06.29.2022
Forecast: Positive for U.S. Real Estate Despite Higher Inflation, Interest Rates
Real estate economists predict solid performance by U.S. property markets over the next three years, according to the spring 2022 ULI Real Estate Economic Forecast. This is in spite of predictions of rising inflation and…
Read More06.28.2022
The Sky May Be the Limit As Interest Rate Caps Keep Rising
Developers and investors have to find different ways to swing finances. Interest rate hikes have been taking a toll on commercial real estate, especially as interest rate caps become expensive enough to kill deals. Grant Cardone, CEO…
Read More06.27.2022
Hotel Developers Battle Rising Construction Costs to Build More Rooms
With industry fundamentals continuing to strengthen following a steep dip during the pandemic, some hotel investors are back in building mode. Travelers are booking hotel rooms again. After a brutal slowdown during the depths of…
Read More06.24.2022
CRE Price Growth Still High … For Now
The rate of increase has turned the corner and is on its way down. CRE prices are still rising, but the rate of growth for most types seems to have hit the top and has…
Read More06.23.2022
For the First Time CBD and Suburban Office Vacancies are the Same
One reason is that more space was placed on the market in CBD locations. Suburban markets are leading the post-pandemic office sector recovery, with absorption hitting 2.2 million square feet in the first quarter. By…
Read More06.23.2022
‘Hyper-Hybrid’ Workers Find a Third Home
A continued need to adapt and the potential to feel isolated spur alternative locales. Hyper-hybrid workers are finding both good and bad with their new weekly working patterns, according to a new report by JLL. The most…
Read More06.21.2022
CO-Based Commercial Space Firm to Land in New Mexico
Colorado-based Sierra Space plans to land some of its Dream Chaser flights in New Mexico, after the company announced on Tuesday it signed an agreement with Spaceport America. Located in southern New Mexico and known…
Read More06.20.2022
Market Volatility Brings Real Estate ETF Momentum to a Halt
After seeing a windfall of flows in 2021, real estate ETFs have experienced net outflows of $2.1 billion so far in 2022. Real estate ETFs that were riding high after a record high year of…
Read More06.20.2022
As Consumers Take a Step Back from Home Deliveries, Will Cold Storage Remain a Hot Asset Type?
The dynamics in the cold storage sector are complicated, but the outlook remains strong. As online sales for groceries, meal delivery services, specialty perishable foods and the distribution of vaccines surged during the past two years,…
Read More06.17.2022
Despite Challenges, Borderplex Holds Huge Promise
Second of a two-part series. View part one here. In my last column, I discussed the industrial boom in the Borderplex region (El Paso, Texas-Juárez, Chihuahua-southern New Mexico), and how industrial absorption and vacancy rates…
Read More06.17.2022
Industrial Tenants Face Sticker Shock Amid Spiraling Inflation
Rent payments could be underpriced by anywhere from 85% to 134% when leases roll. Renters of industrial properties are facing sticker shock in the current inflationary environment, with national effective rent growth expected to increase…
Read More06.16.2022
And Now, Some Good News: More People Are Searching For Office Space Than Before
Interest in CBD location remains high, despite increasing popularity of the suburban office sector. More people are searching for available office space now than before the pandemic, in what analysts at CommercialCafe are calling “a much more…
Read More06.15.2022
June 2022 LIN Properties
At the June 2022 LIN Meeting, 10 excellent properties were presented. Thank you for presenting properties and attending the meeting! View the June 2022 LIN properties here.
Read More06.15.2022
Are CRE Price Drops Coming?
