Worth Repeating Spring 2011

Spring 2011

2011 Marcus & Millichap Investment Outlook: Is Renewed Optimism Justified? Webinar – January 13, 2011

Responding to what surprises the panelists have encountered on the distressed side, “Everything is taking a lot longer than expected. You have to deal with deal fatigue and have patience – three months to two years to close a transaction.”

“We’ve come out of the deep freeze with many new lenders and conduits in the market. Borrowers are holding on, waiting for cap rate compression. 2011 will be the year of the have and have nots. Existing larger loans will get servicers’ attention. Smaller loans will be sold by servicers on a wholesale basis and liquidated at a faster pace. Those who got drunk on leverage are facing a bitter future.” Michael Sarkozi, managing director, JP Morgan

In discussing the current investment climate, “The number of B buyers is small. Loan kickouts have a chilling effect. Loan originations will grind to a halt without B buyers and spreads will gap out overnight.” Michael Sarkozi, managing director, JP Morgan

“We forecast 1.5 million office jobs over the next five years. For every 10 jobs created, two new office jobs result. The majority of growth will oc­cur in 2014-2015.” Brian McAuliffe, managing director, head of Americas Transactions, RREEF

Commenting on investing in the office market, “Focus on the CBD and inner suburban commercial employment centers; seek properties close to transit and amenities; avoid com­modity suburban office parks.” Brian McAuliffe, managing director, head of Americas Transactions, RREEF

Discussing the current state of the industrial markets, “Growth has returned – albeit at a subdued pace. You will see speculative development in 2011. Buyers are more risk-tolerant and interested in B markets. Leasing demand turned positive in 3Q2010. Cap rates for quality assets in ‘A’ markets remain very aggres­sive.” Larry Harmsen, president, United States and Canada, ProLogis

The 2011 Outlook: “Customers will continue to rationalize the supply chain to drive down cost but are now also looking to re-invest and drive market share. Build-to-suit activity will likely continue with tightness in certain size ranges driving rent growth up. The window for early blend-and-extend is over and the mindsets of landlords and tenants has changed.” Larry Harmsen, president, United States and Canada, ProLogis

Solution Series Program, “Some Green You Care About” – January 18, 2011

Overviewing practical ways to save money, “The highest ROI comes from lighting and installing a variable frequency drive in the air handler. Contract with a lighting engineer to test light levels in high traffic areas and change out the light switch. Some switches connect to the ballast wirelessly.” Daniel Cohen, vice president, Amstar

In discussing how to get paid to save water, “Water utilities love landlords that put in new, more efficient fix­tures. Most utilities will rebate some or all cost of new toilets, sinks, etc.” Daniel Cohen, vice president, Amstar

"Growing Opportunities in the Federal Real Property Markets” Webinar – December 16, 2010

In discussing how real estate profes­sionals can prepare and capitalize on the federal property market, “Understand the fundamentals of sustainability – study and track LEED categories; be aware of changing workplace patterns and interior space trends; understand your greenhouse gas footprint and green your supply chain.” David Winstead, attorney, Ballard Spahr LLP

Noting trends to watch in 2011, “Agencies will consolidate into more efficient buildings, take advantage of surplus properties on the market and be aggressive in lease negotiation.” David Winstead, attorney, Ballard Spahr LLP

Commenting on the benefits and challenges of GSA projects, “Price is generally not the deciding factor in a negotiation. A loud, consistent message is zero footprint. We spend more time on sustainability issues than deal structure and price.” Matthew Hurson, managing director, Hines-U.S. East Coast Region