Stephen Blank

Stephen R. Blank joined ULI in December 1998 as Senior Fellow, Finance. His primary responsibilities include: expanding ULI’s real estate capital markets information and education programs; authoring real estate capital market commentary; participating as a principal researcher and adviser for the Emerging Trends in Real Estate series of publications; organizing and participating in real estate capital markets programs at ULI events worldwide; and participating in industry meetings, seminars, and conferences. Prior to joining ULI, Blank served from December 1993 to November 1998 as Managing Director, Real Estate Investment Banking of Oppenheimer & Co., Inc. His responsibilities included: structuring, underwriting, and executing corporate financings including initial public offerings of common and preferred shares, unsecured debentures, and convertible bonds; property acquisitions, dispositions, and financing; and financial advisory services including mergers and acquisitions, corporate restructurings, and recapitalizations.

The 20th Annual ULI/McCoy Symposium on Real Estate Finance was held last week in New York City. The invitation-only event provides an opportunity for industry leaders to discuss issues of common concern to participants in the real estate industry, including the economy, the Federal Reserve, and the debt and equity markets.
What kind of a year will 2013 turn out to be? All in all, a pretty good one. Capitalization rates have fluctuated in a narrow band all year, with no sign of a breakout or a breakdown.
Where are interest rates going next? Up, obviously, but for planning purposes, it is important to hear from experts regarding how much and when the changes are expected. The following matrix includes information from J.P. Morgan, Barclays Capital, Bank of America, and Morgan Stanley.
Notwithstanding recent talk of an inflection point or a pause in transaction activity, sales of commercial property continued to increase quarter over quarter, reaching almost $90 billion for the third quarter of 2013. According to Real Capital Analytics, 2013 sales “will easily” exceed 2012’s $300 billion.
A passion for the business still drives John Z. Kukral, president and CEO of Northwood Investors.
Notwithstanding recent talk of an inflection point or a pause in transaction activity, sales of commercial property continued to increase quarter over quarter, reaching almost $90 billion for the third quarter of 2013. According to Real Capital Analytics, 2013 sales “will easily” exceed 2012’s $300 billion.
Real Estate Research Corporation’s most recent survey of the attitudes of institutional investors shows a marked change in buy, sell, or hold responses compared with a year ago. For example, the buy percentage of investors focused on acquiring office properties in central business districts (CBDs) declined from 38 percent in the third quarter of 2012 to 20 percent in the third quarter of this year.
The Trepp survey for the period ending October 4, 2013, showed the market treading water, waiting for some direction as to the solution to the issues being argued in Congress and with the president.
If the debt ceiling is not increased and the United States defaults (technically or actually) on its obligations, the consequences are thought by most experts to be dire, including substantial declines in the stock market, large increases in short- and long-term interest rates, and an economy rapidly entering into a deep and serious recession.
Say it isn’t so: As predicted here in the past, the recent run-up rates is starting to impact deals. In a transaction involving an income-producing property, the highest bidder terminated their contract near the end of the due diligence period last week.
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