The High Cost of Low Interest Rates

October 4, 2011

This is not my headline, but I wish I had written it. It comes from REBusinessOnline which recently published a story about Ethan Penner and his perspective on the commercial real estate market. Penner’s comments are consistent with my view that the stampede into primary markets and core assets is overdone, just like the stampede […]

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Anticipating The Rate Hike
Equity Risk Premium In A Rising Interest Rate Environment
Read more on Interest Rates, Commercial Real Estate at Wikinvest
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Versus Capital Brings Institutional Real Estate Funds to Retail Investors

April 6, 2011

When it comes to commercial real estate investment strategies for retail financial advisors, there’s water, water everywhere, but not a drop to drink — particularly if you’re a fiduciary. From a strict asset allocation perspective, publicly-traded REITs and REIT ETFs are often highly correlated to equities, especially over a short-term investment horizon. On the other […]

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Merrill Lynch Bullish on Apartment REITs

March 31, 2011
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“Why buy when you can rent?” This is the question being asked by Bank of America Merrill Lynch’s U.S. economics team, and in tandem with BAML’s REIT analysts, the firm published a series of research pieces on apartments and rental housing yesterday. The firm outlined a number of ways to play what it believes will […]

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Commercial Real Estate: Where the New Normal is Old Hat

November 2, 2010
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Early in 2008, even as the world was coming apart, some commercial real estate investors were still insisting on doing the Same Old Thing. ‘We want the sunbelt’, I heard them say, ‘that’s where all the growth is’. Back in 2006, it was Ohio that had the highest foreclosure rate in the nation, along with […]

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Essex Property Trust Expects 35% Rent Growth in Certain West Coast Markets

June 18, 2010
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The REIT Week confab in Chicago is now over, and REITs of all stripes were reporting firming occupancies, better leasing activity, and stronger rents. The only weak spot appears to be suburban office properties, where landlords are still said to lack pricing power. Apartment REITs in particular were the beneficiaries of a strengthening economy. Roommates […]

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Deutsche Bank/RREEF: The Recession is Over But Now Comes the Hard Part

June 14, 2010

Last week, RREEF’s Chief Economist and Strategist Asieh Mansour cautiously told investors attending the Pacific Coast Builder’s Conference that the recession is finally over and that businesses have started hiring again. Unfortunately, she also said she’s never had to make a forecast with so many risks to the downside, and the recovery, if it takes […]

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Michael Lewis & Ivy Zelman: Entitlements Are Bigger Risk Than Moral Hazard

June 10, 2010
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The buzz around Michael Lewis these days comes from his new book “The Big Short,” which is why he and Ivy Zelman were invited to speak at the Pacific Coast Builders Conference this week. Ivy Zelman, of course, is the now former the Credit Suisse housing analyst who famously asked Toll Brothers CEO Bob Toll […]

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Stifel: Piedmont Office REIT Transition “Will Take Years”

May 27, 2010

Stifel Nicolas picked up coverage of PDM today with a not so flattering “Hold” rating. Piedmont, of course, is the offspring of Wells REIT I, a non traded REIT that went public earlier this year. Stifel said Piedmont was fully valued at its current price ($18.70), but that was the least of their concerns. According […]

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JP Morgan Attempts to Rebuild Market for CMBS “B” Pieces

May 19, 2010
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During the economically chilling month of April, I typically lose my enthusiasm for labor. Indeed, during this past tax season, REIT Wrecks emitted nary a vowel. Unfortunately, CMBS bankers have no such luxury, lest they have no work at all. The market for CMBS remains stalled, and the lack of credit availability is stunting what […]

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Fortress Investment Group Fails To Knuckle Newcastle Preferreds

March 29, 2010

Newcastle Investment Corp., (NCT) a Mortgage REIT managed by Fortress Investment Group, will continue to contribute management fees to FIG’s income statement for at least another year. But whether NCT makes it out of 2010 is an another question. Newcastle is suffering from a host of balance sheet issues, including a portfolio full of CDOs […]

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