Dividends Start to Rise at Commercial REITs

Check out this fascinating article about REIT's from the Wall Street Journal.

NAI Ruhl & Ruhl Commercial Company Blood Drive

The NAI Ruhl & Ruhl Commercial Company blood drive held on November 16, 2010 was a success and could not have been done without the help of our 8 donors who's blood will be able to help a total of 24 patients. Several other staff members wanted to make a donation, but were unable due to recent travel outside of the U.S. NAI Ruhl & Ruhl Commercial Company would like to thank the Mississippi Valley Blood Center for spending their day with us setting up the event and collecting blood.  Thanks again to all those who donated.

Good news on the commercial front

original article published in National Association of Realtors- Realtor.org by George Ratiu in November 2010.

Research Economist, George Ratiu, states that "Amid signs of uncertainty, economic activity continued its moderate growth trend in the third quarter of this year." Ratiu goes on to say that growth came about due to double digit increases in spending, coupled with rising consumer expenditures.

"Against this backdrop of a moderately recovering economy, commercial real estate investments posted a significant jump in sales during the third quarter – up 115.0 percent from the third quarter of 2009." Ratiu infers that the increase in commercial investment signifies a shift in preferences among global investors.

According to Ratiu, "In addition to global investors, U.S. commercial real estate investors are finding improved conditions in certain markets and property types." Ratiu goes on to break down third quarter findings on a class by class basis, stating "While fundamentals for office, industrial and retail properties are still trying to shake off negative absorption and rents, demand for apartments has been strong – and continues to rise."


To view this article in its entirety and to see a break down class by class, CLICK HERE.

Midwest Real Estate News asks, "Will only the strong survive today's commercial market?"

originally published November 9, 2010 in Midwest Real Estate News

Ted Jokerst, senior vice president and manager with Minnetonka, Minn.-based Welsh Capital, is confident that tough times will leave behind a stronger commercial real estate industry. Jokerst states, "It’s a challenging time right now. But there are opportunities in the marketplace to find new clients and provide value. We have the opportunity in such a challenging marketplace to really differentiate ourselves from other companies in what services we can provide clients. That’s how you have to look at a market like this one."

Jokerst believes the market will come back in time, but slowly.  Likewise, Jokerst finds the Midwest markets to be more risk-averse which he believes has been a real help during this economic downtown.

To read more of this article, CLICK HERE. 

Multi-Family Remains Strong in the Midwest

original article published in Midwest Real Estate News on October 26, 2010 by Dan Rafter

Bruce Gerhart, Senior Vice President and Midwest Regional Director based out of the Cleveland office of commercial mortgage banking firm Love Funding, says that the multi-family industry has remained strong due to its cautious nature.  Gerhart states, "Within the Midwest, there has been very little building over the past eight, nine or 10 years when it comes to multi-family. Multi-family really has been underserved with you compare it with single-family housing in the Midwest. This under-building has helped to keep multi-family steady even as the economy goes through its difficulties."

He goes on to say that due to the economic slump more people are looking to rent as opposed to owning a home, and therefore there is a higher need for multi-family buildings.  He also states that the multi-family industry took a hit early on, but has been able to take advantage of the tough economic situation.  When these multi-family units took a hit early on, landlords struggled to keep their building fully occupied, and thus, rents went down.  Today, rents are stable and in some cases, they are even going up.

To Read more of Gerhart's thoughts, CLICK HERE.

What are your thoughts?  Is the Multi-family industry really as solid as we think?

Property Management, The Savior of Commercial Real Estate

According to Dave Petersen, Chief Executive Officer of the asset management company of Chicago's NAI Hiffman, believe that today’s challenging commercial environment, property management services have provided struggling brokerages with a reliable source of income.

Dave Petersen

Dave states, "When you are working in property management, you are creating other access to revenue streams. In the product that you lease and manage, other transactions occur. You are creating deal flow within that asset-managed portfolio. You are providing your leasing brokers an additional opportunity to call for business as they are out trying to fill space in buildings."

Dave goes on to say that being in the business of property management in today’s economy allows you  to be at the table with tenants.  Tenants today are gold in the eyes of investor clients.  Dave feels that nothing helps operating costs more so than being able to have a good tenant in place.

To view the rest of Dave's interview with Midwest Real Estate News, please CLICK HERE

Is it necessary to have a new survey when purchasing commercial real property?

There is no hard and fast rule. In general, it is always preferable to have a fresh survey so you know exactly what you are buying. But if there has been a survey within the past few years and you are convinced after looking at the property that nothing has changed, your lawyer may tell you that you can safely avoid getting a new survey.

