RREEF recently made the decision to stop managing its portfolio of properties directly. A few weeks back it announced the firms taking over management of its industrial and office portfolios. Today the retail piece was announced. Jones Lang LaSalle was the big winner, scoring management duties on 29 centers, but four other firms were also tapped. (You can see how these firms rank in our annual Top Managers listing here.)
Here’s the full list of the assignments:
Jones Lang LaSalle has been assigned 29 retail centers totalling approximately 5.7 million square feet. The properties are primarily concentrated on the West and East coasts in addition to Ohio and Western Pennsylvania.
United Commercial Realty (UCR) has been assigned eight centers totalling approximately 1.7 million square feet concentrated in Texas.
Mid-America Asset Management Inc. has been assigned 12 centers totalling approximately 1.6 million square feet concentrated in the Midwest.
Crosland has been assigned four centers totalling approximately 1.5 million square feet concentrated in the Carolinas and Tennessee.
KeyPoint Partners has been assigned five centers totalling approximately 533,000 square feet concentrated in New England.
Commercial Real Estate and Shoes
by David Bodamer October 21st, 2009
The terms “commercial real estate” and “next shoe” generate more than 29,000 hits on a Google search.
For the past few months, there’s been a drumbeat that it’s just a matter of time before commercial real estate collapses and wreaks havoc on the economy. The thought is that the mountain of commercial real estate debt coming due in the next few years will trigger a second wave of the credit crunch as an avalanche of losses rumbles through bank balance sheets. This, in turn, will derail the momentum the economy has had in recent months as it begins to recover from the deepest and longest recession since the Great Depression.
The main evidence for this view includes data points such as the fact that commercial real estate values are off by 40 percent from market peaks and that there is approximately $3.4 trillion in commercial mortgage debt outstanding. Of that, about $1.4 trillion will come due by the end of 2012.
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