Brian Fielding of Fielding Investments discusses why Chinese investment in real estate in the United States is a promising sign for good things to come.
As reported in the Wall Street Journal, Chinese investment in U.S. commercial real estate was nearly $6,000,000,000 between January of 2014 through March of 2015, making it likely that the evolving super power may one day soon exceed the traditional foreign investors in the United States like Australia and Canada. Brian Fielding of Fielding Investments reminds that this sort of activity is reminiscent of the 1980s, when Japanese individuals and companies ran up the price of a variety of real estate investments.
“We believe that while there are some parallels to the historical investment frenzy of the ‘80s, and that this flurry of activity is a sign that the Chinese investment in U.S. commercial real estate is a better indicator of that country’s interest in long-term investment of these assets.”
He went on to say that while some might be wary of another real estate “bubble,” that unlike their Asian counterparts, the Chinese are not merely seeking out “trophy assets,” which were bid up during that timeframe. Rather, the Chinese began their acquisitions as property prices were beginning their post-recession rebound.
“We see this activity as a prudent diversification strategy by well-heeled investors who recognize the stability of the U.S. real estate market,” added Brian Fielding.
Mr. Fielding suggests that the effect of this movement should be comforting to the investment community. He points to the statistics showing that the majority of the Chinese investment has been directed at the two coasts – with over $1B invested in California and $6B in New York since January of 2005. He goes on to suggest that the investment activity is primarily bi-coastal, not necessarily because the fundamentals of the real estate is perceived as being stronger. It is likely that this is due to the greater due diligence challenges in other parts of the country where foreign investors have limited knowledge and the lack of advisors with whom they have relationships to provide sufficient advice on purchasing decisions.
“We continue to recommend that private investors should use their unique expertise on their nearby communities to make educated purchase decisions,” Brian Fielding of Fielding Investments added. “While the small investor lacks the financial wherewithal to compete for quality assets in larger markets, he should have a wealth of knowledge about local communities, growth areas, highways, regional buying habits, needs and planned gentrification that other investors cannot possibly know nor appreciate.”
Fielding Investments views feels that the increase in foreign investment will only serve to keep the commercial real estate market very healthy and expect that as foreign investors decide to live and invest in the broader range of American cities. Therefore the value of quality assets, wherever they may be situated, will continue to appreciate.
Fielding Investments continues to emphasize that the most successful investors are those armed with the most knowledge, something that presents a very special opportunity for those persons who do the most due diligence and keep themselves most acutely aware of developments within their home and neighboring communities. Brian Fielding suggests that investors should attend planning and zoning meetings, track where investment in infrastructure will be made locally and statewide, and invest the time necessary to fully understand the office and retail market.
“We have seen the greatest success stories realized by those persons who make the effort and take the time to be the ‘best’ within a small area, rather than try to be experts in communities about which they have little firsthand knowledge,” reveals Brian Fielding.
Due to increased awareness of Fielding Investments and the advice shared by its principal, a new blog has been started where the casual to the expert investor can ask questions. That can be found at http://brianfielding.com.
Forbes recently came out with its list of the richest real estate tycoons, and Brian Fielding is providing some insight and commentary about the list.
How surprising is it that the United States is home to 29 billionaires who have built their fortune on real estate? Brian Fielding suggests that this fact is not surprising at all. Consider the recent report in Forbes that noted that throughout the world, residential property was up four percent (according to Knight Frank’s Global House Price Index) and commercial office rents were up three percent (credit to Cushman Wakefield research). The 4th wealthiest property tycoon, Donald Bren, has had his fortune grow primarily in California, but has investments in a broad range of properties including office buildings, golf clubs, marinas and apartments. Two Americans who recently were acknowledged for fortunes exceeding $1 billion are David Walentas, who focuses on development in Brooklyn, New York, and Jeff Sutton, who owns retail in Manhattan.
So what does this mean for the average person trying to save for their future? Brian Fielding of Fielding Investments opines that every individual has the capability of owning investment real estate, stating that it is only a matter of scale and location that should drive that activity. He explains that every citizen has special knowledge of their community, perhaps where they now live or vacation, or perhaps of the town in which they lived as a youth. The challenge, he states, is for the investor to capitalize on that knowledge and to expand their familiarity with local politics, development, zoning changes and by tracking the growth and decline of the office, retail, industrial, and special needs of those communities.
“Who knows better what side of town is growing, what areas are gentrifying, what new roads are planned and which new businesses are enjoying growth than the local investor?” Brian Fielding of Fielding Investments states.
He went on to explain that one should not simply assume they understand all of the elements involved in owning commercial real estate assets, but with a bit of diligence to understand the intricacies within that industry, any individual can solely, or in a partnership, find unique, local opportunities in which to invest.
