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Capital Markets Summit
Part II: The Equity Panel
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What are the buzz words in commercial real estate equity nowadays? If you were at Real Estate People's Capital Markets Summit last Wednesday you would know. They are "low rates" and "flexibility." The market has and still continues to change, as all of our top panelists agreed. They have all had to evolve in order to stay competitive and successful. Similar to the Pacers. Or, maybe not so much.
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Over the past year Herman & Kittle Properties has created a new broker-dealer entity with the goal of streamlining the process for their investors, stated Pat O'Connor, EVP of Capital Markets. "We've created a template simplifying the process while allowing our investors a more hands-on experience."
After the market collapsed in '08 Scannel Properties starting developing in remote markets, Ralph Shiley, Managing Director of Scannel's Capital Group, shared. "Random markets you would never think investors would be interested in are now becoming viable. It wasn't something we did before, but we've found it equally successful."
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Another change Rebecca Wells, JLL's EVP of Capital Markets, has seen "have been the rates in the market, which have been exceedingly good, with the Cap Rates in the low 8's when it comes to office building investments. They are probably the lowest in the last 15 years."
Greg Buckhout, VP of Capital Services at Thompson Thift, agreed with Rebecca's statement, and believes it is a driving force in the market, as are investors focusing on franchise businesses. He sees "Investors that are now looking for retail deals that include franchise businesses, since they bring in a monthly yield, versus investors in the past who were looking at the end return from the actual sale."
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The overall sentiment of our panelists seemed to be be "All is well in the equity market!" Lets celebrate and eat cake!
Matt Cohoat, EVP & CFO (above right) with Becknell Industrial, lends his two cents to this same thought. He equates the commercial market to an "all you can eat-buffet where, if you don't get in line at the beginning, you will end up with the carrot & raisin salad that no one wants." In other words, if you see a great deal, jump on it now!" So you can Eat Cake, not raisin salad!
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And a Special Thanks to our Excellent Moderator
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A Special thank you to our excellent and insightful moderator, Keith Menner,(far right) SVP, Capital Advisors with Colliers International, who did a wonderful job of steering the conversation for both our Capital Markets panels!
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Thank You to more Event Sponsors
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Another sponsor on hand at the event was CREW (Commercial Real Estate Women). Manning the booth for IndyCrew (L-R) were
Jenna Powers (Mitsch Design), Kelly Martin (Becknell Industrial), and Jennifer Bean (IBJ). Thank you ladies!
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A few more of our event attendees included (L-R): Randy Scheidt, Don R. Scheidt & Co. Inc., Scott Lindenberg with Reliant Partners and Jerry Torr with Hamilton National Title.
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Jared Wendling with Neyer Properties, Inc. and Dan Mallon with Lauth Group Inc. (below) were also networking and, we assume, discussing the next Real Estate People Event, State of Office Summit on June 26. Click here to register.
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