Like all of business, nothing is certain, but some pros are eyeing the conditions and readying themselves for an unwelcome surprise. Years ago, there was a novel called Been Down So Long It Looks Like Up…
Read More06.15.2022
Multifamily Dealmakers Aren’t Hitting Their Whisper Prices Anymore and Institutional Equity Is Moving In
Multifamily apparently is not immune to the forces of gravity after all. Forty-five days ago, a multifamily asset on the market would receive bids from 30 groups, unintentionally driving up the price for the property.…
Read More06.15.2022
CRE Investment Performance Has Been Sizzling
But it varied a lot in Q1 by type and the future is uncertain. If you’ve been invested in commercial real estate, you’ve had a superb trailing four quarters—on average. But that depends on what…
Read More06.15.2022
New Fed Numbers Show Zero GDP Growth at Best
This isn’t a guarantee of a recession, but one seems more likely to happen than not. For those in commercial real estate worried about the immediate economic future, today brought a double dose of bad…
Read More06.15.2022
Publicly-traded REITs Weather a Repricing Period
REIT balance sheets remain strong and management teams believe they are prepared to weather any economic setbacks. REIT share prices have fallen as the broader stock market prices in interest rate hikes and the potential…
Read More06.14.2022
Welcome to Negative Leverage in CRE
There are three reasons why investors are continuing to buy CRE with negative leverage. Negative leverage has reared its ugly head in CRE investing, as interest rates have risen, and cap rates have remained compressed.…
Read More06.14.2022
The Lumber Roller Coaster Takes Another Price Dive
Interest rates help displace demand, so prices fall. Look at six months of lumber futures and, if you depend on the material in your business, things look downright promising. At $555.9 per thousand board feet, it’s almost…
Read More06.13.2022
Buyer Demand Remains High for Corporate Sale-Leaseback Deals
Some industry experts estimate that industrial assets represent nearly half of all corporate sale-leaseback transactions in a market that's been rife with deal activity. The corporate sale-leaseback market is coming off a record-high first quarter…
Read More06.13.2022
8.6% Inflation Means Serious Planning for CRE
It’s another 40-year high and no signs yet that price hikes will cool off. The CPI calculation—consumer price index, or what’s commonly called inflation—was expected to run warm, but not like a Miami August afternoon…
Read More06.13.2022
Strong Demand for Health Services Drives Medical Office Development
There is more than 50 million sq. ft. of medical office development currently in the construction pipeline throughout the United States. America’s aging population continues to drive demand for medical services, and that, in turn,…
Read More06.10.2022
Consumer Prices Rose Rapidly in May
The latest Consumer Price Index showed a reacceleration in inflation, dashing hopes that price increases had peaked. Prices climbed 8.6 percent in the year through May, a reacceleration of inflation that makes it increasingly difficult…
Read More06.10.2022
Amazon’s Newly Built Warehouses to Stand Empty
The e-commerce giant delays openings of newest fulfillment centers for up to two years. Before the pandemic, the most reliable barometer of regional economic growth was an announcement that Amazon would be building a new…
Read More06.09.2022
CRE Lenders Are Dusting Off The MAC Clause Again
There are other worrisome signs that liquidity may be starting to tighten for CRE borrowers. The last time Mark Scott, president of Commercial Mortgage Capital, remembers a lender invoking the Material Adverse Change, or MAC,…
Read More06.09.2022
How Inflation Is Impacting the Office Recovery
Although office occupiers should have it easier with inflation, there is a catch. There is “no question” that office occupiers have been the least impacted by inflation, according to one industry economist—but that doesn’t mean…
Read More06.09.2022
Amazon’s Plan to Sublease Industrial Space May Just Be the Start
Amazon was the first to announce plans to sublet warehouse space, but other Fortune 500 retailers are expected to return space to the market as well. Over the last decade, first-mile warehouses have evolved from…
Read More06.03.2022
Borderplex, Juárez Industrial Growth Off the Charts
First in a two-part series. The inflation we see first-hand is a result of pent-up demand not being met by supply, due to factors such as increased consumer spending and disrupted supply chains. The industrial…
Read More06.03.2022
Federal Reserve Sees Multiple CRE Markets Softening
Even with some continued economic growth, high prices and interest rates begin to take a toll. According to a recent Federal Reserve report, there’s still growth in overall economic activity, but reports on real estate…
Read More06.02.2022
Negative Leverage in Multifamily Now Widespread
Rising interest rates have lenders increasingly getting better returns than multifamily investors. Another warning sign that harkens back to the epic collapse of the housing market in 2008 has emerged in the multifamily sector in…
Read More06.02.2022
Institutional and Private Investors Go After Net Lease Car Washes
Strong credit profiles and outsized growth potential has created a steady market for car wash sale-leasebacks. As consolidation activity ramps up in the highly fragmented car wash industry, several car wash operators have now reached…
Read More06.01.2022
June 2022 CCIM Deal Making Session Properties
Thank you to all of the brokers, sponsors, and guests who attended the June 2022 CCIM NM Deal Making Session and to those who shared their properties. Click here to view source PDF. Name Property, City…
Read More05.31.2022
Supply-Chain Relief Sparks Feud Over Degree of Softer US Economy
Some supply strains in the US are easing, two years after a jump in demand started emptying shelves, snarling shipping and sowing the seeds of soaring inflation. The line of 25 cargo ships headed to…
Read More05.31.2022
RECPAC Supports Candidates for the NM Primary Election on June 7th
The New Mexico Primary Election is slated for Tuesday, June 7th. This election will determine the nominees for political parties in advance of the New Mexico General Election on Tuesday, November 8th. The winner is the…
Read More05.30.2022
“Trifecta of Problems” for NM Construction Companies
Construction companies in New Mexico are facing issues, and looking for solutions, in a market still ensnared by the economic forces of the COVID-19 pandemic. “They have the trifecta of problems, because not only is…
Read More05.29.2022
How Can An Office Building Embrace The Concept Of Placemaking?
