Glenn Administrator

Content Posted by Glenn Administrator

Are Commercial Short Sales and REO’s Disappearing?

While some reports indicate that the CRE mortgage default rate has continued to rise in 2013 it is my perception is that distressed sales (short sales and REO’s) as a percentage of total commercial real estate (CRE) sales are down.  That doesn’t mean that the CRE market is strong and it’s definitely not a sign that its “booming.”  What it does mean is that if you are searching to buy a commercial property there are relatively fewer distressed deals around as a percentage of all available deals.

Land Market Timing

Land markets, like most real property markets, react to what is effectively a “mob mentality.”  Everyone hears about big gains, they rush into the market until the “next greater fool” theory has exhausted the buyers, the market turns and then immediately many of the new owners want out.  That’s when the rush to dump land holdings begins and the roller-coaster is on the way down.

How Important is a Property "For Sale" Sign?

Agents know that there are only a limited number of things that they can do to get a listed commercial property sold.  Of course, being able to personally contact parties who they know are interested in a certain kind of property is the most effective marketing method, it can produce immediate results, but often agents find that their list of personally know buyers is limited and when they reach the end of it they have to become more creative. 

Will the Echelon Project Sale Turnaround the Las Vegas Commercial Market?

While there is no doubt in my mind that the approval, sale and development of the Echelon property will go a long way toward bolstering the Las Vegas Strip image, it isn't a pancea, its not going to solve many of the problems still notable in our commercial real property markets.

Real Estate Investments versus Stock Investments

Stock brokers argue that real estate is risky and not liquid.  When you consider the movements of the stock market and the volatility associated with many stocks, I don't think stock brokers can currently argued that there is low risk holding stock.  More often than not I am reading about how the whole market may fold when the fed pulls back from its outrageous money creation scheme.  You may wake up tomorrow and find your stock portfolio down by 50% and you can't tell me that is not risky.  Liquidity is great, but bricks and mortar is permanent, real estate is definitely not pieces of paper or a micro ownership interest in a corporation.

The Future for Commercial Real Estate (CRE) in Nevada ?

If you have been reading commercial real estate (CRE) press releases you may feel like I do, that most of us are simply grains of sand in the glass, surely not as important as pawns in the game.  The banks have played their “extend and pretend” game with troubled CRE assets and now the Mortgage Bankers Association (MBA) has noted in a recent article that CRE debt is not going to be a problem in the future “for the banking sector or the economy as a whole.”  I guess that means that if you are one of the many individual CRE owners of those assets who have lost or will eventually lose your commercial property it is not going to affect the banks or the general economy much so “don’t worry, be happy.”