You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur. FOR OVER 20 YEARS, I HAVE WORKED EXTENSIVELY WITH OWNERS AND BUYERS IN LAND, COMMERCIAL AND INVESTMENT REAL ESTATE IN PHOENIX, TUCSON AND THROUGHOUT ARIZONA. PLEASE LET ME KNOW HOW I CAN HELP YOU. Call me if you want to sell your property and need an estimated value. Phone / Prefer cell: 520-975-5207
Office: 480-948-5554 or email me walterunger@ccim.net. – What is a CCIM.
In Business and in Life you don’t get what you deserve, you get what you Negotiate.
contact me if you want the me to get you the value of your property.
CLICK HERE TO VIEW ALL MY LISTINGS.
Are you ready to sell or purchase your Land or Commercial Building in Phoenix, Scottsdale, Maricopa County and Pinal County, Arizona, please call me?
Walter Unger CCIM – cell: 520-975-5207 – walterunger@ccim.net
Commercial real estate investors need to address distressed assets with urgency, as interest rates rise and inflation continues to be a factor.
CCIM I By William Lobel | Summer 2022 CIRE Magazine
Cyclical challenges in the economy are nothing new to commercial real estate developers and investors, and 2022 looks to be that kind of year for CRE professionals nationwide.
While many business owners may be tempted to put off facing distressed assets, ignoring the problem will not make it go away. Like a person ignoring symptoms of a serious illness, CRE investors in financial trouble have a far better chance of saving their business, their employees’ jobs, and their reputations in the marketplace if they seek expert counsel early.
A thorough review of the financial situation can help business owners identify alternatives that may help them avoid bankruptcy before things go too far. And unfortunately, a wave of negative economic indicators is gathering on the horizon, with recent headlines warning of a scary end to this year and/or start to 2023.
Experts Forecast Looming Storm Clouds Ahead
Over the past few years, extraordinarily low interest rates and government funding have helped support our economy. This has allowed many individuals, business owners, real estate investors, and companies to stay above water. But this support effectively is just kicking the problems down the road — and now those problems are beginning to catch up with us.
Some with commercial real estate holdings are experiencing slowing or stopped pay from tenants. And as we have started to see, economic policy and support have begun to dwindle. Economic experts are predicting that many business owners will be hit toward the end of 2022 and into 2023.
Commercial property owners will be particularly affected as government funds dry up. Shopping center owners and CRE investors have been severely impacted by the pandemic. Already faced with the decline of brick-and-mortar businesses as online shopping becomes the new reality, the retail sector saw these problems become more severe as people moved more shopping online to reduce pandemic risk.
Already faced with the decline of brick-and-mortar businesses as online shopping becomes the new reality, the retail sector saw these problems become more severe as people moved more shopping online to reduce risk from the pandemic.
In addition, business owners are facing the ongoing reality of being unable to secure supplies, employees, and/or operating capital. Many businesses have moved their payables from 30 days to 90 days, demonstrating a weakening financial picture. Continuing sanctions against foreign countries have exacerbated supply chain problems along with a backlog of ships in U.S. ports waiting to offload their contents. The obvious result is a difficulty in distributing supplies to their ultimate destinations after they have been off-loaded.
Ignoring the Problem Will Not Make It Go Away
Declining numbers of shoppers coupled with the staffing problems created by the Great Resignation have negatively impacted the bottom line for nearly all shopping centers’ real estate. Many are wondering if the government will continue to prop up the economy through the continuation of loans and legislation that prevents evictions, foreclosures, and other types of enforcement of creditors’ rights.
A past officer of the International Council of Shopping Centers, who is a well-known shopping center developer, suggests there is little doubt that dark clouds are on the horizon for the nation’s shopping centers and retail real estate entrepreneurs. Defaults are continuing to occur, but the economy is not experiencing the large-scale disruption that usually accompanies large loan defaults. This combination may be a result of relaxed banking policies — federal bank regulators are not leaning on banks to come down harder on borrowers of loans that have gone bad.
Because banks have been given the opportunity to essentially ignore bad loans without negative consequences, they are sticking their collective heads in the sand. But that ignorance cannot last.
Now Is the Time to Restructure
Kicking a problem down the road can be an effective solution. Time changes situations after all. Sometimes the cause of the financial distress can be eliminated. Sometimes interest rates will drop, ushering in new financing opportunities. Sometimes the business or CRE entity can be restructured to remove the cause of the financial distress.
Avoiding the problem, however, usually is not a successful long-term solution for those already in financial distress. Interest rates are beginning to inch up, and, with inflation increasing, the Federal Reserve has said that rates are headed only one way in 2022 — and that is up.
With all these factors at play, the owners of CRE property will have to contend with the consequences of default sooner or later. It seems advisable to consider addressing distressed financial assets by restructuring now, while lenders still are hesitant to exercise their rights to bad loans. They may not be willing to take over properties now, but that approach is likely to change in the coming months.