“Our tax code invites private investment in real estate, and few other investments can be readily financed with both traditional and non-traditional financing,” Mr Fielding adds.
One needs to learn the “language” of the real estate investment world, a fairly straightforward methodology for demonstrating the value of an asset. Lenders abound for the well-informed and knowledgeable investor, the secured interest a lender obtains, and the knowledge that there is a cash flow off of that asset. These factors often encourage lenders to finance large portions of the purchase price.
“It is not only the quality of the land and building, but the creditworthiness of the tenant and the term of the lease that will encourage financing ventures up to 90 percent of the cost,” Brian Fielding shares.
There are few barriers for those who take the time to become an expert in understanding the community, budgeting, and financing issues. Mr. Fielding strongly recommends that those who wish to first tackle such a project retain competent counsel, establish relationships with the local lenders and consider having partners who have experience in construction and maintenance of commercial buildings.
He suggests that one can easily demystify the processes as being only for the select few. Rather, it is a state of mind and a willingness to invest the time to become competent and/or find experienced professionals in the areas of finance, building construction and maintenance and to be willing to devote oneself to becoming familiar with all matters in one’s selected community. For more information about commercial real estate, visit http://brianfielding.com.
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When investors are looking for options in the rest of 2015, they have a number to consider, but Brian Fielding knows that a quality commercial real estate property is the most advantageous purchase that an investor can make. There are many factors to consider when making such a purchase however. For example, an investor must decide what kind of property they want to invest in before they make their purchase. They may also need to purchase a property based on the amount that they have to invest. In any case, decisions must be made, and to help individuals make smart choices about their commercial real estate purchases Mr. Fielding and Fielding Investments advise that individuals take into consideration some of the following commercial real estate trends that may be seen this year.
Job markets impacting real estate market: Many cities are seeing their job markets continue to bounce back this year. Additionally, many new jobs are being created that were not in play a year ago, especially jobs in technology fields. These positions lead to an increased need for office spaces reveals Brian Fielding. Because of this new demand, these cities will provide many new and safe opportunities to those who have considered purchasing office properties.
Low supply and high demand: In many areas, there is an increased demand for quality properties. However, not all of these areas have the properties to fit those needs. Because of this, those who own high quality properties can charge premium rates for quality tenants. Additionally, Mr. Fielding reminds investors that they will also see lower vacancy rates.
Demand increase on multifamily properties: Another trend that Brian Fielding would like to point out to investors this year is the rising demand for multifamily properties such as apartment buildings. The demand for these is higher than it has been since before the recession. This demand seems to be one that will last for quite a while yet, and quality properties that are near mass transportation and other urban necessities are in especially high demand.
When individuals keep in mind these changing factors for the commercial real estate market in the rest of the year, they will be better able to understand the factors that will decide which investments are the most promising. Brian Fielding knows how important it can be for investors to understand these trends and changes and is proud to be offering individuals the most up to date information on changes in the commercial real estate market. To learn more please visit www.brianfielding.com/
When considering a commercial real estate purchase, individuals must review these property factors shared by Brian Fielding.
A commercial real estate purchase is usually a favorable investment that will offer a high return in the future. However, Brian Fielding of Fielding Investments points out that it is essential the purchased property is one that meets the needs of the investor. There are a number of factors that will determine if one should buy the property they are interested in. Viewing a number of properties, considering these factors for each, and then comparing the results to each other, will allow an investor to make the right acquisitions. Here Mr. Fielding reveals the key factors to consider when viewing a property.
Uses of the property: If the investor is looking for a space that can fulfill a specific purpose, they must keep that purpose in mind when they find an appealing property. Commercial uses may include office spaces, retail spaces, or industrial spaces, but not every property can be used for any of these purposes. Brian Fielding says it is essential a buyer finds out exactly what the building zoning allows before they purchase. If restrictions do not allow the property to be used for the individual’s chosen purpose, they can look for one that does.
Condition: Mr. Fielding reminds investors that it is extremely important to know the condition of the building before purchasing. Extensive repairs may add to the initial cost of the property and can also delay the owner’s ability to rent the space. There may also be liability issues in the long run if these problems are not found and addressed quickly. If there are a number of issues with the property, it should prompt the buyer to consider the additional costs before making the purchase.
Location: The location of a property is one of the most significant determiners to the value and potential of the property. When researching a property, investors must look at the surrounding neighborhoods, other buildings in the area, the recent growth in the area, and traffic for relevant businesses nearby. Choosing a piece of property that is in close proximity to possible resources, for example, may increase its value, as might recent economic growth in the surrounding community.
