Single-family REITs are ready to show the market that their business model, which formed during the recession and its aftermath, has staying power, writes Carla Freeman, real estate partner with BDO USA. These REITs are moving beyond the bulk acquisition stage to develop more mature, geographically diverse strategies. Also, many are tapping the securitization markets to meet funding needs, she writes.
Loans and leases for business equipment increased 10.7% last month compared with May 2011, an ELFA survey found. Volume rose 1.6% from April to May. "Although overall spending has steadily increased since the financial crisis, pockets of the market are still tenuous as some customers are canceling or postponing [capital-expenditure] purchases amidst softer commodity prices or weaker demand from abroad," said Maureen Carr, managing director of corporate asset finance at CapitalSource.
Small businesses are suffering disproportionately from rising gasoline prices because they don't have the market power enjoyed by bigger companies to pass along higher costs to customers, experts said. In a survey by the National Federation of Independent Business, owners of small businesses said fuel costs are their top problem.
Caterpillar is expanding a manufacturing facility in Xuzhou, China, increasing production capacity for hydraulic excavators by 80% by 2016. The company also plans to produce wheeled excavators at the factory starting in 2014. Caterpillar has 17 plants in China and an additional nine under construction.