A few months ago, I warned all to Watch As Near Free Money To Banks Fails To Prevent Nuclear Winter For European CRE. This warning was an offshoot of the extensive research that I did on the European banking sector, sovereign debt and CRE.
Most businesses use some kind of commercial real estate. Leasing property has been a bargain in the past year. Prices for buyers are very favorable, though commercial mortgages are still subject to pretty tight underwriting. Many commercial tenants have renegotiated their leases to lower their rents. Going forward, though, good deals are going to be more difficult. 2011 is the year to lock in current rents. If you are going to need more space in the future, you might want to commit this year while landlords are still feeling desperate.
We’ve been skeptical of the private equity land rush to snap up single family homes for rentals. They’ve been a big enough force in the housing market nationwide to lead some commentators to question how solid the housing “recovery” is. Yet the combination of rising enthusiasm for housing and a richly-valued stock market is leading a raft of PE firms to ready IPOs as a way to take profits and establish valuations for their profit participations.
ByElephant Analytics:Sears Canada (OTCPK:SEARF) is an example of what many people hope that Sears Holdings (SHLD) can do with its American assets. Sears Canada has sold many of its leases and real estate assets, and issued special dividends to its shareholders with the proceeds.
By Dividends4Life: A multitude of self-made millionaires (and billionaires) made their fortunes in real estate. Often through the development of large-scale projects such as shopping centers or planned communities. On a smaller scale, there are many landlords with one or more rental properties earning them a monthly income.
By Adam Aloisi:REITs represent one of the most convenient and compelling vehicles for retail investors wishing to expose themselves to real estate ownership. The stresses of tenant/landlord disputes, building rehab. costs, as well as tax headaches, which are some of the many downsides to renting property, are all absorbed by REIT entities.