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Archive for March, 2010
With Hyderabad making great strides in IT\ ITES and BPO it is now a reality that the city has made its mark across the globe. India is now doubt has prominent technology parks spread across several states. And not to mention the wave of SEZ
With the government taking special interest by creating attractive policies that bring investment so that various industries whether IT, manufacturing or other sector industries get benefited.
The growth of the IT industry also brought along with it improvements in the quality of real estate developments. Several builders and infrastructure providers have created office space Hyderabad in the form of technology parks. With these developments, they hope to cater to technology companies by providing the kind of infrastructure they require for their business.
Companies started setting up, expanding, merging and getting acquired. This accelerated the need for hyderabad commercial office space. Companies wanted huge spaces to seat their hundreds of employees; they felt the need to look for large plots of land, instead of being in separate buildings spread all over the city.
The IT-ITeS industry is single handedly driving the real estate boom in India. According to realty experts, IT-BPO companies account for 80% of total commercial space absorption in India.
While most the cities are already witnessing running out of vacant office space this has lead to increase in the rate of office space. All this is making companies who are looking for office space Hyderabad alternative options like moving to places, where it can prove cost effective for companies.
Many companies are looking into tier two areas where the real estate prices are not yet skyrocketing. The reason is the lower real estate prices and good infrastructure besides a more stable pool of talent.
More and more real estate developers are developing commercial real estate and IT parks in less developed area to attract the BPO, IT and ITeS players in search of hyderabad commercial office space.
While if some are making plans to move to less developed cities others are of the view that, moving to tier two cities might be cost effective, but still does not make business sense.
They further feel that the infrastructure that city boasts is far better than what is offered in the tier two cities. They may be cheaper but moving to the smaller cities is not always a good business proposition. So to remain in city or to move to suburbs is more and more becoming attention seeker.
Indu Group is an end-to-end solutions provider in infrastructure and real estate,welcome read more on about office space in SEZ www.pointindu.com and advantage at india Hyderabad Commercial Office Space
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Commercial lending to small businesses is already on life support based on a number of business financing statistics. Commercial banking companies in many instances would have failed some time ago without government bailouts. As bad as that perspective might sound, this report will provide an even more negative outlook for the future of working capital financing and small business finance programs. Overall it currently appears that commercial loans represent the next big problem for banks and other lenders.
During the past year or so, several banking problems have received significant publicity. These difficulties were largely related to the rising number of home foreclosures which in turn caused a ripple effect involving various investments tied to home loans. Such investments lost value so rapidly that they became known as toxic assets. When banks stopped making many loans (including small business financing), the federal government provided bailout funding to many banks to enable them to keep operating. While most observers would argue that the bailouts were made with the implicit understanding that bank lending would resume in some normal fashion, the banks seem to be hoarding these taxpayer-provided funds for a rainy day. By almost any objective standard, commercial lending activities have all but abandoned small business finance needs.
Based on recent commercial banking statistics, it seems that small business financing is already the next big problem for many banks. In part this is due to the general decline in commercial real estate values during the past several years. This has resulted in some significant bankruptcies when many large commercial property owners have been unable to either make their commercial mortgage payments or refinance debt (or both). While these difficulties were predominantly happening with large real estate companies and did not regularly involve small businesses, the resulting bank losses are clearly having an impact now on commercial lending to small business owners.
Much like the residential mortgage toxic assets caused banks to stop normal lending because of a shortage of capital, commercial banking losses on large commercial real estate loans are already causing many banks to stop or reduce their small business finance activities. The bank losses from large commercial property investors are producing a ripple effect that has caused small business financing to effectively disappear until further notice. While small business owners did not cause this problem, they are suffering the immediate consequences when banks are unable or unwilling to provide normal levels of commercial financing to them.
As with many complex situations, one problem will lead to another. The failure to obtain normal business financing will most likely lead to an increasing number of commercial loan defaults by small businesses. Prudent business owners should begin to take action now in a timely manner to avoid such negative consequences. With proper actions, the biggest small business finance problems can be anticipated and avoided.
Stephen Bush and AEX Commercial Financing Group provide small business finance options for working capital financing, merchant cash advances and commercial loans throughout the United States.