Liability: When looking at a property for purchase, investors should be aware of any potential hazards that may be on or associated with the property before they decide to buy. This, Brian Fielding shares, is because the liability may be attached not to the current owner, but instead to the property itself. When the property is transferred, so may be the responsibility, even if the hazard was caused by the previous owner. Once the real estate has been bought, the new titleholder may be responsible for any problems with the property, any harm the property is causing to the environment, or any zoning laws that the property is breaking. For these reasons, it is essential that all hazards and liabilities are out in the open and considered before a purchase is made.
Knowledgeable negotiation: There are innumerable considerations that need to be analyzed when establishing the value of any asset. Brian Fielding reminds investorsthat knowing all the details of a property, including its downfalls, requires significant “due diligence.” Unless the investor has great experience and knows how and where to look for defects and potential problems, they should think about retaining an experienced consultant with extensive experience in like transactions.
Available Professionals: There are many experts whose skills can be utilized by those who are buying commercial real estate. These include specialists such as commercial real estate lawyers, investment authorities like Brian Fielding, contractors, accountants, and a number of others. Careful investors will consult these experts throughout the acquisition process. This will help the buyer along the road to choosing and purchasing the commercial real estate property that is most fitting for their purposes.
Brian Fielding of Fielding Investments shares some of the most common terms in the commercial real estate market and what they mean for potential investors.
Now that a new year has begun and the commercial real estate market is showing a number of promising trends, Brian Fielding knows that individuals are looking for ways to become players in the market. These individuals want to make sure that they can secure an investment that will show them a strong return, and commercial real estate is one of the smartest ways to guarantee such a return. However, those who are interested in the market must first establish a strong understanding of it, and must know everything from the most important steps toa successful commercial real estate purchase, to the jargon that is used in the industry. To aid those who are interested in purchasing commercial real estate, Brian Fielding shares his expert knowledge on some of the most important terms used in the market.
Cap Rate: Also known as capitalization rate, Brian Fielding shares that this term refers to the method used to determine the value of a property that is producing a regular income. The number is calculated by taking the income of the property and dividing it by the total value. This process is used to determine the possible future profits on the property.
Net Operating Income (NOI): The NOI is used to determine the annual income of a property for the owner. A profitable property should produce a positive NOI. Brian Fielding reveals that this number is found by first determining the property’s gross income for the year. The investor must then subtract their total operating costs for the year. This will determine the property’s NOI and whether or not it has been profitable.
Cash on Cash: This term refers to the rate of return on an investment property. The cash on cash return measures the relationship between the down payment and investment already made on a property and the annual return. This number is found by dividing the annual dollar income by the total dollar investment. Brian Fielding points out that once the cash on cash return is determined it can be used to compare the property to competing ones.
With knowledge of the industryand an understanding of key terms, individuals should rest assured that they will be able to make informed decisions about investing in commercial real estate. Brian Fielding is glad to offer this key information to aid others as they take advantage of the real estate market and begin taking the steps to pick a profitable property. For more information visit http://brianfielding.com/.
Posted by Brian Fielding on Mar 10, 2015 in Brian Fielding | Comments Off on Brian Fielding Shares Information on Developing Trends in Commercial Real Estate
Brian Fielding reveals that staying informed about these trends is important for a number of reasons
When investors are looking at commercial real estate properties, they must always be up to date on new trends in the market. Brian Fielding reveals that staying informed about these trends is important for a number of reasons, as such factors may decide which type of commercial real estate is the most desirable for an individual investor. These factors may also determine which property an investor will buy. There are many trends that need to be noticed, but below, Mr. Fielding shares three that are especially important in the coming year.
High demand on apartment spaces: Many areas, especially urban areas, are seeing a high demand for multifamily apartment spaces. A quality apartment space then is a great investment, however, its popularity will depend on where it is located says Brian Fielding. These urban locations, for example, must be in close proximity to subways and other mass transportation.
High demand: Many areas are seeing a high demand for a specific kind of property, be it office spaces, industrial spaces, or apartments. In these areas, Brian Fielding shares that it is very common that there are not enough quality properties to fit this demand. For that reason, those investors who make the right purchases will see their properties in high demand and will not experience high vacancy rates. Both of these are keys to a successful property.
More jobs means more demand for commercial properties: When companies find that they are able to finally expand after years of recession, they will hire more employees to meet their customer demand. Many cities are experiencing this increase in employment, and as a result, companies are expanding to larger and better spaces. Office spaces especially are seeing a high demand, making quality office spaces a ideal purchase for those who are thinking about investing in commercial real estate properties.
