The Real Estate Bloggers

Fannie Mae And Freddie Mac Delisting From The NYSE?

Posted: 16 Jun 2010 08:10 AM PDT

FannieMae As the Federal Government scrambles to prop up Freddie Mac and Fannie Mae, investors have called it quits on the two companies. With their stock prices hovering around one dollar, The Hill is reporting that they are planning on delisting from the New York Stock Exchange.

If these were true public companies, the phrase “Putting a fork in them” would apply, but as they government has committed to bailing them out Fannie and Freddie will continue to stumble around like drunken sailors.

It is a sad day for many investors though.

Fannie Mae and Freddie Mac, the bailed-out mortgage giants, are expected to remove their shares from the New York Stock Exchange (NYSE), a government regulator said Wednesday.

The two companies would need to take steps to shore up their share prices to meet stock exchange rules. The Federal Housing Finance Agency (FHFA) directed the companies to delist their shares.

“The determination to direct delisting is related to stock exchange requirements for maintaining price levels and curing deficiencies,” said FHFA acting Director Edward DeMarco. via The Hill

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Commercial Real Estate To Stay 40 Percent Off Peak Prices

Posted: 16 Jun 2010 05:45 AM PDT

Commercial-real-estate There is an interesting dynamic happening in commercial real estate these days. We are looking at cheap real estate everywhere we look, yet there is still very little demand for it.

The combination of the recession, overbuilding in 2005–2007, and a new paradigm in the work environment will probably not help the matter much.

A new report from Pimco says do not expect a rebound in commercial real estate. The 40 percent drop in values that we have seen since 2007 will probably remain with us for a while.

U.S. commercial property values are rebounding slowly and may remain as much as 40 percent below their 2007 peak levels, Pacific Investment Management Co. said.

More than $500 billion of real estate will hit the market as lenders dispose of assets or restructure debt on properties where valuations have dropped below loan levels, keeping “general” prices down for three to five years, Newport Beach, California-based Pimco, which runs the world’s biggest bond fund, said on its website.

“Capital is clearly returning to commercial real estate, helping to stem the value decline in the sector,” Pimco said in a report based on research in 10 cities. “Optimism should be tempered, because national price indices are misleading when transactions are limited and fail to reflect the significant uncertainty around property valuations.” via Bloomberg

There is another factor coming into play. The mobile workforce.

We do not need the office space that we did a few years ago. A discussion we were having, we being Michael McClure of Professional One and Tyler Webb, really brought out this point.

Office space is just a luxury that most businesses do not need. Having offices and desks sit empty regularly while ones workforce is mobile makes no sense. Add to the fact that Wifi is free for the most part, even Starbucks is going to this model, informational workers do not need to be tied to an office anymore.

Workers will be happier with the freedom. Employers will be happy reducing their facility costs. Even the coffee shops will appreciate the extra business.

The only ones fretting are the landlords and the commercial brokers.

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Commercial Real Estate To Stay 40 Percent Off Peak Prices