This blog it is a collection of truths, myths and realities that shaped the real estate market in Romania only one year ago as seen through the lens of an experienced professional and a passionate promoter of this country’s potential. The blog www.realinromania-blog.com contains stories, experiences and lifetime lessons i learned throughout my five years in Romania.

2008 will be remembered globally as the year of financial crisis and the real estate meltdown. Romania followed the global trend and witnessed the burst of the real estate bubble. But the reasons here were completely different than abroad, and that is why the results will not be the same either.

Rewind to only one year ago, the media was flooded with reports of new and ambitious projects, transactions, speculations, artificially-driven prices, millions and billions invested in real estate. The number of transactions was already decreasing, but no one was paying attention. Prices were at “sky high” levels, same with the arrogance of those whom we call “major market players”. It was very difficult to focus on real business, following principles and rules. Difficult, but not impossible… Fast forward to today, the picture stands in stark contrast to what we have witnessed in the recent past. The boom phenomenon has halted and even reversed, leaving many lessons learned for Romania. 

For investors there are a number of considerations that must be made before pulling the trigger on a commercial property.  One of the most important things to consider is insurance against potential losses.  The residential market has started to cool down in some respects but the Commercial market is about to explode.  A lot of investors who may have not considered investing in Commercial now have the opportunity to get their hands on some incredible deals. 

This looks interesting ...

Prudential Mortgage Capital’s Melissa Farrell says that the life company side of her firm is lending—to the tune of $5B so far this year. “And we'd like to lend more,” she told attendees of National Realty Club’s bi-weekly luncheon at the Williams Club yesterday, which got them to look up from their Oktoberfest meal.

Indicators of the Bottom of the Commercial Real Estate Market

As a commercial real estate broker and investor, I am often asked about the arrival of the low-point of the stressed, distressed, value-add and opportunity property market. "When will we be at the bottom? Are we there yet? Is it this year? Will it be next year? Will the pending CMBS mess push property values lower? When should I get in?" are just a few examples of questions I am fielding. Funny thing is, I don't think we ever actually see the bottom before it passes us by.

I was wondering through the interwebs early this AM over coffee and somehow came across Mr. John B. Levy an investment banker from Virginia. He does a podcast series on commercial real estate and the economy. I think he is worth listening to, your thoughts ?

So once Arizona sells off these properties at bottom of the barrel prices to private ownership, they will then rent them back in the hopes that they will be able to repurchase them at obviously higher prices when the market is better? I could understand a potential upside to sell off unused state-owned properties, but the State Capitol?

"Call it a sign of desperate times: Legislators are considering selling the House and Senate buildings where they’ve conducted state business for more than 50 years.

Dozens of other state properties also may be sold as the state government faces its worst financial crisis in a generation, if not ever. The plan isn’t to liquidate state assets, though.

Ok I know this site is about real estate, but at this stage in the game I think almost all real estate has to start thinking a bit green, a friend sent this Reuters article across my desk earlier today. I sure think it is worth a read.

The article is a recap of H.R.2454 and how it's provisions could profoundly effect the real estate markets. After reading it and reading more, I have to think that "greening" up existing buildings and building new ones with sustainable principals we have to be better off and the investors in the long run will have nothing but an upside, with lower operating costs, higher occupancy rates, and public perception.

I know I want to work in a cool new building that helps the earth and won't kill me. I am now going to go find out how innovation, green and sustainable practices can help us real estate folks make a better go of it.

7-Eleven is on the expansion role in southern CA. The Dallas unit of Tokyo-based Seven & I Holdings Co., said that by launching so many stores in the middle of a crushing real estate downturn it will save millions of dollars on rent. There is a great story in the LA Times about what the companies plans are. 

I think this is again a sign that companies are feeling this recession is easing and opening the wallet. 

Enjoy your weekend... Troy 

I was surfing my way through the internets earlier this morning,  and found an interesting article on how banks and other lenders are now having to deal with the growing portfolio of properties that they own due to forclosure actions. 

 Why don't you take a look and lets start a discussion onthe subject. 

Commercial Property Could Become Operating Albatross

 Friday I attended the National Apartment Association educational conference in Las Vegas at Mandaly Bay. The conference featured a large number of sessions focused on helping the multi family operator own, manage, operate thier business in a 2.0 way. 

 I sat in on a few sessions and learned some great things and heard some funny stories. What I did sit in on that I think you should hear and see was the panel discussion moderated by the founder of Politico.com, Jim VandeHei, and the panelists Ric Campo, Chairman and CEO of Camden; Bob Faith, CEO of Greystar; and Christopher Lee, President and CEO of apartment consulting firm CEL & Associates.

 I recored the panel and hope to get it up for you in one of my next posts.