Get your company's associates to help with cash, even though they DON'T have direct cash responsibilty! My great mentor and former boss, Red Scott, very cogently observed that "cash ain't cash unless it's cash." What he always meant is that a promise to be paid or a check or a banker's promise or any other substitute is not really cash. You can run out of cash too easily by relying on those assumed, supposed, or "promised" cash sources.
As a result, we need to get EVERYONE around us to turn their actions, activities and thoughts toward real cash! Get your operations, marketing, sales, support, and service people to re-evaluate what they do and it's impact on cash. Get them to understand whether what they do and spend really contributes, or doesn't, to cash; are those things really necessary? Do they contribute more cash than they use? Talk frequently to your associates about this.
Do let them know we're okay, but need to focus on cash due to the long-delayed recovery. Get them to FORECAST where they're going, and how it impacts cash. Get your people to forecast more accurately, and to begin forecasting if they haven't in the past. This alone can change your cash situation. Get them to look at the "Forecaster" and "Cash Manager" tools at www.ceotools.com (scroll down through New Tools Catalog to those tools).
By simply creating cash awareness, your cash will improve! Pretty simple concept: just get your people and associates (including employees, suppliers and supporters) to think a bit more about how what they do affects cash!
It's now clear we're facing a very long, cash-crunching delay in the world economic recovery, so please prepare now for cash improvement through your associates' actions.
With very best regards,
Kraig Kramers
President & CEO -- CEO Tools, Inc. www.ceotools.com
info@ceotools.com www.ceotools.com/blog
Copyright © 2010 Corporate Partners Inc.
Showing posts with label Market Trends. Show all posts
Showing posts with label Market Trends. Show all posts
Friday, October 22, 2010
Wednesday, October 6, 2010
Industrial Real Estate Market News 2nd Qtr 2010 - Tick Tock
Atlanta Industrial Real Estate Market Trends 2nd Quarter 2010 The Atlanta distribution market now sits with 21 percent of its 512 million square foot inventory available for lease or for sale. Since the official onset of this latest recession in December of 2007, 30 million square feet have been added to the availability column. The current 107 million square feet available represents a 38% increase over the available square footage before the recession began.
Take into consideration that spec construction accounts for a mere three million square feet of that shift in availability and we’re looking at 27 million square feet returned to the market in the 10 quarter period since the recession began. The slow down in spec construction has reduced the percentage of new space to only eight percent – significantly down from the 19.4 percent seen at the end of 2007.
It’s also interesting to note that approximately 10 percent of all available space is on the market as a sublease opportunity. We are likely to see rates being held artificially low as long as this level of sublease space remains on the market.
Although, in a statement released in April, the National Bureau of Economic Research agreed that most economic indicators had turned up, they thought it premature to announce an end to the recession. Our analysis of the Atlanta industrial market also shows signs of hope as the downward trend appears to be slowing.
In looking at the 10 quarters endured during this recession, net absorption has averaged –2,833,792 square feet. Second quarter 2010 net absorption came in at –1,829,349 square feet; negative, but better than the average we have seen. Activity held steady at 8,575,662 square feet this quarter; right in line with the 8,892,958 square foot average during this recession. With activity holding and net absorption improving, it is a sign that the upheaval in tenant stability may be subsiding.
The trends appear to show a beginning of the end of this difficult cycle. Historically, the industrial real estate market recovers 18 months after the end of a recession. The bottom line is that tenants and buyers continue to have many opportunities . . . but the clock is ticking.
Submarket trends and summaries can be downloaded instantly here
Take into consideration that spec construction accounts for a mere three million square feet of that shift in availability and we’re looking at 27 million square feet returned to the market in the 10 quarter period since the recession began. The slow down in spec construction has reduced the percentage of new space to only eight percent – significantly down from the 19.4 percent seen at the end of 2007.
It’s also interesting to note that approximately 10 percent of all available space is on the market as a sublease opportunity. We are likely to see rates being held artificially low as long as this level of sublease space remains on the market.
Although, in a statement released in April, the National Bureau of Economic Research agreed that most economic indicators had turned up, they thought it premature to announce an end to the recession. Our analysis of the Atlanta industrial market also shows signs of hope as the downward trend appears to be slowing.
In looking at the 10 quarters endured during this recession, net absorption has averaged –2,833,792 square feet. Second quarter 2010 net absorption came in at –1,829,349 square feet; negative, but better than the average we have seen. Activity held steady at 8,575,662 square feet this quarter; right in line with the 8,892,958 square foot average during this recession. With activity holding and net absorption improving, it is a sign that the upheaval in tenant stability may be subsiding.
