If you like to do business the old fashioned way with a personal touch from competent professionals, please consider contacting ABMC American Bankers Mortgage Corp. Based in Coral Gables on Almeria Avenue, Eric Garcia and Manny Ojeda specialize in financing Miami commercial real estate properties for owner-users and SBA loans. Call them now at 305-448-6446 or visit their website at www.abmcloans.com to learn more about Miami commercial real estate mortgage brokers.
I am pleased to inform you about the launch of my new website for Miami commercial real estate now at www.EdwardRedlich.com. As you know, I’ve specialized in the Miami industrial warehouse business with The ComReal Companies for over 15 years.
Please let me know if you or someone you know needs assistance. Rest assured, you will receive my Team’s best, personal efforts. Thank you very much. -Edward Redlich
CIASF Luncheon Event
Topic: “America’s Anti-Trade Policies”
Sponsor: The ComReal Companies in Miami
Date: July 10th , 2009
Location: Flagler Station Business Park in Medley, FL
Good afternoon everyone! My name is Edward Redlich and I’m with The ComReal Companies of Miami. This year, The ComReal Companies celebrate its 30th year in South Florida’s commercial real estate market. ComReal continues to be a proud sponsor of this organization. Although we have invested in a few minutes to speak today about our company, I’d much rather allot my time to introduce a gentleman who is going to educate us on a much more important topic. The topic is “America’s anti-trade policies”. Mr. Neal Asbury is both an excellent communicator on the subject and a true visionary. Personally, I believe that he just might be the “Missing Link” between those of us in the commercial real estate profession and the customers that we serve.
Before I give you the background on Mr. Asbury, allow me just a moment to tell you why ComReal and I support the Miami CIASF organization. We do it to promote the commercial real estate industry and for the knowledge. Today, our South Florida industrial real estate market has experienced three quarters of extremely low deal volume. Rental rates and sales prices have fallen between 20% and 40%; or even more. Vacancy is over 10%. We fear the negative trend may continue. However, our industry can flourish once again with the right stimulus. In my opinion, one solution is for America to aggressively promote the liberalization of international free trade. As international trade increases, so does the activity for industrial real estate properties. Perhaps there is no other area of the country where international trade is more important to the CRE industry than right here in South Florida.
Now, let me tell you how I came across Mr. Asbury. Not only am I a deal junkie, but I’m also a news junkie. I discovered Mr. Asbury over a year ago while surfing the internet I came across his blog at www.asburysworld.com.
I was instantly impressed by the over 100 articles that he has published on global trade issues. He has also been quoted in newspapers such New York Times and the Wall Street Journal. Mr. Asbury has addressed the United Nations, various universities and numerous trade associations; such as ours today. In addition, he hosts The Neal Asbury Show from Coral Gables which airs live on Fridays from 5 to 6 PM on the radio at 880 AM. The station is affiliated with Bloomberg Radio and CNBC. In just a few hours from now, he will be interviewing US Ambassador John Negroponte. So be sure to tune in this afternoon and you may also grab his flyers on the front desk to learn more.
Not only is Mr. Asbury an expert commentator on the subjects of international trade and manufacturing, but he actually operates his own companies: Legacy Brands and Greenfield World Trade which manufacturers, sells and services American-made products to over 130 countries worldwide. So, when you hear him speak in a moment, please understand that he is not a politician, but a true American entrepreneur.
Before Greenfield World Trade he had founded Asbury WorldWide in 1987 which became the largest American export management company in its segment with twelve distribution centers around the globe. In 1989, he began FAB Asia in the Philippines which was the Asian exclusive fabricator of commercial kitchens for McDonalds and other restaurant chains. For all of his efforts, he has earned several industry awards. He is chairman of the South Florida District Export Council, appointed to serve by the U.S. Secretary of Commerce. He is a member of the International Advisory Committee to the Governor of Florida and a member of the prestigious International Policy Committee of the U.S. Chamber of Commerce in Washington.
Now, when my father got me into this business 15 years ago, he always told me, “Ed, when you want to get something done, give it to someone who is busy”. Neal, I do not where you find the time to get all of these things done, but we sure do appreciate your taking the time from your busy schedule to address our group. Thank you very much. Please welcome Neal Asbury….
