
Four consecutive lots in Richmond Hill on Dunham Swamp Trail.
*Click each image to view full size*
All lots are partially wooded, have marsh views and access to tidal water. Own peace and quiet and excellent views! Everything else is a bonus.
All lots are in foreclosure selling at a fraction of last sale price.
Take 144 (Ford Ave.) south, left on Belfast River Road, right on Dunham Marsh Trail. Continue on road when pavement becomes dirt. Properties are on left through stone gate.
*Click each image to view full size*
All lots are partially wooded, have marsh views and access to tidal water. Own peace and quiet and excellent views! Everything else is a bonus.
All lots are in foreclosure selling at a fraction of last sale price.
A. Joseph Marshall
Commercial Real Estate Advisor
Coldwell Banker Commercial
Connie Farmer Ray, Broker
912-352-1222
Savannah, Ga
Friday, December 2, 2011
Berwick Marketplace sold to South Carolina firm
Posted: December 1, 2011 - 11:14am | Updated: December 2, 2011 - 12:10am
By 
Summary: The Berwick Marketplace is sold to Ziff Properties, Inc., a Charleston firm. Ziff expects an 18% occupancy increase in two years.
Key quotes:
The Berwick Marketplace, a 38,000-square-foot shopping center located at Berwick Plantation, has been purchased by Ziff Properties, Inc. Ziff, based in Charleston, S.C., also owns the Manger Building downtown.
The Berwick property appealed to Ziff because of the area’s potential for growth as the economy improves. Berwick was a fast-developing part of Chatham County prior to the economic downturn.
“We know that it is not growing as fast as it was,” said Christian Chamblee, Ziff’s director of acquisitions. “Developers originally saw an opportunity, and the market liked what they saw and responded. So when the market takes off again, we think they will respond well again.
Read the full article at Berwick Marketplace sold to South Carolina firm
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Key quotes:
The Berwick Marketplace, a 38,000-square-foot shopping center located at Berwick Plantation, has been purchased by Ziff Properties, Inc. Ziff, based in Charleston, S.C., also owns the Manger Building downtown.
The Berwick property appealed to Ziff because of the area’s potential for growth as the economy improves. Berwick was a fast-developing part of Chatham County prior to the economic downturn.
“We know that it is not growing as fast as it was,” said Christian Chamblee, Ziff’s director of acquisitions. “Developers originally saw an opportunity, and the market liked what they saw and responded. So when the market takes off again, we think they will respond well again.
Read the full article at Berwick Marketplace sold to South Carolina firm
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Parking Lots Offer Safe Haven for Real-Estate Investors
Summary: Parking lots as a commercial real estate investment are as recession proof as they get... if you know how to run them. *Click image for full size*
Key quotes:
Key quotes:
“A surface parking lot offers a good rate of return and its rewards are as close to being recession-proof as you’re going to get,” says Ross Moore, chief economist for Boston commercial real estate firm, Colliers International.
“The older ones are nice little cash cows with relatively little maintenance,” adds Moore, who has authored an annual North American Parking Rates Survey for the past ten years.
“It sounds like an easy thing to do, but it’s extremely difficult to make it profitable,” says John Van Horn, editor of Parking Today magazine. “It’s like buying a bar. If you don’t know how to run it, you’ll lose money. Many companies have gone broke. It sounds like a lot of cash, but there are many ways for it to disappear. You’d better have someone who knows about it to work with you as third-party investor.”
Read the full article at Parking Lots Offer Safe Haven for Real-Estate Investors
For example, a parking lot for sale on Loopnet.com.
Thursday, December 1, 2011
Third Quarter 2011 Coastal Empire Economic Monitor Published
Summary: There will be slow economic growth in 2012 but economic indices point in the right direction. *Click to each image to view full size*
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
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A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Wednesday, November 30, 2011
University of Georgia economist predicts very slow growth in Georgia in 2012
Wednesday, Nov. 30, 2011
- tadams@ledger-enquirer.com
Key Quotes
Georgia will finally stem the bleeding of jobs in 2012, although recovering what has been lost could take years. That’s the expectation of the University of Georgia’s Selig Center for Economic Growth, with Terry College of Business Dean Robert Sumichrast delivering a sobering forecast to business and government leaders Tuesday in Atlanta.
“Our forecast is for more of what we have seen the past couple of years,” he said. “We might see continued slow growth or, technically, we might see patches of recession. Either way, unemployment will remain high.”
To buck that trend, Sumichrast said Georgia must move away from its reliance on real estate development spurred by the once-constant migration of people to the Peach State. Instead, he said Georgia must offer even more incentives to companies wishing to relocate here, while fostering the research and development sector. It also must nurture its venture capital markets to create more entrepreneurs, he said.
Find out who Sumichrast is and read the whole article at University of Georgia economist predicts very slow growth in Georgia in 2012.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Monday, November 28, 2011
Growth in Commercial Real Estate Markets Expected in 2012
press release
WASHINGTON, DC, Nov 28, 2011 (MARKETWIRE via COMTEX)
Summary: Commercial real estate growth was flat in 2011, but economic growth and more jobs signal a stronger 2012.
Key Quotes:
Lawrence Yun, NAR chief economist, said there is little change in most of the commercial market sectors. "Vacancy rates are flat, leasing is soft and concessions continue to make it a tenant's market," he said. "However, with modest economic growth and job creation, the fundamentals for commercial real estate should gradually improve in the coming year." The commercial real estate market is expected to follow the general economy. "Vacancy rates are expected to trend lower and rents should rise modestly next year. In the multifamily market, which already has the tightest vacancy rates in any commercial sector, apartment rents will be rising at faster rates in most of the country next year. If new multifamily construction doesn't ramp up, rent growth could potentially approach 7 percent over the next two years," Yun said.
