Tag Archive | "Commerical Real Estate"

BGC Partners and UGL Ltd. Push Expansion Into US Commerical Real Estate

All signs are pointing to the strong possibility of real recovery in the United States commercial real estate market. Real estate brokerage and property management companies from around the globe are starting to expand their services into the United States. That indicates that investors around the globe are eyeing the United States market as being one that is quickly regaining its health.

While the real estate market as a whole is expected to stabilize and see very slow growth this year, it is expected to improve at a much faster rate in the next few years.

Companies like UGL Ltd. and BGC Partners Inc both announced plans to expand in the United States. BGC Partners Inc has already started the process by purchasing and then combining various small real estate brokerage companies.

A number of smaller upstarts are taking the same action as BGC, buying smaller competitors. While all signs are pointing to positive market growth, some economists believe that these companies may be getting too aggressive in their actions. Should the market stumble, they will be facing incredibly tough times from which they may not recover.

Running into stumbling blocks is always a possibility for new startup companies. In general, it is the manner in which business overcome those stumbles that determines whether or not they will be successful in the long term.

Nearly half of the most valued global commercial properties reside in the United States. In fact, the United States accounts for seven and a half trillion dollars in commercial properties. With the market expected to grow in the coming years, it may be worth getting into the market now as opposed to later.

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Commercial Real Estate Improving but Still Susceptible to Risks

The commercial real estate market in the United States looks to finally be improving. However, economists warn that the commercial property market could still be very vulnerable to the various economic and political risks that continue to impact the world.

Such issues as the European economic crisis, the upcoming national budget and taxation issues, and the large number of commercial mortgages set to mature this year all may cause the commercial real estate market to falter yet again. Additionally, economists warn that job creation must continue to improve for the commercial property to continue its growth.

The most recent trends have been favorable for the commercial real estate market, which does lend some hope to the future of the market. In fact, most expect that some improvement will take place in the coming months.

According to expert economists, one of the most frightening factors is the maturation of more than 1.2 trillion dollars worth of commercial mortgages that will take place over the next three years. The majority of the properties with these mortgages are currently underwater.

As such, many analysts and experts are calling on officials to intervene with new measures that will prevent the potential crisis that could come with the maturation of the underwater mortgages. However, there has been no indication that any such measures will come about to help save the commercial market.

There is still hope for the commercial real estate market to continue improving, though it could also still face enormous difficulty if the right course of action is not taken.

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Declaring Decline in Commerical Real Estate

Declaring Decline in Commerical Real Estate

Recently, the famous Moody’s Investor Service   declares a decline in the US commercial real estate prices.  Moody says the prices have fallen to a post recession in the month of March 2011 since the sales of   distressed assets by investors in the US real estate market.

According to Moody’s, the commercial real estate prices have dropped to 4.2% since February up till the recent times. This was far more below what was obtainable in October 2007.

The price fall is actually showing in the major real estate markets like Washington and New York. This is sequel to   the current decline in vacancy rates and the economy.  The price will continue to fall as long as the sale of financially distressed assets continues says Moody’s. According  Moody’s director of  commercial real estate research, Tad Philip,  the price index will continue to  drop as  long as there’s  transactions  going on  concerning  distressed assets.

In any case, the larger real estate markets in New York, Boston, Chicago, Washington, San Francisco and Los Angeles are actually helping the real estate market not to crash in the wake of the decline rocking it today. Efforts are being put in place to ensure better improvement in the real estate sector.

In any case, there’s still strong indication of “No Recovery Signals” says Moody’s.  This is exactly the scenario when looking at the overall index since March.  However, hope is still very alive as the major markets are sure to bounce back to better deals in the near future.


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