Also, be aware that if you are borrowing money from a commercial lender, the lender will probably order a mini-survey (sometimes called a mortgage report). While this is not as good as a full survey ordered for your benefit, your lawyer may conclude that it is adequate for your needs. This is particularly true if, based on the lender’s survey, the title insurance company is willing to guarantee that there are no boundary line problems.

Record Year for the Corporate Challenge!

This Year's Corporate Challenge brought in 77,432 pounds of food donations for the River Bend Foodbank.  This amount is a new record, and NAI Ruhl & Ruhl Commercial Company is happy to have been a a part of it.  Several companies participated in the challenge, but there is always room for more. If your company is interested in  becoming a part of this great tradition, contact the Student Hunger Drive office at 563.359.9389 or or studenthungerdrive@gmail.com.

Shop Talk: 31 Expense-Slashing Solutions

Original article by Kylie Wroblaski in Buildings Magazine September 2010

Originally printed in Buildings Magazine, "Shop Talk: 31 Expense-Slashing Solutions" discusses best practices and great ideas about doing more with less.  The article covers anything from daytime cleaning to reducing paper usage and printing.  Much of the article focuses on creating a "green" environment which in turn will save money and cut expenses.  Other ideas include:  "replacing fluorescent lights with LED ambient lighting", "using weather based irrigation controllers", "purchasing quality used/refurbished furniture", or "finding a contractor with an energy focus."  For more money saving tips, and to view this article in its entirety, click the link below. 

Shop Talk: 31 Expense-Slashing Solutions

First Panera Drive-through to open in the Quad Cities

Original article published in the Quad City Times by Doug Schorpp

Panera Bread will open its third location at the corner of West Kimberly Road and Northwest Boulevard in Davenport, Iowa.  Previously, this location has been opearting as a used car showroom and body shop for Strieter Motor Co.  The location will open this winter and will contain the State's first Panera drive-through. 


For more information, and to read this article in it's entirety, CLICK HERE.

During Tough times, consider an auction!

Original Article published by Dan Rafter in Midwest Real Estate News on September 7, 2010. 

Gordon Greene

According to Gordon Greene, a principal of the TCN Auction Group at Chartwell Group/TCN Worldwide, it's no surprise that commercial brokers are turning to auctions to help move their properties.  Greene states that brokers have found that a high-profile real estate auction program can often deliver product faster to the market.  Several different types of real estate auctions are being utilized including: traditional negotiated sales, corporations with surplus properties, and workouts, which are basically orchestrated short sales. Greene offers that the market will eventually stabilize, and there will be more of the traditional use of negotiated sales compared to auction sales in the future.  To read more of Greene's thoughts, CLICK HERE.

Commercial Real Estate Remains Soft but Favors Business Expansion

According to the National Association of Realtors, Commercial real estate sectors, hurt by weak job growth, are offering incentives in many areas that are conducive to business expansion. NAR Chief Economist, Lawrence Yun, said fallout from the recession continues to impact commercial real estate.

In its SIOR Commercial Real Estate Index, The Society of Industrial and Office Realtors shows vacancy rates are beginning to level, but rents remain depressed, and subleasing space is high. Measuring 10 variables, the SIOR index rose 2.8 percentage points to 41.0 in the second quarter, but remains well below a level of 100 that represents a balanced marketplace. This is the third consecutive quarterly improvement.

Commercial real estate development remains stagnant in all regions with low investment activity, but development acquisitions are beginning to grow in many areas in what is described as a buyer’s market. According to NAR’s latest Commercial Real Estate Outook, vacancy rates will shift modestly in the coming year.

CLICK HERE to view this article in its entirety.

Robust Recovery in 2010 Will Just Return U.S. to Middling Economy

Strong, steady economic growth over the next two years will just return the U.S. economy to a pre-2008 level, giving us back what we needlessly lost due to government-induced panic and poor lending practices, according to a new white paper from NAI Global Chief Economist Dr. Peter Linneman. The white paper examines the overall outlook for the job market and provides a forecast for the next three years.

A Robust Rebound to Mediocrity?, NAI Global’s white paper, reviews payroll history and trends, providing an economist’s view of the recovery’s impact on the jobs market today and tomorrow.

This latest white paper follows Capital Markets Show First Signs of Recovery, Dr. Linneman’s treatise on the impact of how a rise and recovery in asset prices will lead to investors becoming more active, how capital markets will start to show recovery and the impact on the commercial real estate industry. NAI Global’s white papers and research resources are available for free download at www.naiglobal.com under Publications/Articles & White Papers.

Dr. Linneman is also Professor of Real Estate, Finance and Public Policy at the Wharton School of Business, University of Pennsylvania, and Principal, Linneman Associates.

To view the White Paper in it's entirety CLICK HERE