The trends appear to show a beginning of the end of this difficult cycle. Historically, the industrial real estate market recovers 18 months after the end of a recession. The bottom line is that tenants and buyers continue to have many opportunities . . . but the clock is ticking.
Submarket trends and summaries can be downloaded instantly here
Wednesday, April 28, 2010
Industrial Real Estate Market News 1st Qtr 2010 - When will the recovery begin?
Atlanta Industrial Real Estate Market Trends 1st Quarter 2010
The good news is that 48 percent of U.S. metro areas are on the rebound. According to the Adversity Index compiled by msnbc.com and Moody’s economy.com, 183 of the 384 metro areas tracked in the US have begun to recover from the current recession. The bad news is that Atlanta was not among that fortunate group. The activity and net absorption results for this first quarter of 2010 can’t dispute those findings.
After a better than expected end to 2009, the Atlanta industrial market lost momentum in the first quarter. Activity slipped to 8,842,437 square feet – down slightly from the fourth quarter 2009 performance, but not as low as the previous quarters in 2009. Deals are definitely being made. In fact, more deals were inked in this first quarter than in the closing quarter of 2009. Proof positive that tenants are coming and going – the “going” side is out-pacing the “coming” side. Net absorption of –3,293,614 square feet was the end result in the distribution sector for the first quarter 2010.
Full article with submarket overviews: here
The good news is that 48 percent of U.S. metro areas are on the rebound. According to the Adversity Index compiled by msnbc.com and Moody’s economy.com, 183 of the 384 metro areas tracked in the US have begun to recover from the current recession. The bad news is that Atlanta was not among that fortunate group. The activity and net absorption results for this first quarter of 2010 can’t dispute those findings.
After a better than expected end to 2009, the Atlanta industrial market lost momentum in the first quarter. Activity slipped to 8,842,437 square feet – down slightly from the fourth quarter 2009 performance, but not as low as the previous quarters in 2009. Deals are definitely being made. In fact, more deals were inked in this first quarter than in the closing quarter of 2009. Proof positive that tenants are coming and going – the “going” side is out-pacing the “coming” side. Net absorption of –3,293,614 square feet was the end result in the distribution sector for the first quarter 2010.
Full article with submarket overviews: here
Monday, March 1, 2010
Industrial Real Estate Market News 4th Qtr 2009 - False Start or Starting Block?
False Start or Starting Block?
There were clearly no winners in 2009. Net absorption broke negative records, activity faltered and availability topped the 20 percent mark. At the close of the fourth quarter, however, it appears market conditions may be improving and the weather may be clearing for the 2010 season.
While net absorption in the fourth quarter remained negative, at –377,952 square feet it was a vast improvement over the previous four quarters. Of the 12 metro Atlanta submarkets, four closed the quarter with positive net absorption. The Fulton Industrial District was the clear winner for the fourth quarter, thanks to a massive build-to-suit for Kraft Foods. Net absorption in this submarket reached 942,095 square feet – a clear reversal of its third quarter performance of -1.7 million in net absorption. After recording a second consecutive quarter of positive net absorption, Area 60 (city of Atlanta South of I-20) even posted positive net absorption for the year.
Activity hit new lows during the first part of 2009, but in the closing quarter of the year, it bested the previous four quarters coming in at 9,488,628 square feet. What’s more, of the 497 deals reported, only 18 were in excess of 100,000 square feet. The I-85 North corridor, the beneficiary of six of those large deals, outpaced all other metro submarkets with 1,843,189 square feet of activity.
The vacancy rate climbed for four consecutive quarters, finally breaking the 20 percent level in the third quarter stopping at 20.2 percent. Although the fourth quarter saw an increase to 20.3 percent, that increase was a meager one-tenth of a percent – far less than the one percent average increase seen the four previous quarters. Spec construction wasn’t a contender in 2009; a whopping 79.5 percent of the 2.5 million square feet added to inventory in 2009 was build-to-suit.
In comparison to the rest of 2009, the fourth quarter seemed to gain momentum. An improvement in net absorption, a modest increase in activity and stabilization of the availability rate are all indications of a comeback. The question now . . . was the fourth quarter a false start or are we on the starting block? We’re hoping for the latter and pacing ourselves for the marathon ahead. Here’s to a New Year and a new playing field.
Sim F. Doughtie, CCIM, SIOR, MCR
President
There were clearly no winners in 2009. Net absorption broke negative records, activity faltered and availability topped the 20 percent mark. At the close of the fourth quarter, however, it appears market conditions may be improving and the weather may be clearing for the 2010 season.
