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Metro areas with a lower cost of living and sunnier weather are poised to see an increased number of Baby Boomers moving in and buying a home as some delay retirement and remain participants on the labor market.
NAR analyzed current population trends, housing affordability, cost of living, housing inventory and job market conditions in the 100 largest metropolitan statistical areas across the U.S. to determine housing markets most likely to see a boost in sales from Baby Boomers. State taxes and the share of expenditures for Public Welfare, Hospitals, Health, Police Protection, Parks and Recreation at the state level for those areas were also considered.
The top markets positioned to see an influx of baby boomer homebuyers are as follows:
-Albuquerque, New Mexico
-Boise, Idaho
-Denver
-Fort Myers, Florida
-Greenville, South Carolina
-Orlando, Florida
-Phoenix
-Raleigh, North Carolina
-Sarasota, Florida
-Tucson, Arizona
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Click on the tabs to follow the story below. Hover over the map for a snapshot of each metro area’s share. The following charts show the housing and job market conditions for the 10 most attractive metro areas for Baby Boomers compared to the average for the 100 largest metro areas.
Click here to view interactive maps in original article.
By: Nadia Evangelou (Economist’s Outlook)
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WALNUT CREEK, CA— The CRE industry is different than all other industries in that it is a transaction based model. The lifeblood of the industry is dependent on sale, financing and lease transactions.
The most successful companies and individuals in the industry usually complete the most transactions. However, in pursing these transactions the same mistakes are made over and over again which usually results in poor performance, the loss of equity in a property or the loss of the property in foreclosure.
Below are 25 of the biggest mistakes in CRE investing that are the root cause of bad deals.
1. Buying properties at low cap rates.
2. Buying properties because the investment sponsor has idle cash to spend in a commingled or special account fund.
3. Not diversifying a national portfolio by property type, location and industry.
4. Not performing property level and financial due diligence on all properties in a portfolio acquisition.
5. Acquiring properties with negative leverage, i.e., the mortgage rate is greater than the cap rate.
6. Using short term debt to finance a long term real estate asset or portfolio.
7. In underwriting an acquisition, using a terminal cap rate that is less than the going in cap rate.
8. Institutional investors who commit capital to sponsors who have inexperienced senior management teams. The senior management team should have gray hair and been through the two secular CRE downturns of 1987-1992 and 2007-2012.
9. Using overly optimistic rent projections in underwriting a deal.
10. Not analyzing the corporate credit of major tenants.
11. Not analyzing the sales volumes of retail tenants, a key metric when buying shopping centers.
12. Performing shoddy engineering due diligence on an acquisition.
13. Not swapping or collaring floating rate debt.
14. Using high leverage of more than 75%.
15. Using convoluted capital stacks with first mortgage debt, multiple mezzanine loans, preferred equity and owner equity.
16. Not analyzing demographic, economic and social changes in the market.
17. Not hiring bright, hardworking and experienced personnel.
18. Not giving senior level employees an equity interest in the company, portfolio or fund.
19. Assuming real estate entrepreneurs are good corporate managers and capital allocators.
20. Not incorporating the 15 risks of CRE including; cash flow, value, tenant, market, economic, interest rate, inflation, leasing, management, ownership, legal and title, construction, entitlement, liquidity and refinancing into the firm’s investment strategy.
21. Investing in a property sector like hotels and senior housing in which the investment firm has no experience.
22. Not obtaining the Kmart discount when acquiring a portfolio of assets that are usually made up of a few queens, a lot of pigs and the rest in between.
23. Not understanding that hotels are 70% operating business and 30% real estate and senior housing is 80%-90% operating business and 10%-20% real estate and value is created by superior management and operational expertise.
24. Following the institutional herd in buying core real estate assets at low cap rates.
25. Not checking the formulas in an XL underwriting worksheet, as there is at least one formula error in every underwriting worksheet.
By: Joseph Ori (GlobeSt.com)
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If honing your negotiation skills is one of your New Year’s resolutions, consider the suggestion by one trainer: Do the counterintuitive thing to help move the transaction along.
Trainer Mira Zaslove, in an expanded article at lifestyle site Lifehacker.com based on a discussion at Quora.com, suggests that negotiations can actually move more quickly and smoothly when one side takes actions that give the other side a narrower, but perhaps more appealing, range of options.
In fact, Zaslove’s first warning is against providing too many options. “The paradox of choice dictates that the more choices you provide to someone the more they like aspects of each option. Therefore, they over-think and believe they can find the perfect solution,” she explains. By providing a small number of realistic alternatives, they can focus on the advantages and disadvantages of each and make their decision more quickly.
Zaslove also reminds negotiators against falling for a bluff. When the other side protests one of your moves and says they’re going to walk, it’s easy to backtrack and cave in. But, she says, “The more someone protests that the price is too high, and makes a fuss, generally the more wiggle room you have. Fear the quiet negotiator who isn’t concerned with how he appears.” When the other side is truly ready to walk, they’ve reached closure and express regrets; simply threatening to walk is a sign of anxiety.
By the same token, Zaslove says, your own bluffing can work against you. “If you are not clear about what you want, you are unlikely to get it. I’ve found that focusing on the outcome, and not on how you appear leads to successful outcomes. State what you want and focus only on your intended goal and not on your ego. Relay your position in a simple, straightforward, and confident way.”
Finally, don’t dwell on the time and money required to close the transaction. “Focus on deals that make sense, because time is your most valuable asset,” Zaslove says. “Do not spend time dwelling on the time and money you have already spent.” The more complicated a transaction becomes, the less likely you can close it quickly. Keep it simple.
Read the full article on Lifehacker, adapted from an earlier version on Quora.com.
By: Daily Real Estate News (REALTORMag)
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The $85 million project that will bring an 80,000-square-foot medical school to the campus of New Mexico State University is on schedule to break ground early next year. That’s in part because the Burrell College of Osteopathic Medicine has just received pre-accreditation from the Commission on Osteopathic College Accreditation.

The project’s leader, Santa Fe’s Dan Burrell, told Business First he took a delegation of 14 senior members involved in the future medical school to Chicago last weekend for the commission’s December board meeting. In the meetings, the BCOM and NMSU delegation, along with community members, health care leaders and politicians from New Mexico, El Paso and Chihuahua, Mexico, spoke about why the school should be awarded preaccreditation. Those joining Burrell included NMSU President Garrey Carruthers, the medical school’s CEO John Hummer and Dr. George Mychaskiw, founding dean and chief academic officer of the future school.
Burrell gave credit for the successful preapproval to his team and public and private sector partners he’s been working with for the past two years to lay the groundwork for the development. In its first 10 years, the school hopes to graduate 1,200 doctors. Health care experts have said the school will help stem the shortage of doctors in New Mexico, the region and in the U.S., also providing greater access to health care. It could also be an economic boon to southern New Mexico, they said.
The project’s architect is Dekker/Perich/Sabatini and the general contractor is GenCon. The hope is to have the school completed by May 2016.
By: Damon Scott (Albuquerque Business First)
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