USA - National Debt Calculator

Just found this cool Real-time US National Debt calculator. Ready reckoner for how big the problem is...

Commercial Real Estate's Debt Issue

Is it a real estate problem or a debt problem?? Wells Real Estate Funds CEO on the crisis among other things...

Commercial Real Estate Marketing - Mobile

Found this report on the scope of mobile marketing for the real estate industry.

Some good insights here into the potential of mobile technology as a medium for marketing small and medium commercial real estate brands. Considering the crazy pace at which this technology is developing (Eg: the iPhone and all the 'iPhone Killer' smartphones), it won't be long before these insights turn into some awesome marketing campaigns...

Mobile Marketing For Real Estate

300 Property Listing Websites

300 Best Commercial Real Estate Property Listing Websites

Global Office Space Trends - Grappling with the Power Shift

The Commercial Property industry globally is evolving and adapting rapidly, almost like mutation. Just like the internet which took power off the hands of publishers to users, the commercial property

industry’s evolution is being led by customers rather than by the clout of sellers and owners.

One of our 'Big Apple Crush' posts (http://allaboutofficespace.blogspot.com/2009/08/crisis-series-part-1-big-apple-crush.html) was about how the global financial crisis is leading to a shift from landlord-driven cash intensive deals to tenant-friendly short-term leases and lower upfront

costs. While tenants are being given more and more power, a strong need arises for owners to ensure a fair deal for themselves.

ENTER Property Management Consultants - firms which take the pains of managing realty assets off the hands of the owners and with their expertise, not only manage but also optimize the owner's assets as cash generators. Though not a very new concept, property management is seeing increasing popularity in the current economic scenario. A Property Manager manages the accounts and finances of the real estate properties, and participates in or initiates litigation with tenants, contractors and insurance agencies. Though litigation is usually considered a separate function, set aside for trained attorneys, property management consultants are offering more value with this added function.

This service was usually in the hands of real estate consultants and business consultants on a short-term, project to project basis. However, more and more property management consultants are becoming valued long term partners to landlords as well as other enterprises which own considerable real estate assets. So much so that big names like Jones Lang Lasalle are busy grabbing their chunks of this new need along with a swarm of small players and consultants.

Aggregate Office Space Demand Drivers

Source: www.property-investing.org

Financial Crisis - Big Mortgage, small value

The last post was about American commercial real estate investors packing, folding, and moving house from their traditional investment back-office - Europe. Now, let’s take a glance at why these investors found no backers and shut operations.

To start off with rhetoric… did you good folks know that U.S. banks are holding about $1.7 trillion of mortgages backed by commercial property that is fast losing value? 1.7 TRILLION DOLLARS! For realtors and investors alike, this is certainly not good news.

According to new report by Deutsche Bank AG, as property value declines and scarce credit continue to drive commercial property developers and investors into default, total lifetime losses on banks’ $1 trillion “core” commercial-mortgage holdings, or those backed by income-producing properties, would reach between 11.6% and 15.3%, or $115 billion and $150 billion. Those expected losses would be at least as large as those on loans originated and bundled into commercial-mortgage-backed securities, from 2005 and 2008, a period of cheap and reckless credit, Deutsche Bank estimates.

Are you scared yet? Well, we all should be. What’s worrisome is the fact that this is not an area-centric issue. The repercussions of the American investor with an empty pocket could have a domino effect in the office space industry world over, the kind of which is unfathomable, and in a not-a-pretty-picture way.

Not that so far the problem is only restricted to the US. But yet it’s only ‘US puppet countries’ that are hit as of now. But if the dominos do tumble, then we’re talking about carnage as far as the Middle-East and Central Asia.