Washington, D.C., Lease Market Remains Resilient

NNN Lease Market News

WASHINGTON, D.C.—Hotel markets are largely affected by both macro and micro economic factors. However, the Washington, D.C. hotel market is somewhat unique because it includes the nation’s capital, which lends itself to many benefits. Most importantly, this hotel market is more resistant to economic recession than other U.S. metropolitan markets. Its international status contributes significantly to both leisure and group demand. Washington, D.C. is home to the federal government, and the private sector is closely aligned with the business of the federal government, which is an economic anchor to the lease market. As a result, the hotel market enjoys a consistent base of demand.

Economy

The Washington metropolitan area is the fourth largest in the U.S. with a US$454 billion gross regional product. Its economy ranked fifth globally for gross domestic product per capita in 2008, which led all major U.S. metropolitan markets (World Knowledge Competitive Index).  Office Space: The metro’s office lease market realized modest positive absorption (630,000 square feet in 2009 as compared to 3.4 million in 2008), as government, health care, and contractors associated with the federal government leased office space. Although the overall vacancy increased 240 basis points in 2009, it remains lower than most large metro areas due to the stabilizing influence of the federal government. During 2009, vacancies rose; consequently, rents declined 6.9 percent. Construction levels have declined, but they remain elevated at this point in the cycle—particularly in the District. Despite weak conditions, the metro area remains one of the top performing markets in the nation, according to Delta Associates.

Washington-DC-market-remains-resilient

Sam Zell to Expand Real Estate Markets in Colombia and India

NNN Lease Market News

Colombia and India Real Estate Markets Target For Zam  Zell

Billionaire Sam Zell said he is entering the real estate markets in Colombia and India in the next two weeks as he continues to favor international investments over U.S. property deals.
Zell, through Equity International, which he co-founded with Gary Garrabrant in 1999, has invested in real estate- related companies around the world, including in Brazil, China and Mexico. His involvement in the U.S. property market is “minimal” amid low interest rates and inflation that he estimates to be as high as 6 percent, Zell said.
Zell, 69, sold his Equity Office Properties Trust in 2007 for $39 billion as the real estate market was peaking. U.S. commercial property prices fell as much as 49 percent from their October 2007 high after credit contracted and the economic slump boosted the unemployment rate to more than 9 percent, according to the Moody’s/REAL Commercial Property Price Index.
Commercial real estate prices climbed 0.9 percent in June, the third straight monthly gain, according to Moody’s. The increase represented a “firming up” of the market bottom as investors move beyond trophy properties and major coastal cities, the company said Aug. 22.


http://www.bloomberg.com/news

Net Lease Properties for a Passive Investment or a 1031 Exchange

NNN Lease Market

 Calkain Companies offers the best selection of Net Lease Properties as well as additional, alternative passive real estate investment opportunities.

Calkain tracks properties on a nationwide basis through relationships with real estate developers & Net lease property owners. This enables Calkain to deliver an inventory of both Net Lease Properties & similar passive investments unmatched in the net lease industry. Net lease investments (“Nil”) are one of the most passive forms of real estate investment.  Under an NLI arrangement, the investor purchases the real property subject to a “triple net” lease.  In such case, the tenant is responsible for paying all of the taxes, insurance, and most importantly, the maintenance of the real property.  By divesting of current real estate holdings and purchasing an NLI, the investor can ultimately simplify the investor’s real estate portfolio and have the ability to transfer assets to the investor’s beneficiaries with the comfort of understanding that little to no real estate experience will be required in order to manage the NLI.  Additionally, depending on the type of asset purchased, the investor can assist in providing the investor’s heirs with (a) an income stream that extends into the future; and (b) an appreciating capital asset.
Calkain net lease sales team can assist you buy or sell any type of net lease properties throughout the United States. Calkain Companies, Inc. is a national, commercial real estate firm, focusing on net lease investments, that provides brokerage and consulting services for both private and institutional clientele. We have utilized an extended network of solid relationships to successfully complete nearly $4 billion in sales and have consistently ranked as one of the Top National Net Lease Investment Brokerage Firms. Core values such as integrity, honesty and innovation have helped secure our position as a leader within the net lease industry. The general commitment to its clients has made Calkain the industry benchmark for service in the net lease industry.

