Commercial landlords baffle me

[Sweettears]

I don't think most people knew what the banks were doing. All the sub-prime loans and predatory lending. It was a lot more complex than just a housing bubble.

I get that. It had a lot to do with banks that took on too much risk knowingly to make a profit. You’re always going to have stupid people in charge of a company in any industry that think that they can beat the system. Doesn’t mean that the whole industry is in lock step. We just had two major bank failures this year because the management was stupid and took on too much risk for the possibility of large gains. This isn’t a model for running any kind of business let alone a bank.

The banking issues in the 2000 had many factors but was helped along by stupid bankers (100% ltv, no income verification etc). They didn’t care because they sold them off to the secondary market.

 

[SteveH]

Sadly, the big banks and corporate landlords don't care about our communities, they just extract money.

Good or bad my area is still seeing rapid growth, so most commercial buildings are either converted or the landlord is sitting on getting a lease payment. One of our regional banks closed a poorly located branch, and 2 weeks later it was a "European Market" - they barely changed a thing - just moved desks and moved in shelves. I knew the banker through Rotary and they leased it pretty cheap since vacant property was more likely to damaged and I'm sure they are writing off the loss too.

The great thing is we have a group of local community banks, investors and community minded people that have begun developing some incubator business locations to help small businesses get off the ground with stability and not massive leases that can cripple a lot of businesses, some office space as well as retail strip malls. The businesses have to go through some business classes by the chamber and community college to qualify and present a business plan. Another group worked to start a Food Truck University that has been a big hit, just as much helping them get off the ground it helps detour a lot of "foodies" that have no business sense from losing all their money.

 

[DCLMP]

I get that. It had a lot to do with banks that took on too much risk knowingly to make a profit. You’re always going to have stupid people in charge of a company in any industry that think that they can beat the system. Doesn’t mean that the whole industry is in lock step. We just had two major bank failures this year because the management was stupid and took on too much risk for the possibility of large gains. This isn’t a model for running any kind of business let alone a bank.

The banking issues in the 2000 had many factors but was helped along by stupid bankers (100% ltv, no income verification etc). They didn’t care because they sold them off to the secondary market.

The regional banks have most of the exposure to commercial realestate. You have declining property values, high interest rates, rising bond yields. Not to mention we’re in a massive debt bubble and liquidity is drying up. There’s a lot more banks at risk and yes we will see more bank failures. I’m not saying that’s the fault of the banks.

The funny thing about 2008 is that most people don’t realise what would have happened if the banks had not be bailed out.

 

[Starport Seven-Five]

Around here it is interesting to see how many old time gas stations have been repurposed. One around the corner from where I grew up was built as a Flying A gas station in the 1950s and in the 1980s was converted into a Title Insurance company office, then a Travel Agency and today is a Blood Donation Center
And a former KFC here that later became a Subway reopened after being vacant for 8 years, as a church.

People who choose to own old gas stations are braver than me. Those underground tanks (and the soil around them) are a huge liability.

Yeah self storage is another business model I don't understand how it survives. People spending thousands and thousands of dollars to store old junk that isn't worth $20.

People always plan for it to be a short term solution. Then once it's in the storage unit, it's out of sight/out of mind and stays there for years.

 

[tvguy]

People who choose to own old gas stations are braver than me. Those underground tanks (and the soil around them) are a huge liability.

The sites have to be cleaned up before they are purchased, so no liability for a new owner. That's the law here in California.
Same with old Dry Cleaners where the chemicals leached through concrete slabs into the ground water.

 

[Sweettears]

The sites have to be cleaned up before they are purchased, so no liability for a new owner. That's the law here in California.
Same with old Dry Cleaners where the chemicals leached through concrete slabs into the ground water.

And this is standard proced for any well managed bank before they will extend a loan

 

[Sweettears]

The regional banks have most of the exposure to commercial realestate. You have declining property values, high interest rates, rising bond yields. Not to mention we’re in a massive debt bubble and liquidity is drying up. There’s a lot more banks at risk and yes we will see more bank failures. I’m not saying that’s the fault of the banks.

The funny thing about 2008 is that most people don’t realise what would have happened if the banks had not be bailed out.

You throw out a lot of opinion with no support or facts. What percentage do regional banks hold in CRE? Well managed lending, valuation processes are always present. Tell me about the bubble so I can be prepared.

 

[DCLMP]

You throw out a lot of opinion with no support or facts. What percentage do regional banks hold in CRE? Well managed lending, valuation processes are always present. Tell me about the bubble so I can be prepared.

Don’t you read financial news? Bloomberg Wall Street journal etc? Follow any economist? I’m not going to argue with you, but you’re not showing any facts to disprove me. Just Google any of the above and you’ll find enough reading material to keep you busy for a day.

 

[tvguy]

And this is standard proced for any well managed bank before they will extend a loan

Except apparently the Banks a former President used.

