Archives for June 2018

Foreign Buyers, Sellers Play Growing Role In US CRE

June 29, 2018 by CARNM

The top countries of origin for buyers were China, Mexico, Canada and the United Kingdom.

International buyers and sellers are making their presence increasingly known in the US commercial real estate market, according to the National Association of Realtors 2018 Commercial Real Estate International Business Trends report, which analyzed cross-border commercial real estate transactions during 2017.
It found that nearly one-fifth of its realtors practicing in commercial real estate closed a sale with an international client in 2017, and 35% said they have experienced an increase in the number of international clients in the past five years.

Smaller Markets

The report also found a growing concentration of such deals in smaller markets.
“The profile of smaller commercial markets is continuing to rise as many foreign investors are attracted to smaller-sized properties in secondary and tertiary markets,” said Lawrence Yun, NAR chief economist — a trend that he expects to see continue this year.
That said, international commercial buyer and seller transactions typically tended to be at the higher end of the market. Last year, the median international buyer-side transaction was $975,000 and a median seller-side transaction was $1 million, while the median commercial transaction was $625,000.

The Transactions, Broken Down

Of the 59% of realtors who indicated they completed a commercial real estate transaction last year (compared to 69% in 2016), 18% reported closing a deal for an international client (compared with 20% in 2016). 46% closed a buyer-side transaction, 13% a seller-side transaction and the remainder closed both types of transactions.
Over 60% of buyer-side sales were transactions with foreign buyers who primarily reside abroad. Most seller-side transactions (57%) were of properties sold by clients who were temporarily residing in the US on non-immigrant visas.

Top Buying Countries

The top countries of origin for buyers were China (20%), Mexico (11%), Canada (8%) and the United Kingdom (6%). The sellers were typically from Mexico (20%), China (15%), and Brazil and Israel (both at 10%).

Top US States

Florida and Texas were the top two states where foreigners purchased and sold commercial property last year, with California being the third most popular buyer and seller destination.
Other findings:

International clients found US commercial real estate markets to be a good value in 2017. About seven in 10 respondents reported that international clients view US prices to be about the same or less expensive than prices in their home country, according to Yun.
Foreign buyers of commercial property typically bring more cash to the table than those purchasing residential real estate. 70% of international transactions were closed with cash, while NAR’s 2017 residential survey found that half of buyers paid in cash.
For those not using all cash, 25% of commercial deals involved debt financing from US sources.
A majority of buyers purchased commercial space for rental property (39%) or for business investment purposes (34%).

By: Erika Morphy (GlobeSt)
Click here to view source article.

2014 Q4 Commercial Real Estate Market Report

June 28, 2018 by jakobsmith

The REALTORS® Commercial Real Estate Market Trends measures quarterly activity in the commercial real estate markets, as reported in a national survey. The survey collects data from REALTORS® engaged in commercial real estate transactions The survey is designed to provide an overview of market performance, sales and rental transactions, along with information on current economic challenges and future expectations. https://www.realtor.org/reports/2014-q4-commercial-real-estate-market-survey

TAKE ACTION: Urge Congress to extend the National Flood Program

June 28, 2018 by CARNM

Help CARNM meet the 20% participation goal – Act Now!
Existing homeowners as well as commercial entities may find their largest asset unprotected when the National Flood Program (NFIP) policies expire on July 31.

The National Flood Insurance Program (NFIP) will expire on July 31, denying necessary insurance coverage to homeowners and buyers in more than 20,000 communities nationwide. Congress must act now to reform and extend the NFIP.

Thousands of homeowners, consumers, and commercial property owners could soon find themselves unprotected and unable to get a mortgage. This affects YOU!Take action by urging Congress to extend the NFIP and pass meaningful reforms to ensure long-term viability of the program.

Click here to take action!

Help CARNM meet the 20% participation goal – Act Now!

Thank you for your support on this critical issue!

Santa Fe Art House Cinema to Continue Operation

June 28, 2018 by CARNM

The Center for Contemporary Arts has stepped in to revive The Screen art-house cinema through a newly-formed partnership with city government.
The Screen, which for 20 years operated on the city-owned college campus most recently occupied by the now-defunct Santa Fe University of Art and Design, closed its doors April 30, a few weeks before the school.
It’s programming will resume July 13 as an extension of CCA’s own two-screen Cinematheque, providing a third screen to show films and a place for other kinds of programming.
“We’ve been able to take something that people love and were worried about losing and see it revitalized, brought back to life, in a creative partnership,” said Mayor Alan Webber, who said he had contacted CCA executive director Stuart Ashman following The Screen’s shutdown.
The 160-seat theater initially was run by the old College of Santa Fe. The city bought the campus in 2006 when the college closed and had been leasing the site to SFUAD.
For The Screen, CCA has a renewable one-year service value lease with the city, meaning it can provide public services in lieu of rent. An appraisal to determine the facility’s rent value will be done in the next 60 days and CCA will have to match that value in programming or pay the difference, according to Santa Fe’s asset development director Matt O’Reilly.
CCA’s Cinematheque Director Jason Silverman said the nonprofit is planning do as much public programming at The Screen as possible, through community partners and by expanding existing projects like CCA’s Youth Partners Program.
CCA annually serves 1,000 students from schools like Capital High School and Monte del Sol Charter School by screening movies, mostly as part of a science or math curriculum or on subjects like New Mexico history, and providing speakers to discuss the films.
Silverman touted The Screen’s proximity to Santa Fe High and the new Milagro Middle School, meaning CCA could eliminate the expense of busing students to and from the Cinematheque.
“We’re going to be able to do more programming for less money,” he said. “They’ll be able to walk across the street or walk through the gate, and we hope this theater will be filled during the school year with middle school and high school kids.”
The Screen also will show some films that also go to the CCA Cinematheque, depending on popularity or whether they should “connect” well to audiences from Midtown or Southside, areas that Silverman says is not as well served by Santa Fe’s cultural institutions.
A news release said The Screen will have “a specific focus on reaching out to the Midtown and Southside neighborhoods in which the majority of Santa Fe’s working families live.”
Its opening weekend, The Screen will show two new documentaries “Three Identical Strangers” and “Strangers on the Earth” also showing at CCA. The latter, he said, should have citywide reach in Santa Fe because it follows a hiker on the Camino de Santiago pilgrimage in Spain.
More “esoteric” films will likely be shown at one of CCA’s smaller theaters, Silverman said. CCA’s main theater has 120 and its studio theater has 52.
“There will probably be a few fewer films with Bulgarian subtitles,” Silverman said. “And more films in English that are more accessible, and also Spanish language programming, we hope to focus on.”
Opening week also includes free screenings of Pixar short films and a restored version of the 1968 Beatles cartoon movie “Yellow Submarine.” A July 14 free outdoor screening of “Willy Wonka and the Chocolate Factory” will be presented on the camps as part of Santa Fe’s Southside Summer initiative.
Webber said he hopes to find other ways to partner with CCA to engage citizens of all ages.
“Keeping this facility alive using it as a social programming opportunity around film and engagement is a perfect blend for a city that increasingly sees itself as in the business of being a national if not global place for tech, entertainment (and) design, to really have a home,” he said.
The Screen’s curator Brent Kliewer will stay on as a curator emeritus, assisting CCA as an advisor. Its former manager Charlotte Martinez has been hired as a CCA employee. The theater will be open each day for its opening week, and likely four to five times a week after that as CCA maneuvers the expansion.
By: Megan Bennett (ABQ Journal)
Click here to view source article.