Your SlideShare is downloading. ×

Benefits of usa commercial property

91
views

Published on

It is very amazing and useful slide for business owners. They have received very huge information about benefits of USA commercial property. More detail visit it http://www.cashflowgold.com.au …

It is very amazing and useful slide for business owners. They have received very huge information about benefits of USA commercial property. More detail visit it http://www.cashflowgold.com.au

Published in: Business, Economy & Finance

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
91
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
2
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • Impact of the credit crunch is most evident in transactions activity, and the availability of financing for acquisitions and new construction.
    Per our data from Real Capital Analytics,
    Transactions activity is down 60% to 70% over the past year
    Pricing for quality assets remains sticky, and sellers in most cases are not stressed and may prefer to hold properties off the market for now
    Few closed transactions mean there’s still not a lot of clarity in pricing
    We continue to see
    Tighter underwriting standards
    Fewer lenders in the market
    Virtually no commercial construction financing for spec projects – which to my view is a good thing by limiting oversupply.
    Trends that became evident one year ago and still very much in play are
    A Flight to quality by investors, with A class assets in top tier markets seeing very little repricing
    Plenty of pent up capital on the sidelines, both institutional and foreign, looking for investment opportunities
    Some movement in cap rates – generally 50 to 100 basis points, but very few actual transactions to validate an overall trend
  • Impact of the credit crunch is most evident in transactions activity, and the availability of financing for acquisitions and new construction.
    Per our data from Real Capital Analytics,
    Transactions activity is down 60% to 70% over the past year
    Pricing for quality assets remains sticky, and sellers in most cases are not stressed and may prefer to hold properties off the market for now
    Few closed transactions mean there’s still not a lot of clarity in pricing
    We continue to see
    Tighter underwriting standards
    Fewer lenders in the market
    Virtually no commercial construction financing for spec projects – which to my view is a good thing by limiting oversupply.
    Trends that became evident one year ago and still very much in play are
    A Flight to quality by investors, with A class assets in top tier markets seeing very little repricing
    Plenty of pent up capital on the sidelines, both institutional and foreign, looking for investment opportunities
    Some movement in cap rates – generally 50 to 100 basis points, but very few actual transactions to validate an overall trend
  • COMPLETE - JML
  • COMPLETE - LONSKI
  • COMPLETE - LONSKI
  • Transcript

    • 1. Benefit of USA Commercial Property
    • 2. Benefit of USA Commercial property  A lot has been written about housing property investments but the areas of commercial property investments are not very common with most of US. A huge number of investors are more at relieve with investing in housing property as they are common and comfortable with it.
    • 3. What is Commercial property?  Commercial property is office spaces, trade units, and industrial factory sites, warehouse and developed industrial sheds. The investment process and income are quite different to the traditional residential.
    • 4. September 30, 2008 Why Invest in Real Estate?Why Invest in Real Estate? Investment Total Returns 5.3% -22.0% 7.9% 13.3% 0.2% 5.6% 14.2% 5.2% 4.3% 11.8% 3.1% 5.4% -30% -20% -10% 0% 10% 20% 1 Year 3 Year 5 Year 10 Year NCREIF - NPI S&P 500 Lehman Govt. Bond Index Past performance is aPast performance is absolutelybsolutely nono guarantee of future performance,guarantee of future performance, especially in the short-term andespecially in the short-term and maybe not in the long-termmaybe not in the long-term
    • 5. Top 200 Pension Fund AllocationsTop 200 Pension Fund Allocations * 2008 is estimated based on a 20% decline in total assets and constant real estate dollars allocated* 2008 is estimated based on a 20% decline in total assets and constant real estate dollars allocated Real Estate Allocation to Total Assets Source: Pensions and Investments, UBS Research, Cornerstone ResearchSource: Pensions and Investments, UBS Research, Cornerstone Research Uh-oh! 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08* $trillions 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% Total assets (L) Real estate allocation (R)
    • 6. 0 25 50 75 2001 2002 2003 2004 2005 2006 2007 2008 BillionsofUS$ Apartments Industrial Office Retail Monthly Sales Volume by Property Type Commercial Real Estate Sales ActivityCommercial Real Estate Sales Activity Source: Real Capital Analytics, Cornerstone Research 8-28-2008 Portfolio deals, REIT buyouts fueled peak activity in 2007, transactions fall to 5-year low in 2008
    • 7. Cap Rates Disconnect Commercial Real Estate ValuationCommercial Real Estate Valuation Source: NCREIF, Cornerstone Research 8-28-2008 Transaction vs Current Value Cap Rates 4% 5% 6% 7% 8% 9% 10% 11% 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 Year CapRates Cap Rates - All Sold Props Current Value (Appraisal) Cap Rates
    • 8. Why Commercial property is Better Than the Housing Property?
    • 9. Income & Risks: The risks low and also the incomes are also low in the housing property; however the commercial property has a higher profits with a higher risk. In USA the commercial market vary from location to location, but if one takes an overall analysis of profitable returns compared to inhabited returns, the difference is strikingly poles apart.
    • 10. Rents Period: Inhabitant leases tend to be for six or twelve months, which is a smaller period. Though, a great USA commercial property is rents out for a higher period of time may be about six to seven years with a boom of rentals ranging from 15 to 25% yearly.
    • 11. Quality of Occupant: The occupant is obviously a vital and critical part of your property. In best commercial USA property, a large business tenant occupier is considered a blue chip tenant. They are probable to rent your property for a long period of time and are doubtful to default on the rent.
    • 12. Investment Ratio: Retail commercial property in USA is frequently much more expensive than buying inhabited property.
    • 13. Profit of a Commercial Property Investment: One of the chief advantages of being an landlord of perfect USA commercial property is that once you have a possible blue chip business as a renter you have the benefit to flip your property with a larger outskirts, where you would find ready purchaser offering you the rich best, your pockets swell more and more, still though you have been milking the buffalo for over so many years. This is not the case in inhabitant investments.
    • 14. Real Estate Portfolio ManagementReal Estate Portfolio Management Thanks More detail for Benefit of USA Commercial property visit it. http://www.cashflowgold.com.au