Chandan in the News

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Lenders' Insatiable Appetite for Commercial Real Estate

Erika Morpy writes — The commercial real estate lending community shows no signs of scaling back its appetite for business, according to the Fall 2014 Survey of Commercial Real Estate Lender Sentiment, a report issued by the Real Estate Lenders Association and Chandan Economics. In fact certain providers, such as CMBS lenders and life companies are expected to grow their market share.

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Momentum in the US Jobs Market

Sam Chandan speaks with CNBC ahead of the October jobs report. The labor market is improving and job numbers may come in ahead of expectations, however continued weakness in wages and income are factoring into the Fed's overall assessment.

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Redeveloping New York Factories Into Small Business Hubs

Erin Zlomek writes — When furniture designer Kristen Wentrcek moved her business into a shuttered Pfizer plant in Brooklyn, N.Y., she changed the light bulbs herself and used power tools to rip out a bank of metal pill cabinets.

Read the full article at the Bloomberg Businessweek website.

2014.08.21

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A Pending Recession? Five Years Into Recovery, Timing the Business Cycle

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Realtor Group Thinks Market Will Gain, But Has Concerns

The Press-Enterprise's Richard Tegley writes — A number of issues cited by members of the National Association of REALTORS® have the potential to slow things down, according to a new study. However, the market is poised to continue its gains in 2014. There were more than 50,000 real estate practitioners who participated in the survey. The REALTORS® Confidence Index is a key indicator of housing market strength based on a monthly survey.

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Is the American Labor Market Finally on the Mend?

Ahead of the Bureau of Labor Statistics' January employment report, Sam Chandan discusses current trends in the labor market. Chandan contends the Fed made an error in tying expectations for monetary policy to the unemployment rate, a highly ambiguous measure of job market health.

Replay is not currently available.

02.06.2014

Press

Warehouses Becoming Boon for Commercial Real Estate

Warehouses are becoming a commercial real estate boon, as more retailers beef up their online business. Online retailers such as Amazon are leading the trend, snapping up spaces for smaller distribution centers near major urban areas in an effort to get products closer to where people live, says Sam Chandan of Chandan Economics.

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Commercial Real Estate's Least Alluring Sector is Red Hot

CNBC's Diana Olick writes — Amazon.com‘s latest move, to anticipate what you want to buy and start shipping it before you even buy it, could be a big boon to a sector that is already seeing huge gains. Industrial warehouse space, once a dud in real estate, is now closing in on prom queen status, as more retail goes online and as the housing market recovers.

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Rental Apartment Threat Alert? Homeownership Rate Inches Up

Demand has steadily increased for rental housing and, even though rent growth peaked in 2012, owners are still experiencing consistent, sometimes historic, growth in a number of markets. But as that rent growth marches on, and the for-sale market continues to revive, it's forcing many renters to reconsider the rent. vs. own debate.

01.15.2014

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Commercial Real Estate Lenders Upbeat Heading Into New Year

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By Any Measure, Commercial Real Estate Default Rates are Falling

GlobeSt — Two separate reports add to the growing picture of health that is commercial real estate finance. Both reports--one from the Mortgage Bankers Association, the other from Chandan Economics—show delinquency rates dropping across most categories of loan types.

Read the story at the GlobeSt website.

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Life Company Lenders Encountering Renewed Competition

Chandan — The initial recovery in commercial real estate investment activity has been rewarding for life company lenders. Absent robust competition to originate mortgages to institutional borrowers, life companies have expanded their share of the secured debt market while working to hold the line on underwriting standards. It has not been a volume game.

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For the First Time in 20 Years, We Have a Growth Story to Tell | by Sandy Smith

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CMBS Issuance on the Upturn as Loans Approach Maturity | by Sarah Borchersen-Keto

With a significant number of commercial real estate loans coming due in the next three years, industry analysts are predicting dramatic growth in the issuance of commercial mortgage-backed securities (CMBS).

Read the story at the REIT.com website.

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How the DC Mess Could Curb Commercial Real Estate | by Diana Olick

CNBC — In major cities across America, commercial real estate is seeing a rebirth. After crashing hard during the recent recession, sales and development are soaring again, and financing is finally following through.

Read the story at Diana Olick's Realty Check blog on the CNBC website.

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Heading Towards Default, an Update on the Commercial Real Estate Outlook | by Diana Olick

Nightly Business Report / Produced by CNBC — Commercial real estate investment markets have largely recovered from the financial crisis and recession. The sector's momentum is threatened anew by the impending default of the US Treasury. Weaker real economic activity and substantially higher borrowing costs could send property markets into a tailspin.

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Here's Exactly What Will Happen If We Default On Thursday | by Sabri Ben-Achour

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Crowdfunding Backing Manayunk Retail, Office Project | by Alison Burdo

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Commercial Real Estate Lending Expected to Remain Buoyant | by Sarah Borchersen-Keto

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Economic Consequences of the Government Shutdown | Interview with Chloe Cho

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A Commercial Real Estate Asset Price Bubble in the Making? | by Keat Foong

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Better Lock in Your Home Mortgage Rate Now | by Diana Olick | Realty Check

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Wall Street reacts to Federal Open Market Committee's No-Taper Decision | by Megan Hopkins

HousingWire — Wall Street was more than thrilled with the Federal Open Market Committee’s decision to continue purchasing additional agency mortgage-backed securities at its current pace to foster the ongoing housing recovery and fight unemployment.

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After Sharp Drop, Construction Financing is Back | by Erika Morphy

GlobeSt — We can expect to see more transactions, if Chandan Economics' analysis bears out. "As the economy improves and competition for lending on stabilized properties increases, more banks are expected to lend in support of construction, which is uncontested by CMBS lenders," it predicted.

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CMBS Industry Breathes Sigh of Relief Over Mortgage Rules | by Erika Morphy

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A Lending Bubble in Multifamily and Commercial Real Estate? | by Keat Foong

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Commercial Real Estate Lenders Anticipate Increase in Originations

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A Costly Lesson — Anticipating a Spike in Student Loan Interest Rates | Interview with CNBC's The Call

Sam Chandan, President & Chief Economist at Chandan Economics discusses the medium to long term impact of the hike in U.S. student loan rates.

Watch the video below or at the CNBC website.

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GE Capital Boosts Lending as CMBS Market Wavering | by Hui-yong Yu

Bloomberg — GE Capital Real Estate, among the world’s biggest property investors before getting burned in the financial crisis, is increasing lending this year as deals accelerate and the cost of borrowing jumps in the commercial mortgage-backed securities market.

