Boxwood Means Launches Portal for Small-Cap Property Research
Thursday, 17 December 2009
Commercial Real Estate Direct Staff Report
Boxwood Means Inc. has launched a subscription-based Web site, www.smallbalance.com, that provides users instant access to its broad array of data and analysis on small-capitalization commercial real estate in the United States.
The Stamford, Conn., research firm, which was founded some six years ago by Randy Fuchs and Michaell Taylor, is using the site to distribute two newly launched research products - Valpro, a valuation model for small-cap properties, and Mercury Reports, which provide property sales and rental data and analysis. Both are available for properties in markets across the country.
Unlike most other property data and analysis providers, Boxwood Means updates its information monthly and reports it on a rolling three-month basis. Fuchs explained that doing so provides a clearer snapshot of market changes.
The company has found that the performance of small-cap commercial properties - those with less than 50,000 square feet each - correlate more closely with the residential market as opposed to the broader commercial real estate market. That stands to reason since owners and tenants at small properties are generally relying on their personal credit ratings to buy or lease. As a result, lenders and investors with exposure to small-cap properties might be shortchanged if they relied on broader market research.
"Drawing on mainstream market data to assess the small commercial property market is like using the Dow Jones Industrial Average to benchmark the performance of a small-cap mutual fund," Fuchs said.
Boxwood Means estimates that some 16 million properties are considered small-cap. Loans against those properties dominate the balance sheets of regional and community banks.
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