Sami's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/177529/comments http://seekingalpha.com/article/78118-u-s-commercial-real-estate-falls-sharply-in-march?source=feed#comment-170683 170683 Tue, 20 May 2008 15:51:09 -0400 http://seekingalpha.com/article/72085-ultrashort-real-estate-etf-the-only-safe-haven-for-commercial-reits?source=feed#comment-149833 149833
Moreover, although retailers have posted weak sales, what does that mean to a retail mall owner? Well, nothing he will still collect rent from the retailer. Retailers are bound by long term leases and they have to pay it as long as they are operational. Tough retail environment means that new space will not be absorbed easily by the market. Then you have to ask yourself have there been overbuilding in the past few years. The numbers suggest there was not any.

The media have linked commercial real estate and residential real estate in one big lot. However the realty is the economics between the two is vastly different.

I would not suggest shorting an entire sector. You have to look at the ones that have a lot of development projects in the pipeline in b and c markets and depend on a lot of leverage. Those are good candidates for a short. ]]> Sun, 13 Apr 2008 12:52:01 -0400
Moreover, although retailers have posted weak sales, what does that mean to a retail mall owner? Well, nothing he will still collect rent from the retailer. Retailers are bound by long term leases and they have to pay it as long as they are operational. Tough retail environment means that new space will not be absorbed easily by the market. Then you have to ask yourself have there been overbuilding in the past few years. The numbers suggest there was not any.

The media have linked commercial real estate and residential real estate in one big lot. However the realty is the economics between the two is vastly different.

I would not suggest shorting an entire sector. You have to look at the ones that have a lot of development projects in the pipeline in b and c markets and depend on a lot of leverage. Those are good candidates for a short. ]]>