"The Blue Sky Always Wins" by William H Hudnut III

This was on the backpage of the ULI October 2008 magazine. Some items to point out:

1-Commercial Real Estate will likely not lose value as preciptously as financial assets; in general, real estate has outperformed stocks over the past 10 years;

2-About half of the homes, office buildings, stores, and factories needed by 2030 do not exist today;

3-Urban infill has become attractive

4-Transit use is growing - walkable shopping districts key

5-High quality always wins.

Email me if you would like a complete copy of the article.

Commercial Real Estate Foreclosures

These are trying times, many real estate investors are finding themselves in positions they never dreamed of; commercial real estate foreclosures are on the rise and are expected to get worse. If you find yourself being challenged by the market, I can help.

Short sales in commercial real estate are going to become the reality for some investors. The process can be simple really; it can be certainly better than dealing with the lender if you are in foreclosure.

Here is how it works. Utilizing my marketing program I find a willing and able buyer who will purchase the property at its current market value and then renegotiate the loan with the lender.

I have had numerous conversations with clients and lenders over the past several months; lenders are not renegotiating current loans. You have to prove current market value by bringing a qualified buyer, or talk with them during foreclosure proceedings.

I hope that all my clients can weather this storm, but I’m finding even my most sophisticated clients are being challenged.

I’m helping them, can I help you?

Excerpt from Bizjournal----Positive News about the Phoenix Market

They rated Phoenix at the 5th metropolitan area in terms of recovery from the recession. Some stats appear below.

Bottom line
Phoenix's raw numbers are breathtaking. Arizona's capital region has added 681,000 residents and 285,300 jobs in just five years. That's the statistical equivalent of creating the Knoxville, Tenn., market from scratch in half a decade. A recent slowdown in hiring is the only cause for concern.

Quick stats
Growth score: 27.50 points
Population: 4,179,427 (13 of 100)
Private sector employment: 1,668,800 (13 of 100)
Per capita income: $34,215 (67 of 100)
Gross metropolitan product: $179.49 billion (15 of 100)5-year growth rates
Population: 19.49% (4 of 100)
Private sector employment: 20.62% (6 of 100)
Per capita income: 19.37% (52 of 100)
Gross metropolitan product: 43.25% (13 of 100)

This is very positive news! Now is the time to be aggressive in looking for well located assets.

Election Is Over, It's Time To Get Back To Business

Regardless of who you voted for, the count is in, the concession speech was given and in January a new President of the United States of America will take the command.

What does this all mean? Specifically, what does this mean to you as a commercial real estate owner?

A couple thoughts to consider:

1-The Capital Gains Tax is going to go up. How does this affect you? If you are looking to sell your commercial property and you do not want to do a 1031 Exchange, the amount of tax you would have to pay is going to be MORE.

2-The Credit Crunch hasn't eased, yet. How does this affect you? If you are looking to buy or sell your commercial property, financing is difficult. CMBS money is still out of the picture. Life Insurance Companies, for the most part, have loaned the maximum amount of money they will lend for 2008. Local banks and even larger bank, are hoarding their cash for reserves. The statement, "cash is king," is slowly working its way to the head of the pack but for how long?

3-Commercial Real Estate is a great long term investment. You have a true asset that is not a piece of paper. Businesses can come and go, but the real estate is still there.

Remember, LOCATION, LOCATION, LOCATION is only half of the answer. TIMING, TIMING, TIMING is the other half.

Call me today to discuss current opportunities!