The 10-year yield moved up significantly (16bps) this past week (the largest move since last March).  The move seemed to be in reaction to the movement overseas with the German 10-year (21 bps).  Please see the two graphs below for an illustration of how both performed over the last 6 months.  Note that it appears interest rates have moved up about 1/8 of a percent thus far.

Spotting Opportunities:

I have had several discussions lately with real estate professionals as to how to spot opportunities.  Many of them stated that they are struggling a bit due to low inventory.  Okay, I understand.  I also want to suggest that one of the best ways to spot opportunities is to truly care about helping your clients.  And, I know, you do care.  However, if you are a bit disorganized, then it is often challenging to see opportunities if you are overwhelmed.  Anyway, I have written about that often in the past.

So, here is a simple approach.

• Determine which of your clients own their own businesses and lease out space.
• Call me to do a lease versus buy analysis

A great gift that you can give them is helping them understand the mathematics of going from a renter of space to an owner of space.  Note they may be able to buy the space they are in or be in line to purchase a space in the near future.

Owning the building typically is a great long-term investment for your business owners.  Once you identify these clients, feel free to give me a call and we can together do an analysis that can be reviewed by your client’s financial advisers.

That is it for this week.  Have a safe 4^th, and feel free to call me with any of your strategic financing questions.

See the table below for approximate interest rates.