Posted by Brian Fielding on Feb 20, 2015 in Uncategorized | Comments Off on Brian Fielding Reveals the State of the Commercial Property Investment Market Today
Property Investment Guru Brian Fielding reveals his take on how the commercial property investment market is shaping up in 2015.
Brian Fielding is known throughout the industry as being one of the leaders in assessing the potential value of commercial, office, retail, and industrial assets. With over 40 years of experience in the field, Brian Fielding knows what to look for in real estate investments, and how the market is expected to go for the rest of 2015 and well into 2016.
Property Investment Guru Brian Fielding manages properties from coast to coast in the United States including assets in Texas, Connecticut, New Jersey, New York and Mississippi among others. He maintains that the commercial real estate market is somewhat inflated due to increased demand for investment capital.
“I believe that nothing is better than commercial real estate for both near and long-term investments,” said Brian Fielding. “In our portfolio, we have increased our holdings in net-lease properties as well as redeveloped properties that others have rejected for minor environmental contamination.”
“Over the past few years, investors have target net-leased properties that have already been developed and leased to a wide range of retailers. This type of property has been extremely resistant to the recession and continues to do well in 2015.”
To many investors, it has made sense to invest in major retailers such as Walgreens, CVS, Family Dollar, and WalMart through the purchase of properties, rather than purchasing their stock at multiples as high as 20 times future earnings.
“While cap rates have pressed some assets into the 4 – 6 range, the advantages of owning the underlying asset and enjoying the benefits of depreciation have a special allure.”
The professional investor is better equipped to manage the challenges of owning environmentally challenged assets, and, of course, the return that can be realized on them is equally increased.
“While the general public is overly afraid of the term contamination,” Real Estate Investment Guru Brian Fielding said, “professional investors realize that a property that has been labeled as contaminated may present a minimal health hazard, and can be remediated over time. Of course, there are some properties where this is true, but there are many more properties where there is no real danger and where new technologies can help in turning the property into an excellent long-term investment with strong returns.”
Brian Fielding maintains that the commercial property investment industry will continue to be strong going into the second half of 2015. For more information about the state of the industry today, or more property investment advice from Brian Fielding, visit http://brianfielding.com.
Brian Fielding believes that commercial real estate can always be a wise field for those who want to make investments that will offer them a future return. However, just like with any business, being successful in commercial real estate means being knowledgeable about the market and choosing the right investments. Here, commercial real estate expert Brian Fielding discusses things that buyers should consider about a property before they make a purchase.
Where it is located: Location always matters. It is one of the biggest factors in determining the value of the property as well as its future potential. It is essential that an investor looks into the surrounding neighborhoods and businesses around the property that they are interested in to determine who lives there, and which kinds of businesses thrive in the area. This can show them if the building has potential for its surrounding community and whether it will be impacted by the local economy.
Property uses: Some investors purchase a property for a specific purchase. Brian Fielding reminds investors that not all properties can be used for any purpose, and many have restrictions on how they can be used. This may determine if the property should be purchased as zoning laws may include some commercials uses but not others. Office spaces, for example, may not be rented as retail spaces.
Condition: The condition of a property can cause additional costs to the initial investment on the property. Brian Fielding says that when investors are not careful they may miss repairs and other problems with the property that may also decrease their profit by delaying the time in which they can start renting the property. Being cautious about a property can prevent these problems from happening and can help an investor better determine the value of the property that they are purchasing.
For those looking to make a wise investment in the New Year, Brian Fielding always believes that commercial real estate is an excellent choice for a purchase that ensures an opportunity for a great return on the investment. With just days until 2015 begins, it is important for investors to understand how the market will look in the next year, and so far, Brian Fielding reveals that the New Year looks like it will be one with a number of stunning prospects.
One of the advantages that the commercial real estate market is seeing at the end of 2014 is the continuing recession recovery. The growing job market has allowed a number of businesses to recover financially, and this has allowed them to expand. These companies are acquiring more employees and are in need of larger spaces. Additionally, at home businesses are reaching a point where they need a commercial space to conduct their business. Brian Fielding reveals that the result is office and retail spaces are starting to see a higher demand.
Brian Fielding shares that those who own these spaces and rent them should see the demand result in a decrease of space vacancies and an increase in rent prices as a result. Office spaces, retail spaces, and industrial properties are all seeing these trends, especially in areas that are in high demand. The demand is so great that there are additionally a number of new industrial building projects that will be starting in the New Year. Because of all these promising trends in the market, Brian Fielding knows that now is the perfect time to consider truly investing in commercial real estate and taking advantage of the strong market. Commercial real estate has a number of advantages over other choices such as residential real estate purchases, and with this expert knowledge from Brian Fielding, you can make wise investment choices and reap the rewards of a commercial real estate purchase.