Commercial Real Estate Loans & Investment Sales

Trends In Commercial Real Estate

IRETO - The International Real Estate Trade Organization - released its Global Commercial Real Estate Outlook Report on Friday.

The report looks at global economic trends that are affecting commercial real estate.

The Top 5 trends noted in the IRETO report are:

1)  Real estate financial markets will continue to be more structured and productive
2)  New capital will continue to flow into real estate, but at a slower pace
3)  Buyers will continue to expand outside local markets and around the globe
4)  Increasing rents worldwide
5)  More REITS worldwide and less REITS in the U.S.

To view the full IRETO Global Commercial Real Estate Outlook Report, click here.

 

To learn more about the commercial real estate industry, please contact Pacific Security Capital at www.pacificsecuritycapital.com or call 1-800-844-6085.

Is The Commercial Real Estate Industry Ripe for a Fall?

In an article entitled "Rebuilding Commercial Real Estate" in Working Knowledge, Roger Thompson comments on the commercial real estate business industry and asks: "Is this the calm before the bubble pops?"

Students of recent United States real estate history can't help but notice unsettling parallels between the red-hot commercial market of the late 1980s and today. Then, as now, money gushed into the market, driving office and retail property values to unprecedented heights while creating fortunes for savvy dealmakers. The siren song of real estate never sounded so sweet. Then the music stopped.

After several boom years, is commercial real estate ripe for another fall?

If there's one thing that concerns market pros, it's interest rates. A sudden spike in long-term rates would deliver a serious blow to the market. To most observers' surprise, however, long-term rates remain near the historical lows set a few years ago and remain highly favorable to the commercial property business. When rates finally do move upward, property price increases are expected to slow or even shift into reverse, but without disastrous consequences.

As property prices have risen, returns on investments have fallen. Today, returns, expressed in real estate parlance as cap rates, have declined to levels last seen just before the 1989 crash. (A property's cap rate is calculated by dividing cash flow from operations by the purchasing price, yielding a percentage annual return. Thus, a $1 million property that generates $100,000 in cash flow would have a cap rate of 10 percent.) Historically, the cap rate for commercial real estate has averaged 9 percent. As property prices soared in the 1980s, cap rates sank to between 5 percent and 6 percent.

Up for debate is whether the structural changes of the past fifteen years have drained enough risk out of the commercial market to justify the lower returns. If the answer is yes, then buyers aren't overpaying even at today's record-setting prices. If the answer is no, the market may be in for a round of downward price adjustment.

To learn more about commercial real estate loans from Pacific Security Capital, please visit www.PacificSecurityCapital.com or call 1-800-844-6085.

Pacific Security Capital Appoints Gene Bentley as Director in its Global Investment Sales Group

Beaverton, OR, January 5, 2006 -- Pacific Security Capital (“PSC”), (http://www.pacificsecuritycapital.com), a leading commercial real estate investment bank providing commercial loans, structured finance, investment sales and capital markets services, announced today that it has appointed industry veteran Gene Bentley, CCIM, as a Director in its global investment sales practice. Bentley will be responsible for working on larger capital asset transactions and key disposition assignments on a global basis.

Bentley is a highly regarded professional within the investment sales community, bringing more than 20 years of experience in capital assets acquisitions and dispositions to Pacific Security Capital. Bentley joins Pacific Security Capital from NAI Norris, Beggs and Simpson where he was perennially a top performing broker.

“Gene is widely regarded as one of Portland’s top performing investment sales brokers,” said Scott Pozzi, Managing Director of Global Real Estate Services for Pacific Security Capital. “He has previously been named Commercial Realtor of the Year and has been recognized by the Commercial Association of Realtors as the Most Valuable Broker.”

Bentley has participated in some of the most notable transactions in the Portland market during his career. These include:
     ● The sale of Cornell Oaks Corporate Center (685,000 sq. ft.)
     ● Lincoln Center (735,000 sq. ft.)
     ● 1515 Building (204,000 sq. ft.)

In addition to his work in the Portland market, Bentley has been involved in transactions ranging from the sale of Corporate Headquarters facilities in Seattle, to the portfolio disposition of a 16 asset retail portfolio for a Life Insurance Company covering 4 States.

"As a vertically integrated commercial real estate investment bank, Pacific Security Capital has a clear advantage over traditional retail brokerage firms,” said Pozzi. “This is why we are able to consistently recruit leading industry talent like Gene.”

Pacific Security Capital’s investment sales group and retail practice provides the following services to its clients:
     ● Acquisition Services
     ● Disposition Services
     ● Leasing and Tenant Representation
     ● Corporate Services
     ● Asset Management
     ● Development Services
     ● Capital Markets Services
     ● Advisory Services

To learn more about Pacific Security Capital’s investment sales practice, please visit www.PacificSecurityCapital.com or call 1-800-844-6085.