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Implications of a Shift in the Interest Rate Environment | Interview with CNBC World Squawk Box

Sam Chandan speaks with CNBC's Bernie Lo following the June meeting of the Federal Open Market Committee. They discuss the changing interest rate environment, implications for housing, and the question of succession at the Federal Reserve, where Chairman Ben Bernanke is expected to step down in early 2014.

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Hold Supply in Check in GSA-Dependent Markets | by Carrie Rossenfeld

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Abenomics and the Devaluation of the Japanese Yen | Taking Stock on Bloomberg Televsion

Former Citigroup Vice Chairman Bill Rhodes and Sam Chandan speak with Taking Stock anchor Pimm Fox regarding the outlook for the Japanese economy and its global partners' tolerance for a weaker yen.

Watch the replay here or at the Bloomberg website.

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The Challenges Ahead for China | Taking Stock on Bloomberg Televsion

Ahead of the Sunnylands summit between President Obama and Chinese President Xi Jinping, former Citigroup Vice Chairman Bill Rhodes and Sam Chandan speak with Taking Stock anchor Pimm Fox regarding the economic and geopolitical outlook for China.

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Commercial Real Estate Lending Up; Defaults Rates Down | MHN Apartment Market Statistics

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Waiting for the Overdue Construction Finance Comeback | by Erika Morphy

GlobeSt writes: We reported this morning that SunTrust Bank provided a $112 million loan to California State Teachers’ Retirement System for Lincoln Place. JLL's Wes Boatright, who was on the team that brokered the loan, explained why banks like SunTrust were moving away from construction financing, or at least diversifying their lending operations.

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The Great Commercial Real Estate Lending Thaw | by Wendy Culverwell

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RELA and Chandan Report Mixed Lender Outlook in Latest Quarterly Survey

The Mortgage Observer writes: The Real Estate Lenders Association and Chandan Economics’s first-quarter 2013 Survey of Lender Sentiment is out, and the results are somewhat mixed, as lenders see more qualified borrowers but an increase in competition.

Download the May 10 Mortgage Observer Weekly.

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Debt Yields and Financing Cap Rates Leveling Off | by Michael Tucker

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What to Expect From the April Jobs Report | Interview with Bernie Lo

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Keynesians Have the Upper Hand in Sovereign Debt Debate | by Sam Chandan

Sam Chandan writes for the Commercial Observer: The Austerians have lost one of their most powerful corroborations. At least for political purposes, the oft-cited and rather particular relationship between sovereign debt and growth has been sundered by a graduate student’s homework assignment. Never has so much of consequence turned on a spreadsheet error.

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Apartment Financing Costs Hold at Record Lows | by Michael Tucker

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Is the Housing Recovery in Trouble | Interview with Cheryl Casone

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What's Behind The Latest Economic Slowdown | Interview with Bernie Lo

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Washington Update: Bankers at the White House, FOMC Minutes Jump the Gun, and Housing's Low Rate Crutch | Taking Stock with Pimm Fox

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Bank of Japan Moves to Ease Monetary Policy | Interview with Lisa Oake

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Net Lease Cap Rates Fall Heading Into 2013 | by Michael Tucker

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Are US Stocks in a Fed-Inflated Bubble? | Interview with Alix Steel on Taking Stock

Fidelity Global Strategies' Jurrien Timmer and Chandan Economics President Sam Chandan discuss the US stock market rally with Alix Steel on Bloomberg Television's Taking Stock.

Watch the replay on the Bloomberg website or using the embedded player below:

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Balancing the Concerns of Boards and Shareholders | Interview with Alix Steel on Taking Stock

Chandan Economics President Sam Chandan discusses balancing the concerns of management boards with those of shareholders. He speaks with Alix Steel on Bloomberg Television's Taking Stock.

Watch the replay on the Bloomberg website or using the embedded player below:

Press

New York City Apartment Investors Seek Big Returns in Buying Small | by Oshrat Carmiel

Bloomberg reports: Invesco Real Estate, manager of almost $50 billion of property investments, wanted to expand the number of apartment buildings it owned in Manhattan. To do so, it had to start thinking small.

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Surprise! Your Home May No Longer be Underwater | Interview with David Gura

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Multifamily Finance Readies for a Haircut | by Erika Morphy

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Quest for US Office Properties Shifts from New York | by Anjli Raval

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Workout Shops Eye Windfall Managing Slice Of $73.5B in Distressed Commercial Property Loans | by Joy Wiltermuth

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The Outlook for Monetary Policy, What's Driving the Economy, and Should We Care About the Sequester

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Downside of a Low Interest Rate Policy With No Timetable for Exit | Interview with Pimm Fox on Taking Stock

In forcing a hunt for yield, the Federal Reserve's broad market interventions are distorting asset prices, argues Sam Chandan. The time is ripe for monetary policy officials to articulate a clear exit strategy, even if the exit timetable is further in the future. Pimm Fox hosts Sam Chandan and Oppenheimer Funds Chief Economist Jerry Webb.

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New York City Developers Find Construction Loans Easier to Get | by Julie Satow

The New York Times reports: Construction in New York slowed to a trickle in the recession, but there are finally signs that the construction loan market is coming back to life ... In the third quarter of 2012, the most recent number available, the default rate on construction loans was 9.5 percent, the lowest it has been since the end of 2008, according to Chandan Economics.

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How Solid is the Recovery in US Housing Markets? Interview with Degan McDowell and Rich Edson

Dr Sam Chandan speaks with Fox Business anchors Degan McDowell and Rich Edson about the durability of the housing recovery and some of the challenges it faces over the next year.

Watch the replay at the Fox Business website or using the embedded video below:

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As Economic Outlook Improves, the Federal Reserve Will Need to Articulate an Exit Strategy

Ahead of the January meeting of the Federal Open Market Committee, Sam Chandan discusses the outlook for monetary policy with the Asia Squawk Box team.

Watch the replay below or at the CNBC website.

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Chandan: Don't Bank on Low Interest Rates Forever | by Paul Bubny

GlobeSt writes: Capital will flow this year to the markets with the greatest diversity in terms of investor types, Sam Chandan said Wednesday at a market forecast breakfast.

Read the full story at the GlobeSt website.

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Easy Monetary Policy Not Forever | Interview with CNBC World Squawk Box

In an interview with CNBC World's Squawk Box hosts, Sam Chandan discusses the outlook for the US economy and monetary policy.

Watch the replay below or at the CNBC website.

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End of Stimulus? Why It Isn't Necessarily Bad News | by Jean Chua

CNBC writes: The Federal Reserve's minutes on Thursday hinted at an earlier-than-expected end to its unprecedented bond buying program, triggering a sell-off in equities as investors worried about an end to historically low interest rates.

Read the story at the CNBC website.

