Investment Real Estate Sales Coaching
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Investment Real Estate
Market News & Trends

(as of June 2012)
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The article linked below, The 20 Traits of Great Salespeople, is right on target and describes tried-and-true characteristics that separate successful salespeople from also-rans. I strongly encourage you to read it.

http://www.openforum.com/articles/the-20-traits-of-great-salespeople?extlink=em-openf-SBdaily
 
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CMBS Making a Comeback
Despite the justifiably negative headlines of 2008-2010, the concept of Commercial Mortgage-Backed Securities (CMBS) -- when ethically and responsibly underwritten, tranched and rated -- has always been a great way to return liquidity to the mortgage market.  More liquidity means more available financing for investment property loans, and that means more opportunities for investment brokers and commercial loan originators to earn fees. 

CMBS lenders have been the choice for investors wanting long-term, fixed-rate financing, but since 2008 have been shut out by a Secondary Market that demurred from buying  securities backed by assets that were expected to lose value.  Since 2011, there have been a few successful sales of billion-dollar CMBS offerings to institutional investors (such as public employee pension funds and sovereign wealth funds), most of which comprised super-low risk (physically and financially) multi-family properties.  FDMC is currently offering its sixth billion-dollar package. 

Now there are reports that Wall Street is preparing two billion-dollar offerings that are heavily weighted with commercial properties:
  • one for $1.6 billion which includes loans of $130 million for an office building, $101 million for an industrial project, and $94 million for a regional mall;
  • a second offering  of $954 million has $415 million in retail property loans.

This is a sign that institutional investors are beginning to trust CMBS again.  While the action is currently happening in the stratospheric world of "billions and trillions," as more investors return to CMBS, supply and demand will eventually cause the investors to consider smaller offerings tranched with $5 million to $10 million loans. 

The return of CMBS financing for smaller properties (under $10 million) is probably still a couple of years away from occurring,
plenty of time for you to learn about the differences between CMBS loans and bank loans, and which is right for your client's particular circumstances.  Talk with a local commercial loan broker to learn more.

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Changes in the Retail Market
This article is a good "third-party credibility" item to draw on when you talk to shopping center owners.  It points out that a demographic group -- young adults between 18 and 34 -- that was once considered to be a strong and reliable source of sales now represents the highest percentage of Americans who do not have enough money to cover their basic needs. 


http://www.progressivegrocer.com/top-stories/headlines/consumer-insights/id35346/young-adult-spending-power-losing-its-punch/

Investment brokers should keep an eye on youth-oriented retailers to see what effect this has on their sales.  Seek information by talking to shopping center owners, property managers and leasing agents.

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Ascena Goes Shopping
The Ascena Retail Group (http://www.ascenaretail.com) has signed a deal to acquire Charming Shoppes, parent company of
Lane Bryant, Fashion Bug and Catherine's Plus Sizes.  Ascena, which operates about 2,500 Dressbarn, Maurices and Justice stores, aims to dominate the fast-growing plus-size market through the acquisition.

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Dollar General Adding Groceries
Dollar General is adding fresh food and a larger selection of refrigerated items at midsize stores.  The company plans to open about forty 16,000-square-foot Dollar General Market locations during the next 12 months.




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