Federal banking regulations currently require financial institutions in Missouri and around the country to obtain certified appraisals when commercial real estate loans are secured by properties worth $250,000 or more, but a rule change proposed on July 19 by the federal banking agencies would raise this threshold to $400,000. The change was proposed after banking regulations were reviewed in early 2017 and suggestions about possible regulatory relief had been considered. The current threshold has not been increased since being introduced in 1994.
Selling commercial real estate properties
Missouri commercial property owners who are wanting to offer their properties for sale should do several things before they do so to help to facilitate the transactions. By taking these steps, the property owners may increase their likelihoods of selling their properties for prices that provide them with the type of profits that they are seeking.
Job growth spurs Colorado CRE market in second quarter
The commercial real estate market in Colorado performed well during the second quarter of 2017 thanks to robust job growth in the state according to a leading figure from the CBRE Group. The real estate information company, which released a market assessment on July 10, say that commercial tenants in Denver have now leased more space than they relinquished in 29 consecutive quarters. Vacancy rates remain extremely low in the Denver area, and experts feel that this is a situation that will likely persist for some time.
CRE delinquency rates up by 28 basis points in June
Much has been written about a looming wall of commercial mortgage-backed securities that will either have to be refinanced or paid off in 2017. About $2.4 billion in CMBS issued in 2006 and 2007 were classed as delinquent in June, and experts believe that this could have caused delinquency rates in Missouri and around the country to soar to 5.75 percent. The 28 basis point surge is the biggest increase in five years according to a real estate information and consultancy firm. The delinquency rate stood at 4.6 percent in June 2016.
Due diligence in commercial property transactions
Commercial property buyers in Missouri and around the country may be drawn to an office building, retail store or warehouse because it is located in a thriving area or has the potential to provide solid returns, but they will usually wait until due diligence efforts have been completed before making any kind of commitment. During the due diligence process, commercial real estate investors seek to learn more about the financial, legal and physical condition of properties.