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Chandan: Housing Growth Could Be Derailed by Fiscal Cliff | Interview with Shabani Joshi

Sam Chandan speaks with Fox Business' Shibani Joshi about the looming fiscal cliff and its potential impact on the housing market.

Watch the replay below or at the Fox Business website.

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Equity Residential's Archstone Buy Reverses Slide in Apartment REITs | by Hui-yong Yu

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The Latest Growth Numbers, the Outlook for the Economy, and Prospects for New Fed Action

Tom Porcelli, Chief US Economist at RBC Capital Markets and Sam Chandan, President & Chief Economist, Chandan Economics break down the latest US growth numbers.

Watch the replay below or at the CNBC website.

Press

A Silver Lining in the Fiscal Cliff? Stocks May Become Cheap | by Jean Chua

As markets continue to wait with bated breath over the outcome of “fiscal cliff” talks, one fund manager said, the worst case scenario may not be so bad. According to Mike Crofton, president and CEO of Philadelphia Trust Company, stock markets will most certainly tumble if the United States goes over the ‘cliff,’ and that could present a great opportunity for investors to scoop up stocks.

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Will Taxpayers Bail Out the Federal Housing Administration | FBN Expert Panel

The FHA is under-resevered, according to a new audit of the government agency's balance sheet. Fox Business' expert panel discusses the role of the FHA in supporting the housing market and the implications of the new report's findings. Sam Chandan joins Wharton Real Estate Professor Susan Wachter, National Association of Homebuilders CEO Jerry Howard, and AEI Resident Fellow Ed Pinto.

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Hurricane Sandy Recovery Could Take Weeks as Millions Struggle | from CNBC Wires

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Deal Closings Postponed, CRE Finance Industry Recovers from Storm | by Carl Gaines and Alessia Pirolo

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Uncertainty is Main Reason for Uneven CRE Market | by Carrie Rossenfeld

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Chandan Encouraged, But Says Nowhere is Completely Safe | by Thor Kamban Biberman

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Trigild Conference Coverage: American Companies Sitting on Cash

Covering the Trigild Lender Conference, BisNow writes: Chandan Economics president Sam Chandan noted American companies are sitting on piles of cash, and “corporate profits are not being reinvested or reflected in the job market.” Two years ago, lack of credit hindered the economy and growth; today, it’s uncertainty. He talked about values rising faster than the economy is improving.

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New Amazon Building Signals US Office Construction Revival | by Hui-yong Yu

Hui-yong Yu writes: Expansion by technology companies is helping drive a nascent rebound in U.S. office development from the lowest in more than five decades as default rates on construction mortgages decline from a 2010 peak.

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Cap Rates Continue to Drop for Net Lease Properties | by Erika Morphy

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The (Sorry) State of Commercial Property Construction Lending | by Sam Chandan

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Is the Housing Recovery Back on Track | Interview with Fox Business News

Is a durable housing recovery underway? Can it be maintained absent stronger job growth? Sam Chandan debates the state of the market with Fox Business commentators. Watch the video below or at the Fox Business website.

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What the LIBOR Scandal Means for Commercial Real Estate | by David Bodamer

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What to Expect from the September FOMC Meeting | Interview with Lisa Oake

Sam Chandan speaks with CNBC's Lisa Oake before the September monetary policy meeting. He argues that while further intervention is likely, the impact on the real economy will be limited.

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Banks' Commercial Mortgage Delinquency Rates Fall | by Carl Gaines

The Commercial Observer writes: Chandan Economics and the Mortgage Bankers Association released data last week that points to continued improvements in the commercial real estate market.

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Banks' Real Estate Loan Defaults Continue to Slow | by Carisa Chappell

The National Association of Real Estate Investment Trusts writes:

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Banks' Commercial and Multifamily Default Rates Decline | by Michael Tucker

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As the Housing Market Recovers, Will the Apartment Boom End | by Diana Olick

CNBC writes: The latest reports on new and existing home sales seem to indicate that the housing market is beginning to find its footing again. While most believe the recovery will be slow, U-shaped, and bumpy, the free fall appears to be over for both sales and prices ... what effect that recovery will have on the recently booming apartment sector, which benefited from the housing crash?

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Housing Sales Rise But Should Be Better | Interview with Ashley Webster

Sam Chandan speaks with Fox Business News anchor Ashley Webster about conditions in the housing market and whether current gains will hold up as mortgage rates rise. Improving affordability metrics reflect higher rents but are not triggering widespread shifts out of the apartment market.

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Markets to European Central Bank: Get Germany on Board | by Dhara Ranasinghe

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Overly Dependent on Low Interest Rates, Markets Hang on the Possibility of More Quantitative Easing

Sam Chandan discusses the possibility of additional quantitative easing in the United States and rumors that the European Central Bank may seek to cap yields on sovereign bonds.

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Apartment Financing Costs Hit Record Lows in Second Quarter | by Michael Tucker

Mortgage Bankers Association NewsLink reports: Apartment lending standards continued to ease in the second quarter, reported Chandan Economics, New York, reflecting higher property prices, lower cap rates and increasingly robust competition among lenders. "The cost of financing apartment acquisitions and refinancing maturing apartment loans fell to record lows in the second quarter," said Sam Chandan, the firm's president and chief economist.

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Improving Fundamentals, Prices, and Financing Lifting the Apartment Sector

Multi Housing News reports on sliding default rates for bank-held apartment mortgages. From a peak of 4.7 percent during Q3 2010, the default rate on multifamily loans has fallen to 2.4 percent as of early 2012.

Read MHN's coverage of Chandan's Bank Default and Lending Report at multihousingnews.com.

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Weaker Consumer Confidence Weighs on Real Estate Sector | Interview with Matt Bechard

NAREIT writes: "Consumer sentiment continues to be dampened by discouraging financial news, according to Sam Chandan, president and chief economist with Chandan Economics. Chandan spoke about the state of the economy and its impact on commercial real estate in a video interview with REIT.com in New York at REITWeek 2012: NAREIT’s Investor Forum."

Watch the video at REIT.com

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WIll the LIBOR Scandal Impact Construction Lending | by Jacqueline Hlavenka

GlobeSt writes: After the Barclays Capital scandal shed light on interest rate manipulation by global financial institutions, the impact on commercial real estate sector has yet to be seen. Sam Chandan comments: “We cannot say with complete confidence that LIBOR is being determined fairly and accurately. We can say with confidence that the structure of the LIBOR market - effectively an honor system - affords the possibility of malfeasance."

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Monetary Policy and the Cost of Political Inaction | Interview with Martin Soong

Sam Chandan spoke with CNBC's Martin Soong regarding monetary policy developments in the United States intended to stimulate growth. Dr Chandan contends that a further reduction in benchmark rates will have a limited impact.

