Two NAI NBS Brokers Recognized at NAI Global 2011 Convention

Two NAI Norris, Beggs & Simpson employees were recognized at NAI Global’s 2011 Convention in Las Vegas last week.

Executive Vice President Roger Qualman, who manages NAI NBS’ Vancouver, Washington, office and oversees the company’s industrial sales team, received the Chairman’s Award. It recognizes the NAI Business Director who best exemplifies the “right stuff” as it relates to the effective management of an NAI office, including leadership, business generation, service delivery, participation in enterprise initiatives and integration of NAI tools and resources throughout the firm. Qualman is pictured at right accepting the award from NAI Global President Jeff Finn.

Real Estate Broker Ross Connor, who specializes in industrial properties, was named to the NAI Global Elite, a group comprised of the organization’s top performers and top producers. He qualified as a Top Performer at the Elite level based on 2010 production.

NAI Global Releases Global Market Reports

NAI Global has published its 25th annual Global Market Report, containing information on commercial property in more than 200 markets around the world, including Portland.

2010 was a tough year for the commercial real estate market, but recovery is starting to occur, and there's some room for optimism.

“Although 2010 was another very challenging year for the industry, we began to see clear signs that the global economy and commercial real estate markets had stabilized and were beginning to improve with a noticeable pickup in transaction volume around the world,” said Jeffrey M. Finn, President & CEO of NAI Global. “Companies around the globe are taking advantage of the current market, extending or renegotiating leases, securing investment properties, disposing of underperforming assets and finalizing plans for growth in the next 24 months. We expect a much more active market for buyers, sellers and occupiers as conditions continue to improve.”

The full report can be found here, and the snapshot of Portland is on page 124. It discusses Portland's office, industrial, retail and multifamily markets.

New Report Says CRE Industry is Leveling Off

A recent survey of senior real estate executives suggests that the commercial real estate market is leveling off, but uncertainty remains about how the recovery will play out.

The Real Estate Roundtable’s quarterly “Sentiment Survey” for Second Quarter 2010 was released this week, and provided some hope that commercial real estate has reached bottom. It also said more capital is available, but is limited by markets and property types.

Our friends at NAI Global posted this summary:

Of the 100+ senior real estate executives participating in the Q2 survey, 82% characterized market conditions today as better than a year ago (up from 73% in Q1), although only 17% said conditions are “much better.” The “Current Conditions” index hit a low point of 17 in Q4 2008 (during the near-collapse of U.S. financial markets); rose to 56 in the final months of 2009; and now stands at 74.

“Clearly, the sense of gloom that prevailed a year ago has eased, property values no longer seem to be in a freefall, and market participants are feeling more confident,” said Roundtable President and CEO Jeffrey DeBoer. “But, while sentiment is up, that’s not to say things are ‘good.’ Refinancing remains difficult for many and defaults are still rising, which means more pain ahead.”

In a sign that values may be leveling off, only 28% of those polled perceived asset prices today as lower than they were a year ago, compared with 57% in the previous quarter. Correspondingly, 46% said valuations today are better than a year ago, compared with only 22% in Q1. Looking ahead, 56% expect valuations to be “somewhat higher” a year from now and 35% expect them to remain “about the same,” compared to 42% and 35%, respectively, in the previous survey.

In another important metric, the Q2 survey shows “signs of life” in the debt and capital markets, although numerous respondents qualified their statements by saying improved availability is limited to certain parts of the market or types of properties (e.g., with positive cash flows). Of the 65% who said debt capital is more available today than one year ago, 27% characterized availability as “much better.” By contrast, only 19% of Q1 survey participants felt conditions were “much better” than a year earlier.

On the equity side, 76% said availability is better than one year ago (with 26% characterizing it as “much better”). However, the number of respondents predicting conditions will be better “one year from today” declined from 75% in Q1 to 66% in Q2, with a corresponding increase in the number who expect equity availability to remain “about the same.”

What do you think? Is your market seeing signs of life?

NAI Global Named Global Broker of the Year by PERE Magazine

NAI Global, one of the largest commercial real estate service providers worldwide, has been named Global Broker of the Year by Private Equity Real Estate (PERE) magazine in the PERE Awards 2009.

"Each year, the readers of PERE magazine and PERENews.com nominate and choose the firms, individuals and deals they believe stood out from the crowd the previous year," said Zoe Hughes, Senior Editor, Real Estate. "2009 was a year in which the private real estate investing world experienced a tremendous amount of turmoil, so to be selected in this year’s awards is a tremendous accolade from our readers and a vote of confidence in what lies ahead for NAI Global."

"This award is a testament to the quality and commitment of NAI Global and its professionals around the world in serving the private equity and financial sectors," said Jeffrey M. Finn, NAI Global President & CEO. "Looking ahead, we will continue to innovate and add value with focused service offerings like our Special Asset Solutions group or the Commercial Property PowerSale™ program, to deliver exceptional results for clients around the globe."

NAI Global Launches Special Asset Solutions Group to Focus on Distressed CRE Portfolios

NAI Global has formed a Special Asset Solutions™ group to assist clients with financially distressed real estate assets and REO.

