Archives for September 2017

Thanks to all of the brokers, sponsors, and guests who attended the September 2017 CCIM NM Deal Making Session and to those who shared the September 2017 CCIM NM Properties.

Over 3 million dollars of commercial real estate properties available for sale were presented from all over New Mexico.
Click here to view source PDF.
Click here to view CCIM NM Deal Making Sessions Thank You’s.

This past Saturday night (for the first time in my 54 years), I ordered a pay per view (PPV) event – the Mayweather vs. McGregor “boxing” extravaganza. My father-in-law was in town, and what’s a better male-bonding experience than watching 2 men beat the crap out of one another?! At least that was what I was counting on. So, I settled myself in for a long night – understanding the pre-event special started at 7 pm EST and the main card fight was over around 1 am.
The result of the fight (and even the progress of the fight itself) went just as expected. It was all hype, with little surprise – it was a spectacle more than a sporting match. At the end, Mayweather substantiated himself as one of the best boxers in history – if not THE best; and McGregor reinforced his unique, ‘tough as nuts’ persona. Mayweather walked away with an estimated $300 million, and McGregor $100 Million. It was mildly entertaining, but nothing compared to the battle about to impact the majority of those who work in the commercial real estate space.
In case you missed my earlier blog on this topic, I outlined the key points in the CoStar vs. Xceligent legal battle here. CoStar is like Mayweather, as it is the incumbent, the dominator, and has the greatest experience – in lawsuits at least. Xceligent is like McGregor in the boxing world, an ‘up and comer’. In CoStar’s perspective they are a threat, in fact – a serious threat.
During the PPV event, the spectators were rooting for the underdog – McGregor; even though the fight was held in Mayweather’s home city of Las Vegas. I get the impression, through readings/blog comments and general discussions with my colleagues and peers, that the CRE public is rooting for Xceligent. Instead of “Conn-or, Conn-or, Conn-or”, you can hear “Xceli-gent, Xceli-gent, Xceli-gent” in the CRE winds.
Like McGregor, Xceligent came out throwing the biggest punch this week with their ‘Stand Up to CoStar’ campaign. The CEO of Xceligent, Doug Curry, is calling out CoStar for what he calls their ‘monopolistic practices’ – going so far as asking for your help in contacting the FTC.
Of course, the big difference is: in the Mayweather/McGregor fight, both participants walked away with $100’s of millions. In the CoStar vs. Xceligent battle, only one will be the financial winner. Unfortunately (in both cases), it is us who ultimately pays these prizefighters and CRE data provider fees.
The big question is – will CoStar continue its dominance in CRE data/information? Or will the underdog, Xceligent, pull one of the ‘Rocky-like’ shocker and beat CoStar down to defeat?
By: Rod Santomassimo (The Massimo Group)
Click here to view source article.

As baby boomers, once America’s largest living generation, continue to age, demand for medical office space is growing with them.
According to the U.S. Census Bureau, the number of Americans 65 years old and up is expected to double to 92 million by 2055. The segment will make up approximately 23% of the country’s population by that time.

Pixabay/DarkoStrojanovic The medical office building sector has seen an increase in investor interest this year due in part to the number of baby boomers who require more medical services. U.S. medical office building vacancy rates have been decreasing for the last seven years and are now sitting at 8% thanks to strong Q1 absorption that continued to outpace completions this year, CBRE reports.
Based on these findings, investors have become increasingly confident in the need for in-office physician services in the coming years, pushing investment in MOBs nationwide to $9.9B as of Q1 with cap rates at record lows of 6.8%, CBRE reports.
“Comparatively moderate regional differences are an attractive feature of medical office as an investment class,” CBRE Healthcare Capital Markets Executive Vice President Lee Asher said in a statement. “Because there is demand for healthcare everywhere, investors are generally more willing to look outside the primary markets compared with traditional office investment, and this is apparent in pricing metrics.”
The five markets boasting the lowest Q1 vacancy rates were Nashville at 2.8%, New York at 3.2%, the San Francisco Bay Area at 4.2%, Louisville at 4.9% and Kansas City at 5.5%. Of these cities, Nashville experienced the strongest medical job growth.
By: Lara O’Keefe (Bisnow National)
Click here to view source article.