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Is the Housing Bust Over? Will Apartment Demand Survive Its Recovery? | Interview with Jenna Lee

In this interview with Fox News' Jenna Lee, Sam Chandan and Dani Babb discuss the outlook for the housing market and whether a sustainable recovery is now underway.

Watch the video here or at the Fox News website.

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Outlook for the US Commercial Real Estate Market | Interview with Jim Fried

Sam Chandan speaks with Fried on Business' Jim Fried about the latest developments in Europe, the reasons for the slowdown in the US economy and labor market, and their implications for the commercial real estate markets.

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The Eurozone Crisis and Its Implications for the Bond Market | Interview with Martin Soong

In this interview with CNBC's Martin Soong, Sam Chandan discusses the implications of a worsening Eurozone crisis for global financial stability and the bond markets.

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The Volcker Rule and the Regulation of US Banks | Interview with Lisa Oake

In this interview with CNBC's Lisa Oake, Sam Chandan discusses some of the challenges in regulating large, complex financial institutions.

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Default Rates Fall On Banks' Commercial Real Estate | by Michael Tucker

MBA Newslink Reports: The default rate across commercial and multifamily loans held by banks fell to 3.45 percent in the first quarter, the lowest since 2009, reported Chandan Economics, New York. The apartment default rate fell 17 basis points quarter-over-quarter to 2.36 percent, its lowest level since the end of 2008.

Read this article on the Mortgage Bankers Association website at mbaa.org

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Banks' Commercial Real Estate Loan Default Rates Continue to Decline | by Carisa Chappell

NAREIT writes: The bank default rate among commercial real estate loans in the first quarter of 2012 fell to its lowest level in nearly three years, according to an analysis released May 30 ... “The overall decline in the default rate reflects a relatively larger improvement in legacy apartment loan performance,” said Sam Chandan, president and chief economist with Chandan Economics.

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Chandan: Potential Homeowners Still Opting to Rent Rather Than Buy | Interview with Connell McShane

Sam Chandan discusses the latest drop in Treasury yields, the impact on mortgage financing rates, and updates on housing and apartment trends, including findings from Axiometrics that show a 7.7 percent annualized rate of increase in national year-to-date apartment rent.

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Landlords Manage Around April's Flat Retail Sales | by Mike Leon

BisNow writes: Retail sales were flat in April, but retail landlords needn't fret, says Chandan Economics research chief James Keenoy. "The fact that consumers are spending is good, but this spending is coming from use of credit rather than gains in income which leads us to question whether the spending increases are sustainable or not."

Visit BisNow for the complete analysis.

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Outlook for the US Economy, Housing Markets, and Jobs | Interview with Martin Soong

In this interview with CNBC's Martin Soong, Sam Chandan argues that employment trends should improve after two months of disappointing job gains. But spillovers into the housing market will be tempered by constrained access to mortgages.

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Is the Housing Recovery in Sight? Interview with Fox Business Anchor Cheryl Casone

Sam Chandan offers a guarded assessment of the latest housing data, pointing to recent weakness in the job market as one reason that gains in home sales will be measured.

Watch the video here or at the Fox Business website: foxbusiness.com

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Bank Stress Tests Offer Weak Assessment of Tail Risks | Interview with Lisa Oake

Sam Chandan discusses recent monetary policy developments, including comments by Federal Reserve Chairman Ben Bernanke at the 8th Annual Conference on Bank Structure and Competition, with CNBC's Lisa Oak.

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Favorable Demographics Help Carolinas Economy | by Savannah Duncan

Real Estate Business writes: Economic conditions in the Carolinas and in Charlotte in particular are the envy of many other parts of the country, according to Sam Chandan, president of New York-based Chandan Economics and professor of real estate at the Wharton School of Business.

Read the column at rebusinessonline.com.

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Manhattan Apartment Building Prices at Record High as Rents Jump | by Oshrat Carmiel

Bloomberg writes: Real estate investors competing to buy Manhattan apartment buildings have sent prices to record highs as rental demand surges, reducing yields on the properties to the lowest in more than six years. With cap rate compression at its limit, Sam Chandan contends that gains will be more limited going forward.

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The Swirl of Issues in Washington | Interview with Miriam Lamey at ALM's Net Lease 2012

From GlobeSt: RealShare Net Lease Keynote speaker Dr Sam Chandan sat down to provide his take on the “uncertainty” about what’s happening politically in Washington. Chandan noted this confusion was more connected to politics, rather than the business community.

Watch the interview at GlobeSt.com.

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Federal Reserve to Keep Door Open on QE3 | Discussion with Martin Soong and Lisa Oake

Ahead of the April 2012 FOMC meeting, Sam Chandan joins CNBC Asia Squawk Box anchors Martin Soong and Lisa Oake for a discussion of US interest rate policy and the likelihood of additional quantitative easing.

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Limiting Market Exposure Through Net Lease Sector | by Brad Thomas

In its coverage of Sam Chandan's keynote address at ALM's Net Lease 2012, Seeking Alpha writes: the single tenant net lease sector has become a growing investment option due to long-term leases, fixed rental growth and favorable cap rates. Conversely, more institutions, pension funds, and REITs are expanding into the safe-margin sector.

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Multifamily Bonds Surging to Record as Commercial MBS Fade | by Sarah Mulholland

Bloomberg writes | Bonds backed by Fannie Mae and Freddie Mac tied to apartments soared to a record as the government-supported mortgage companies made low-cost loans on rental properties amid a continued slide in home values ... While delinquencies are low, abundant low-cost financing backed by the US government is inflating the values of apartment buildings and threatening to create a bubble, according to a March report by New York-based Chandan Economics.

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In Search for Yield, Investors Flock to Net Lease Properties | by Jacqueline Hlavenka

GlobeSt writes | More institutions, pension funds and non-traded REITs are expanding into the triple-net-lease arena in 2012, but as the capital flows into the space, competition for the best properties is heating up. Panelists at ALM Real Estate Media Group’s RealShare Net Lease 2012 conference agreed the NNN sector would continue to see action due to long-term leases, fixed rental growth and favorable cap rates, reflecting the state of today’s slow-growing economy.

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Special Report: Real Estate Recovery a Tale of Good, Bad and Ugly | by Diana Olick

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Chandan: Distortions from Fed's Low Interest Rates May Prove Toxic for Economy | by Zhi Ying Ng

CNBC writes | While the Federal Reserve has reiterated it would keep interest rates near zero until late 2014, Sam Chandan, Chief Economist at Chandan Economics, says that low interest rates distort asset prices and are "toxic" for the economy. "An extraordinarily low interest rate environment has become our drug of choice in this country," he adds.