Now is the time to seek counsel from experts to stave off a Chapter 11 bankruptcy. Waiting too long to deal with financing issues often makes bankruptcy inevitable. Early intervention and attention to available alternatives can help real estate owners and investors mitigate the risk of bankruptcy before things go too far. Astute legal guidance can be a lifesaver for property owners and the employees whose livelihoods depend on the success of the business.
During times like these when we anticipate an increase in companies grappling with distressed assets, real estate owners can use a variety of methods to maximize value, restructure existing debt, repurpose assets, and modify their business to retain assets. The right counsel can help empower real estate owners with distressed assets to repair damage and build a better and brighter future.
FROM ME: FOR OVER 20 YEARS, I HAVE WORKED EXTENSIVELY WITH OWNERS AND BUYERS IN LAND, COMMERCIAL AND INVESTMENT REAL ESTATE IN PHOENIX, TUCSON AND THROUGHOUT ARIZONA. Now is the time, if you are thinking of selling or purchasing your Land or Commercial Building in Phoenix, Scottsdale, Maricopa County, Pinal County, Arizona / Office / Retail / Industrial / Multi-family / please call me on my cell 520-975-5207 or e-mail me walterunger@ccim.net. Investors and Owner / Users need to really know the market today before making a move. The market has a lot of moving parts. What is going on socio-economically, what is going on demographically, what is going on with location, with competing businesses, with public policy in general — all of these things affect the quality of selling or purchasing your Commercial Properties, Commercial Investment Properties and Commercial and large tracts of Residential Land Therefore, you need a broker, a CCIM (Certified Commercial Investment Member) who is a recognized expert in the commercial and investment real estate industry and who understands your needs. I am marketing my listings on Costar, Loop-net, CCIM, CREXi, Catylist, and various other web sites. I also sold hundreds millions of dollars’ worth of Investment Properties / Owner User Properties in Retail, Office Industrial, Multi-family and Land in Arizona and therefore I am working with brokers, Investors and Developers. I am also a CCIM and through this origination ( www.ccim.com ) I have access to marketing not only in the United States, but also international
DISCOVER WHAT IS HAPPENING IN ARIZONA
History of Arizona from 900 BC – 2017 -Timeline.
What is a CCIM. In Business and in Life you don’t get what you deserve, you get what you Negotiate.
contact me if you want the me to get you the value of your property.
Walter Unger CCIM – cell: 520-975-5207 – walterunger@ccim.net
Click here to find out what is a CCIM:
CLICK HERE TO VIEW ALL MY LISTINGS.
Are you ready to sell or purchase your Land or Commercial Building in Phoenix, Scottsdale, Maricopa County and Pinal County, Arizona, please call me?
DISCOVER WHAT IS HAPPENING IN ARIZONA
History of Arizona from 900 BC – 2017 -Timeline.
Walter Unger CCIM cell: 520-975-5207 walterunger@ccim.net
Walter Unger CCIM
Associate Broker
West USA Commercial Division
7077 E MARILYN RD.
Suite 200, Building 4.
Scottsdale AZ, 85254
Phone: 480-948-5554
Cell: 520-975-5207
History of Arizona from 900 BC – 2017 -Timeline.
History of Arizona from 900 BC – 2017 -Timeline.
WHY PHOENIX? AMAZING!!! POPULATION IN 1950 – 350 K PEOPLE; “NOW 5 MIL”. – “5TH. BIGGEST CITY IN USA”
- DEMOGRAPHIC FACTS ABOUT MARICOPA COUNTY:
Walter Unger CCIM – walterunger@ccim.net – 1-520-975-5207 – http://walter-unger.com
Timeline of Phoenix, Arizona history
Facts of Arizona – year 1848 to 2013
CLICK HERE: Arizona Opportunity Zones As We Understand /maps. Interested!!! Please contact me.
Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Properties in Phoenix, Tucson, Arizona.
Walter Unger CCIM
Associate Broker
West USA Commercial Division
7077 E MARILYN RD.
Suite 200, Building 4.
Scottsdale AZ, 85254
Phone: 480-948-5554
Cell: 520-975-5207
FOR OVER 20 YEARS, I HAVE WORKED EXTENSIVELY WITH OWNERS AND BUYERS IN LAND, COMMERCIAL AND INVESTMENT REAL ESTATE IN PHOENIX, TUCSON AND THROUGHOUT ARIZONA. PLEASE LET ME KNOW HOW I CAN HELP YOU PLEASE CALL ME
CLICK HERE TO VIEW ALL MY LISTINGS.
Also Call me if you need an estimated value of your Property.
Call me if you want to see a map with what is in the Construction Pipeline for Apartments.
Prefer cell: 520-975-5207, or email me walterunger@ccim.net. CLICK HERE TO VIEW ALL MY LISTINGS.
Check out my professional profile and connect with me on LinkedIn.
Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years. If you have any questions about Commercial / Investment Properties in Phoenix or Commercial / Investment Properties in Arizona, I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us.
Please reply by e-mail walterunger@ccim.net or call me on my cell 520-975-5207
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