Commercial Investment Real Estate March/April 2013 - Page 12

Equity q y CrowdFunding Awaits SEC Rules T e Jumpstart Our Business StartUps, or JOBS, Act signed into law last April includes a change to the Secu- rities Act of 1933 that will allow non-accredited inves- tors to put $2,000 a year or 5 percent of their income or net worth into closely held ventures, including those purchasing commercial real estate. Currently such ventures are restricted to accredited investors — those making $200,000 a year for the past two years or having a net worth of $1 million. T e implementation hold-up is the U.S. Securities and Exchange Commission, which missed its year-end deadline for issuing investor safe- guard rules. T e purpose of the rule change is to make it easier for small businesses to raise capital for their startup needs — including property. National Rent Growth Forecast (%) Sector 2012 Offi ce 2.0 Industrial 1.7 Retail 0.8 Multifamily 4.1 2013 2.5 2.2 1.4 4.6 2014 2.8 2.6 2.0 4.7 Source: National Association of Realtors/Reis Cross-Border Comparison Of ce markets, 2012 Source: Bloomberg News Canada U.S. Inventory 494 million sf 10.2 billion sf Vacancy 7.1% 12.1% Source: Avison Young The Showroom Effect 10 March | April | 2013 Once again, the failure of a brick-and-mortar retailer to of er an experience instead of just product and price may be its death knell. Barnes & Noble turned in disappointing 2012 holiday sales, with same store sales down 8.2 percent. Already it is closing some of its 689 stores in markets such as Los Angeles, Chicago, Dallas- Fort Worth, New York, Philadelphia, Washington, D.C., and Seattle. Retail Traf c reports that 123 of its leases are scheduled to expire this year, with 136 in 2014, and 101 in 2015. T e company’s 674 college stores appear safe from closure. Commercial Investment Real Estate