October 2, 2010
As the differences between a website and blog have blurred over the past year we have redesigned the Bison Financial Group website for the first time in 11 years.
Rather than maintaining a separate website and blog we have started to use the latest state of the art WordPress 3.0 architecture with complete integration of our blog, social media content and traditional “static, brochure-like” web pages. The new design will allow us to better communicate with our clients, lenders and friends in the industry.
The guiding philosophy and theme of our website is connecting people, opportunities and capital. Please join us there as we will no longer be updating this site. The author of this blog, David Repka, has also created a personal website to discuss non-business and non-commercial real estate topics. Hope you can join me there as well. Thanks for your support.
September 1, 2010
(Bloomberg) U.S. commercial real estate yields are near the highest level relative to Treasury bonds on record, a signal to some investors it’s time to buy property.
Capitalization rates, a measure of real estate yields, averaged 7.22 percent in the second quarter, based on an index calculated by the National Council of Real Estate Investment Fiduciaries. That was 429 basis points, or 4.29 percentage points, higher than the yield on 10-year government bonds as of June 30, according to data compiled by Bloomberg. It’s about 475 basis points higher than Treasury yields as of yesterday.
That spread is near the record 539 basis points in the first quarter of 2009, when the U.S. was mired in the worst of the financial crisis and property prices sank. Risk-averse investors are seeking the highest-quality office towers, hotels and apartments as the gap widens, according to Nori Gerardo Lietz, partner and chief strategist for private real estate at Partners Group AG in San Francisco.
“The data indicate that real estate is poised for a rebound,” said Gerardo Lietz, who advises pension funds on property investments.
View Full Article at Bloomberg.com
July 21, 2010
Big Banks Lead the Return of Key Funding Source for Commercial-Property Owners; Still, a Fraction of Precrash Levels
By: Lingling Wei in the Wall Street Journal
Even as woes mount in the commercial-real-estate market, a once-vital source of funding for commercial-property owners is showing signs of life.
Banks including J.P. Morgan Chase & Co., Goldman Sachs Group Inc. and Citigroup Inc. are expected to launch in the coming weeks two offerings of commercial-mortgage-backed securities, or CMBS, totaling $1.4 billion, according to people familiar with the matter. Representatives at the banks declined to comment.
J.P. Morgan is leading a $650 million offering backed by properties owned by real-estate investment trust Vornado Realty Trust, the people with knowledge of the situation said. Vornado, of Paramus, N.J., will use the proceeds to repay existing debt, these people said. A spokeswoman for the company declined to comment.
[BLOGGER COMMENT: The launch of CMBS 2.0 is still reserved for best in breed Sponsors with clean, low leverage, solidly cash flowing deals. It is encouraging to know that capital is once again starting to flow into commercial real estate.]
View complete article
July 20, 2010
Bison Tales blog moderator David Repka of Bison Financial Group in St. Petersburg, FL was selected by real estate master marketer Cody Sperber as one of the “Top 75 Real Estate People to Connect with on LinkedIn”.
To connect with David on LinkedIn visit his profile at: www.linkedin.com/in/davidrepka
The entire list can be downloaded from the box.net widget on this site.
July 17, 2010
By: Jon Reno La Budde
It has been stated in advance and is very true that this collection is the Crown Jewel of St. Pete’s already fine and numerous galleries and museums. I could list them all but I will do that in a future issue.
Many of us, including myself, had pre-conceived notions of what blown glass artwork would look like. I say hold on to that thought, and then go for a tour of the gallery. The pleasant shock & amazement will carry you through the day. At the risk of using an overused saying ‘If you don’t believe me go see it for yourself’. This is where I urge you to pack up the kids and the ‘rents and take a trip to Dale Chihuly’s version of Never-Never Land. I hope to see you there.
[BLOGGER COMMENT: My 13-year old daughter visited the museum this past week and thought it was “really cool”. ]
July 15, 2010
By Mark Heschmeyer on CoStar
Fundamentals in U.S. office markets appear to have stabilized and are headed toward an expected recovery, according to CoStar Group in its The State of the U.S. Office Market: Mid-Year 2010 Review & Forecast.
In its detailed quarterly analysis of the U.S. office market, CoStar Group confirmed positive net absorption for the quarter and office vacancy rates that appear to have peaked and are no longer rising.
“As we anticipated two quarters ago, it now appears we have hit the bottom of the market in terms of vacancy and that is critical here in this business,” said Andrew Florance, CEO of CoStar. “The fact that we are clearly showing some sort of bottom and we don’t have a significant increase in vacancy this quarter is very positive news.”
In presenting the latest findings based on CoStar’s research, Florance sought to dispel confusion over the office market’s performance that may have resulted from conflicting media reports.
[BLOGGER COMMENT: In an earlier post this blogger noted the fact that Florida office assets are now trading for substantially below replacement cost. My conclusion is that this appears to be an outstanding entry point for investors that have been on the sidelines waiting for a buy signal.]
July 12, 2010
Sunshine, nice weather, bargain prices on real estate and no state tax help Florida continue to attract the affluent from around the globe. Collier County (Naples) Florida tops with list with Tampa Bay well represented by Manatee County & Sarasota County.
Affluent continue to move to Florida
View full story at Forbes.com
View slide show from Forbes.com.