Market Watch March 2012

Marcus & Millichap, Real Estate Investment Services

Jeff Mueller

Senior Associate

303.328.2049

303.328.2010 Fax

Jeff.Mueller@marchusmillichap.com

https://www.marcusmillichap.com/

Marketwatch March 2012

COLORADO 

A positive perception nationally creates buzz for Metro Denver 

Recent headlines confirm Metro Denver is still a top choice for businesses and residents seeking a dynamic place to work and live, according to data compiled by the Metro Denver Economic Development Corporation (Metro Denver EDC) in its Monthly Economic Summary for March 2012. A recent analysis by the Brookings Institution shows Metro Denver ranked first among large U.S. metros for population gain in the 25- to 34-year-old age group between 2008 and 2010, and Denver ranked seventh on Penske Truck Rental’s list of the 10 most popular moving destinations in 2011. 

Colorado unemployment eases; payroll job gains top most states 

Colorado's unemployment rate dipped again in January for the fifth straight month, to 7.8 percent, the lowest rate in nearly three years, the Colorado Department of Labor and Employment reported Tuesday. 

Manpower: Denver hiring outlook 5th best in nation 

The metro Denver employment outlook for the second quarter is the fifth best in the nation, according to the latest regional employment survey, released Tuesday, byManpowerGroup , a workforce consulting firm.

Colorado ranked 3rd for economic competitiveness 

Colorado is ranked third best among the 50 states in the Beacon Hill Institute’s latest State Competitiveness Report, an annual comparison of each state’s readiness for prosperity, released Tuesday by the Boston-based institute. 

NATIONAL 

Sam Zell names co-presidents at Equity Group Investments 

Billionaire investor Sam Zell has rearranged leadership at the top of his investment firm, hiring David Helfand and naming him and William Pate co-presidents of Equity Group Investments. In an interview, Zell, 70, said that Helfand's expertise in real estate and Pate's expertise in corporate acquisitions and management is the mix the firm needs. David Contispreviously led Zell's real estate investments. He left the company last year to lead the mall group at Indianapolis-based Simon Property Group.

How To Help Your Mobile Home Park Tenants And Keep Your Cash Flow 

It is impossible to be a landlord and not receive frequent requests to "help" your tenants. These requests normally revolve around payment of the rent � either to pay late or to pay a reduced amount. And the way you handle these requests has a huge impact on your business, and the life of your tenant. 

Number of CMBS loans making balloon payments skyrockets

The pay-off rate on commercial mortgage-backed securities loans making scheduled balloon payments hit 61.6% in February, the second highest performance rate since December of 2008, Treppanalytics said Monday. The CMBS analytics firm noted the pay-off rate remained well below 50% for most months since the start of the recession and even in the tepid recovery period. The only comparable month was in September when the payoff level reached 64.4%.

Mortgage rates inch up on positive economic data 

Mortgage rates rose across the board this past week on positive jobs data and increasing bond yields, Freddie Mac said Thursday. The 30-year, fixed-rate mortgage hit 3.92% for the week ending March 15, up from 3.88% the previous week and down from 4.76% a year ago, the government-sponsored enterprise said. 

PREA Survey: Investors Expect Returns of 9.3% in 2012 

The Pension Real Estate Association’s most recent consensus forecast survey indicates investors are expecting total returns of 9.3 percent in 2012—a 140 basis point increase from what the survey indicated three months ago. 

PREA surveys a subset of its member firms about their forecasts of the U.S. commercial real estate markets as represented by the NCREIF Property Index (NPI). PREA surveyed 22 firms in the first quarter, representing investment managers, advisors and researchers.