Late last year, my friend Chris called me to ask whether he should withdraw all of his deposits from his local bank. Chris was afraid that his bank might fail and he'd lose his savings. "This isn't 1929," I said. "Your deposits are insured and the government's taking action to shore up our lending institutions to protect your deposits and to keep our banks solvent."
"You've finally capitulated, haven't you?" joked my business partner. He and I laugh at the fact that he's a bear and I'm a bull. It works for us. And when either of us become too negative or positive on the market, we weigh the pros and cons. "Yep." I said. "Despite the fact that you know that I'm a bull and that I've been writing and advising of this correction for some time now, I really feel that I've experienced the shift today. There's no going back now."A lot of equity's going to be lost.
Green, Green, Green. It seemed to be all the rage last year as oil prices spiked to $140/barrel and people were trading in their SUV's for economy class hybrids. Something else happened. Fortune 500 companies and the U.S. Government felt the effect and instituted policies that they, too, should be green, work to stem global warming, and make changes to their business practices that were environmentally sound.
The struggles at the Hancock Building have been well publicized by now and General Growth’s trouble leaves the control of Fanieul Hall in question, but what’s next?
According to The Watchlist from CoStar today 90 Tremont Stret in Boston has hit the skids due to low vacancy and a loan mautrity of May 1st.
Investors can count [...]
Property & Portfolio Research has published some mean numbers that indicate that we're going to be in for a wild ride over the next couple of years in the Boston area commercial real estate market. As much as what I hear around town is a false sense of hope and security that this will blow over soon and we'll get back to prosperous times again, it looks like the coming storm is going to get nasty.
We’re at the REFA 2009 forecasting luncheon. The view is impressive… we’ll see about the outlook. I’ve already overheard an opinion that we’re looking to lose 20-30% more in commercial real estate values this year.
Come back for a detailed follow up report on what we learn.
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You’re watching a football game on television. One team kicks off and a flurry of activity ensues. Guys are running everywhere and the ball’s on the move. They settle down. The two teams square off. They run plays to outsmart and out-maneuver the opponent. The offense works its way down the field, reaching the 50 [...]
Monday, June 22, 2009
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