Read the analysis at the CNBC website: cnbc.com

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Another Round of Quantitative Easing is Increasingly Unlikely | Discussion with Martin Soong and Yu-Dee Chang

Sam Chandan joins CNBC Asia Squawk Box anchor Martin Soong and guest host Yu-Dee Chang for a discussion of US interest rate policy and the likelihood of additional quantitative easing.

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Case-Schiller Falls to New Lows | by Guelda Voien

The Real Deal writes | US single-family home prices are back to early 2003 levels, according to the Standard & Poor’s/Case-Shiller home price indices for January, released today. In an appearance on Fox Business, Chandan Economics founder Sam Chandan elaborated on the reasons for the price declines, specifically pointing his finger at distressed properties and discount-seeking investors.

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Is the Housing Recovery In Sight or Will Prices Fall Lower | Interview with Ashley Webster

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US Commercial Property Deals May Rise 20 Percent in 2012, Roberts Says | by Dan Levy

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Apartment Loans by Fannie Mae, Freddie Mac Creating Bubble, Chandan Finds | by Oshrat Carmiel

Bloomberg writes | Low-cost financing backed by the US government is inflating the values of apartment buildings and threatening to create a bubble, according to a report by Chandan Economics. Multifamily loans issued by government-sponsored agencies Fannie Mae and Freddie Mac are buoying the price of apartment buildings to the point that buyers may not be able to refinance once interest rates rise.

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State of the Economy | Interview with Jim Fried

Sam Chandan speaks with Jim Fried about current trends in the national economy and the outlook for growth. Fried on Business airs in South Florida on 880 AM and is also available as an Internet-based radio program covering a wide range of business and real estate issues. Jim Fried is host of the program and president of Sandstone Realty Advisors.

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Apartments Losing Their Luster For Some Investors | by Matthew Strozier and Dawn Wotapka

The Wall Street Journal writes | Apartment buildings, one of the best-performing sectors of the commercial real-estate market in recent years, are starting to lose some of their appeal for investors ... But this year, the excitement is fading. Investors are pushing back on property prices, rent growth is slowing and yields are flattening in some markets.

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Commercial Lending Increases After Two-Year Decline | by Darren Currin

The Journal Record writes: The thawing of commercial real estate credit appears to be picking up pace as Chandan Economics reported today that commercial property lending among banks in the United States was up in the fourth quarter of 2011, marking the first time in two years. The last time commercial lending spiked upwards was in the first quarter of 2010, according to the data.

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Commercial Property Lending Up for First Time in Two Years | by Carisa Chappell

NAREIT writes: Banks in the United States have increased their lending to commercial real estate projects, according to an analysis of lending and default statistics from the fourth quarter of 2011. It marked the first time that bank lending has spiked upward since the first quarter of 2010, according to Sam Chandan, president and chief economist at Chandan Economics, which performed the analysis.

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Positive Trends in Commercial Real Estate Lending

The International Business Times writes: US banks have increased lending on commercial properties in the fourth quarter of last year. The first such increase since Q1 2010 comes on the back of falling default rates and banks successfully offloading foreclosed property according to Chandan Economics, the New York-based real estate researcher that reported the growth.

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US Banks Increase Commercial Property Lending for First Time Since 2010 | by Hui-yong Yu

Bloomberg writes: US banks increased financing for commercial real estate in the fourth quarter for the first time in almost two years as default rates dropped and lenders shed more foreclosed properties, Chandan Economics said. Balances on loans for properties including office buildings and shopping malls rose by $3.69 billion after falling for six consecutive quarters.

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Good News for the Credit Markets | by Mike Leon

BisNow writes: A report yesterday by Chandan Economics shows that commercial real estate bank lending has increased for the first time since Q1 2010, with default rates for commercial and multifamily loans at their lowest point since 2009. “The data is a reflection of properties being refinanced and better credit conditions in general,” research manager James Keenoy tells us.

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Condo Market Bottoming With Morgan Stanley Reducing Loan Losses | by Hui-yong Yu

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US Banks Step Up Commercial Real Estate Lending in Fourth Quarter | by Ilaina Jonas

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Calkain Companies, Chandan Economics Partner for Net Lease Initiative | by Erika Morphy

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Housing Is Improving But Access to Mortgages Is Not | Interview with Connell McShane

Sam Chandan speaks with Fox Business Network's Connell McShane regarding home sales data for January. Although the data show a small rise in sales, Dr Chandan explains that investors and distress sales outnumber first-time homebuyers. Difficulties in qualifying for mortgages remain an obstacle for the latter group.

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Equity Residential Gets Archstone Bid Extension | by Ilaina Jonas

Reuters writes: Equity Residential, one of the largest US apartment owners, said it has been granted more time to submit a bid for 26.5 percent of smaller rival Archstone, albeit at a higher minimum price of nearly $1.5 billion ... Apartments have been the brightest sector within the US commercial real estate, with rents rising strongly. Meanwhile new construction has remained at its lowest levels in nearly 20 years, according to Chandan Economics.

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Is January's Jobs Report a Game Changer? | by Matt Valley | Summarizing the consensus amongst economists, Matt Valley writes that the recovery "a number of factors could still hamper the pace of employment growth." Sam Chandan adds: the unemployment rate fell by 20 basis points in January to 8.3 percent, the lowest level since February 2009. That’s partly because the labor force participation rate continues to fall, rendering the highly touted decline in the unemployment rate woefully misleading.

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What's Keeping Buyers Out of the Housing Market? | Interview with Cheryl Casone

Sam Chandan speaks with Fox Business Network's Cheryl Casone regarding the states' $25 billion settlement with the nation's five largest mortgage lenders. A decision by California to opt out of the deal could jeopardize its success, according to Dr Chandan.

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Blackstone Raises $6 Billion for New Property Fund | by Anjli Raval and Dan McCrum

The Financial Times reports that Blackstone Group "has secured more than $6 billion in pledged capital for a new property fund, largely comprised of distressed assets." Distressed funds have faced challenges in deploying capital, Sam Chandan explains:

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As Home Buying Returns, Do Apartments Face a Bubble? | by Diana Olick | CNBC's Diana Olick explains that strong demand for apartments has coincided with limited development activity, allowing rents and occupancy rates to rise. "But with the single family housing market slowly beginning to show signs of life," she writes, "the concern among banks and investors is that all that supply will hit the market just as rental demand drops off." CNBC cites data from Chandan Economics showing a surge in apartment lending during the last year.

