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| Annemarie DiCola |
ATLANTA, GA (May 28, 2013) – Declining loan delinquencies,
high investor demand for core assets and a stronger banking system. Those were
some of the commercial real estate market dynamics discussed at the fourth
annual Akerman U.S. Real Estate Summit in Miami.
The most recent
episode of the “Commercial Real Estate Show” radio program, hosted by Michael
Bull of Bull Realty, presents interviews recorded at the show, which
focuses on the issues facing commercial real estate investors. Bull and his
guests discussed a wide range of issues impacting those who buy and sell
commercial properties.
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| Michael Bull |
The delinquency rate
for commercial mortgage loans in commercial mortgage-backed securities (CMBS)
dipped to 9.5 percent this spring, said Annemarie DiCola, CEO of Trepp.
“We are trending in a direction that is good,” DiCola said. “These loans
represent a wonderful proxy for what is happening in commercial real estate in
the U.S.”
The mid-sized banks
that commercial real estate investors rely so heavily on are generally in good
shape now, DiCola added. “We think that the majority of them are strong and
healthy,” she said.
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| Richard Bezold |
Opportunities to
purchase distressed assets have declined, as there are now fewer of them, said Richard
Bezold, chair of Akerman’s Real Estate Practice Group.
“Clearly, the
emphasis in the last 18 months has been on core product,” Bezold said. “That’s
been trading really well. When core product comes online, you’re seeing 10, 15,
20 bidders for it. Outside of the core assets, you’re not seeing those bidders
yet.”
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| Darryl Parmenter |
Overall, today is
still a good time to buy commercial real estate, said Darryl Parmenter, CEO
of Parmenter Realty Partners, which invests heavily in office properties. “We
think it’s a very good time to buy real estate,” Parmenter said. “We’re able to
buy at material discounts to replacement costs.”
As far as property performance, the “real estate market
continues to be volatile,” Parmenter added. “The office sector is somewhat less
volatile than some of the others.”
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| Tom Sittema |
Tom Sittema,
CEO of CNL Financial Group, said his firm has made the acquisition of seniors
housing and healthcare facilities in secondary markets an investment priority.
“The fundamentals in that space are very compelling,” he said.
The investment
picture for resort properties, second homes and vacation-related properties
remains a mixed bag, said Andrew Robbins, chair of Akerman’s Lodging and
Lifestyle Practice Group. Timeshares, which are a “middle-market product,” are
selling well, he said. “They took a bit of a hit during the downturn but
they’re very much alive and well.”
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| Andrew Robbins |
On the other hand,
investor interest in the new development of traditional resorts that combine
hotels with for-sale residential units remains miniscule, Robbins added.
“You’re probably not going to see resort development take off in any meaningful
way until there is an ability to sell [the] residential real estate,” he said.
The entire episode
on the Akerman U.S. Real Estate Summit is available for download at www.CREshow.com. The next “Commercial Real Estate
Show” will be available May 30 and will feature interviews from the recent
RECon 2013 retail show in Las Vegas.
For a complete copy
of the company’s news release, please contact:
Stephen Ursery
The Wilbert Group
404.405.2354
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