Placemaking is a word that has popped up often in the last few years in reference to community development, but it’s an idea that is still lost on many developers. The Project for Public Spaces defines placemaking as…
Read More05.26.2022
Positive Outlook for Commercial Real Estate Hits Seven-Year High
Results from the first-half 2022 WMRE/Marcus & Millichap Investor Sentiment Survey are overwhelmingly positive. The Investor Sentiment Index climbed five points from 165 in the H2 survey to reach 170 – the highest level since…
Read More05.25.2022
10 Economists Offer Their Advice for CRE Investors
How have rising interest rates, inflation and geopolitical uncertainty changed the outlook for U.S. commercial real estate investors? It’s an understatement to say that there’s a lot of uncertainty right now regarding not only the…
Read More05.25.2022
Why Patent Filings Matter To CRE
Popular technologies are bound to find their way into the software and hardware professionals use. Patent filings are not the typical object of fascination in commercial real estate. But a periodic look can give some…
Read More05.25.2022
Further Vacancy Compression Expected For Single-Tenant Retail
Tenants absorbed more than 68 million square feet over the twelve-month period ending in March. Single-tenant retail is continuing to perform well as consumer foot traffic and spending in brick-and-mortar stores has heated up, with…
Read More05.25.2022
Retail Cap Rates vs The Federal Reserve
Many investors are concerned that the raising of interest rates by the Fed will lead to an increase in cap rates, but that isn’t necessarily the case. The Fed raises interest rates and shows no…
Read More05.25.2022
Breaking Down the First Quarter Commercial Real Estate Investment Numbers
David Bodamer is joined by CBRE's Darin Mellott to discuss key highlights from the commercial real estate industry's busy first quarter. After a record breaking fourth quarter in 2021, the momentum continued into the first…
Read More05.25.2022
Hybrid Work Was Supposed to Create the Best of Two Worlds. It’s Turning Out to be a Challenge for Office Tenants.
“Hybrid is going to be a multi-year journey, and we just started the journey in 2022,” says JLL’s Peter Miscovich. The need to retain talent has prompted many companies across the U.S. to implement a hybrid…
Read More05.25.2022
Hybrid Work Was Supposed to Create the Best of Two Worlds. It’s Turning Out to be a Challenge for Office Tenants.
“Hybrid is going to be a multi-year journey, and we just started the journey in 2022,” says JLL’s Peter Miscovich. The need to retain talent has prompted many companies across the U.S. to implement a hybrid…
Read More05.24.2022
From Spaces to Places With Purpose
Tenant demand for workspaces that offer connection, collaboration and creativity will determine which office buildings rise above the competition With the flight to quality in full force, owners and investors must balance competing requirements to…
Read More05.24.2022
Self-Storage REITs: Biggest Will Get Bigger
Flush with cash and industry-highest occupancy rates, Public Storage is poised to continue its acquisition strategy. Record-high occupancy rates and returns that outperformed all other REIT sectors in 2021 have the six self-storage REITs engaged…
Read More05.24.2022
Interest Rate Cap Fees Are Crushing Transactions
Costs are up multiple times as deals go out the window. How many ways can a CRE borrower say out? How about a good factor of ten when it comes to interest caps on adjustable-rate…
Read More05.23.2022
Investment Activity in the Skilled Nursing Sector is Ramping Back Up
Occupancy rates are still recovering and costs remain a concern, but the long-term outlook for the sector remains positive. Investors are eager to buy skilled nursing facilities–and prices are still high, even though many properties…
Read More05.20.2022
A New Hub and Spoke Model Emerges As Office Occupiers Rethink Plans
The model is being used to test the waters and may not become permanent. A modern hub and spoke model is slowly emerging through flexible office providers as companies reconsider their optimal CRE footprint, according…
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