We are pleased to present the 2012 NAI West Year End Market Report. 2012 was a progressive year for the Utah market and forecasts are strong for 2013. As always, I welcome your feedback. Please click the button below for a full copy of the report.
Following a link for the commercial real estate Capital Market Review for December 17, 2012:
Capital Market Review 12-17-12
In terms of interest since our last post there has been a slight decline in rates with office rates dropping below 5%. December has been the busiest month for CMBS issuance in 5 years which is a good sign for the capital markets.
We have just completed our analysis for the 3rd quarter of 2012. Please click the link below to see the Q3 Utah Investment Snapshot:
Utah Investment Snapshot – Q3 2012
A few of the highlights from the report are as follows:
Please feel free to contact me with any questions regarding the market information provided.
Please see the following link for the Capital Market Review for the month of October 2012:
Interest rates remain low across the board with the lowest rates in the multi-family sector. The 10-year treasury was up a bit due to the unexpected decline in unemployment. Institutional buyer continue to lead the charge on commercial real estate investment purchasing high-quality assets both in major and more continually secondary markets.
It is interesting to look at how interest rates have moved over the last couple of months. Across the board rates have continued to drop since May. Additional lenders have continued to come back into the market. Underwriting remains strict but there are more sources of financing re-entering the market weekly.
One note in the report that caught my attention was the Fitch Ratings which project that $24 billion of US CMBS loans are set to mature over the next 12 months and of these loans 41% would be unable to refinance (without additional cash) based on Fitch’s defined stressed refinance parameter (DSCR of 1.25, rate of 8% amortized over 30 years).
It will be important to watch over the coming year how many of these loans default and how many are able to be refinanced.
Please see the following link for the Capital Market Review for the month of August 2012:
NAI West recently completed its Mid-Year Market report detailing the state of the economy in Utah, and more specifically the state of Utah property investment. A few of the highlights are below:
A few of the highlights of the market report are as follows:
Please see the following link for the Capital Market Review for the month of May:
The Utah commercial real estate market continues to improve. There has not been a significant amount of change from the previous update at the beginning of March. Rates continue to be aggressive and more lenders are entering the market. We are seeing many lenders considering longer amortization periods for quality projects. We are also seeing many lenders competing for the “good” deals. Lending is still difficult for projects that have a “thorn or two” on the rose, however things overall seem to continue to be improving in the capital markets.
We have just completed our analysis for the 1st quarter of 2012. Please click the link below to see the Q1 Investment Snapshot for the Utah market:
A few of the highlights from the report are as follows:
Please feel free to contact me for the full report or for information on Real Estate Investment.
Thanks, Brandon.
With the volatility in the capital markets, I will be posting a monthly update on the current state of those markets. The reports are provided by Metro Commercial Finance. The link below contains a link to the Capital Market Report for the month of March.
A few of the highlights are as follows:
The underlying theme is that capital is available for good projects and even for some more challenging projects depending upon buyer strength. Underwriting remains stringent but deals are getting done and they are getting done at very attractive terms.