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Will Housing Improve in 2012? In a speech earlier in the week, President Clinton suggested that a recovery in housing is the key to a broader economic recovery. In this interview with Dagen McDowell and Connell McShane, Sam Chandan offers an update on conditions in the housing market and the outlook for ownership and rental demand in 2012.

Watch the video at Fox Business News.

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Treasury Yield Dips In Spite of Positive Jobs Data | by Matt Valley | Borrowers with a low cost of capital are living the dream, writes RE Business Editor Matt Valley. The yield on the ten-year Treasury fell four basis points to close at 1.96 percent on Friday, helping to keep borrowing costs at historic lows for well-qualified commercial real estate investors and underscoring that Treasuries remain a safe haven in an uncertain world.

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Euro Investors Slow Investment Into New York City Commercial Market | by Tom Acitelli | Manhattan’s commercial property market will see less investment from Eurozone countries in 2012, as the continent continues to struggle with it sovereign debt crisis, writes Tom Acitelli.

European banks are undercapitalized, adds Sam Chandan, and many of them are in the position of having to increase their capital cushions. They generally have two choices to do that: they can find equity, or they can sell some assets.

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European Banks Retreat from US Property Sector Several European banks are stepping back from their US property lending businesses as new capital reserve requirements require that they bolster cushions or pare their portfolios. Reuters' Ilaina Jonas explains that "European bank lending to the US property market has been declining since the financial crisis, but the retreat is showing signs of intensifying now."

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Realtors Revise Home Sales Data Sam Chandan speaks with Fox Business News' Ashley Webster following a downward revision in historical home sales data by the National Association of Realtors. Looking forward, Dr Chandan argues that a sustainable recovery in housing rests upon stronger job creation. Very low mortgage rates have characterized the market for some time but, on their own, are insufficient to reverse the decline in homeownership.

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Chandan Downgrades DC's Credit Outlook Underwriting standards have eased as competition for properties in the DC metro area, and amongst lenders seeking to finance recent sales, have fueled a recovery in prices. But narrowing spreads leave very little cushion for a normalization of interest rates or a slowdown in space demand. As GlobeSt's Erika Morphy explains, "there are several factors behind the slight drop in the credit outlook, none of which alone seem to be that significant—but taken as a whole spell a rocky period ahead for the District."

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GSEs Get Roped into Payroll Tax Tug-of-War Proposals in Congress that would see an extension of the payroll tax cut offset by new revenue from agency financing fees may present new headwinds for the housing market. GlobeSt's Erika Morphy explains:

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CRE Default Rate at Two-Year Low Citing Chandan's Q3'11 Bank Default and Lending Report, the Mortgage Bankers Association's Michael Tucker writes that banks' commercial real estate default rates fell to a two-year low in the third quarter. The new report, which aggregates data from across the nation's banks, shows that the combined default rate on multifamily and commercial real estate loans fell to 3.75 percent in the third quarter.

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CRE Default Rate Flat in Texas Austin Business Journal's Cody Lyon reports on the findings of the Chandan's third quarter bank default and lending report and trends for Texas-based banks. Lyon writes that Texas default rates have been largely unchanged over the last year:

Texas commercial default rates remained essentially flat over the past year. In the third quarter 2011, 3.08 percent of Texas commercial loans on bank’s books were in default, mirroring the same quarter last year and slightly down from the 3.26 percent reported second quarter 2011.

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Commercial Real Estate Default Rate Down to 3.75% In Q3 Commerical Mortgage Insight reports on the findings of the third quarter bank default and lending report:

Chandan Economics found that banks' CRE REO increased to $13.5 billion in the third quarter, a new cyclical high. Between nonperforming balances and REO, there is $72.4 billion in distressed multifamily and CRE loans in the domestic banking system as of the third quarter. With the inclusion of construction loans, that total rises to over $110 billion.

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Housing Hitting Bottom? Following the release of new data showing a rise in home sales, Connell McShane speaks with Sam Chandan about the sector's outlook. In spite of record-low mortgage rates, rising rents, and declining house prices, the increase in sales activity has been relatively modest. Dr Chandan explains why a sustained improvement in housing is unlikely to assert itself in the near- to medium-term.

Visit our new page – Chandan on the Housing Market – for this and other recent commentary on housing market conditions.

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Nontraditional Lenders Gain Multifamily Market Share | by Susan Piperato | As apartment fundamentals continue to strengthen, a broad range of lenders is reengaging with investors in support of property sales and new construction. NREI Managing Editor Susan Piperato writes:

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Lenders Eye a Project's Location | by Cody Lyon | Lending conditions are improving even as historical loan performance trends remain mixed, explains Cody Lyon. Among other examples, Lyon cites a $35 million construction loan for RiverView Apartments in Austin made by Bank America. Jones Lang LaSalle Capital Markets' Jimmy Board tells Lyon that banks are among the sources of credit reengaging with borrowers:

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Volume of Delinquent Loans Declines The health of banks' multifamily and commercial real estate balance sheets is improving. In its November edition, Multi Housing News reports on the findings of Chandan Economics' latest analysis of mortgages held by US depository institutions. The default rate on apartment mortgages showed the largest decline, falling to 3.3 percent in the second quarter.

Read the full story in the November digital edition of Multi Housing News magazine.

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Coach Commits to Moving to New York City's Hudson Yards | by Ilaina Jonas | Related Companies' 26-acre development on Manhattan's West Side has announced its first major commitment, explains Ilaina Jonas. Retailer Coach said it intends to purchase 600,000 square feet in one of the project's towers. Construction at Hudson Yards is expected to begin in mid-2012 with completion projected for 2015.

Read the full story at the Reuters website.

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Coming Technology Wave to Sap Real Estate Values | by Tom Hoban | Coast Group's Tom Hoban writes about the role of technology and changing consumer habits in driving economic and labor market outcomes. Hoban explains that some of the changes will prove challenging:

The bad news is that, unlike the roughly 24-month jobless recovery period after the last much shorter recession, the efficiencies coming our way through the cloud and new emerging technologies inside it will be so significant that many economists are anticipating the longest jobless recovery in modern history.

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Refinancing Plan for Struggling Homeowners | Sam Chandan speaks with Fox News' Jenna lee regarding the Administration's most recent proposals for supporting homeowners by expanding access to mortgage refinancing. Dr Chandan explains that the program is limited in its scope since it applies to bank-held mortgages and cases where borrowers with negative equity have remained current on their payments.

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Problem Assets Often Trade in Under-the-Radar Transactions | by Susan Piperato | Private equity firms are increasingly acquiring lender-owned properties through small transactions that the public does not always see, writes National Real Estate Investor's Susan Piperato. These under-the-radar sales allow owners of distressed properties to stay on after buyouts and continue to manage assets.