While net absorption in the fourth quarter remained negative, at –377,952 square feet it was a vast improvement over the previous four quarters. Of the 12 metro Atlanta submarkets, four closed the quarter with positive net absorption. The Fulton Industrial District was the clear winner for the fourth quarter, thanks to a massive build-to-suit for Kraft Foods. Net absorption in this submarket reached 942,095 square feet – a clear reversal of its third quarter performance of -1.7 million in net absorption. After recording a second consecutive quarter of positive net absorption, Area 60 (city of Atlanta South of I-20) even posted positive net absorption for the year.
Activity hit new lows during the first part of 2009, but in the closing quarter of the year, it bested the previous four quarters coming in at 9,488,628 square feet. What’s more, of the 497 deals reported, only 18 were in excess of 100,000 square feet. The I-85 North corridor, the beneficiary of six of those large deals, outpaced all other metro submarkets with 1,843,189 square feet of activity.
The vacancy rate climbed for four consecutive quarters, finally breaking the 20 percent level in the third quarter stopping at 20.2 percent. Although the fourth quarter saw an increase to 20.3 percent, that increase was a meager one-tenth of a percent – far less than the one percent average increase seen the four previous quarters. Spec construction wasn’t a contender in 2009; a whopping 79.5 percent of the 2.5 million square feet added to inventory in 2009 was build-to-suit.
In comparison to the rest of 2009, the fourth quarter seemed to gain momentum. An improvement in net absorption, a modest increase in activity and stabilization of the availability rate are all indications of a comeback. The question now . . . was the fourth quarter a false start or are we on the starting block? We’re hoping for the latter and pacing ourselves for the marathon ahead. Here’s to a New Year and a new playing field.
Sim F. Doughtie, CCIM, SIOR, MCR
President
Friday, October 2, 2009
Forbes magazine says Georgia is the No. 6
Forbes magazine says Georgia is the No. 6 state for doing business.
The magazine ranks all 50 states based on costs, labor supply, regulatory environment, current economic climate, growth prospects and quality of life. Business costs, which include labor, energy and taxes are weighted the most heavily.
Source: Atlanta Business Cronicle http://atlanta.bizjournals.com/atlanta/stories/2009/09/21/daily86.html
The magazine ranks all 50 states based on costs, labor supply, regulatory environment, current economic climate, growth prospects and quality of life. Business costs, which include labor, energy and taxes are weighted the most heavily.
Source: Atlanta Business Cronicle http://atlanta.bizjournals.com/atlanta/stories/2009/09/21/daily86.html
Tuesday, August 25, 2009
Mild" decline shows up in Moody's commercial property index
"Mild" decline shows up in Moody's commercial property index
After two consecutive months of 7% drops in commercial real estate values, June experienced a "mild" 1% decline, Real Estate Analytics said. "This month is not unexpectedly bad news like the two previous months," said Neal Elkin, the firm's president. Still, the Moody's/REAL National All Property Type Aggregate Index for June marked a 35.5% plunge in prices during the past two years...article
Source: GlobeSt written by Paul Bubny
After two consecutive months of 7% drops in commercial real estate values, June experienced a "mild" 1% decline, Real Estate Analytics said. "This month is not unexpectedly bad news like the two previous months," said Neal Elkin, the firm's president. Still, the Moody's/REAL National All Property Type Aggregate Index for June marked a 35.5% plunge in prices during the past two years...article
Source: GlobeSt written by Paul Bubny
Friday, August 21, 2009
No meaningful CRE recovery until 2010?
The National Association of Realtors said the commercial real estate market slowed to its lowest level in 15 years during the second quarter. "The reduction in commercial real estate activity is expected to last at least through the first quarter of 2010. Any meaningful recovery is not likely to occur before the second half of next year," NAR chief economist Lawrence Yun said. Reuters (8/19) Full article
Thursday, July 23, 2009
Second Quarter 2009 King Facts
While some are playing golf or hanging their hats, we continue to see industrial activity increase. Evidence? We are still averaging a deal a day.
From January 1995 to June 2009, King Industrial Realty has negotiated in the Metro Atlanta area:
From January 1995 to June 2009, King Industrial Realty has negotiated in the Metro Atlanta area:
- *5,552 lease and sale transactions totaling 85 million square feet
- *532 land transactions totaling 4,813 acres
- Completed a total of 365 deals in 2008
22 years of property management experience
Industry Rankings
- Top 5 Brokerage Network by Commercial Property News
- Top 10 Brokerage by Real Estate Forum
- Top 10 Commercial Real Estate Brand by the Lipsey Company
- Top 5 Property Management Network
King Industrial Realty is a founding member of CORFAC International. In 2007, CORFAC firms completed 9,594 commercial real estate transactions, encompassing 340 million square feet and valued at $30 billion.
