Commercial Real Estate Loans & Investment Sales

Pacific Security Capital Addresses Ways to Minimize Commercial Real Estate Investment Risks

Real Estate Services Firm Educates on Ways to Reduce Risks when Investing in Commercial Real Estate Ventures

Beaverton, OR, August 17, 2006 – http://www.pacificsecuritycapital.com – Pacific Security Capital, a vertically integrated real estate services company providing investment and advisory services, commercial real estate loans, investment sales and  development services, is educating potential investors on ways to minimize commercial real estate risk.

Investors need not let the possible risks of real estate ventures stop them from embarking on a potentially rewarding journey. By relying on an integrated real estate services company that understands market and industry trends, performs objective project and market analysis and can match the best funding combination of commercial real estate loans and investment capital investors can significantly reduce the risks associated with their venture while still enjoying superior returns.

“There’s a lot of excitement and adrenaline in commercial real estate, and that is what draws most of us to the industry,” said Will Moore, Pacific Security Capital’s Managing Director of the Capital Markets group. “While that emotion is powerful in conceiving and energizing a project or purchase, it cannot be allowed to influence the analysis, implementation or execution of the project.”

Pacific Security Capital offers the following tips for wary investors:

•    Buy or build from the market’s perspective – understand what product type and demographic location the highest market demand is seeking and how you appeal to it.
•    Build your pro-forma from the market’s perspective – Know market costs and dynamics as well as market prices to position your project in the most favorable light with lenders and investors.
•    Know what your own financial capacity truly is, and not simply what you’d like it to be

“By using a third party integrated real estate services company, investors are not only provided with commercial real estate financing but also a sound project strategy  and the right team of professionals to effectively guide their endeavor,” said Moore. “Without experienced guidance, investors can easily be swayed by their emotions and their misconceptions.”

For more information on commercial real estate investments and to download an article on the “Five Ways to Reduce Risk in Commercial Real Estate,” visit http://www.pacificsecuritycapital.com/landing/cre.cfm.

To learn more about Pacific Security Capital’s core areas of expertise in Commercial Real Estate Loans, Investment and Advisory Services, Capital Markets, Development Services, and Investment Sales, please visit www.PacificSecurityCapital.com or call 1-800-844-6085.

About Pacific Security Capital
Pacific Security Capital is a vertically integrated real estate services company providing investment and advisory services, asset management, development services, commercial real estate loans, structured finance, landlord/tenant representation, and investment sales. Our mission is to add value to client initiatives at every level of the real estate cycle. PSC is headquartered in Beaverton, Oregon with offices in major markets in North America. More information about the company can be found at www.PacificSecurityCapital.com.

Global Real Estate Markets See Boom

Article by Anita Howarth Via GlobeSt

Commercial real estate markets in key cities around the world are booming as globalization pushes the economies of large international cities to converge.

All 10 global business centers now have vacancy rates below 10%, a milestone in the ongoing worldwide recovery of commercial real estate.  Globalization of trade and borderless movement of money have allowed key cities to rebound in tandem relatively quickly from the real estate decline that followed the technology bust in 2000.

Hong Kong, which was hit by the dotcom collapse and suffered another blow after the SARS outbreak in 2003, has rebounded quickly and strongly. The city saw asking rents shoot up 37% in the past 12 months to an average of $69.12 per sf as the vacancy rate fell to 4.1%. And by mid-year Tokyo's vacancy rate of 0.6% was down from 2.2% and spurred a 12% jump in average asking rent to $148.17 per sf.

London’s asking rent rose 17% to an average of $163.23, and Madrid also logged a 17% increase, to a $43.18 average. London and Madrid vacancy stood at 5.7% and 8.2% respectively, at mid-year 2006. And in Paris, asking rents rose to $80 per sf, up 5.1%, while vacancy stood at 4.8%, down 0.7%.

In North America, Toronto asking rents rose 9% to an average of $24.58 at mid-year, as vacancy rates slid to 5.2% from 8.4% at mid-year 2005. New York registered a 7% increase in asking rent to an average of $47.30, and vacancy fell 1.8% to 6.3%. Washington, DC which was the only major US city to thrive after the dotcom bust, saw asking rents rise $45.50, up 0.6%. Despite a tremendous rise in development, vacancy continued to fall, down 0.6% to 7.3%.

For more information on emerging markets, contact Pacific Security Capital at www.pacificsecuritycapital.com or call 1-800-844-6085.

Capital Markets Happy

The Fed announced yesterday that they would be holding interest rates steady much to the joy of borrowers.

Commercial real estate capital markets reacted with relative calm. Mortgage interest rates remained unchanged in the past couple of days, as treasury notes trade within the high 4% range.

For more information on capital markets services from Pacific Security Capital, visit www.pacificsecuritycapital.com or call 1-800-844-6085.

Slowing Sales Foretell Weakening

Article By Ryan Chittum Via RealEstate Journal

Rents at shopping malls rose in the second quarter at their fastest clip in nearly three years, and strip malls posted solid increases as vacancies decreased in both sectors, a survey shows.

But weakening second-quarter retail sales have damped growth and could slow it further in later quarters as economic pressures squeeze consumers. For the second straight quarter, absorption -- the net change in occupied space -- showed signs of weakness. Tenants absorbed 4.9 million square feet in the period, up from 3.3 million in the first quarter, but well below the two-year average of about seven million square feet per quarter.

Retail sales moderated due to a variety of pressures, from high energy prices to rising interest rates and a slowdown in the once-booming housing market.

See full article >

For more information on Retail Loans from Pacific Security Capital, visit www.PacificSecurityCapital.com or call 1-800-844-6085.