Geodata, MappSnap and Industrial Real Estate

Geodata, MappSnap and Industrial Real Estate

Posted on by Jim Klein

Geodata is widely used in many commercial internet applications like Yelp, Google Maps, Twitter, Foursquare and Factual. Many of these web services match your phone’s location to their own mapping programs. In most cases location data is an aid to sell goods and services. I use the same relationship between point data and the connected internet to find more real estate deals using MappSnap.


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European Opportunities for U.S Occupiers and Investors

European Opportunities for U.S Occupiers and Investors

Posted on by Jim Klein

I just returned from the SIOR European Conference in Warsaw, Poland. It’s my third visit to Europe recently and the most persistent trend is the expansion of big warehouse development. It’s leading to opportunities for U.S. occupiers and investors mainly due to the strength of the dollar.
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Industrial Building Portfolios – In Heavy Demand

Industrial Building Portfolios – In Heavy Demand

Posted on by Jim Klein

Industrial Building Portfolios, $50MM and greater, are where the action is today. Institutional investors need scale and the only place to find it, as far as industrial, is in the portfolios of National Operating Companies and Private Partnerships. Institutional Investors stand between the real estate and fixed obligations to satisfy pension, insurance, and retirement plans. It’s major financial plumbing and as the obligations grow so does the need for product. Roll ups, a familiar consolidation vehicle in corporate America, is now the preferred way for large real estate investors to buy. Unknown to many, national industrial building ownership is consolidating and almost all local developers/investors sell into these relatively few pools as a final exit.
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Concentration Continues at the Top Tier of Industrial Buildings

Concentration Continues at the Top Tier of Industrial Buildings

Posted on by Jim Klein

The world of big industrial has evolved with fewer and better capitalized buyers. It’s a core group of 15 or 20 nationwide owners that know the markets, have talented principals and to the delight of most sellers, they close for all cash. In contrast, the entrepreneurial developer who played such an important development role in past buying cycles has almost completely vanished from the scene. High Net Worth Funds, REITS, Pension Plans, and the Insurance Companies dominate the ranks of primary industrial investors. Occasionally, developer partners, seek out capital from the large institutions, but control still reverts to the same dominant group of investors.

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Commercial Mortgages Are On The Way Up

Commercial Mortgages Are On The Way Up

Posted on by Jim Klein

Many have already seen charts like this one showing a big drop at the end of 2007. It explains the past four years of weak sales. The small uptick demonstrates the recent increase of deals. Since this is 2011 Q3 data, (but released earlier this month), I expect to see more improvements. The same indicators are alive in the market. A long way from peak conditions but in the right direction.

BUYING SIGNALS ARE ON

BUYING SIGNALS ARE ON

Posted on by Jim Klein

Date

1 Mo

3 Mo

6 Mo

1 Yr

2 Yr

3 Yr

5 Yr

7 Yr

10 Yr

20 Yr

30 Yr

09/01/11

0.02

0.02

0.05

0.10

0.19

0.31

0.90

1.49

2.15

3.10

3.51

09/02/11

0.02

0.02

0.05

0.10

0.20

0.33

0.88

1.41

2.02

2.92

3.32

09/06/11

0.02

0.02

0.07

0.13

0.21

0.33

0.88

1.40

1.98

2.86

3.26

09/07/11

0.00

0.02

0.06

0.11

0.21

0.34

0.92

1.45

2.05

2.96

3.36

09/08/11

0.01

0.02

0.07

0.12

0.19

0.33

0.88

1.41

2.00

2.92

3.32

09/09/11

0.00

0.01

0.05

0.11

0.17

0.31

0.81

1.34

1.93

2.86

3.26

09/12/11

0.01

0.01

0.05

0.11

0.21

0.35

0.87

1.38

1.94

2.84

3.24

09/13/11

0.00

0.01

0.05

0.10

0.21

0.35

0.89

1.42

2.00

2.92

3.32

(Daily Treasury Yield Curve Rates)

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Finding Deals In Foreclosure Land

Finding Deals In Foreclosure Land

Posted on by Jim Klein

Foreclosure pricing has set the tone in the residential market. While we remain in Foreclosure Land, everyone wants a bargain. This way of thinking bleeds to what was once the “normal functioning” market. Many are anticipating the same will happen in the commercial area. But whether in good markets or bad, the same thing holds true. It’s hard finding deals and it takes ingenuity to make them work. Now more than ever, a tenant is the critical ingredient in almost every purchase.
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INFILL LAND

INFILL LAND

Posted on by Jim Klein

In the competition for industrial real estate investments, more institutionally backed buyers are dabbling with infill land, but have not yet found the formula for success. Infill sites are considered non-traditional investments because they take more effort to understand and come with substantial risk. Large buyers can not make as big an investment in infill as when they purchase a portfolio of buildings. For this reason, and until institutions learn how to roll up these non-core properties, there is still a great opportunity for smaller entrepreneurial buyers to distinguish themselves as experts in the field.

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Added Value Property

Added Value Property

Posted on by Jim Klein

Creative solutions to problem real estate are the domain of value added deals. These are buildings that after they are redeveloped will increase cash flow and operability. The simplest examples are adding more square footage to an underutilized land area or subdividing the building for smaller tenants at a higher per foot rent. Because building new is so costly, there is more attention being paid to reconfiguring older property.
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