Properties Magazine January 2013 : Page 29

Eyeing Commercial Real Estate Investment in 2013 By David S. Davenport Bellwether Enterprise Real Estate Capital, LLC Chasing yield will continue spurring capital investment, transaction volume in New Year I t is the beginning of a new year. It is a time for reflection on the past and what has been – and more importantly, a time to ponder, consider and prepare for the future and what is to come. The Northeast Ohio commercial real estate market, on a broad basis, has mirrored the overall U.S. commercial real estate recovery. There has been visible improvement in the overall fundamentals, asset pricing, total number of transactions both in leasing and sales, and the availability of capital. This trend of improvement is expected to continue in 2013. Generally, the pace of this improving trend has been modest; some prefer to even use the word “slow.” Additionally, this pace of modest improvement is expected to continue in 2013. The same macro-economic issues and concerns troubling the coun-try will continue to influence the commercial real estate industry as well. Such macro-economic wor-ries include a slow/muddling economic recovery, unemployment, considerable national and household debt that the country struggles to manage, global concerns from Europe’s turbulence and slowing growth in emerging markets such as China and India. More prac-tically stated, these macro-economic concerns have an effect on commer-forecast that in 2013 investors will return to greater risk-taking in their portfolios “in an attempt to gain more yield.” “In an attempt to gain more yield” is a key phrase – and one of the major factors that has spurred investment into commercial real estate since late 2010. Similar to personal households, one can invest their own personal funds into various alternative investments such as savings accounts, money mar-kets, bonds, stocks, and/or real estate. For each investment type, as the risk profile increases, the potential yield or return increases as well. Everyone knows this and experiences this on a personal level. This same simplified concept that one experiences at a personal household cial real estate because without new jobs, companies will not need addi-tional offices or manufacturing space, workers will not need more apartments and houses, and consumers will be more hesitant to spend their disposable income at retail shopping centers and hotels. However, despite these macro-economic concerns, many surveys The The The The relationships. expertise. fi nancing. personal touch. At Bellwether Enterprise, we supply the diversifi cation that is critically needed to thrive in the ever-changing commercial real estate fi nance environment. We have a very comprehensive set of lending products and will provide our clients with all the capital alternatives available. We offer competitive rates and terms, streamlined underwriting and enhanced loan servicing. CLEVELAND HEADQUARTERS 1360 E. 9th Street, Suite 300 | Cleveland, OH 44114 | 216.820.4500 VISION KNOWLEDGE PEOPLE ATLANTA, GA COLUMBIA, MD COLUMBUS, OH CINCINNATI, OH DALLAS, TX LEXINGTON, KY LOUISVILLE, KY NEW YORK, NY PITTSBURGH, PA RALEIGH, NC SEATTLE, WA SOUTH BEND, IN 29

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