Downturns in the commercial market have hit the incomes of commercial practitioners, particularly those new agents and associates trying to break into the business. The median dollar volume for lease deals was $330,200 last year — but 42 percent of those surveyed had no leasing transactions in 2009, compared with 28 percent the year before. Read more…
Archives for 2010
Commercial Vacancies to Peak Near Early 2011
Vacancy rates continue to rise in most commercial sectors and are not expected to level out in most markets until the end of this year or early 2011, according to the National Association of REALTORS®. Read more…
Lead Based Paint Renovation, Repair, and Painting Program
Owners who can certify that their home is not occupied by children under 6 or pregnant women may opt to allow the contractor to conduct repairs that are NOT in compliance with the Program. Repairs to rental properties MUST be done in compliance with the Program. The specific question to the Legal Hotline was in regard to vacant properties that were not rentals and not owner-occupied. ‘œDid the contractor have to follow Program requirements? Could the owner do his own repairs?’ EPA has advised that the ‘œhomeowner’ exception cannot be applied as a general exception for properties that are vacant or not intended to be used as rentals. They apply literally the language of the regulation that provides that exception to apply to renovations that will occur ‘œin the owner’s residence.’ Consequently, repairs done to property that is vacant (not owner occupied) would have to be done in compliance with the Program. NOTE: EPA will be publishing an amendment to eliminate the owner ‘œopt out.’ EPA has indicated that they anticipate that will become effective July 6. (RANM’s™ Legal Hotline)
Commercial Loan Losses – Large but Bearable
Bearable — assuming banks will book the losses over time and offset them with earnings from healthier loans. But that convenient scenario may not play out for all banks, leaving investors potentially exposed to shock hits from commercial real-estate exposure. It will pay to sift through banks’ first-quarter earnings, which started to come out last week, for signs commercial real estate could yet cause unexpected pain. Read more…