Vacancy rates in the office sector are expected to fall from 16.7 percent in the current quarter to 16.1 percent in the fourth quarter of 2012.
Industrial vacancy rates are projected to decline from 12.3 percent in the fourth quarter of this year to 11.7 percent in the fourth quarter of 2012.
Retail vacancy rates are likely to decline from 12.6 percent in the current quarter to 11.8 percent in the fourth quarter of 2012.
The apartment rental market -- multifamily housing -- is expected to see vacancy rates drop from 5.0 percent in the fourth quarter to 4.3 percent in the fourth quarter of 2012; multifamily vacancy rates below 5 percent generally are considered a landlord's market with demand justifying higher rents.
The full article can be read at Growth in Commercial Real Estate Markets Expected in 2012.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Platinum Partners Helps Pack the Pantry this Thanksgiving
These tubs created a mountain in the lobby!
Read the full article at Platinum Partners Helps Pack the Pantry this Thanksgiving
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Growth at Savannah-Brunswick could herald stronger economy
Published Monday, November 28, 2011 in Local
From STAFF and WIRE REPORTS
news@newnan.com
Summary: A 5% growth rate from the last quarter of fiscal year 2011 to the first quarter of fiscal year 2012 at the Savannah/Brunswick ports means millions in revenue and a strengthening economy.
Key Quotes:
Some experts see economic growth in the shipping industry as a precursor of general economic improvement. Robert Morse, spokesman for the Georgia Ports Authority, said earlier this year that transporting goods by ship was "the part of the economy that came back quickest" after the recent economic downturn. After a slight dip during the worst of the economic doldrums, the ports at Savannah and Brunswick "are back to record numbers," Morse said in early 2011. "That's good news."
"Elected officials from both sides of the aisle and business leaders from all corners of the state understand the significance the ports have as an economic engine," Gov. Nathan Deal said. "The need to maintain the Port of Savannah as a viable, efficient point of entry for international shipping cannot be overstated."
"The expansion of this port is a job creator," U.S. Transportation Secretary Ray LaHood said during his visit to Savannah earlier this month. "It fits the president's agenda of putting people back to work."
Read the full article at Growth at Savannah-Brunswick could herald stronger economy.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Saturday, November 26, 2011
For Sale: Fully Leased Apartment Building
101 Woodhouse Lane, Savannah, Ga. 31406
Four 2BR/1BA apartments fully leased with recent upgrades. Each apartment has an eat-in kitchen, washer, dryer, central heat and air.
On a bus line. Sidewalks, street lights, walk to shopping.
Each unit collects $650 a month in rent with a $400 deposit. Rental market is hot! Act quickly! Rent includes maintanence, but not electricity, garbage or water. Cable ready.
Priced to move at $239,900.
Savannah Multi-List MLS #91904
A. Joseph Marshall
Connie Farmer Ray, Broker
Coldwell Banker Commercial
912-352-1222
Commercial Real Estate Advisor
Connie Farmer Ray, Broker
Coldwell Banker Commercial
912-352-1222
Commercial Real Estate Advisor
Friday, November 25, 2011
Multiple Signs Point to Real Estate Rebound
RISMEDIA, Friday, November 25, 2011—
Summary- The past few weeks have showcased numerous signals that the real estate market is on the rise. Recently, we have reported statistics pointing to an industry turnaround, including a 15 percent rise in housing starts in September; a surge in builder confidence in October, an increase in mortgage applications and a slew of regional market improvements across the country.
A recent Marketwatch story written by Amy Hoak points out that housing markets in the Great Plains, including those in North and South Dakota, Texas, Wyoming, Nebraska, Louisiana and Iowa, are showing the most signs of strength these days, according to a recent report from Veros, a risk management and valuation services firm.
Hoak notes that Bismarck, North Dakota., is expected to be the strongest market in the country in the year ahead, with housing values appreciating at a 5.6% clip, according to Veros. Other markets projected to be among the strongest in the year ahead include Honolulu; Fargo, North Dakota.; Harrisburg/Carlisle, Pennsylvania; and Pittsburgh. Washington, D.C., and Boston remain strong city markets.
Hoak writes that while not many markets are fully rebounding, at least a good number of them likely won't see values fall at quite as rapid a pace as in recent years, according to the report.
"Overall, the recovery in the housing market is limited to just a few markets and is taking a long time to occur. The encouraging news is that many markets are no longer expected to be rapidly declining," says Eric Fox, vice president of statistical and economic modeling for Veros.
The weakest U.S. markets are in Nevada, inland areas of California, Washington and Oregon, according to the report. The weakest market in the year ahead: Bakersfield, California, where foreclosures have been a huge problem.
Hoak wraps up the story with words of assurance; While prices aren't on the upswing in many places, at least they're not expected to fall that rapidly in the coming year.
The full article can be read at Multiple Signs Point to Real Estate
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Summary- The past few weeks have showcased numerous signals that the real estate market is on the rise. Recently, we have reported statistics pointing to an industry turnaround, including a 15 percent rise in housing starts in September; a surge in builder confidence in October, an increase in mortgage applications and a slew of regional market improvements across the country.
A recent Marketwatch story written by Amy Hoak points out that housing markets in the Great Plains, including those in North and South Dakota, Texas, Wyoming, Nebraska, Louisiana and Iowa, are showing the most signs of strength these days, according to a recent report from Veros, a risk management and valuation services firm.
