03.16.2023
March 2023 CCIM Deal Making Session Properties
Thank you to all of the brokers, sponsors, and guests who attended the March 2023 CCIM NM Deal Making Session and to those who shared their properties. Click here to view source PDF. Click here to…
Read More03.16.2023
Growth in Electric Vehicle Production Expands Opportunities for Industrial Developers
This past week, German car manufacturer Volkswagen AG announced that it planned to invest approximately $193 billion over the next five years on shoring up its business in China and the U.S., with $131 billion…
Read More03.14.2023
Arcosa chooses New Mexico for new wind-tower production facility
Belen will get a big economic boost with the expansion of a wind-tower manufacturer into the area, one that will add roughly 250 jobs. Texas-based Arcosa Inc. announced Tuesday its subsidiary, Arcosa Wind Towers, will…
Read More03.14.2023
Economic Watch: Annual Inflation Falls to 6% in February; 25-bp Rate Hike Likely Next Week
Executive Summary The Consumer Price Index (CPI) rose by 6.0% year-over-year and 0.4% month-over-month in February, in line with consensus expectations. Lower energy prices helped reduce the annual rate from 6.4% in January. Core inflation,…
Read More03.14.2023
The Rise and Fall of Office to Multifamily Conversions: A Real Estate Investigation
Initially, the COVID-19 pandemic dealt a heavy blow to office and multifamily demand. As cities across the U.S. closed indoor spaces, office workers resorted to working from home, and many of those workers moved to…
Read More03.13.2023
Banking’s Next Threat? It Might Be Commercial Real Estate
If market participants are wringing their hands over the potential fallout from the collapse of Silicon Valley Bank, just wait until they look at the banking industry’s exposure to the rapidly weakening commercial real estate…
Read More03.10.2023
NAR Commercial Real Estate Metro Market Report | 2022.Q3 Albuquerque, NM
The Albuquerque, NM commercial real estate market is stronger compared to the overall U.S. market. NAR Commercial Real Estate Market Conditions Index* 52.0 Overall economic conditions are stronger than nationally. The apartment property market is…
Read More03.09.2023
Fed’s Beige Book: CRE Activity Remains Steady
The Federal Reserve released its February 2023 Beige Book on Wednesday. The good news is … things haven’t gotten horrible. Which may not seem a big comfort, but the way things have been seemed to head —…
Read More03.08.2023
Multifamily Keeps Benefiting From Hurting Housing Supply
In the 2022 US housing report from the National Association of Realtors and Move.com, which operates Realtor.com for the NAR, the big news is more of the same. The market is now, by their count,…
Read More03.08.2023
Wave of Rural Nursing Home Closures Keeps Growing
An increasing number of rural nursing homes in states including Iowa, Wisconsin and Montana are closing their doors because they have chronically low occupancy levels and can’t compete for scarce workers as wages rise. The…
Read More03.08.2023
Exclusive Research: Continued Confidence in Industrial Real Estate, Despite Headwinds
Despite strong fundamentals that are continuing to position industrial as one of the most favored property sectors, rising capital costs and slowing economic growth are creating a cooling effect on what has been a white-hot…
Read More03.08.2023
Exclusive Research: Continued Confidence in Industrial Real Estate, Despite Headwinds
Despite strong fundamentals that are continuing to position industrial as one of the most favored property sectors, rising capital costs and slowing economic growth are creating a cooling effect on what has been a white-hot…
Read More03.07.2023
Distressed and Opportunistic CRE Funds: Explained
With the near-term outlook for commercial real estate performance becoming clouded because of rising interest rates and lingering fears of a recession, more investment managers are talking about putting together funds targeting opportunistic real estate investments.…
Read More03.07.2023
U.S. Industrial Market Benefits from Rise in Onshore Manufacturing
A rise in onshore manufacturing operations by U.S. companies is creating more demand for factory space nationwide. The 3.8 billion-sq.-ft. manufacturing facility market recorded a record low 3.4% availability rate at year-end 2022 after annual…
Read More03.07.2023
It’s Raining Multifamily
“It’s Raining Men,” so the 1980s song by the Weather Girls went. More than 40 years later, what’s raining is multifamily units. In a research brief, CBRE forecasts that 716,000 multifamily housing units will hit…
Read More03.07.2023
Storage is the Top Amenity for Built-to-Rent Homes
Fabulous amenities are all well and good when developing built-to-rent single-family home communities, but really, it’s the space that’s selling especially storage. Those were among the comments from a panel of developers and architects last…
Read More03.06.2023
Amazon, Laying Off 18K, Pauses Second Half of HQ2 Project
On the same day that the lead developer of Amazon’s HQ2 project, JBG Smith, praised the tech giant for its “reaffirmed commitment” to the full project, Amazon announced on Friday it is pausing construction on…
Read More03.06.2023
Rescue Capital: Staying Afloat Amid Uncertainty in the Real Estate Market
As we move into 2023, market uncertainty and economic jitters are fueling a wave of distressed real estate transactions. While familiar debt-workout scenarios such as bankruptcies and foreclosures will be in play, the next few…
Read More03.06.2023
Rescue Capital: Staying Afloat Amid Uncertainty in the Real Estate Market
As we move into 2023, market uncertainty and economic jitters are fueling a wave of distressed real estate transactions. While familiar debt-workout scenarios such as bankruptcies and foreclosures will be in play, the next few…
Read More03.03.2023
There are Four Different NOIs in a CRE Deal. Which One is Best?
