Jag Grewal
Jag Grewal had been with Coldwell Banker Commercial ever since they purchased Arvida Realty in 2001, prior to being recruited by Ian Black Real Estate. He has been involved in a multitude of transactions from investment grade and development to industrial properties representing REIT’s, such as The Lightstone Group and Prime Retail. Jag, a well respected commercial real estate broker, has earned numerous distinctions throughout his career completing sales and leases over $150M in this region.
He is the current President of the Commercial Investment Division – an organization that serves all of the commercial real estate practitioners and affiliates in the Sarasota county. He was awarded the prestigious Commercial Realtor of the Year in December, 2007, by his peers.
July 1, 2010
Jack McCabe, real estate commentator, was considered the purveyor of doom a few years ago. After reading his comments in the Tribune Monday, June 28th article, he now seems to be on the cutting edge of Florida commercial real estate. Let me just say that I thoroughly agree with his assessment of the market and have been saying exactly the same thing for some time.
The last time I blogged about short sales I talked about my client, Bob. Bob owns a 2,500 square foot office condo built in 2006 that he was upside down on and he was forced to stop paying his mortgage as his business had slowed significantly. Bob asked me to do BPO to list the property for sale. Once he took these proactive steps his bank was very receptive to talking with him about how to make the loan current.
Bob holds a $600,000 mortgage and the property is now worth considerably less. The bank has been working with him and hopefully they will be modifying the loan. The bank’s other option is to look at a short sale. I believe that this scenario is going to become more the standard practice. Short sales are going to be the way to go with trouble commercial real estate.
The process of a commercial short sales is much quicker than residential short sales in my experience and I believe this is due to the nature of commercial lending in general. Commercial lending is a much more personal relationship. usually the borrower has a good relationship with his banker from the onset. Things move much faster and decisions are made quickly.
To summarize, commercial short sales are going to be the future of commercial real estate business. If you are underwater on your mortgage, call me and I will be more than happy to share my experience and knowledge of the process.
May 26, 2010
There’s a new shift in pricing.
There are many commercial property owners who have got their head in the sand and are still hoping that this economy will change drastically. Tantamount to getting an oil tanker heading to the South Pole to turn on a dime. It’s going to take a while to do it.
The point is, the sooner property and land owners recognize and embrace the facts of the market, the better. Here are the facts: you are competing against owners who bought buildings at deep discounts and are out marketing the properties at significantly lower lease rates and/or you are competing against owners who have realized that a dollar coming in the door is one less dollar they must find to go out the door and making deals to generate any income at all. This is the free market and this is the reality.
Consider this chart and decide whom you wish to be, Property Owner A or Property Owner B. At any fixed point in time, Property Owner A is always pricing just above the market and Property Owner B is just below the market. Property Owner B will get the tenant, almost guaranteed and as we move forward in time during a down market, he will continue to get the tenants while Property Owner A continues to chase the market.
Can you tell me, what other options than pricing in front of a down market is there. The idea here, is to beat the market, you cannot pick the market.
