December 1st through 12th, 2014

Baltimore's real estate revenue soars as transactions, property values rise

12/9/14, Baltimore Business Journal, Kevin Litten
I reported Monday that Baltimore is facing a $14.8 million deficit due in part to disappointing revenue from Horseshoe Casino
and police overtime spending. But a closer look at the numbers both projected for the fiscal year ending June 30, 2015 and
the revenues closed out from last year shows real estate is crushing earlier predictions. Here's a closer look at those
numbers provided by the city's budget director, Andrew Kleine, with some additional data I asked for that wasn't included in his
presentation. Let's start with last fiscal year, which ended in June. Real estate transactions and rising property values helped
the city rake in nearly $53 million more than the $755.3 million originally projected, and was almost evenly split between
property tax revenue and the transfer and recordation taxes. The transfer and recordation taxes in some ways are most
interesting because they indicate very specific market activity, namely the buying and selling of real estate (transfer taxes) and
refinancing (recordation taxes). Read more

Rebuttal: Full Service Brokers Give Tenants Best Deal

12/9/14, GlobeSt.com, Erika Morphy
WASHINGTON, DCThe debate over whether tenant-only brokerage firms are better for tenants flared recently with the
release of a report that found full service firms will favor landlords over tenants when representing both in a deal. We looked at
that report's findings yesterday in this article a report, it must be noted again, that was commissioned by Cresa. The actual
study was conducted by George Washington University and Peter Smirniotopoulos, founder and principal of petersgroup
consulting and an adjunct professor of Real Estate at George Washington University. In today's article, the full-service firms
challenge that finding. For starters, any full service company that hopes to maintain a reputation of integrity and trust in the
market will not allow a conflict of interest to arise under its roof, Newmark Grubb Knight Frank CEO Barry Gosin
tells GlobeSt.comfor both ethical reasons and practical ones as well. The commercial real estate sector is a clubby, insular
community, where most of the players in the individual markets know each other or know of each other, he said. Read more

Top 10 Business Trends That Will Drive Success In 2015

12/9/14, Forbes, Ian Altman
In 2015, you have an opportunity to take some risks, change how you market and sell, as well as define your niche in your
market. Here are my predictions for ideas and trends that will shape sales and business development for top performing
companies in 2015.
1,The Role of Salespeople Will Evolve
Savvy customers dont value old-school, pressure-based, manipulative sales methods. In fact, many executives say theyll
decide to not select a vendor because of a negative sales experience. Customers value subject matter experts (as I
highlighted for 2014 Trends). As customers increasingly value subject-matter experts, salespeople need refined consultative
skills. Top companies will invest prudently in teaching those individuals how to identify and cultivate opportunities that are a
great fit for your business not old-school selling tactics. Theyll discover how customers make buying decisions and what you
can do to add the most value for your customers. This will lead to better alignment between buyers and sellers and will put
both parties on the same side of the table. Read more...

Mortgage rates tick up slightly following strong employment report

12/11/12, Washington Post, Kathy Orton
Following last weeks strong employment report, according to the latest data released Thursday by Freddie Mac. Depending
on what comes out of next weeks Federal Open Market Committee meeting, this latest rise could be a precursor of higher
rates. The Mortgage Bankers Association has predicted that the average rate on a 30-year, fixed-rate mortgage will slowly
move to above 5 percent by the end of 2015. Even so, the 30-year fixed-rate average hasnt topped 4 percent in a month.
Despite reversing course after four straight weeks of declines, the 30-year fixed rate climbed only to 3.93 percent with an
average 0.5 point. It was 3.89 percent a week ago and 4.42 percent a year ago. The 15-year fixed-rate average increased to
3.2 percent with an average 0.5 point. It was 3.1 percent a week ago and 3.43 percent a year ago. Hybrid adjustable rate
mortgages were mixed. The five-year ARM average rose to 2.98 percent with an average 0.5 point but stayed below 3 percent
for the second week in a row. It was 2.94 percent a week ago and a year ago. The one-year ARM average dropped to 2.4
percent with an average 0.4 point. It was 2.41 percent a week ago. Read more...

MacKenzie is committed to helping firms capture a competitive advantage through commercial real estate. We have a proven approach, a skilled, multidisciplined team, and the in-depth local market knowledge necessary to succeed in Maryland's business environment.
MacKenzie is a full-service commercial real estate company offering services in leasing and sales, construction, development, GIS and research,
property management, and debt and equity placement.

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