Serving our clients’ needs anywhere with over 3,500 real estate professionals worldwide in 150+ markets.
King Industrial Realty, Inc. 404-942-2000 www.kingindustrial.com
Tuesday, July 21, 2009
Second Quarter 2009 Commercial Real Estate Outlook
Ken Riggs: Second Quarter 2009 Edition of the ITQ
The outlook for commercial real estate is just plain bleak. The economic downturn that hit the nation is the “worst downturn since the Great Depression.” And, this so-called “tsunami” is so pervasive and struck so quickly that even the most seasoned commercial real estate professionals asked: “How did this happen, and how did this happen so fast?” Listen as Ken Riggs paints a sobering picture on the market and provides more insight from the Second Quarter 2009 edition of the RERC/CCIM Investment Trends Quarterly. Riggs predicts a recovery may be four quarters away, given the lag time involving commercial real estate sales and rents. But he’s optimistic that there are opportunities, and he predicts the industry will be stronger in the long-term.
Source: podcast.ccim.com
The outlook for commercial real estate is just plain bleak. The economic downturn that hit the nation is the “worst downturn since the Great Depression.” And, this so-called “tsunami” is so pervasive and struck so quickly that even the most seasoned commercial real estate professionals asked: “How did this happen, and how did this happen so fast?” Listen as Ken Riggs paints a sobering picture on the market and provides more insight from the Second Quarter 2009 edition of the RERC/CCIM Investment Trends Quarterly. Riggs predicts a recovery may be four quarters away, given the lag time involving commercial real estate sales and rents. But he’s optimistic that there are opportunities, and he predicts the industry will be stronger in the long-term.
Source: podcast.ccim.com
Friday, February 13, 2009
Atlanta Industrial Real Estate Worst in Years
Atlanta Business Chronicle, February 13, 2009
Atlanta's industrial market just completed the worst single quarter in nearly a generation.
A surge in tenant turnover led to almost 4.1 million square feet in negative net absorption, or the amount of industrial space that was not occupied, according to King Industrial Realty.
"A combination of overwhelming tenant turnover and sluggish leasing activity led to unprecedented negative net absorption and further fueled economic uncertainty to finish the year," King said in a report released Feb. 12. "This downturn represents the worst single quarter for absorption since King Industrial Realty began tracking the Atlanta Industrial market more than 25 years ago."
Ten out of the 12 metro Atlanta submarkets recorded negative net absorption in the fourth quarter. The Interstate 85 North distribution market finished 2008 on an erratic note. It led all metro Atlanta submarkets with almost 1.9 million square feet of activity in the fourth quarter, but it was also hit hard with tenant turnover.
Only two areas fared well: the airport submarket, which managed to record 344,851 square feet of positive net absorption, and the Peachtree City submarket, with a modest 3,473 square feet of positive net absorption.
Atlanta’s industrial vacancy rate jumped 1 percent to 17.4 percent in the fourth quarter.
On a more positive note, the industrial market surrounding the airport recently landed another large tenant
Atlanta's industrial market just completed the worst single quarter in nearly a generation.
A surge in tenant turnover led to almost 4.1 million square feet in negative net absorption, or the amount of industrial space that was not occupied, according to King Industrial Realty.
"A combination of overwhelming tenant turnover and sluggish leasing activity led to unprecedented negative net absorption and further fueled economic uncertainty to finish the year," King said in a report released Feb. 12. "This downturn represents the worst single quarter for absorption since King Industrial Realty began tracking the Atlanta Industrial market more than 25 years ago."
Ten out of the 12 metro Atlanta submarkets recorded negative net absorption in the fourth quarter. The Interstate 85 North distribution market finished 2008 on an erratic note. It led all metro Atlanta submarkets with almost 1.9 million square feet of activity in the fourth quarter, but it was also hit hard with tenant turnover.
Only two areas fared well: the airport submarket, which managed to record 344,851 square feet of positive net absorption, and the Peachtree City submarket, with a modest 3,473 square feet of positive net absorption.
Atlanta’s industrial vacancy rate jumped 1 percent to 17.4 percent in the fourth quarter.
On a more positive note, the industrial market surrounding the airport recently landed another large tenant
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