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Why the Administration’s New Tax Proposals Won’t Create Jobs | Interview with Dagen McDowell | Sam Chandan speaks with Fox Business Networks' Dagen McDowell about the economics of the Administration's latest proposals to spur job creation. While lowering payroll taxes should encourage employment in principle, weak business confidence and concerns about the sustainability of demand in the event of a relapse into recession are constraining payroll expansion.

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Kottmeier: Local Employment Data Shows Private Sector Has Grit | by Erika Morphy | The Washington DC area has seen year-over-year growth of 9,400 office-related jobs. This is significant for the region for several reasons, Jeffrey Kottmeier, Vice President and director of research with Cassidy Turley, tells GlobeSt's Erika Morphy. “Many of these jobs were created outside of the federal sector,” he explains.

Read the complete analysis at the GlobeSt website.

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Details of September Jobs Report Disappoint | by Sam Chandan | September's employment report surpassed economists’ baseline expectations but still fell woefully short in bolstering confidence that we are on the cusp of a more robust jobs recovery. Private employers expanded payrolls by 137,000 jobs, more than offsetting the anticipated drag from cutbacks in government employment. The private tally included approximately 45,000 Verizon workers who had been on strike the prior month.

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Reviving the Dead Zones | by Tom Stabile | Contractors, developers and designers face a new sort of project backlog across the New York region today: many hundreds of stalled sites that loom as a steep challenge to the industry. But while dormant sites stand as grim reminders of a weak economy, it is the jobs that are set to restart that are posing new problems ...

Read the full story on the ENR New York website.

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Office Sector Enters New Stage of Recovery | by Elaine Misonzhnik | Falling cap rates in cardinal markets are forcing investors to examine opportunities in secondary markets. Dr Sam Chandan explains that investors are seeking higher returns than can be found in the markets that have dominated the investment recovery thus far. Elaine Misonzhnik writes: "While office buildings in New York, Washington, D.C. and San Francisco come with fewer risks, cap rates for assets in those markets are now nearing pre-downturn levels, according to Sam Chandan."

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Parsing President Obama’s Deficit Reduction Plan | Following President Obama’s unveiling of his deficit reduction plan, Dr Sam Chandan spoke with CNBC’s Squawk Box about the proposal's effectiveness in addressing long-term budgetary issues in the United States. Dr Chandan explained why the proposal is unlikely to pass muster in Congress and what its failure might mean for the near- and medium-term economic outlook.

Watch the video on the CNBC website.

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Real Estate Investors Like Texas | by Cody Lyon | Following his commercial real estate market update at the National Association for Business Economics' annual meeting in Dallas, Dr Sam Chandan spoke with Cody Lyon about the outlook for Texas and national real estate markets. Dr Chandan offered an upbeat assessment of Texas markets, saying that "... while not without risks, Texas markets have attracted attention because of their stronger underlying economies and momentum in the job market — trends we do not see in most other parts of the country."

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Lenders Make Riskier Apartment Loans in Second Quarter | by Hui-yong Yu | Rising prices in the nation's leading commercial real estate markets prompted lenders to make riskier loans in the second quarter. According to a report released today by Chandan Economics, debt yields -- the ratio of property income to loan balance -- for new office and apartment loans fell markedly between the first and second quarter. The largest systematic declines were in New York, Washington, DC, and San Francisco. Bloomberg's Hui-yong Yu writes:

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Mortgage Metrics Dropped in Second Quarter | by Carl Gaines | Both loan-to-value ratios and debt yields declined between the first and second quarters, Carl Gaines writes in GlobeSt's coverage of Chandan's latest report on the quality of newly-originated mortgages. Gaines goes on to explain as follows:

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Broader Implications of Sovereign Debt Crisis | A Fox News panel considers the impact of rising debt levels on the health and sustainability of democratic governments. Not the typical issue that Sam Chandan comments on, he nonetheless chimes in that democracy can thrive even in the midst of economic turbulence and frustration with the political process. He adds that the world's developed economies face very serious challenges in narrowing their defects to sustainable levels.

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Will the Fed's Rate Decision Bolster the Economy? | by Matt Hudgins | Following the Federal Open Market Committee's announcement that the target Fed Funds rate will remain at historically low levels through mid-2013, Matt Hudgins warns "commercial real estate investors to be prepared in case capital costs rise despite the Fed’s efforts." Sam Chandan offers that "low short- and long-term interest rates relieve some of the upward pressure on cap rates and mortgage financing costs.” Still, the Fed's move is not a panacea.

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What Does S&P Downgrade Mean for Real Estate? | by Matt Hudgins | Shortly after S&P's announcement that it was downgrading US debt, Sam Chandan spoke with NREI contributing writer Matt Hudgins about the implications of the move for the economy and real estate markets. “The negative impact of S&P’s move on investor and consumer sentiment is a real issue that will negatively impact global equity markets and undermine confidence,” Chandan warned. There are direct implications for real estate, as well.

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After the S&P Downgrade | by Erika Morphy | Following the downgrade of US, S&P also lowered the credit ratings of the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. What does the downgrade mean for the apartment sector? Higher costs of capital. In contrast, Treasury yields fell after they were downgraded. Sam Chandan explains that ""investors are nervous, and that will result in a flight to quality. That means capital flowing into Treasuries, in spite of the ratings adjustment, which may push yields even lower than we observed during the recession."

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What to Make of the Debt Deal | In the hours after the announcement of a Congressional deal on raising the debt ceiling, Sam Chandan speaks with the CNBC's Squawk Box about the implications of the agreement for the US and global economies. Dr Chandan tells CNBC that the debt deal does not go far enough, and that restructuring of federal revenues and expenditures will be one of the central issues of the 2012 presidential election.

Watch the video at the CNBC website.

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Is the Bloom Off the Homeownership Rose? | by Jerry Ascierto | Pointing out that the national homeownership rate has fallen to a 13-year low, Jerry Ascierto asks if the shift represents a cyclical move away from ownership or a structural adjustment.

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What's Driving Institutional Investors' Bumper Crop? | by Ben Johnson | Institutional investors have enjoyed strong returns on their real estate portfolios during the first half of 2011, Ben Johnson explains. He points to the example of the New York State Common Retirement Fund, which "reported a 26.7% return on its real estate portfolio for the fiscal year that ended June 30, 2011.

