The deal is rocket fuel for South Florida’s sputtering commercial sales market, helping bolster sales volume last year by 169 percent, to $2.6 billion, according to data from Real Capital Analytics. It also speaks to South Florida’s appeal to large institutional investors, according to Ben Thypin, senior market analyst at Real Capital Analytics.
“This is a sign of confidence in the South Florida market,” he said. “They are trying to take advantage of depressed pricing.”
Read more: http://www.bizjournals.com/southflorida/print-edition/2011/01/28/duke-closes-on-premier-properties.html
Even if that is so, real estate experts say, don’t expect sales activity and prices to return to their peak anytime soon. Despite this year’s string of $100 million-plus sales, South Florida’s overall dollar volume remains more than two-thirds lower than 2007, when $12 billion in commercial transactions were sealed by Nov. 30.
“I think it says things are improving,” said Ben Thypin, senior market analyst for New York-based Real Capital Analytics. “People are becoming more confident with investment and trading, but it is tenuous.”
Read more: http://www.bizjournals.com/southflorida/print-edition/2010/12/24/commercial-sales-sector-sees.html
Ben Thypin, senior market analyst with Real Capital Analytics, said affordable financing might be more readily available these days, but not for existing owners whose existing debt is greater than the value of the property. He said the “alternative universe” lending philosophy during the real estate boom tied to pro forma has been replaced by due diligence based on a property’s current performance. Owners are still reeling from the impact of the downturn, working out decreased revenue from tenants closing shop, downsizing or moving out of existing industrial properties.
Thypin added that, despite the market improvement, lenders were providing no more than 70 percent loan to value.
“In terms of financing, having a quality borrower is important but today it’s more about the property,” he said. “If it’s a property that is performing amazingly, there are lenders.”
Thypin said Miami-Dade County’s industrial market is recovering faster than other parts of Florida because of institutional buyers value the barriers to entry including limited land for development.
“Stable properties are in high demand, and these properties are bidding up,” he said.
Read more: Palmetto deal highlights industrial rebound | South Florida Business Journal
Ben Carlos Thypin
I am currently the co-founder of Quantierra, the world's first data driven real estate brokerage and investment manager. In my former life as Director of Market Analysis at Real Capital Analytics, I worked with press outlets large and small to provide them with great data and insightful commentary. Here are some of the results of this collaboration. For the rest, please check out the News Archive.