Hoak notes that Bismarck, North Dakota., is expected to be the strongest market in the country in the year ahead, with housing values appreciating at a 5.6% clip, according to Veros. Other markets projected to be among the strongest in the year ahead include Honolulu; Fargo, North Dakota.; Harrisburg/Carlisle, Pennsylvania; and Pittsburgh. Washington, D.C., and Boston remain strong city markets.
Hoak writes that while not many markets are fully rebounding, at least a good number of them likely won't see values fall at quite as rapid a pace as in recent years, according to the report.
"Overall, the recovery in the housing market is limited to just a few markets and is taking a long time to occur. The encouraging news is that many markets are no longer expected to be rapidly declining," says Eric Fox, vice president of statistical and economic modeling for Veros.
The weakest U.S. markets are in Nevada, inland areas of California, Washington and Oregon, according to the report. The weakest market in the year ahead: Bakersfield, California, where foreclosures have been a huge problem.
Hoak wraps up the story with words of assurance; While prices aren't on the upswing in many places, at least they're not expected to fall that rapidly in the coming year.
The full article can be read at Multiple Signs Point to Real Estate
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Sold! Commercial Real Estate Assemblage in Garden City
The sale of 302 Hwy 80 in Garden City completed on Nov. 21.
One acre with high traffic count and easy access.
Tear down these buildings and build a new business!
Tear down costs minimal.
The corner of Haslam and Powers Avenues.
Total days on the market: 53!
Commercial Real Estate Advisor
Savannah, Ga
Wednesday, November 23, 2011
Someone Has Already Caught the Falling Knife as Smart Money Moves Into Commercial Real Estate
Posted by Michael Gerrity 11/23/11 8:20 AM EST
(MIAMI, FL) --
Summary: The most ideal time to buy commercial real estate investments appears to have passed. Smart money buys commercial real estate when property values are below replacement costs.
Important segments:
"Don't bet against real estate" was one of the themes at a recent Realtors Commercial Alliance (RCA) conference this past week at the Biltmore Resort in Miami, a day-long event sponsored by the Miami Association of Realtors that focused on the current conditions of the U.S. commercial real estate investment and development marketplace.
According to the keynote speaker, Dr. Randy Anderson, the Howard Phillips Eminent Scholar Chair and Professor of Real Estate at the University of Central Florida, "many real estate market segments have started to strengthen; meaning that someone has already caught the 'Falling Knife' and investors should now be taking a hard look at making real estate allocations."
Anderson showed long-term relative strength of investing in commercial real estate as part of a mixed asset portfolio. Anderson noted that "the smart money has already started to move strategically into the commercial real estate space," and he stated that some of the current investment opportunities are "in places and products that may surprise you."
For the full article and a break down of four commercial property segments read: Someone Has Already Caught the Falling Knife as Smart Money Moves Into Commercial Real Estate, Says UCF Economist
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
(MIAMI, FL) --
Summary: The most ideal time to buy commercial real estate investments appears to have passed. Smart money buys commercial real estate when property values are below replacement costs.
Important segments:
"Don't bet against real estate" was one of the themes at a recent Realtors Commercial Alliance (RCA) conference this past week at the Biltmore Resort in Miami, a day-long event sponsored by the Miami Association of Realtors that focused on the current conditions of the U.S. commercial real estate investment and development marketplace.
According to the keynote speaker, Dr. Randy Anderson, the Howard Phillips Eminent Scholar Chair and Professor of Real Estate at the University of Central Florida, "many real estate market segments have started to strengthen; meaning that someone has already caught the 'Falling Knife' and investors should now be taking a hard look at making real estate allocations."
Anderson showed long-term relative strength of investing in commercial real estate as part of a mixed asset portfolio. Anderson noted that "the smart money has already started to move strategically into the commercial real estate space," and he stated that some of the current investment opportunities are "in places and products that may surprise you."
For the full article and a break down of four commercial property segments read: Someone Has Already Caught the Falling Knife as Smart Money Moves Into Commercial Real Estate, Says UCF Economist
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Why You Should Invest in Austin, TX & Charlotte, NC.
In this video, Rand discusses why you should invest in real estate in Austin, TX and Charlotte, NC. View the view "Why You Should Invest in Austin "on YouTube.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Savannah Expands Intermodal Railyard
Savannah Expands Intermodal Railyard
Summary: Georgia Port Authority Board approves 6,000-foot extension of Mason Intermodal Container Transfer Facility because of increased traffic through port.
Key points:
The Georgia Ports Authority board approved a $6.5 million, 6,000-foot extension of the Mason Intermodal Container Transfer Facility, as the Port of Savannah aim to further fuel growing intermodal rail traffic.
Construction will begin in January on the project, which will increase to 4,291 linear feet the rail track at two railyards serving CSX and Norfolk Southern at the port’s Garden City Terminal.
Intermodal container transfers at the port from July through October, the first four months of the GPA’s fiscal year, rose 14 percent to 109,036 moves. August volumes were 28,610, a record.
October container volume was down 6.7 percent year-over-year, with a 9.43 percent drop in imports offsetting a 3.48 percent increase in export loads. Through the first four months of the fiscal year, container volumes were up 1 percent.
The port authority posted a 10.4 percent increase to 207,545 tons in breakbulk volumes. Through the first four months of the fiscal year, breakbulk volume was up 14.9 percent 797,486 tons.
