Reports Say That Despite Supports, Commercial Real Estate is Recovering at Slow Pace

Posted by Alex Ferreras on August 27, 2012 in Real Estate

Summary: The headline announces slow CRE recovery across the board, but the text reveals that this is in specific markets. Slow job creation growth and lending restrictions has slowed commercial real estate growth in some areas. Otherwise, increasing demand and favorable lending supports CRE growth across the board.

Things are still positive with vacancy decreasing in varying degrees across industry segments (office, industrial, retail, etc). Multi-family is of course very positive with late coming investors jumping on that bandwagon. Multi-family lenders are flooded as a result.

What could slow things down? Drama in Up Eurs Zone, the "fiscal cliff" everyone is talking about, fall out from the November elections and decreased lending by community banks are making everyone cautious about the future.

Read the full article at Reports Say That Despite Supports, Commercial Real Estate is Recovering at Slow Pace

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Office Markets Continue Trudging Along

Originally posted by Posted by justinp in Commercial Property Research on August 12, 2012

Summary: "While six consecutive quarters of positive new absorption provide evidence that the sector has made it through one of the worst contractionary periods of the last three decades, these levels remain incredibly weak by historical standards.  In fact, demand for office space was so weak that even in the face of little new supply—just 1.6 million square feet was completed nationwide in the second quarter—the level of net absorption seen during the quarter was insufficient to generate a decline in the vacancy rate, which remained at 17.2%.  Of course, with such lackluster job growth it should come as no surprise that the sector continued to struggle."

Savannah's office market sees a change between 2012 Q1 and Q2 of -.6% in office rents and change of -10bps in vacancy. Meanwhile inventory has increased 2.5%. These statistics are courtesy of REIS Reports.

The original article is found here: Office Markets Continue Trudging Along

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Ga. economy forecasted to stall, Athens to sputter

Summary: Political uncertainty in Washington and Atlanta is causing the economy to be cautious now and reserved in the near future. Return here for an update on the Port's activity on September 6th! Create your own fiscal cliff parachute with income producing property!

Key Quotes:  

Political uncertainty is stalling the Georgia and U.S. economies at a time when the power of the state’s second-largest economic engine — its ports — is losing strength, one prominent forecaster warned Wednesday.

Also released Wednesday, a Federal Reserve survey shows business professionals in the Southeast are expecting inflation to rise. 

Both corporate and consumer confidence has been shaken by questions about the election and what Washington will do about coming tax increases and deep spending cuts known as the “fiscal cliff” triggered by congressional failure last year to reduce the federal deficit.

Georgia-based military contractors and installations are bracing for the sting of the cuts.

Rajeev Dhawan, director of the Forecasting Center, said rising oil prices and falling demand for exports add to other factors to push the “pause” button.

“The impact of the slowing global economy already is being felt in Savannah, where growth has decelerated sharply in the past six months, and where port traffic and future expansion will take a hit in coming months,” he said. 

Dhawan is forecasting 1.1 percent job-growth rate for Georgia and an unemployment rate stuck near 9.2 percent for the next two years. 

Read the full article at Ga. economy forecasted to stall, Athens to sputter

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga 

Senate Approves Bill to Extend EB-5 Foreign Investment Program

The EB-5 visa program, which secured billions of investment dollars and created thousands of jobs since its 1993 creation, was approved by the Senate last Thursday. It goes to the House for consideration after Labor Day.

Through the program foreign investors get green cards if they invest in a US business, including commercial real estate developments which creates at least 10 (direct or indirect) local jobs.

The extension of the program directly impacts the projects started by The Georgia Center for Foreign Investment and Development. According to their web site:

Qualifying investors and their spouse and minor children (under 21) will be granted US Lawful Permanent Residency.

EB5 investor Visa is suitable for people from all walks of life: professionals, business people, persons wanting to facilitate their children's education and attend US colleges and Universities, persons just seeking a new or better life in the United States, and persons wanting to retire in the United States. The EB-5 visa permits employment in the US for the Investor and their family. Quite simply, the EB-5 visa gives you the opportunity and flexibility to do what you want in the USA.

After five years, the investor and their family may obtain US citizenship, subject to meeting all immigration requirements, as required under law.

The program expires on September 30th if the House does not approve it.

Read the full article at U.S. Senate Approves Bill to Extend EB-5 Foreign Investment Program

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Important USDA Mortgage Insurance Information

Yes, I am a commercial agent, and when relevant residential information to 1/3 of Chatham County presents itself I don't mind publishing it.

USDA loans available for those of you west of I-95.

The USDA has announced changes to their Single Family Housing Guaranteed Loan Program. Effective for all USDA Conditional Commitments received on or after October 1, 2012, there will be an increase to the annual and up-front fee.

With this change, the annual fee (used to calculate the monthly mortgage insurance that is part of the payment) will increase from 0.30% to 0.40% of the loan amount, which will be applied to both purchases and refinances. In addition, the current up-front fee will be increased from 1.50% to 2.00% for refinances only.

This update courtesy of:

Steve Nimmer, Mortgage Advisor

PHH Mortgage and its Brands Divisions

NMLS: 186680

Savannah, GA

912-604-3834 cell

888-850-1272 eFax (toll-free)

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga