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30,000 SQUARE FOOT WAREHOUSE SOLD. An all cash purchase of a Hialeah warehouse has just sold in West Hialeah for $605,000. It was originally listed for $995,000. There were more than five cash offers for the 1965 warehouse located at 2755 W 8 Ave. The warehouse was used for 35 years as a dyeing factory. The lot size was 40,000 square feet.

Paul Silverstein, Broker-Vice President, Commercial Division with RE/MAX Advance Realty, who represented the seller, had received numerous offers for the property within the first 10 days of placing it on the market. “ Local and international investors are keeping a close eye on the South Florida commercial market and are ready to pounce on any property that is perceived to be under the current market value” he said.  “The offers that came in were from Brazilian, Ecuadorean and Columbian buyers, but it was a local investor that ended up with the property.”

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The Upside of the Downside!

A commercial real estate price index, developed by the Massachusetts Institute of Technology Center for Real Estate (MIT/CRE), posted a staggering 18.1 percent drop in the second quarter. The index, which collects commercial real estate purchase and sales data from leading real estate firms, is now down 22 percent for the year and 39 percent from its peak in Q2 2007. The information was released by MIT/CRE Monday to the dismay of commercial property investors nationwide.

These numbers do not bode well for owners of income producing buildings who may need to refinance soon. Shrinking valuations will make it harder for buildings to qualify for institutional financing in this tight credit environment. Banks have significantly decreased their loan-to-value ratios (LTV) as a result of the credit squeeze and the unpredictable markets. The combination of tighter lending criteria and lower appraisals will result in a large number of buildings that will fail to get refinanced.

This is a half a trillion dollar problem and the government can offer only nominal assistance; the public has no more appetite for bail-outs. The situation is dire indeed; investors are left hoping for a rebound that they know won’t come.

All the bad news, however, is a harbinger of good news. The very best financial professionals know that pessimism is a bullish indicator. A market bottom, by definition, is the moment of maximum pessimism.

The sheer magnitude and the incredible speed of the price declines could be an indication that sellers have capitulated and now believe that getting out is more important than getting their price. It is worth noting that the 18.1 percent drop reported by MIT/CRE is the steepest in the 25 year history of the index and that the peak to trough decline of 39 percent is considerably worse than the 27 percent decrease reported during the last great commercial real estate meltdown in the 1980s. Further, the commercial property collapse has now eclipsed the downturn in residential real estate which is off 30 percent from its highs. The best bad news of all, however, is that the supply side index of prices sellers would be willing to accept plummeted 18.5 percent to a new record low. Who could be blamed for considering that number a white flag of surrender?

Predicting a bottom is a fool’s errand but it would be equally foolish not to watch for signs of recovery. Hidden and overshadowed by all the bad news in the report is the fact that sales actually picked up over the last 3 months. Transaction volume showed a nice increase in the 2^nd quarter, the first such up-tick in nearly 14 months.

I don’t know when the turn around will happen, but I do know that a predominantly bearish sentiment is a bullish indicator and that just because something is counterintuitive doesn’t mean it’s wrong.

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Green Construction promotes efficiency

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America’s buildings and infrastructure would become more efficient – reducing greenhouse gas emissions and cutting energy consumption – if a plan outlined by the Associated General Contractors of America is adopted, the organization claims.

The plan outlines measures designed to increase demand for green projects and infrastructure capacity and improve building efficiency and green construction practices. 

“Green construction holds the promise of delivering some of the most sweeping environmental improvements our country has ever experienced,” said David D’Hondt, executive vice president of the association’s Washington state chapter, in a news release. “The reality is that you can’t simply wish for a greener future, you have to build it.”

The plan identifies things that public officials, developers and the construction community must do to lessen the impact of construction on the environment. They include: doubling existing energy efficiency tax credits for commercial buildings, passing the Building Star program that invests $6 billion in improving the efficiency of commercial buildings this year, and speeding up reviews and boosting local tax credits for green building projects.

The chapter unveiled the plan during a tour of construction of a green building in Seattle, which will serve as incubator space for startup green construction technology firms.

D’Hondt noted that new city-by-city construction employment figures, released Thursday, show just how much those new opportunities are needed.

Nationwide, 310 metropolitan areas lost construction jobs, including those in the tri-county area.

