CBRE August Cap Rate Survey

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Tue, 08/17/2010 - 00:11 | 525409 whatsinaname
whatsinaname's picture

URE and its holdings still soaring?

Tue, 08/17/2010 - 00:47 | 525435 Caviar Emptor
Caviar Emptor's picture

CRE in NY is fully dependent on exceptional bank forbearance on loans, all thanks to ongoing Fed rescue programs. In a word, like everything else in the economy, the sector is insolvent but we're kicking the can every month to wait and see if a miracle happens.

Tue, 08/17/2010 - 07:35 | 525551 Bankster T Cubed
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gangster rule: they don't need no stinkin free markets messing up their joint

Tue, 08/17/2010 - 13:32 | 526375 tamboo
tamboo's picture

bankster rule: why have a free market when you can have an arbeit macht frei market?

Tue, 08/17/2010 - 01:56 | 525457 Froggy
Froggy's picture

CBRE is the Goldman Sachs of CRE.  All they ever do is talk up their own book/business.  Market rents are at least 25% off the levels at which nearly all currently financed assets were underwritten.  After losing tenants and having leases expire, try explaining to your lender that your shopping center that was financed with $36/ft rents is re-leasing at $28 causing your debt service coverage to drop below 1. 

There is a Trillion scheduled to mature in the next 2 years.  It does not look good from my seat.

Tue, 08/17/2010 - 03:04 | 525481 Number 156
Number 156's picture

Greater Fool Theory. n.

see 'Pyramid Scheme'

Tue, 08/17/2010 - 03:50 | 525492 quintago
quintago's picture

10-year at 2.57%; life money at 3.9%; cap rates will surely fall on well leased investments as the spread on leverage has increased. vacancy still frowned upon but there is a lot of stupid money out there. combine that with cheap leverage and cap rates fall. simple.

Tue, 08/17/2010 - 04:07 | 525498 Sudden Debt
Sudden Debt's picture

Yesterday evening a wealth tax was introduced in my country Belgium of a extra 4% on savings accounts, earnings on stocks and funds. They call it "wealth tax" but it's not like only the very rich will pay it. Everybody who has money set asside. It was done in the greatest silence and the newspapers don't even mention it!

The poor stay poor and the rich get poorer.

This will lead to a revolt in due time! Mark my words!

 

Tue, 08/17/2010 - 07:54 | 525569 Hunch Trader
Hunch Trader's picture

Can't find any links on this anywhere, would you have some pointers?

The way you write makes it sound like it's 4% from the entire balance of a savings account, whereas only from earnings on stocks and funds. Confiscating 4% yearly from savers would be total rape.

 

 

Tue, 08/17/2010 - 13:34 | 526382 tamboo
tamboo's picture

joomedia rule: arbeit macht frei press.

Tue, 08/17/2010 - 05:01 | 525506 Sudden Debt
Sudden Debt's picture

Tyler, read this man!

The NEW Europe real estate nightmare!

In Amsterdam you are now FORCED to put your second house TO RENT at the MAXIMUM price of 548 EUROto anybody who wants it!! Whater the value may be!

The average price of a house in Amsterdam is 200.000 euro meaning you need to down pay AT LEAST 1000 euro for it a month.

But houses that aren't a outhouse costs between 400K to 1000.000 euro! which you are also OBLIGED to rent to somebody for 548 EURO.

They are letting the housing market CRASH on PURPOSE! Why?!

Why should you buy a second home as a investment if you will only be able to put it out to rent for 548 euro? That at least halfs your investment! What about maintenance costs of the property?

This is PURE Stalinistic Obamaunlogical socialist government! It is now becoming A CRIME TO HAVE MONEY! If you are rich you are a thief!

Other mayor cities ore now looking into it to do something just like it!

original article:

http://www.telegraaf.nl/binnenland/7413412/__A_dam_besteelt_huiseigenaar__.html?p=3,2

translated document:

http://translate.google.nl/translate?js=y&prev=_t&hl=nl&ie=UTF-8&layout=1&eotf=1&u=http%3A%2F%2Fwww.telegraaf.nl%2Fbinnenland%2F7413412%2F__A_dam_besteelt_huiseigenaar__.html%3Fp%3D3%2C2&sl=nl&tl=en

 

What's next?! I also have 2 cars, do I need to give it away to somebody who doesn't have a car?!

I have 2 kids, do I have to give one away for adoption to somebody who can't have kids?

I have 2 balls in my nutsack, the first one touching those who isn't blond, has massive tits and a tight ass will D I E a painfull death!

FUCK SHIT MAN!

 

 

 

Tue, 08/17/2010 - 06:44 | 525533 Pegasus Muse
Pegasus Muse's picture

That sucks.  It will spur a mini-boom for lawyers as apartment owners will seek creative solutions (incorporation, "selling" the 2nd apartment to family member, etc) to avoid the criminal social engineering the law mandates.  Maybe that was the idea all along -- a "make work" law to enrich lawyers.

Tue, 08/17/2010 - 07:08 | 525538 Monkey Craig
Monkey Craig's picture

+1

Tue, 08/17/2010 - 06:45 | 525534 scratch_and_sniff
scratch_and_sniff's picture

"Why should you buy a second home as a investment if you will only be able to put it out to rent for 548 euro? "

It's to prevent the property developers/speculators going nuts. They are thinking about doing the same here...hundreds of brand new developments here, yet massive housing waiting lists???  I dont think there is anything in law that says you cant charge more than 548 euro for the rent of your property if you can get it, its just that if the property is not in use, then the authorities will find someone to put into it. Solution; put a family member in it, or at least have their mail directed to it or something, etc etc.

Tue, 08/17/2010 - 07:28 | 525544 Sudden Debt
Sudden Debt's picture

Nop, the law actually put a ceiling into the pricing and 548 euro is the maximum you can ask.

And selling the property to family = 21% tax on the sale + notary costs (10%)

And renting to family... I don't really like the rest of my family that much :)

 Welcome to Europe!

Tue, 08/17/2010 - 11:07 | 525948 spekulatn
spekulatn's picture

FUCK SHIT MAN!

 

Well said, Sudden Debt.

Tue, 08/17/2010 - 05:57 | 525523 papaswamp
papaswamp's picture

GDP at 2.7%?...wow are they going to be disappointed.

Tue, 08/17/2010 - 07:31 | 525549 Bankster T Cubed
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Extend and Pretend

until total systemic collapse

 

you're doing a great job bennietimmydimonfuckface

Tue, 08/17/2010 - 09:27 | 525694 Ura Bonehead
Ura Bonehead's picture

Yes, CBRE is talking their book a bit but, from where I sit, today's real estate market is constipated.  Willing buyers, no willing (or forced) sellers.

We've been looking for value for several years.  But given cap rates like this (confirmed) there's nothing of value out there.  And as long as the 'stupid money' (read: institutional, hedge, Wall Street) is willing to grossly over-pay for deals (i.e., $135 billion of unspent equity “sitting on the sidelines”) then we'll wait for the next bubble and pray the Gov isn't as willing to bailout the players with cash, favorable accounting rules....

Tue, 09/28/2010 - 08:41 | 609608 Herry12
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