SMALL CRE MARKET STABLIZING BUT VULNERABLE

SPECIALIZED FINANCING

Even in tough times, Remington is still your best access to commercial capital

Closing tough transactions is what we do. As an international capital services company, Remington provides unmatched market expertise, top-notch advisory services, access to hundreds of private and public sources of capital, and a track record of having closed more than $5 billion in commercial transactions across the capital stack since 1993.

So if you are looking to finance or refinance an existing property for yourself or your clients, or recapitalize a troubled one, give me a call and let's discuss the world of capital options available to you at Remington Capital.

INDUSTRY NEWS FROM REMINGTON CAPITAL

SMALL CRE MARKET STABLIZING BUT VULNERABLE

Fundamentals remain far from healthy

Small-cap commercial property rents are stabilizing, leasing activity is improving and for-sale property prices are firming up, according a recent National and Regional Trends Update. "But fundamentals remain far from healthy." Other reports indicated that despite improvements in rents, leasing and pricing, small-cap CRE markets remain "vulnerable to an uncertain economy." While the market for commercial property appears to have bottomed out, weakness in aggregate demand continues to persist and restrain "the trajectory of property fundamentals."

BUYERS, SELLERS BEGINNING TO AGREE ON PRICING

Transaction volumes expected to rise steadily in the months to come

Commercial property prices fell in June for the first time in three months. That's the bad news. Even so, despite a split in monthly price increases and decreases during the first half of 2010, dollar volume of repeat sales transactions increased from $800 million in April to $1.5 billion in May to $2.1 billion in June, according to Moody's Investors Service. "The increase in dollar volume in each of the past two months, taken together with this month's 43% increase in the number of repeat sales transactions, may be an early indication that buyers and sellers are starting to agree on market-clearing prices." Moody's went on to say that, "while the past two months' activity in repeat sales transactions highlight an encouraging sign for prices, several more months of data is needed before we can draw any firm conclusions on this point."

EASIER LOAN STANDARDS FAIL TO BOOST DEMAND

Most banks report loan demand unchanged

A Federal Reserve survey suggests that even though banks have begun easing lending conditions for the first time since the credit crisis began, most banks report that demand for business and consumer loans remains unchanged." It's mainly a demand problem, and not so much about credit supply, explained one economist. "The private sector is not responding to low interest rates and easing credit conditions." According to the Fed, banks have begun easing standards and most terms on loans to businesses of all sizes, but record-low interest rates and the Fed's $2.05 trillion in securities holdings have yet to unlock demand for loans.