The most important metric in valuing a CRE property is the net operating income (NOI). It is used as the basis for CRE valuation whether it is an acquisition, sale, or appraisal. A property’s NOI…
Read More03.02.2023
Cost of Capital Has CRE Projects Mostly Stalled
The rising cost of capital has stalled most commercial real estate development in 2023. Unless projects were already underway or financing had been secured, there will be few projects started, according to John Chang, senior…
Read More03.01.2023
February 2023 Commercial Market Insights
Download (PDF: 2 MB) Commercial real estate started the new year on a slow note with lower demand, smaller rent price gains, and higher vacancy rates. Office and multifamily are the two sectors that face additional…
Read More03.01.2023
Charging ahead
The real estate industry may be undergoing some of its most significant infrastructure improvements as the electric vehicle (EV) takes hold and the U.S. government pursues the goal of ending the production of internal combustion…
Read More03.01.2023
2023 Could be Year Apartment Owners Compete for Renters
February marked a return to positive rent growth – albeit by just 0.3 percent nationally – after five straight month-over-month declines, according to the March 2023 Rent Report from Apartment List. Despite that minor milestone,…
Read More03.01.2023
Beyond Population Shifts: Why Multifamily’s Outlook Is Good
After historical performance, it’s tough to top yourself. Multifamily has faced that challenge, according to Marcus & Millichap’s 2023 Multifamily National Investment Forecast. How do you beat the performance that multifamily established during the height…
Read More03.01.2023
Industrial Lease Spreads Are on the Rise
With the ups and downs of various product types — those of you on the outs know who you are — there’s been some strong activity on the part of industrial, according to an analysis…
Read More03.01.2023
Eight Perspectives on Current Real Estate Investment Trends
Rising interest rates and an uncertain macroeconomic climate have disrupted real estate investment sales volumes. Gaps remain between buyers, who want to acquire at 2023 prices, and sellers, who are still asking at 2022 valuations.…
Read More03.01.2023
Two Office Landlords Defaulting May Be Just the Beginning
(Bloomberg) -- A Pacific Investment Management Co. office landlord that defaulted on $1.7 billion of mortgage notes sent shockwaves through a troubled part of the real estate market. For years, property owners have been grappling with the rise of remote…
Read More02.28.2023
Six Reasons 2023 Is the Year of the 1031 Exchange
2023 is poised to be a big year for real estate owners who are looking to take advantage of the 1031 exchange, also known as the "like-kind exchange." A 1031 exchange is a tax strategy…
Read More02.28.2023
Experts Keep Guessing at When the US Will See a Recession
Experts are at odds over when a recession might occur. On the whole, they’re expecting one. But timing is the question. Well, one of many, to be accurate. ‘The National Association for Business Economics (NABE)…
Read More02.27.2023
This is Why Multifamily Developers Have Soured on the Sunbelt
For years multifamily developers and owners have flocked to the Sunbelt cities to invest, drawn by the region’s fast-growing markets, great fundamentals and light regulatory touch. All that development, however, has taken a toll and…
Read More02.27.2023
CRE Prices Could Fall 40% This Year in an Adverse Fed Planning Scenario
After the Federal Reserve developed its 2023 stress test scenarios — the baseline and severely adverse sets of assumptions used in testing the resilience of large banks — Trepp projected potential commercial real estate property prices and portfolio losses…
Read More02.27.2023
CBRE Survey: There Will Be a Significant Reduction in Buying and Lending This Year
Buying and lending expectations are in flux in most commercial real estate sectors as investors and lenders plan to significantly reduce their activity in 2023 due to rising interest rates, economic uncertainty, and associated impacts…
Read More02.24.2023
CRE Prices Slide at a Rate Not Seen Since 2010
January was a bad month for commercial property prices, which fell “at an annual pace of decline not seen since late 2010 after the Global Financial Crisis,” according to an MSCI report. “The RCA CPPI…
Read More02.22.2023
Active Versus Passive Real Estate Appreciation in Real Estate Litigation
Introduction In the context of partnership disputes or marital dissolution, there may be situations where an appraiser is asked to consider whether real estate appreciation over a period of time is the result of active…