 

[barkley]

The sites have to be cleaned up before they are purchased, so no liability for a new owner. That's the law here in California.

that's if you can find a new potential owner. there were some old abandoned gas stations sitting in PRIME commerical locations in northern california that had gone under in the late 80's still sitting vacant when last i retuned in 2011. the pumps and structures had been removed but the old cracked asphalt with the tanks underneath remained-cost of clean up was so prohibative that the property owners ran the numbers and figured out it was in their best financial interest to stop paying property taxes and let the municipality lein foreclose. thing was-the municipality was well aware of the horrific cost of clean up and let these places sit with unpaid property taxes for decades (one i know of was rumored to have had tanks shifting and leaking for years following the loma prieta quake).

 

[Starport Seven-Five]

The sites have to be cleaned up before they are purchased, so no liability for a new owner. That's the law here in California.
Same with old Dry Cleaners where the chemicals leached through concrete slabs into the ground water.

Standards change over time. What was accepted as "cleaned up" 20 years ago might require rework in the future.

 

[goofyernmost]

Around here it is interesting to see how many old time gas stations have been repurposed. One around the corner from where I grew up was built as a Flying A gas station in the 1950s and in the 1980s was converted into a Title Insurance company office, then a Travel Agency and today is a Blood Donation Center
And a former KFC here that later became a Subway reopened after being vacant for 8 years, as a church.

That's been happening for a while now. Back in the 70's I recall an old abandoned gas station where I lived, became the first Ben & Jerry's headquarters/scope shop. Unfortunately, there was a real strong lack of foresight at the time when they moved into their second location the station was leveled and the land became, and still is, a parking lot. They didn't even pave it, it was just dirt. They have put a plaque up stating it was the original Ben & Jerry's location but they missed out on a chance for a really interesting tourist location.

 

[Sweettears]

Don’t you read financial news? Bloomberg Wall Street journal etc? Follow any economist? I’m not going to argue with you, but you’re not showing any facts to disprove me. Just Google any of the above and you’ll find enough reading material to keep you busy for a day.

Yea Going to drop this. I have been a CEO of a bank for the the last 20 years. That’s where my my view point comes from. You?

 

[tvguy]

And this is standard proced for any well managed bank before they will extend a loan

Not even necessary to worry here since 1995. The State pays for the cleanup now if the property owner can't.

 

[Sweettears]

Not even necessary to worry here since 1995. The State pays for the cleanup now if the property owner can't.

Nice deal. Buyer be aware here

 

[DCLMP]

Yea Going to drop this. I have been a CEO of a bank for the the last 20 years. That’s where my my view point comes from. You?

Then I guess you know banks invest a large number of assets in treasury bonds and have reported hundreds of billions of dollars in unrecognized losses. Maybe not an issue at this point in time, but could be down the road. Banks can't loan that money out or invest it at higher rates. It's no secret that regional banks have a lot of exposure to corporate real estate. That has been well documented over the last year. Yes, there was another bank failure this weekend.

Banks are dependent on consumer confidence. You are all just a bank run away from insolvency. If everything being reported on CNBC, Forbes, Wal Street Journal, etc is false then you should be able to debunk it.

 

[Sweettears]

Then I guess you know banks invest a large number of assets in treasury bonds and have reported hundreds of billions of dollars in unrecognized losses. Maybe not an issue at this point in time, but could be down the road. Banks can't loan that money out or invest it at higher rates. It's no secret that regional banks have a lot of exposure to corporate real estate. That has been well documented over the last year. Yes, there was another bank failure this weekend.

Banks are dependent on consumer confidence. You are all just a bank run away from insolvency. If everything being reported on CNBC, Forbes, Wal Street Journal, etc is false then you should be able to debunk it.

Unrealized losses on bonds are exactly what they are. There is no impact to a bank’s bottom line. They still have value in that a bank can use them as collateral to borrow.

Consumer confidence or the lack of such is what keeps community banks thriving. The deposits are insured by the FDIC. If you are getting your financial advice from your quoted sources I suggest you look elsewhere

 

[DCLMP]

Unrealized losses on bonds are exactly what they are. There is no impact to a bank’s bottom line. They still have value in that a bank can use them as collateral to borrow.

Consumer confidence or the lack of such is what keeps community banks thriving. The deposits are insured by the FDIC. If you are getting your financial advice from your quoted sources I suggest you look elsewhere

Should I get advice from a CEO of a bank? Banks don't have the best track record. I will continue to listen to the people that have been right for the last 20 years.

 

[Sweettears]

Should I get advice from a CEO of a bank? Banks don't have the best track record. I will continue to listen to the people that have been right for the last 20 years.

TV and internet? Yea let’s go with that.

 

[DCLMP]

TV and internet? Yea let’s go with that.

I guess you know the balance sheets of all banks across the country. That's like saying I'm the owner of a fast food restaurant and I'm profitable so therefore all fast food restaurants are profitable.
You act like the world is immune from a banking crisis yet they have happened repeatedly throughout history.

There are a lot of very successful economists with blogs and YouTube channels and have written numerous books. They have been around for decades.

I always find it funny when people are on the internet discounting the internet as a source of information. The best source of Disney information for planning a trip is here... without a doubt.