The new group concentrates NAI Global’s resources across multiple disciplines and markets to provide banks, financial institutions, special servicers and other holders of REO assets with the full spectrum of services an asset is likely to require throughout the ownership cycle. The group’s offerings include loan sales and restructurings, asset and property management, receivership, due diligence, valuation, leasing and disposition.

“With a large number of assets coming under their supervision over the next 12-24 months, lenders are having to adapt to a new role as de facto property owners,” notes NAI Global President & CEO Jeffrey M. Finn. “This realignment of our established service lines enables understaffed REO departments to focus on their core competencies while proactively dealing with their nonperforming loans and REO.”

NAI’s Special Asset Solutions™ team, led by Executive Vice President Rhyne Brown, works with the client to assess the physical asset, preserve and enhance the asset’s current value, mitigate risk and put a strategy in place to dispose of the property or loan. The team is supported by the local expertise of 5,000 professionals in over 325 NAI offices worldwide.

“While there are a variety of issues that must be addressed along the way, the ultimate goal for many of our clients is a successful disposition,” Brown says. NAI employs a variety of disposition methods, from traditional marketing to loan sale programs and accelerated marketing programs like the Commercial Property PowerSale™, NAI Global’s online property auction platform. NAI’s disposition expertise runs across all property types and ensures broad exposure to commercial real estate investors across the U.S. and worldwide.

NAI Global's Global Market Report Details Challenging 2009

Commercial real estate markets around the world experienced the full impact of the global economic recession in 2009, according to the 24th annual Global Market Report released by NAI Global. Rising vacancy rates and declining rental rates were evident in virtually every market sector and geography, with weak demand and a growing supply of sublease space further eroding market fundamentals.

After a turbulent 18-24 months since the market peaked, 2009 marked a year where transaction volume nearly came to a standstill as corporate tenants waited for clear signs of recovery and investors remained on the sidelines waiting for signs the bottom has been reached. As the year progressed, government intervention in the form of stimulus packages in the U.S., Europe and parts of Asia took hold and by year’s end many markets had begun to stabilize. However, with U.S. unemployment topping 10%, consumer demand and spending power at their lowest levels in decades and international manufacturing and trade proceeding at a crawl, the global recovery will take some time to truly stimulate economic growth.

“The past year was extremely challenging for commercial real estate, and we don’t anticipate much new demand in 2010,” said Jeffrey M. Finn, President & CEO of NAI Global. “We’re working with our corporate clients to help them take advantage of the current tenants’ market to reduce their long-term occupancy costs. Many tenants are able to negotiate more favorable lease terms today in exchange for a longer commitment. This ‘extend and blend’ practice is a trend we see continuing well into the next 18-24 months.”

Investors who have been sidelined by economic uncertainty will see tremendous acquisition opportunities in the coming year as banks and financial institutions clean up their balance sheets and move more aggressively to dispose of commercial real estate loans and financially distressed real estate assets, said Finn.

“The recession has been over for six months and job growth is just months away, but the fact remains it will be impossible to predict what will happen next,” added Dr. Peter Linneman, NAI Global Chief Economist and Principal at Linneman Associates. “With significant tax, healthcare and regulatory proposals still in the offing, there is little clarity as to the ultimate outcomes or costs. We’re concerned with commercial mortgage delinquency rates as they have been on the rise and could keep the commercial real estate industry in neutral for several more months.”

NAI Global is one of the largest real estate services providers worldwide. Headquartered in Princeton, New Jersey, NAI Global manages a network of 5,000 professionals and 325 offices in 55 countries. Now in its 24th year, NAI’s Global Market Report offers insider insight and perspective on market conditions reported by NAI experts on the ground in over 200 property markets worldwide. To obtain a copy of the full report, contact psetaro@naiglobal.com.

NAI NBS Offers Accelerated Marketing Program to Help Property Owners and Financial Institutions Dispose of Troubled Real Estate Assets

NAI Norris, Beggs & Simpson is participating in the Commercial Property PowerSale™, an Accelerated Marketing Program created by NAI Global to help property owners and financial institutions dispose of troubled real estate needs. More than 50 properties, valued in excess of $150 million and located in states, will be auctioned off during the first Commercial Property PowerSale™ on May 1.

The Commercial Property PowerSale™ employs a variety of accelerated marketing techniques that have proven effective in previous economic cycles when traditional sales channels are gridlocked. Property owners will have the option of offering their property for sale via a series of live online auctions, sealed bids or a unique combination of the two formats. Properties in the Commercial Property PowerSale™ benefit from an aggressive marketing campaign that includes focused print, broadcast and electronic advertising, and a direct-to-buyer outreach to more than 175,000 active buyers. Sellers are assured a shortened sales process and a date certain sale schedule. The three program options – Auction Marketing, Sealed-Bid and Sealed-Bid Plus™ – set up a competitive bidding environment that creates urgency, forcing buyers to act immediately.

The program is open to both private and institutional owners and will include the sale of both commercial real estate equity and loans. Sellers can submit an individual asset or an entire portfolio, and property types will include everything from office, industrial, retail, hospitality and multifamily properties, to residential subdivisions and land for development. Both performing and non-performing commercial real estate loans may also be offered for sale. The NAI team will evaluate each property and guide the seller through the program process, helping them to choose the sales vehicle that best suits their needs.

Find more information about the Commercial Property PowerSale™ here.