Read More02.22.2023
Tax Considerations Relating to Debt for Distressed CRE Owners
Negative cash flows, high vacancy rates, environmental and geographic concerns and other macroeconomic factors are all risks, and, therefore, reasons why real estate owners may experience operating distress. Furthermore, real estate owners commonly finance the…
Read More02.22.2023
Active Versus Passive Real Estate Appreciation in Real Estate Litigation
Introduction In the context of partnership disputes or marital dissolution, there may be situations where an appraiser is asked to consider whether real estate appreciation over a period of time is the result of active…
Read More02.22.2023
Tax Considerations Relating to Debt for Distressed CRE Owners
Negative cash flows, high vacancy rates, environmental and geographic concerns and other macroeconomic factors are all risks, and, therefore, reasons why real estate owners may experience operating distress. Furthermore, real estate owners commonly finance the…
Read More02.21.2023
2023’s Property Taxes by State
Depending on where you live, property taxes can be a small inconvenience or a major burden. The average American household spends $2,690 on property taxes for their homes each year, according to the U.S. Census…
Read More02.21.2023
The average American tenant is rent-burdened. Here’s what that means for the economy.
The average American renter is now paying more than 30 percent of their income on housing, as wages have failed to keep up with rent hikes and affordable units remain scarce, a new report shows.…
Read More02.14.2023
Private Assets Like CRE Can Create a ‘New’ 60-40 Model for Portfolios
For decades, many financial advisors have followed a formula for traditional client portfolio allocation which could broadly be described as 60 percent in equities and 40 percent in bonds, otherwise known as the 60-40 model.…
Read More02.10.2023
Volatility in 2022, Uncertainty in 2023
Executive Summary Economic and geopolitical uncertainty resulted in significant volatility for a wide variety of data points in 2022. Recession probabilities for 2023 remain high not just for the US but for many countries around…
Read More02.10.2023
Volatility in 2022, Uncertainty in 2023
Executive Summary Economic and geopolitical uncertainty resulted in significant volatility for a wide variety of data points in 2022. Recession probabilities for 2023 remain high not just for the US but for many countries around…
Read More02.09.2023
Fed Reports Tighter Standards and Weaker Demand for CRE Loans
The January 2023 Senior Loan Officer Opinion Survey on Bank Lending Practices from the Federal Reserve has the type of headline results for commercial real estate lending that you might expect: tighter standards and weaker…
Read More02.08.2023
Outpatient Health Care Services Driving CRE Income
Nationally it appears that there is insufficient square footage available to accommodate the significant growth seen in the healthcare real estate sector, with the rate of absorption outpacing new product deliveries, according to Northmarq. “This…
Read More02.08.2023
Retail Tenant Watch List ‘Far Less Crowded’ Than Pre-COVID
AMC, Bed Bath & Beyond, Belk, Cineworld, Party City and Rite Aid top Green Street’s list of the most at-risk publicly traded, mall-based anchor tenants, landing in the “critical” category, according to a new report…
Read More02.07.2023
Here is Where You Will Find Distress in Multifamily
Rents may be falling but fundamentally multifamily fundamentals are very strong. Widespread distress is highly unlikely to happen; indeed forecasts for the asset class’ long-term growth are quite rosy. But for investors eager to get…
Read More02.06.2023
Raises for Retail Workers Won’t Protect Them From Automation
Walmart Inc. inched closer to a $15 minimum wage last month, drawing tepid praise from even some of its strongest critics. The largest US employer joined Macy’s Inc., CVS Health Corp. and Target Corp., all of which have raised starting…
Read More02.06.2023
The Cliched Perfect Storm May Be Headed to the Office Market
A new analysis by Trepp and CompStak raises the question of whether the office segment of CRE is facing a now-cliched perfect storm metaphor. The three dangers that could unite are office loan maturities, large lease expirations,…
Read More02.05.2023
Seeing an Opportunity, CRE Debt Funds Raise Massive War Chests
Debt funds are enjoying a “lender’s market” in a landscape where many large banks have retreated, which is creating more opportunities to do deals with higher-quality borrowers and lower risk, while still capturing enhanced returns.…
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