-- Contact Joseph Bonney at jbonney@joc.com. Follow him on Twitter @josephbonney.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Retail Space Availability in U.S. to Fall Next Year, CBRE Says
By Brian Louis
Nov. 21 (Bloomberg) --
Summary of article: The number of vacant space in shopping centers (strip malls, pad sites, etc) will decrease next year for the first time in 7 years. This follows strong industrial growth and increased consumer spending.
Important quotes:
Space available for leasing at U.S. local shopping centers will decline next year for the first time since 2005 as a growing economy spurs retailer expansion, commercial-property brokerage CBRE Group Inc. said.The availability rate, a measure of space being marketed and ready for tenant construction within a year, will fall to 12.4 percent for neighborhood and community shopping centers at the end of 2012. That’s down from a peak of 13.3 percent in the second quarter of this year, according to a forecast from CBRE Econometric
Advisors, a unit of Los Angeles-based CBRE Group.
Purchases at U.S. retailers rose 0.5 percent in October, following a 1.1 percent increase the month before, Commerce Department figures showed last week. Sales at electronics stores climbed the most in two years.
A lack of shopping-center construction will also help landlords rent existing space, according to Abigail Rosenbaum, an economist at CBRE Econometric Advisors in Boston.
Read the full article at Retail Space Availability in U.S. to Fall Next Year
Moody's: Commercial Real-Estate Prices Fell In September
DOW JONES NEWSWIRES
Summary of article: CRE prices fell in September after a quarter of growth. Expect ups and downs in pricing over the next several years.
Important quotes from article:
U.S. commercial real-estate prices fell 1.4% in September, ending a four-month growth streak, according to Moody's Investors Service, which expects the "bottoming process" for the sector to continue for the next two years.
Prices in the sector remain near its two-year average price level, Moody's said.
Still, Moody's expects "multi-family and hotel properties to lead the price recovery," said Nick Levidy,
Moody's managing director. "Office and retail will lag mostly because of a very high number of vacancies and the burn-off of above-market rent leases."
Read the whole article from Commercial Real-Estate Prices Fell In September
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Summary of article: CRE prices fell in September after a quarter of growth. Expect ups and downs in pricing over the next several years.
Important quotes from article:
U.S. commercial real-estate prices fell 1.4% in September, ending a four-month growth streak, according to Moody's Investors Service, which expects the "bottoming process" for the sector to continue for the next two years.
Prices in the sector remain near its two-year average price level, Moody's said.
Still, Moody's expects "multi-family and hotel properties to lead the price recovery," said Nick Levidy,
Moody's managing director. "Office and retail will lag mostly because of a very high number of vacancies and the burn-off of above-market rent leases."
Read the whole article from Commercial Real-Estate Prices Fell In September
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
Saturday, November 19, 2011
Dos and Don'ts for Business Sellers
If you are a business owner who is contemplating selling your business, please follow these dos or don'ts:
- Do have all of your business documentation in order. This includes financial statements, tax returns, tax filings, lease agreements, loan documents, contracts, etc.
- Don't underestimate the value of your business. Rely on a business valuation professional or an experienced business broker to recast your tax returns to reflect the true cash flow and value.
- Don't overprice your business. This is crucial in order to attract the right buyer for your business and if not followed could bring irreparable damage to your effort.
- Do use a professional business broker or intermediary. You should focus on continuing to operate your business at the highest level. Your broker will assist with determining the asking price, prepare a marketing plan of action to maximize the selling price, maintain confidentiality, handle all buyer activity, negotiations, bring offers and complete the entire transaction to a successful close.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga.
Louisville's Strategy to Revitalize Commercial Real Estate Applicable to Savannah
While Louisville seeks to revitalize the Charlestown corridor, these ideas could be applied to the revitalization efforts underway on MLK and Montgomery, and East Broad in the future.
Developer Jeffrey Morgan says there’s a key to fostering economic development in neighborhood business districts.
If there is an entrepreneurial spirit "within the community, and if we tap into that and foster it by providing programs to support them and become successful business owners, then we could effectively solve both sides of the equation,” Morgan said.
Morgan focused on revitalizing neighborhood business districts, which handle the day-to-day convenience shopping needs of a neighborhood. He said blighted neighborhood business districts see more national chain stores than mom-and-pop shops.
“National chains tend to be around major transportation arteries, so you’re seeing a lot of franchises go in, like McDonald’s, because they know and recognize there are retail markets that are untapped and underserved, so you start to see them go to these areas,” Morgan said.
He said not only is it important to have business growth for economic growth but also for creating more jobs.
“Real choice includes local employment access. It’s important to put jobs into the neighborhoods,” Morgan said. “Local jobs reduce transportation costs, increase time with families and contribute to the local economy.”
All good ideas to add value to commercial real estate in underused areas. Read the full article at "Making sure the dollars stay at home" by Leah Tate of the News and Tribune.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga.
Developer Jeffrey Morgan says there’s a key to fostering economic development in neighborhood business districts.
If there is an entrepreneurial spirit "within the community, and if we tap into that and foster it by providing programs to support them and become successful business owners, then we could effectively solve both sides of the equation,” Morgan said.
Morgan focused on revitalizing neighborhood business districts, which handle the day-to-day convenience shopping needs of a neighborhood. He said blighted neighborhood business districts see more national chain stores than mom-and-pop shops.
“National chains tend to be around major transportation arteries, so you’re seeing a lot of franchises go in, like McDonald’s, because they know and recognize there are retail markets that are untapped and underserved, so you start to see them go to these areas,” Morgan said.
He said not only is it important to have business growth for economic growth but also for creating more jobs.
