What historical lows and what they can mean for you Friday – June 28, 2013 As we have seen over the past couple of weeks, the stock market and bond markets have been reacting wildly to the change in interest rates. If we take pause however, and let cooler heads prevail, we will realize where we…
Naples, Florida – Commercial Real Estate Market Summary Before you start worrying or gloating that you are paying either too much or too little in the way of rent, be aware that these statistics are for all types of properties regardless of quality or location…the good, the bad, and the ugly! The fact of the…
Valuation Methods in Commercial Real Estate, Part 2 Written by Darren McCorkle Last month we talked a bit about capitalization rates (aka cap rates), a valuation method commonly used in commercial real estate. It is certainly a valuable tool, but it is far from perfect. Luckily we are not completely out of options. Internal Rate…
Low risk or something more? Single tenant properties go by a few other names such as “Triple Net” and “NNN” properties. In essence they are properties that have a single building occupied by a single occupant. The occupant, or tenant, leases the property from the property owner and generally is responsible for all operating…
Valuation Methods in Commercial Real Estate: One of the most common yardsticks used in commercial real estate investments is the “cap rate”, which is a shortening of “capitalization rate”. Simply put a cap rate is the basic yield that a property provides to an investor in relation to the value or purchase price of the…
Big Deals in Naples Notable 2012 Commercial Sales and Leasing Transactions The year 2012 saw several important commercial real estate transactions in Collier County (Naples), including the sale of the largest office building in the market, to several other important office and retail properties. See the list below of the top sales transactions in Collier…
Southwest Florida Commercial Real Estate Forecast – 2013 Steady As She Goes Two or three years ago there was serious doubt as to whether the real estate scene in Florida would ever recover from the Great Recession. For many players in the retail and investment sectors, Florida was the “F” word that should be avoided…
It’s STILL a great time to be a Buyer OR Seller The economic downturn that began in 2007 was certainly one of the worst and most pronounced ones for decades. Despite our declared emergence from the Great Recession, some folks rightfully so didn’t get that proclamation. On the other hand, the economy has solidified and seems to be running at…
CAN LEVERAGE ACTUALLY BE THE MORE CONSERVATIVE APPROACH TO REAL ESTATE INVESTING? I would suggest that maybe a realistic level of debt may actually be a more conservative approach in real estate valuations today. I’m not suggesting that one loads up with 80% financing or a paltry debt service coverage of 110% or so, but what I would…
Better than corporate bonds? Buying an investment grade corporate bond certainly sounds like a sound investment, but is it really in light of the financial crisis we just endured? Many companies didn’t survive and when that happens your corporate bond is as worthless as the paper its printed on. The only guarantee that you have…