National Flood Insurance Operating In The Red

This has NOT been a good year for the National Flood Insurance Program.

Specifically? The FEMA administered program is approximately $18 billion in the red, and counting......

Is The Traditional Office Becoming Obsolete?

A great question, with many answers. Of course, the variety of answers depends on who you talk to.

A new report from Regus and Unwired says the office of the past is not likely to to become completely extinct, but must evolve to meet the needs of new kinds of workers driven by technological advances, and management's desire for a lighter, cheaper real estate footprint.

Case in point? The modern real estate office, at least in my opinion. But this piece looks mostly at large traditional corporate buildings and the challenges faced by heads of real estate for companies, and the interests of their increasingly mobile work force.

This is a very good read, both for owners and prospective investors who need to know what the Tenant of today -- and the future -- want and are willing to pay for.

Click here for the full story.

In Good Company On LoopNet List Of Top CRE Bloggers

Received a phone call yesterday afternoon from an industry colleague in Idaho, who asked me if I had looked at LoopNet lately. Of course, my response was I look at LoopNet all the time!

Then he said that I was featured there, and of course I thought me meant one of my listed properties was featured, which it is -- a $2.45 million neighborhood shopping center here in Columbus (SUBTLE HINT: Bring Me Buyers!). I popped over to see what he was talking about and found that LoopNet had published a list of the top commercial real estate bloggers. And there I was ranked among the top five listed at Loopnet, along with peers whom I greatly respect -- Coy Davidson of Colliers International in Houston, Texas; Tony Brettkelly of San Francisco's Latitude 38 Group, Miguel de Arcos down in Florida at Sperry Van Ness Florida Commercial; and Natvar Nana at Sperry Van Ness in Orlando. Coy, and I, BTW, both follow each other's postings on Twitter.

 As they say at the Oscars, it is an honor just to be nominated. This author is truly humbled to be included among such outstanding CRE practitioners -- and writers.

Prudential To Roll Out 'Bring Your Challenges' Campaign

The Prudential family of companies, which of course includes commercial/investment and residential real estate, financial services and insurance products, is rolling out a $50M national campaign centering around the theme: "Bring Your Challenges."

A multimillion dollar initiative, designed to increase visibility and understanding of the iconic "Rock" product offerings (which a long time ago expanded beyond its insurance lines), the theme will include print, television and electronic advertising with a message that crosses all areas in which our firm has a presence.

The company already spends around $60M annually on general Prudential brand awareness, and studies show the Rock device and Prudential name are recognized by 98 percent of consumers.



But this additional campaign is centered around a specific theme -- Bring Your Challenges.

Now my personal business philosophy, "What you want, how you want it." is always (of course) tempered with my counsel. What it still comes down to, however, is creating solutions that fit my clients' long- and short-term goals.

So bring me your challenges.....

(and thus concludes my shameless self promotion.....)

Recycling Shipping Containers Into Office, Residential, Medical Space

You've seen photos of shipping containers stacked high on the decks of ocean-going vessels? Or perhaps being moved by rail?

Did you know there is a growing movement to convert these sturdy metal boxes into mini offices, clinics and residences?

A fascinating trend. I actually had considered acquiring one to put on a piece of family farmground in southeastern Ohio, and convert to living space. That was after I heard they were being converted to medical clinic space and transported to 3rd world nations and pretty much dropped in anywhere they need to be.

But use as offices within larger warehouse, or connecting several to create a larger office scape? I LOVE the creativity! Think about it -- in a sense, it is the ultimate way to recycle....

Not Everyone Agrees That Things Are Improving

Forget the fact that, IMHO, I am seeing things improving here on the ground in Central Ohio, and that various industry publications that examine the commercial/investment real estate market with a careful, independent eye generally concur.

Still, there are those who believe CRE has a long way to come before things are better. True, some markets fared far worse than others and have a longer climb up the ladder out of the well. Las Vegas, southwest Florida, and southern Michigan are three that come to mind immediately. The recovering is coming fast in Lee and Collier Counties in Florida. Las Vegas is showing signs of life. Michigan's recovery will be, like the song, a long and winding road.

Still, this forum -- while a fusion of (mostly) my opinion, industry reports and the thoughts of others -- is not a one-sided place for all things retailMUHindustrialofficelandspecialtyusecommercial. And so I offer some contradicting opinions of the future of commercial/investment real estate.

Reuters News Service is out with several pieces during the past month that that we have a long way to go. True! I would agree that things are not rosy everywhere.

An earlier Reuters piece in February talked of prices growing too high too fast, with lagging rents unable to justify high prices. This I definitely HAVE seen. Unrealistic owners who either "need" or "want" a certain number, and seem unable to see that their income statements don't come close to justifying the asking prices. While those properties still are out there -- and are still available largely due to that gap -- properties coming to market recently seem to be priced with a dose of reality.

CNNMoney was more blunt, but for reasons I am missing someone there doesn't get it. A contributing writer wrote that CRE is still a gamble. DUH!!! HELLO!!! ALL investment, whether in stocks, gold, commodities, or a personal loan to a favorite nephew, is a gamble. Overall the story is not too bad, BUT The headline is so misleading it isn't funny. Keep in mind, also, that CNNMoney rarely writes on commercial/investment real estate, showing its continuing penchant (bias?) for the stock market. There ARE no guarantees with any kind of investment, and the editors overseeing the work of Mr.Kit R. Roane, a contributor to CNNMoney, should know that! So that story really doesn't count. But I included it to show how there are some in positions of influence who, for lack of a better way to say it, have no clue what they are writing about. Or in this case I should note that Mr. Roane's story never uses those words. The misdeed was the fault of the CNNMoney headline writer. Inexcusable......

A piece I tweeted today at @BrentGreerCRE concerned the worry that our nation's infrastructure is becoming so fractured that it is the second part of a "one-two punch" of problems facing the United States commercial/investment real estate market. Maureen McAvey, an executive vice president at Urban Land Institute, stated the obvious, but it is a problem -- we are not keeping up with our infrastructure needs, let alone developing new more efficient modes of transportation, etc. Good points all, which may have an impact on future values down the road, particularly with investment from overseas in the decades to come.

And an accounting rule change may force banks to disclose that they have many more troubled CRE loans on their books. Only time will tell...

The bottom line? Opinions are diverse. Facts are facts, and improvements or declines are trending differently in different parts of the U.S. Sufficed to say, things are improving here and there. Do your homework and learn what is happening. Like anything else, don't just jump into an investment or trade out of one because you "heard" it is a good deal. Overall, CRE is improving. In much of Ohio, things are improving though there are pockets of economic trouble here and there. Central Ohio remained relatively stable, but still saw a slight dip. The old saying that all real estate is local never was more true.

The best investor is the most informed. And that is what CoC strives to do for readers. Inform. Thanks for stopping by.

Letter

Again, I am humbled.

This time by the words from one of the organizers of the annual Ohio Military Hall of Fame for Valor induction ceremony.

I received this letter today, thanking me for what I did . . .

 . . . And all I could think through the ceremony was how humbled I felt in the company of these men who sacrificed their youth in so many different American conflicts. For those we never met, and only heard their citations, we are diminished.

Thank you again, Ted, P.J and everyone on the OMHFV Board for asking me to participate in your very important ceremony.