Financial benefits from pro-forma and design

In the real estate market cycle, demand and supply points are different. In the risk consideration of the development, market, location and financial issues should be considered in the proposed project. The developer makes financial assumption plan based on the current or future business market with potential risks. Market analysis and detail study of market condition is one of the important things because it realizes as aspect of a proposed project with needs for targeted market. And financial feasibility study is done for acceptable potential market and the analysis of a satisfactory return on investment for project. Making asset strategy for success and creating relationship between financial networks is important. Without market analysis or detailed study of market conditions, the projected pro forma does not accurately estimates the potential income and future sales. Essential design saves the cost of construction and result in financial benefits.

Emerging capital sources for refinancing and acquisitions.

The Fourth Roundtable was held in Dallas on December 03, and the discussion was about new emerging capital sources for refinancing and acquisitions. Invited panels are Private Equity and Financial Institutions and developers. They discussed the opportunity of refinancing from Foreign and Pension fund and the Refinancing and Acquisition opportunities expected in the coming year 2010.The question is where we are at the cycle. The bad news is there is no work now even though these funds always have money. Total mass began when consumers were unwilling to spend, and the credit card companies cut consumers’ spending limits. That resulted in many empty retail spaces. It is difficult to predict the sale side of market. Once transactions occur, we will know. The CMBS market is flat. The leverage is 75%. In 2006 to 2007, CMBS was at 80-100 basis points above, now it lost 40-50% of value like U.S. Treasury Bond. Today, the phrase is used that commercial real estate is dead yield, and that term was never used since 2001.. The government is trying to bring the equity back to market. The year 2010 will be the recovery year. There is plenty of money out there. We just need the incentives for sellers to sell. Congressmen in Washington have to understand the distinction between residential and retail mortgage to better come up with the incentives.

New Architectural Design Approach

The project in the west Dallas at the UT Arlington Architecture+Business School 2009.

Upon the experience, I started to work with Architecture, Real Estate and Business for a green design development.

Emerging Architecture Trends - Green Design

Future architecture is more closely approaching it’s intention to make energy environmental and efficient buildings. Upon the strategies, there are many approaches to make creative exploration. it is difficult to see good sustainable buildings around us and it sounds initial construction cost is more than expected. Also it needs many years of experience and multi educations in the life time for architects to open their eyes on the sustainability. However, Future architecture should be energy efficient, design creative exploration and cost efficient to meet real estate business benefits. Architects should add the knowledges like art, science and business for future their success.