Kendall Kicks-off NCREIF Capital Markets Symposium
Del Kendall, managing director of RERC's Houston office, kicked-off the Capital Markets Symposium at the NCREIF Summer Meeting in Chicago on June 30. Held jointly with the Appraisal Institute, the session featured panel members Bob White, CEO of Real Capital Analytics (RCA), and Ken Riggs, CEO of RERC, who discussed the state of the commercial real estate market. Click here to access PowerPoint.
Emerging from the Rubble
This article authored by RERC's Ken Riggs and published in the newly released Real Estate Issues takes a close look at investment returns for commercial real estate for 2010 and 2011. Bid-ask spreads are starting to narrow and investment capital is becoming more available, but the challenge in bridging market pricing to market values amid the uncertainty that surrounds forecasting cash flow under stressful economic conditions remains. click here to download
False Bottom or Firm Foundation?
As discussed in Commercial Property Executive, RERC's Ken Riggs notes that commercial real estate investors, burned when the markets collapsed a couple years ago and who had been keeping their distance, have been returning to the fold as the risk and return metrics have moved in their favor--or, at least as far as they can see. The question is, however, whether what appears to be the bottom of the market is really a false bottom? The signals indicate...click here to read investment column
Recovery Gains Traction
Although there are more signs of recovery in the economy and in commercial real estate, the market remains bifurcated and the recovery will be very uneven. As noted in the spring 2010 RERC Real Estate Report, "Recovery Gains Traction," we are seeing lower cap and pre-tax yield rates as demand for institutional-level properties increases, but there is a lack of demand for second-tier properties, and returns remain...Click here to purchase first quarter report
Time to "Gear Up" for Institutional CRE Opportunities
RERC, with partners Real Capital Analytics (RCA) and Holliday Fenoglio Fowler (HFF), says that 2010 will be the best time in many years to buy well-priced institutional-quality commercial real estate. In the recently released annual forecast report, Expectations & Market Realities in Real Estate 2010: Crossing the Divide—The Passage to Recovery, the firms draw on their respective capabilities to thoroughly examine today's commercial real estate market. Click here to purchase.
Continuing on the Path to Recovery
In an abbreviated edition of his semi-annual podcast to members of the CCIM Institute, RERC's Ken Riggs noted that while investors remain nervous about the volatility we are seeing in the stock and bond markets, much equity is still sitting on the sidelines "looking for a home." Commercial real estate—and the reduced amount of risk associated with this investment alternative—is looking decidedly more attractive. Even so, investors are taking the time to “get it right” during this prolonged recovery period…
2010 To Be Another Tough Year
RERC's Ken Riggs notes that while institutional real estate has been forced to mark to market and prices are close to bottoming out, the broader commercial real estate market still has a ways to go and it will take some time to "come clean." Listen to Riggs' view of what the industry and investors should expect in 2010 and beyond.
Dealing with a Distressed Market
As the process of repricing and an increasing number of distressed properties create more uncertainty for investors, commercial real estate is facing its greatest challenges since the 1990s. What should investors expect over the near term?
The Impact of Cap Rates on Values
From a pricing and value perspective, the institutional commercial equity real estate markets are facing headwinds that were never imagined a couple years ago. RERC's required cap rates have increased and now stand at 8.4 percent, which is very close to the level recorded in first quarter 2004. The question is, how much further--if at all--will they increase? (The complete article, "Valuation Navigates Steep Cliffs," is provided in the summer 2009 issue of the RERC Real Estate Report.)