Ed Redlich and Neal Asbury
ComReal Miami commercial real estate is going green. Today is April 22nd, 2009 and we remind all of ourselves and our customers to recognize Earth Day in Miami. In recognition of Miami Earth Day, let's all remember today's meaning and reduce costs by doing the following around the office:
March 13, 2009 - ComReal Miami commercial real estate sponsored the tour of the Port of Miami. The Commercial & Industrial Association of South Florida (CIASF) setup the event. Over 50 professionals showed up to listen to Bill Johnson, Director of Port of Miami, speak about various topics such as the Miami Tunnel, Miami cargo and freight, etc. The Port Tunnel is needed by 2018 since the deepening of the cargo harbor to 50' will be completed in 2014. This will be one of three seaports on the east coast of the United States that will be 50' deep. There are fourteen deepwater ports overall.
SOCIETY OF INDUSTRIAL AND OFFICE REALTORS (SIOR) is known for it's exceptional market knowledge and capabilities of its members and the SIOR Commercial Real Estate Index. Ed Redlich, one of only 25 Miami SIOR's, has provided a summary of the results of the 4th Quarter 2008 survey below for the Miami industrial real estate market.
Setting market value is one challenge. While appraisals haven’t yet been a problem, said Ed Redlich, a vice president at ComReal, within a few months appraised values are going to drop.
“Appraisers look at pricing for a year back,” he said. “Since prices peaked about six months ago, we may see another 10%20% drop this year.” Even on deals under negotiation right now, he said, buyers’ expectations are changing rapidly.
“When property owners get an offer,” Mr. Redlich said, “they need to expeditiously negotiate it, because if it takes two to three weeks to get back to that proposal, the buyer may well say, ‘that was our proposal three weeks ago, but it’s not our offer anymore.’” Greg Zeifman, a senior associate in the Miami office of Marcus & Millichap, said sellers are not realistic in their pricing.
“I see listings priced more than twice what an investor would pay,” he said. “The fact is, most businesses are not doing so well today, but sellers want to believe that business owners are still out there wanting to buy assets, which is very rare.” Some companies will be forced to sell, said Mike Silver, first vice president at CB Richard Ellis. “We expect several large properties of more than 100,000 square feet will be placed on the market soon,” he said. “But due to cost containment in major corporations, we don’t see many significant industrial transactions going forward for the first half of 2009.” That’s partly because most of the larger industrial real estate investment trusts, or REITS, that in the past have been buyers are essentially out of the market due to financing issues, Mr. Silver said.
“Most of the institutions are pretty strong,” Mr. Zeifman said, “but they are not in the market to sell or to buy. They are in paralysis mode.
“They can’t get the funding they used to get and are not as bullish on the market, so they are in a holding pattern, operating their properties and retaining their tenants. They are pretty much on the sidelines as far as the industrial market is concerned and will be for another year.
Private equity players locally and nationally are buying distressed assets such as industrial condos, he said. “Most of these buyers are bottom feeders.” Mr. Zeifman said he’s heard that as lenders take back distressed properties, they are calling private equity firms and doing all-cash deals, “but that is happening under the radar screen.” But for users who can put money in, financing is available, Mr. Redlich said.
“Investors have to put larger amounts down. Investment properties have to have a cap rate of 8%-10%. It can’t be based on a projection of future property values,” he said. “Users can benefit by that more than investors. And while some users are in industries that are not doing well, some logistics and distribution, import-export, and food and beverage companies are so far doing fine.” Community banks and some other lenders are financing sales, Mr. Redlich said, “but they will take a hard look at the credit, and they want your bank account as well as doing your financing.” “If they’re going to make a loan, it will be for a maincorridor, type-A, property,” Mr. Zeifman said. “They’re not lining up to finance a multitenant facility with mom-andpops on month-to-month leases. It’s very rare that a lender would want to lend on class C assets.
“Most product in MiamiDade services small, entrepreneurial businesses on shortterm leases – tenants with no credit. These are not bankable deals.” Cash or seller financing will be the ideal ways to accomplish a sale in the coming months, Mr. Silver said.
“Though sales prices may not be what they were a years ago,” he said, “a lot of oppor tunities will be created due to current market situations, and there will be some deals made.”