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Europe’s Newest Agreement No Panacea | Europe's newest plan to stave off a broader debt crisis may not be scaleable and flexible enough to offset the vagaries of bond investor sentiment, Sam Chandan offers in his assessing the latest developments on the Continent. The possibility of a Eurobond may address the crisis in a more robust manner, but will also add to upward pressure on Treasury yields in the United States:

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Reading the Job Market: A Technical Note on the ADP and BLS Reports | As fundamentals and transaction values pull further away from underlying job growth trends, it becomes increasingly important for commercial real estate market participants to keep tabs on the latter. With July’s Bureau of Labor Statistics report less than two weeks away, Sam Chandan offers a technical assessment of alternative metrics. While the ADP report is well-correlated with the BLS data over time, there is considerable noise in the measure's month-to-month relationship to the official jobs tally.

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Lessons for the US from the Italian Debt Crisis | Dr Sam Chandan describes how Europe’s intractable sovereign debt crisis has engulfed Italy, forcing the adoption of $56 billion in austerity measures that are projected to bring the country’s budget into balance in 2014. Italy is making more progress towards fiscal discipline than the United States, where policymakers are deadlocked over whether to cut back while the recovery remains fragile. The research shows that, under some circumstances, moves towards fiscal discipline can be expansionary.

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The Labor Market and Real Estate Investment | Dr Sam Chandan discusses the most recent employment report and the fragile state of the national economic and labor market recoveries. Dr Chandan explains: “Wavering confidence in the private market’s capacity to deliver strong and consistent job gains—irrespective of the reasons—are feeding calls for more support from Washington. But if the policy and market uncertainty stemming from government intervention is part of the drag on business hiring, another round of short-term programs may prove counterproductive.”

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Corporate Ladder: Top Economist Launches New Research Firm | by Jonathan Holin | In this interview with Multifamily Executive magazine, Dr Sam Chandan explains his plans for Chandan Economics and gives insight into the past, present, and future of the multifamily sector. In describing the key challenges for the sector, he cites rising interest rates, the sector’s changing relationship to housing, and reform of the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac.

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The Disappointing June Jobs Report | The Bureau of Labor Statistics' report of June employment offers few silver linings for the commercial real estate industry, explains Dr Sam Chandan. As in previous months, job growth in June fell short of levels consistent with sustained improvements in space absorption. While no one month constitutes a trend, the pattern of frustratingly slow recovery remains a qualifier for the fundamentals outlook and current pricing and underwriting activity.

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REIT Executive Pay Surpasses Pre-Recession Levels | by Matt Hudgins | A new survey from FTI Consulting shows that REIT CEO compensation increased significantly in 2010, NREI contributing writer Matt Hudgins explains. Commenting on the findings, Dr Sam Chandan adds that "REITs’ access to investor capital and leverage put them in an enviable position in 2010 and helped the sector emerge as the strongest buyers in the market last year ... That positioning, combined with strengthening market caps, is consistent with observable improvements in compensation."

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As QE2 Fades, Debate Swirls Around QE3 | by Natalie Dolce | Should we extend the Fed’s purchases of Treasury securities? And if so, what are the attendant risks of growing the central bank’s balance sheet even further? GlobeSt's Natalie Dolce explores this key issue through interviews with a range of industry leaders.

Read the article at the GlobeSt website.

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Wide Spread in Banks' CRE Default Rates | 40 percent of banks have CRE default rates of less than 1 percent as of Q1 2011. That is good news for policymakers concerned about the ongoing impact of non-performing property loans on the health and lending capacity of regional and community banks. Balancing this finding, a large minority of institutions still face serious challenges from elevated distress. In the extreme, 75 institutions with $13 billion in CRE loans report default rates of 20 percent or more.

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Selections from the press coverage of Chandan Economics' formal launch on Wednesday, June 29, including articles in Retail Traffic Magazine and the Florida Real Estate Journal.

Retail Traffic Magazine | Real Estate Academic Sam Chandan Launches New Research Firm

Sam Chandan, PhD launched Chandan Economics, a new commercial real estate research firm. The firm will provide analysis of the economy and financial markets and their relationship to commercial real estate.

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Construction Lending and Manhattan Exceptionalism | Outside of the apartment sector, where fundamentals have strengthened in the context of a moribund housing market, there is ample reason for developers in most markets to hold off on new construction projects until asset prices and space demand show signs of sustainable improvement. The data confirm that, at least for now, construction and related lending remain subdued.

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The FOMC, Monetary Policy, and the Interest Rate Outlook | On CNBC's The Call, Sam Chandan discusses the most recent monetary policy statement by the Federal Open Market Committee (FOMC), the prospects for a new round of quantitative easing, and the outlook for short- and long-term interest rates. Among the significant adjustments in the Fed's language, Dr Chandan cites Chairman Ben Bernanke's statement that "...

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Residential Market Outlook | In this live town hall discussion with Fox News' Jenna Lee and Dr Dani Babb, Sam Chandan comments on the latest housing data, which show a 3.8 percent drop in existing home sales in May, and his expectations for the newly introduced Emergency Homeowner Loan Program (EHLP). Expectations are low for the EHLP, he explains, in part because distressed homeowners only have until late-July to submit requests for assistance.

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Banks' Commercial Real Estate Real Estate Owned (REO) by the Numbers | Sam Chandan crunches the numbers on banks' CRE REO holdings, finding that 95 percent of institutions had less than $5 million in commercial properties on their balance sheets at the end of Q1'11. At the other extreme, the nine institutions with the largest REO balances had $2.5 billion of commercial property.

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Watching the Watchers: The Metrics of the Real Estate Recovery | In Manhattan and other major markets, the consensus at mid-year holds that commercial real estate investment and credit market conditions have improved markedly since last summer. There is a lot of support for this assessment: clear evidence of rising transaction volume; an increasing diversity of lenders extending credit in support of property sales and the refinancing of maturing mortgages; and an uptick in the gross absorption of available space.

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Quantitative Easing Revisited | The recent spate of negative economic news is motivating downward adjustments in the near-term growth outlook for the US economy, both in the private sector and amongst policymakers.

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Second Mortgage-Holders Saddled with Negative Equity | In this interview with Fox Business' Cheryl Casone and Dennis Kneale, Sam Chandan comments on the sources and current policy alternatives for addressing the large number of home-owners with second mortgages and negative equity in their homes. Few options are available for these homeowners, apart from in-place federal assistance programs. In the current political environment, the Administration is not expected to propose any new programs.

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Housing and Foreclosure Mitigation | In this interview with Fox News' Jenna Lee, Sam Chandan discusses the options available to homeowners who are unable to make scheduled mortgage payments, including the Making Home Affordable Program, and the reasons why participation in federal programs has failed to meet initial expectations. Dr Chandan restates his view that stronger job growth is a necessary condition for stability in housing markets and that policy interventions alone will fail to achieve their desired outcomes absent more robust hiring.