www.calkain.com

Demand for Distressed Commercial Property Markets Across the Globe Soars

NNN Lease Market News

 Distressed Commercial Property Markets on Demand Soars

Global demand for distressed commercial property increased dramatically in the second quarter of 2011 and is expected to outstrip supply in the next three months, according to the latest report from the Royal Institution of Chartered Surveyors.
The survey does, however, suggest that the supply of distressed property continues to outstrip demand in some countries, most noticeably in the Republic of Ireland, Italy and the UK.
The RICS Global Distressed Property Monitor is a quarterly report that reveals trends in 25 commercial property markets across the globe. A distressed property is defined as a property that is under a foreclosure order or is advertised for sale by its mortgagee. Distressed property usually fetches a price that is below its market value.
 An increased rate of distressed properties entering a country's market can be seen as a negative economic indicator while a decrease may signal recovery. However, it needs to be borne in mind that the results are very country specific with generally negative numbers coming from those markets where the economic pain is most intense,’ he added.
Investor demand fell in Brazil this quarter, from a net balance of 0 to one of -23. Looking ahead, agents expect the supply of distressed property to fall dramatically in the coming quarter as well, in contrast to last quarter's expectations for increased listings. That said, the real estate market still remains firm with capital values generally thought likely to rise further over the coming months.
Levels of distressed property coming to market in China are still expected to decline in the third quarter, although somewhat less so than the previous quarter, with net balance scores moving from -34 to -20. Looking ahead demand for distressed property is still expected to far outstrip supply in this country which is consistent with the projection for further price gains in the commercial market.

Riding the Dollar Store Wave in a Perfect Storm

NNN Lease Market News

by http://seekingalpha.com/author/brad-thomas

With over 20,677 stores, the top three U.S.-based dollar chains are among the most visible retailers in the U.S. There highly-visible retailers stock a variety of merchandise ranging from consumables, household chemicals, paper products, candy and snack products, health and beauty aids, hardware, pet foods, house-wares, giftware and home décor products. The “everything for $1 or less” business model has been around for decades; however, the concept has evolved into a highly competitive retail category. These bargain discounters are benefiting from increasingly cost-conscious consumers focused on buying everyday necessities and seeking out lower-priced goods.
As explained by Andrew Fallon, Investment Advisor at Calkain Companies (www.calkain.com) , “The discount retail or “dollar store” segment remains a bright spot of the retail industry. Dollar store retailers, including Family Dollar and Dollar General, continue to open new stores and add jobs in this uncertain and stagnant economy. Many experts and articles published post-recession, have offered the idea that there will be a generational impact on individual’s saving habits, and consumer spending and shopping choices. Positioned to take advantage of the generational impact, the dollar stores have been attracting new shoppers and capturing market share.”

Dollar General Hopes to Sell Beer

NNN Lease Market News

(NNN) Dollar General Hopes to Sell Beer in Arkansas

LITTLE ROCK, Ark. -- Arkansas' Alcoholic Control Board (ABC) is expected to vote today on whether (NNN) Dollar General stores throughout the state can sell beer. Eighty-two locations have applied for permits, ABC officials said.
Being granted a beer license is not simple. If an objection for a permit has been filed for a particular location, the permit is often denied and an appeal hearing is set for a later date, The Baxter Bulletin reported. However,(NNN) Walgreens and (NNN) Walmart received similar approvals in 2010 and 2009, respectively.
(NNN) Dollar General's beer license request is part of a national plan.

 CSNews Online

Blackstone Group LP Agreed to Buy Centro Properties Group’s

NNN Lease Market News

Blackstone will purchase Centro's U.S. Malls spending 9.4 billion dollars

The largest private-equity firm in the world, Blackstone Group LP, agreed to buy Centro Properties Group’s selection of U. S. shopping centers for an amount of $9.4 billion, two people aware of the matter said.

The purchase of five hundred and eighty eight malls, at the market price they were valued at as of Dec. 31, may enable Centro’s Australian operations to run as an independent company, said one of the people, who declined to be named before an official statement. The deal may get announced as early as today, the person said.