(1888PressRelease) April 04, 2009 - New York, NY — New ACREPRO (Association of Commercial Real Estate Professionals) report shows big markets are in trouble. The markets in the report include Miami, Los Angeles, Chicago, Boston, New York, Phoenix, Las Vegas and Dallas.
In Miami for example, demand for retail space slowed at the end of last year. Job cuts and dramatic tourism decline have put stress on local properties in 2009. The Miami metro area has seen property value declines in excess of 30%.
In New York, Chicago, Boston and Los Angeles values are also dropping but at moderate levels. In Dallas commercial properties dropped in value more than 12% for each year since 2007. In Phoenix and Las Vegas values have plummeted to 44% compared to original values in 2005.
Thomas Tsilionis, member of ACREPRO and Real Estate Investment Trainer said during a recent live teleseminar, that major loses could be coming for many Commercial Real Estate owners. As an investment coach you see investors eager to buy properties because they seem to be good deals. That is very dangerous unless you have your current properties in pack mode (Financially Covered for 5 Years.) As a Investment Coach I am more interested teaching investors how to safe-guard and keep their properties rather then buy new ones at discounts.
“Currently, cap rates on multi-tenant properties occupied by local or small regional tenants start at approximately 8 percent and are expected to inch up in the months ahead as vacancy rises,” says Thomas Tsilionis, trainer for Association of Commercial Real Estate Professionals. “Assets with national tenants can trade in the mid-7 percent range.”
Following are some of the most significant aspects of the Retail Research Report:
· Local employers in the 6 cities cut 327,300 positions in 2008 and are expected to trim another 540,000 jobs this year, a 5.9 percent loss.
· Projects totaling approximately 9,700,000 square feet are scheduled to come online in 2009.
· Employment losses and an expected decline in tourist volume will weigh on property performance this year, resulting in a 140 basis point rise in the vacancy rate to 8.1 percent. In 2008, when completions were more significant, vacancy rose 160 basis points. Keep in mind that tourism plays a role in all 6 major cities.
· In 2009, asking rents are forecast to drop 3.7 percent to $83.70 per square foot, and effective rents are expected to decline 4.1 percent to $80.84 per square foot.
For additional information about Thomas Tsilionis and the TSI Group, Please visit www.thomastsilionis.com or www.tsilionis.com
Thomas Tsilionis, Founder of the TSI Group is currently teaching Commercial and Residential Real Estate Courses for Mastermind University, Association of Commercial Real Estate Professionals and TSI Group. Thomas Tsilionis is a Commercial Real Estate Investor, Real Estate Coach and Trainer and is a member of the Association of Commercial Real Estate Professionals. (ACREPRO)
TSI Group, LLC.
244 5th Avenue, East
Suite 1158
New York, NY 11011
www.thomastsilionis.com
www.tsilionis.com
www.tomtsilionis.com
www.thomastsilionis.net
###
In Miami for example, demand for retail space slowed at the end of last year. Job cuts and dramatic tourism decline have put stress on local properties in 2009. The Miami metro area has seen property value declines in excess of 30%.
In New York, Chicago, Boston and Los Angeles values are also dropping but at moderate levels. In Dallas commercial properties dropped in value more than 12% for each year since 2007. In Phoenix and Las Vegas values have plummeted to 44% compared to original values in 2005.
Thomas Tsilionis, member of ACREPRO and Real Estate Investment Trainer said during a recent live teleseminar, that major loses could be coming for many Commercial Real Estate owners. As an investment coach you see investors eager to buy properties because they seem to be good deals. That is very dangerous unless you have your current properties in pack mode (Financially Covered for 5 Years.) As a Investment Coach I am more interested teaching investors how to safe-guard and keep their properties rather then buy new ones at discounts.
“Currently, cap rates on multi-tenant properties occupied by local or small regional tenants start at approximately 8 percent and are expected to inch up in the months ahead as vacancy rises,” says Thomas Tsilionis, trainer for Association of Commercial Real Estate Professionals. “Assets with national tenants can trade in the mid-7 percent range.”
Following are some of the most significant aspects of the Retail Research Report:
· Local employers in the 6 cities cut 327,300 positions in 2008 and are expected to trim another 540,000 jobs this year, a 5.9 percent loss.
· Projects totaling approximately 9,700,000 square feet are scheduled to come online in 2009.
· Employment losses and an expected decline in tourist volume will weigh on property performance this year, resulting in a 140 basis point rise in the vacancy rate to 8.1 percent. In 2008, when completions were more significant, vacancy rose 160 basis points. Keep in mind that tourism plays a role in all 6 major cities.
· In 2009, asking rents are forecast to drop 3.7 percent to $83.70 per square foot, and effective rents are expected to decline 4.1 percent to $80.84 per square foot.
For additional information about Thomas Tsilionis and the TSI Group, Please visit www.thomastsilionis.com or www.tsilionis.com
Thomas Tsilionis, Founder of the TSI Group is currently teaching Commercial and Residential Real Estate Courses for Mastermind University, Association of Commercial Real Estate Professionals and TSI Group. Thomas Tsilionis is a Commercial Real Estate Investor, Real Estate Coach and Trainer and is a member of the Association of Commercial Real Estate Professionals. (ACREPRO)
TSI Group, LLC.
244 5th Avenue, East
Suite 1158
New York, NY 11011
www.thomastsilionis.com
www.tsilionis.com
www.tomtsilionis.com
www.thomastsilionis.net
###