“Real choice includes local employment access. It’s important to put jobs into the neighborhoods,” Morgan said. “Local jobs reduce transportation costs, increase time with families and contribute to the local economy.”
All good ideas to add value to commercial real estate in underused areas. Read the full article at "Making sure the dollars stay at home" by Leah Tate of the News and Tribune.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga.
Big properties' recovery to be weak, except for multi-family sector
Commercial landlords will see falling vacancies and rising rents over the next two years, but the recovery will be mild in all but the apartment sector, according to the National Association of Realtors U.S. commercial real estate forecast.
The forecast was during NAR’s conference in Anaheim.
NAR Chief Economist Lawrence Yun based his forecast on projections that the U.S. economy will avoid recession and add 3 million to 4 million jobs in the next two years.
Read the full article at "Realtors" Big Properties' Recovery to Be Weak" written by Jeff Collins with the OC Register.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga.
The forecast was during NAR’s conference in Anaheim.
NAR Chief Economist Lawrence Yun based his forecast on projections that the U.S. economy will avoid recession and add 3 million to 4 million jobs in the next two years.
Read the full article at "Realtors" Big Properties' Recovery to Be Weak" written by Jeff Collins with the OC Register.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga.
Friday, November 18, 2011
You Did It! Congress Restores FHA Loan Limits
|
Thursday, November 17, 2011
Savannah Stomps Atlanta in Travel + Leisure's 2011 America's Favorite Cities Survey
ATLANTA and SAVANNAH -- In Travel + Leisure magazine's 2011 America's Favorite Cities face-off between the two Georgia cities measured -- Atlanta and Savannah -- Atlanta loses.
Savannah wins in every category measured against Atlanta: people, nightlife, culture, shopping, food/drink/restaurants, quality of life and visitor experience, best times to visit and type of trip.
Of all 35 U.S. cities considered, Savannah took the No. 1 spot for romantic escape, public parks and outdoor access, and visiting in the fall.
The annual online survey appeared on TravelandLeisure.com from May 16 to Aug. 15. Respondents were asked to identify if they were visitors or residents, then to rank their choice of the 35 cities in 54 questions across the eight categories.
Favorite Cities winners are featured in the magazine's November issue.
Here are highlights from Atlanta's and Savannah's results:
Atlanta
THE BEST...
Barbecue (#12)
Luxury stores (#18)
Affordability (#24)
Sports-crazed (#25)
Winter (#25)
THE WORST...
Driving ability (#34)
Romantic escape (#34)
Safety (#34)
Savannah
THE BEST...
Romantic escape (#1)
Public parks and outdoor access (#1)
Fall (#1)
Architecture/Cool buildings (#2)
Valentine's Day (#2)
THE WORST...
Sports-crazed (#31)
Luxury stores (#27)
Summer (#24)
The article can be seen at CitiBizList in its original format.
And here are the complete results of the survey.
A. Joseph Marshall
Commercial Real Estate Advisor
Coldwell Banker Commercial
Savannah, Ga.
Savannah wins in every category measured against Atlanta: people, nightlife, culture, shopping, food/drink/restaurants, quality of life and visitor experience, best times to visit and type of trip.
Of all 35 U.S. cities considered, Savannah took the No. 1 spot for romantic escape, public parks and outdoor access, and visiting in the fall.
The annual online survey appeared on TravelandLeisure.com from May 16 to Aug. 15. Respondents were asked to identify if they were visitors or residents, then to rank their choice of the 35 cities in 54 questions across the eight categories.
Favorite Cities winners are featured in the magazine's November issue.
Here are highlights from Atlanta's and Savannah's results:
Atlanta
THE BEST...
Barbecue (#12)
Luxury stores (#18)
Affordability (#24)
Sports-crazed (#25)
Winter (#25)
THE WORST...
Driving ability (#34)
Romantic escape (#34)
Safety (#34)
Savannah
THE BEST...
Romantic escape (#1)
Public parks and outdoor access (#1)
Fall (#1)
Architecture/Cool buildings (#2)
Valentine's Day (#2)
THE WORST...
Sports-crazed (#31)
Luxury stores (#27)
Summer (#24)
The article can be seen at CitiBizList in its original format.
And here are the complete results of the survey.
A. Joseph Marshall
Commercial Real Estate Advisor
Coldwell Banker Commercial
Savannah, Ga.
Tuesday, November 15, 2011
S.C. to launch TDL Council next week
Summary: Three years in the making, the New Carolina’s Transportation Distribution Logistics Council was formed to promote and build South Carolina’s distribution pipeline.The TDL Council marks its official launch Nov. 22 with a meeting of stakeholders in Columbia.
A. Joseph Marshall
Commercial Real Estate Advisor
Savannah, Ga.
Thursday, November 10, 2011
SC and GA reach harbor deepening agreement.
Sweet! In our lifetime!
http://chronicle.augusta.com/latest-news/2011-11-10/savannah-harbor-deepening-settlement-reached?v=1320934479
A. Joseph Marshall
Commercial Real Estate Advisor
Savannah, Ga.
http://chronicle.augusta.com/latest-news/2011-11-10/savannah-harbor-deepening-settlement-reached?v=1320934479
A. Joseph Marshall
Commercial Real Estate Advisor
Savannah, Ga.
Boy have I slacked off!
When business picks up I have to cut my time expenditures somewhere! During this last bout of activity, blog posts were put on the shelf to attend to pressing matters, like "Help my office burned to the ground last night and I need a new place tomorrow." True story.
But now I have a breather so I will resume regular postings.