Between March 2009 and March 2010, Fort Lauderdale lost 8,400 construction jobs, a 21 percent drop. Miami lost 6,000, falling 15 percent to 39,600 from 33,600 jobs.

West Palm Beach fell 21 percent, to 22,900 from 29,100 jobs.

Read more: AGCA: Green building plan would create jobs - South Florida Business Journal:

 

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PAUL SILVERSTEIN NAMED 2009 TOP COMMERCIAL

PAUL SILVERSTEIN NAMED 2009 TOP COMMERCIAL

REAL ESTATE BROKER IN FLORIDA

  

March 2010 - RE/MAX INTERNATIONAL honors Paul Silverstein as Top Commercial Agent with the most commissions earned on commercial real estate transactions for 2009.

 

Mr. Silverstein has been a commercial agent for more than 30 years and represents a national and international clientele. He is currently the Broker-Vice President, Commercial Division with RE/MAX Advance Realty.

 

“Last year was a challenging time for the commercial real estate industry,” said Anthony Askowitz, Owner of RE/MAX Advance Realty. “The fact that Paul was able to thrive in that market is a tribute to his abilities as a realtor and the quality of the relationships he has with his clients.”

 

Mr. Silverstein is a member of the Master Broker’s Forum and recipient of several prestigious awards, including the Platinum Club, 100% Club, Executive Club & Lifetime Achievement Award, and is Green Certified by the United States Building Council (USBC).

 

According to Mr. Silverstein, “I attribute my success to both hard work and a strong internet presence.” His website, (floridacommecialteam.com), Facebook & Linked-In profiles have all generated leads that led to listings and sales.

 

For more information please contact Paul Silverstein at 305-794-9773 or email him at paul@floridacommercialteam.com.

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Top Commercial Realtor for 2009

PAUL SILVERSTEIN NAMED 2009 TOP COMMERCIAL

REAL ESTATE BROKER IN FLORIDA

 

 

March 2010 - RE/MAX INTERNATIONAL honors Paul Silverstein as Top Commercial Agent with the most commissions earned on commercial real estate transactions for 2009.

 

Mr. Silverstein has been a commercial agent for more than 30 years and represents a national and international clientele. He is currently the Broker-Vice President, Commercial Division with RE/MAX Advance Realty.

 

“Last year was a challenging time for the commercial real estate industry,” said Anthony Askowitz, Owner of RE/MAX Advance Realty. “The fact that Paul was able to thrive in that market is a tribute to his abilities as a realtor and the quality of the relationships he has with his clients.”

 

Mr. Silverstein is a member of the Master Broker’s Forum and recipient of several prestigious awards, including the Platinum Club, 100% Club, Executive Club & Lifetime Achievement Award, and is Green Certified by the United States Building Council (USBC).

 

According to Mr. Silverstein, “I attribute my success to both hard work and a strong internet presence.” His website, (floridacommecialteam.com), Facebook & Linked-In profiles have all generated leads that led to listings and sales.

 

For more information please contact Paul Silverstein at 305-794-9773 or email him at

paul@floridacommercialteam.com.

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THE FUTURE LOOKS UP

Worst Recession since 1975 bottoms in 2010

• National recession focused on households and banks
• Soft housing markets limit migration into Florida 2010
• Broken nest eggs
• Hometown Democracy

Stronger Growth 2011-13

• Improving migration trends
• Stronger housing markets
• Higher rates limit the expansion

 Paradigm shift makes Florida less attractive

• Average annual population growth 200,000 +/- 50,000 depending on business cycle

 Still Florida remains one of the fastest growing states east of the Mississippi

1/20/2010 Fishkind & Associates, Inc.

Small and regional banks remain most vulnerable to deeply troubled commercial real estate.

Small and regional banks remain most vulnerable to deeply troubled commercial real estate.

In recent congressional testimony Federal Deposit Insurance Corp. Chair Sheila Bair indicated the continuing correction in commercial real estate prices constituted the most prominent area of risk for FDIC-insured institutions. There is a danger that commercial property losses, coupled with further impairment of residential real estate portfolios, could lead to a significant regional banking crisis.

Commercial Real Estate Bust

The commercial real estate sector is currently under the greatest stress since the CRE crash in the early 1990s. Following its normal pattern of lagging the residential housing cycle by approximately one year, the CRE sector peaked toward the end of 2007. Since then CRE prices have plunged by approximately 35%.

Oxford Analytica

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