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Wednesday, 03 November 2010

Commercial Property Brokers See Big Increases in 3Q Volumes

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Commercial Real Estate Direct Staff Report

Each of the major publicly traded commercial real estate service providers saw sharp increases in third-quarter investment-sales volumes, confirming once again that property markets are on the mend.

Those three companies are HFF Inc., parent of Holliday Fenoglio Fowler, CB Richard Ellis Group and Jones Lang LaSalle. Their increasing volumes should be no surprise, given that investment-sales volumes, as recorded by Real Capital Analytics, doubled in the third quarter, to $28.9 billion, when compared to a year ago.

HFF, perhaps the only pure-play brokerage shop that's publicly traded, reported a more than doubling of third-quarter transaction volume. It handled 175 deals totaling $5.1 billion, up from 113 deals totaling $2.5 billion a year earlier. CB and JLL both have substantial investment-management, leasing and property-management arms.

Every one of HFF's major transaction categories saw a jump. Investment sales, for instance, jumped to 45 deals totaling $1.9 billion from 20 totaling $824.8 million; debt-placement volume nearly doubled to 106 deals totaling $2.9 billion from 79 totaling $1.5 billion, and loan sales skyrocketed to 10 deals totaling $206.3 million from 7 totaling $668 million.

The company has added 30 to its staff, which now numbers 420. The bulk of that is the result of the company's adding investment-sales teams in New Jersey and Orange County, Calif.

John H. Pelusi Jr., the company's chief executive said the "unprecedented" monetary easing by central banks has resulted in "improvements in certain sectors of the U.S. commercial real estate capital markets, especially in the public equity and debt markets." That, coupled with an economy that is improving slowly, has created a "more conducive environment for certain types of commercial real estate transactions to occur with more frequency in select markets."

But he warned that continued increases in mortgage delinquencies as well as regulatory changes could "have the potential to dampen the continuation of the improving economic and capital-market conditions."

Jones Lang LaSalle, which provides a broad range of real estate services, saw revenue from its Americas capital markets and hotels operations climb by a whopping 127 percent to $25.2 million in the latest quarter. Leasing revenue, meanwhile, rose by 38 percent to $152.6 million. Globally, leasing revenue jumped by 36 percent to $235.6 million.

And CB Richard Ellis saw revenue from investment sales climb by 63 percent in the latest quarter to $207.8 million. In its Americas region alone, sales revenue climbed 69 percent to $116.4 million. It expects sales volumes to continue climbing this year.

Gil Borok, CB's chief financial officer noted that top-tier properties are trading at prices that result in capitalization rates of 4.75 percent to 6 percent. As a result of CB's improved revenue, the company has restored salary and commission cuts that it had implemented during the property market's downturn.

Comments? E-mail Orest Mandzy, or call him at (267) 247-0112, Ext. 211.



Copyright © 2010 Commercial Real Estate Direct www.crenews.com

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“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

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Additional Info

  • Syndicate to Realpoint: No
  • Subject: Property Acquisitions (ACQ), Research (RES)
  • Deal Name: Bear Stearns Commercial Mortgage Securities Trust, 2006-PWR12
Read 519 times Last modified on Friday, 05 November 2010

Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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