Perhaps as a immensely huge and subtle reminder of the need to deepen the Savannah River, the Figaro will be returning to our fair city on Dec. 6. Please take the opportunity to watch this behemoth float by. This is the future of shipping. It is here and we are unprepared.
But now I have a breather so I will resume regular postings.
Perhaps as a immensely huge and subtle reminder of the need to deepen the Savannah River, the Figaro will be returning to our fair city on Dec. 6. Please take the opportunity to watch this behemoth float by. This is the future of shipping. It is here and we are unprepared.
Friday, October 14, 2011
Savannah Historic Area to get 150-room Embassy Suites Hotel
http://www.bizjournals.com/atlanta/morning_call/2011/10/savannah-historic-area-to-get-150-room.html
A. Joseph Marshall
Commercial Real Estate Agent
Savannah, Ga.
A. Joseph Marshall
Commercial Real Estate Agent
Savannah, Ga.
Kingston Supports Expanding Ga's Access to Foreign Markets
http://www.menafn.com/qn_news_story.asp?storyid=%7Bed5ebf4c-7b4f-4dbd-a5c7-e45c43be7251%7D
A. Joseph Marshall
Commercial Real Estate Agent
Savannah, Ga.
A. Joseph Marshall
Commercial Real Estate Agent
Savannah, Ga.
Monday, October 10, 2011
Savannah ranked 5th best downtown in the U.S by livability.com!
http://livability.com/top-10-downtowns
Great place to visit, work and live.
A. Joseph Marshall
Commercial Real Estate Agent
Savannah, Ga.
Great place to visit, work and live.
A. Joseph Marshall
Commercial Real Estate Agent
Savannah, Ga.
Tuesday, October 4, 2011
How to identify an adequate insurance limit for your business’s property
How much insurance should you carry for your business’s property?
It’s always a tricky question, filled with uncertainty and with several variables to consider. On the one hand, purchasing insurance limits that are high enough to make you feel comfortable can be quite costly. On the other hand, if your business property is hit with a large loss, you want to know that it will be protected.
“The goal is to make sure that if your company is faced with a loss, you have an adequate limit in place to cover that loss,” says Nancy Hamilton, an account executive with ECBM Insurance Brokers and Consultants.
Even after you have examined all the angles and found a limit you can afford that protects what you need it to protect, you must stay vigilant, because what may be an adequate limit today may not be enough in the future.
Smart Business spoke with Hamilton about how to choose an adequate insurance limit to cover your business property.
Re-posted by: A. Joseph Marshall
Commercial Real Estate Agent
Savannah, Ga.
Why is it important for companies to choose an adequate limit to cover their business’s property?
In the event of a loss, you want to have an adequate limit to cover the loss. You want to have sufficient coverage and limits to be able to resume operations as quickly as possible. You want to be able to have your business back in the same position as prior to the loss. Many companies do not have the cash reserves readily available to cover all of the costs associated with a loss.
If you currently have a loan, or are considering one in the future, that is another reason to have an adequate limit in place. Many loan documents require businesses to show proof of proper coverage and limits in order to meet the loan requirements.
How can companies determine an adequate limit for their specific property?
Proper property valuation is critical in determining an adequate limit. There are various tools that can be used to calculate the value of the property to be insured, such as original cost of construction with adjustments for inflation, current construction costs and real estate appraisals.
There are also replacement cost estimators that provide important calculations to help businesses determine their valuation. These calculations are based on the square footage of the building and the building’s construction, including the types of materials used in the construction and type of building such as a commercial office building, manufacturing building, industrial building, etc.
Business income worksheets are used to calculate or estimate your organization’s exposure to a business income loss for the purpose of establishing your limit.
How does a business’s geographical area affect property limits?
Construction costs can vary depending on the geographic area of your business. For example, construction material may be readily available in some areas. However, during a major catastrophe, constructions materials may be in high demand, which can drive up costs significantly. A shortage of supplies in your area may extend the length of time that you are out of business.
How is property valuation determined, and what factors are used?
The value of your business assets needs to be considered. That includes your building, if owned, your business and personal property, as well as any potential loss of income, continuing business expenses and additional expenses you may incur after a loss. You need to consider how long it will take for your business to get back up and running at the same level as prior to a loss.
What time frame should be considered when determining loss of income?
You need to consider your worst-case scenario as to the length of time to be back in business. Items to consider are type of loss, extent of loss, and supply and demand for labor and materials. The longer it takes for your business to get back up and running, the more costs you are going to have associated with the claim.
How can companies with multiple locations determine an adequate limit for their properties?
Companies with multiple locations can use one blanket limit or loss limit to cover all locations. There are several factors to consider when determining an adequate limit for multiple locations. Are your locations in close proximity of each other? If you have a large concentration of locations in the same geographical area, you could have a significant impact from a single event. However, if your locations are spread out, then the risk of a single event impacting multiple locations is not as likely.
Establishing an accurate value for each location will help you determine the maximum possible and probable loss. Once the value of each location is determined, you can select a blanket limit or loss limit to cover all locations.
How often should a company have its locations evaluated?
It is recommended that the valuation of a business’s locations be reviewed at least on an annual basis. Some factors can change over the course of a year, and those changes need to be reflected in a new limit. Inflation and construction costs, in particular, can have a huge impact on the valuation of a business.
Nancy Hamilton is an account executive with ECBM Insurance Brokers and Consultants. Reach her at (610) 668-7100, ext. 1263, or nhamilton@ecbm.com.
It’s always a tricky question, filled with uncertainty and with several variables to consider. On the one hand, purchasing insurance limits that are high enough to make you feel comfortable can be quite costly. On the other hand, if your business property is hit with a large loss, you want to know that it will be protected.
“The goal is to make sure that if your company is faced with a loss, you have an adequate limit in place to cover that loss,” says Nancy Hamilton, an account executive with ECBM Insurance Brokers and Consultants.
Even after you have examined all the angles and found a limit you can afford that protects what you need it to protect, you must stay vigilant, because what may be an adequate limit today may not be enough in the future.
Smart Business spoke with Hamilton about how to choose an adequate insurance limit to cover your business property.
Re-posted by: A. Joseph Marshall
Commercial Real Estate Agent
Savannah, Ga.
Why is it important for companies to choose an adequate limit to cover their business’s property?
In the event of a loss, you want to have an adequate limit to cover the loss. You want to have sufficient coverage and limits to be able to resume operations as quickly as possible. You want to be able to have your business back in the same position as prior to the loss. Many companies do not have the cash reserves readily available to cover all of the costs associated with a loss.
If you currently have a loan, or are considering one in the future, that is another reason to have an adequate limit in place. Many loan documents require businesses to show proof of proper coverage and limits in order to meet the loan requirements.
How can companies determine an adequate limit for their specific property?
Proper property valuation is critical in determining an adequate limit. There are various tools that can be used to calculate the value of the property to be insured, such as original cost of construction with adjustments for inflation, current construction costs and real estate appraisals.
There are also replacement cost estimators that provide important calculations to help businesses determine their valuation. These calculations are based on the square footage of the building and the building’s construction, including the types of materials used in the construction and type of building such as a commercial office building, manufacturing building, industrial building, etc.
Business income worksheets are used to calculate or estimate your organization’s exposure to a business income loss for the purpose of establishing your limit.
How does a business’s geographical area affect property limits?
Construction costs can vary depending on the geographic area of your business. For example, construction material may be readily available in some areas. However, during a major catastrophe, constructions materials may be in high demand, which can drive up costs significantly. A shortage of supplies in your area may extend the length of time that you are out of business.
How is property valuation determined, and what factors are used?
The value of your business assets needs to be considered. That includes your building, if owned, your business and personal property, as well as any potential loss of income, continuing business expenses and additional expenses you may incur after a loss. You need to consider how long it will take for your business to get back up and running at the same level as prior to a loss.
What time frame should be considered when determining loss of income?
You need to consider your worst-case scenario as to the length of time to be back in business. Items to consider are type of loss, extent of loss, and supply and demand for labor and materials. The longer it takes for your business to get back up and running, the more costs you are going to have associated with the claim.
How can companies with multiple locations determine an adequate limit for their properties?
Companies with multiple locations can use one blanket limit or loss limit to cover all locations. There are several factors to consider when determining an adequate limit for multiple locations. Are your locations in close proximity of each other? If you have a large concentration of locations in the same geographical area, you could have a significant impact from a single event. However, if your locations are spread out, then the risk of a single event impacting multiple locations is not as likely.
Establishing an accurate value for each location will help you determine the maximum possible and probable loss. Once the value of each location is determined, you can select a blanket limit or loss limit to cover all locations.
How often should a company have its locations evaluated?
It is recommended that the valuation of a business’s locations be reviewed at least on an annual basis. Some factors can change over the course of a year, and those changes need to be reflected in a new limit. Inflation and construction costs, in particular, can have a huge impact on the valuation of a business.
Nancy Hamilton is an account executive with ECBM Insurance Brokers and Consultants. Reach her at (610) 668-7100, ext. 1263, or nhamilton@ecbm.com.
Friday, September 30, 2011
EDITORIAL:Savannah's port: We're No. 2!
From: http://savannahnow.com/opinion/2011-09-29/editorialsavannahs-port-were-no-2
SOMETIMES IT feels good to be No. 2. Such is the case with the Georgia Ports Authority, which now operates the second-busiest container port for exports in the United States.
Only Los Angeles handles more of those metal boxes than Savannah does. And Georgia now moves more than New York-Newark, which is now fifth. So that makes Savannah the busiest export port on the East Coast.
But when you’re No. 2, you still have to try harder — especially since much of these gains could erode if
Savannah doesn’t deepen its harbor.
The current 42-foot depth of the shipping channel is the shallowest of 24 of the world’s major ports, according to the U.S. Army Corps of Engineers. The depth for most of those ports is in the 48- to 52-foot range.
Size matters in the shipping business. And time is money. An enlarged Panama Canal means bigger ships carrying more containers to places that can handle them most efficiently. That’s why port deepening is critical to the future here and the rest of Georgia.
But it’s not just about boats and trucks. It’s about trains, too.
The stacks of containers streaming in and out of the booming Savannah port atop rail cars have jumped 21 percent during fiscal year 2011. The total also represents a whopping 191-percent gain over the past decade. CSX now has eight trains a week serving the port. Norfork Southern has 11.
Thus the investments made in intermodal rail service are paying off, which helps keep Georgia’s economy moving forward. And watch out, L.A. Once the harbor is deepened, the title for No. 1 will be on the line.
Reposted by A. Joseph Marshall
Commercial Real Estate Agent
Savannah, Ga.
SOMETIMES IT feels good to be No. 2. Such is the case with the Georgia Ports Authority, which now operates the second-busiest container port for exports in the United States.
Only Los Angeles handles more of those metal boxes than Savannah does. And Georgia now moves more than New York-Newark, which is now fifth. So that makes Savannah the busiest export port on the East Coast.
But when you’re No. 2, you still have to try harder — especially since much of these gains could erode if
Savannah doesn’t deepen its harbor.
The current 42-foot depth of the shipping channel is the shallowest of 24 of the world’s major ports, according to the U.S. Army Corps of Engineers. The depth for most of those ports is in the 48- to 52-foot range.
Size matters in the shipping business. And time is money. An enlarged Panama Canal means bigger ships carrying more containers to places that can handle them most efficiently. That’s why port deepening is critical to the future here and the rest of Georgia.
But it’s not just about boats and trucks. It’s about trains, too.
The stacks of containers streaming in and out of the booming Savannah port atop rail cars have jumped 21 percent during fiscal year 2011. The total also represents a whopping 191-percent gain over the past decade. CSX now has eight trains a week serving the port. Norfork Southern has 11.
Thus the investments made in intermodal rail service are paying off, which helps keep Georgia’s economy moving forward. And watch out, L.A. Once the harbor is deepened, the title for No. 1 will be on the line.
Reposted by A. Joseph Marshall
Commercial Real Estate Agent
Savannah, Ga.
Sweepstakes Cafe...legal or illegal?
I can't wait until these are made illegal. They open next to poor neighborhoods, siphon money away from the lottery and generally bad tenants.
From: http://www2.wsav.com/news/2011/sep/26/sweepstakes-cafelegal-or-illegal-ar-2468421/
From: http://www2.wsav.com/news/2011/sep/26/sweepstakes-cafelegal-or-illegal-ar-2468421/
SAVANNAH, GA --
Have you heard of sweepstakes cafes?
They are popping up all around the state and right here in our back yard but a lot of state leaders think they're simply covers for gambling and the Governor, Attorney General, and Georgia Bureau of Investigation are taking a closer look and so is News Three Community Reporter Alice Massimi.
The City of Savannah has issued a 180-day moratorium on accepting new zoning permits for sweepstakes cafes.
One of the suspected cafes News Three was told about by city staff is located on DeRenne Avenue, another off of Abercorn. From the outside, it appears to be an office supply store.
Inside, however, it's set up like an internet cafe, where patrons participate in sweepstakes and some claim cash prizes are awarded.
Here's how they generally work around the country -- customers pay for internet time loaded on a card and get "free" sweepstakes entries. Customers can use the internet time to do whatever they please.
Most use the sweepstake entries and play slot-style computer games that can have up to 30,000 dollar jackpots.
Owners of the cafes claim it's legal because people are not paying for a chance to win; they're paying for computer time -- a technicality that's being debated in Florida and Georgia
"The concern is it's really a form of gambling that's not sanctioned. They are using a loophole and you see them popping up all over the community. The problem that I have with it is you see the folks sitting in there all night long, and they don't need to be sitting in there all night long spending their money," says Alderman Tony Thomas whose district some of the cafes are located in.
The two cafes we checked out today were not open.
One had a sign saying it was closed until further notice, another saying it was updating the computers.
Depending on how current investigations go, it may become an issue in the state legislature in 2012.
A. Joseph Marshall
Commercial Real Estate Agent
Savannah, Ga.
Have you heard of sweepstakes cafes?
They are popping up all around the state and right here in our back yard but a lot of state leaders think they're simply covers for gambling and the Governor, Attorney General, and Georgia Bureau of Investigation are taking a closer look and so is News Three Community Reporter Alice Massimi.
The City of Savannah has issued a 180-day moratorium on accepting new zoning permits for sweepstakes cafes.
One of the suspected cafes News Three was told about by city staff is located on DeRenne Avenue, another off of Abercorn. From the outside, it appears to be an office supply store.
Inside, however, it's set up like an internet cafe, where patrons participate in sweepstakes and some claim cash prizes are awarded.
Here's how they generally work around the country -- customers pay for internet time loaded on a card and get "free" sweepstakes entries. Customers can use the internet time to do whatever they please.
Most use the sweepstake entries and play slot-style computer games that can have up to 30,000 dollar jackpots.
Owners of the cafes claim it's legal because people are not paying for a chance to win; they're paying for computer time -- a technicality that's being debated in Florida and Georgia
"The concern is it's really a form of gambling that's not sanctioned. They are using a loophole and you see them popping up all over the community. The problem that I have with it is you see the folks sitting in there all night long, and they don't need to be sitting in there all night long spending their money," says Alderman Tony Thomas whose district some of the cafes are located in.
The two cafes we checked out today were not open.
One had a sign saying it was closed until further notice, another saying it was updating the computers.
Depending on how current investigations go, it may become an issue in the state legislature in 2012.
A. Joseph Marshall
Commercial Real Estate Agent
Savannah, Ga.
Savannah Port to Expand Refrigerated Storage Space
SAVANNAH, Ga. -- The Georgia Ports Authority is expanding the Port of Savannah's refrigerated storage space for poultry and other cargo that needs to be kept cold.
The agency's board approved the $4.75 million project Monday. It will consist of 20 container racks, each four stories tall, that will power refrigerated containers.
The new racks will expand the Savannah port's refrigerated storage by 45 percent, with total space for 1,536 cargo containers.
The agency's board approved the $4.75 million project Monday. It will consist of 20 container racks, each four stories tall, that will power refrigerated containers.
The new racks will expand the Savannah port's refrigerated storage by 45 percent, with total space for 1,536 cargo containers.
Port officials say poultry was the Georgia ports' fourth largest export commodity in fiscal 2011, with 1.6 billion pounds shipped overseas in cargo containers.
The Port of Savannah is the fourth busiest container port in the U.S.
The Port of Savannah is the fourth busiest container port in the U.S.
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