02.02.2023
The Potential Economic Consequences of a U.S. Default
As head of financial and economic research at Buckingham Wealth Partners, I’ve been getting lots of queries from investors concerned about the risk of the U.S. defaulting on its debt. In this article, I’ll explain…
Read More02.02.2023
How developers are keeping the construction pipeline flowing
Apartment developers are getting creative in order to keep the construction pipeline flowing amid construction and capital challenges. Four of the developers leading those efforts described their approach to continue building new housing in a…
Read More02.01.2023
New Wage Growth Will Influence Fed’s Interest Rate Decisions
As many are waiting to see what the Federal Open Market Committee of the Federal Reserve has decided about interest rates, their eyes should be on employment costs. Those are one way of discussing wage…
Read More02.01.2023
Space launch
The self-storage real estate sector has seen impressive growth recently, with over 250 million square feet of storage space built in just the past five years, according to Yardi’s StorageCafe. There are now over 50,000…
Read More01.30.2023
Impact of Driverless Vehicles on Real Estate: Ethical and Legal Issues
Many articles1, journals2, books3, and other sources have discussed the continued and expansive nature of vehicles that are driven by computers as opposed to human beings.4 We have written and presented many programs on driverless vehicles…
Read More01.30.2023
Impact of Driverless Vehicles on Real Estate: Ethical and Legal Issues
Some of our articles6, too, have directed the reader’s attention to the stages of technological development for DV. This article is not directed to such discoveries on DV. Rather, the DV field must be examined…
Read More01.26.2023
Office Demand Unlikely to ‘Ever to Revert in Full’
Holidays and extreme weather conditions prompted a typical seasonal office demand slowdown in December, according to the VTS Office Demand Index (VODI). However, the year-over-year decline for the month was slightly larger than in previous…
Read More01.26.2023
Multifamily Underwriting Assumptions Are Up Over Pre-Pandemic Times
Underwriting has gotten tougher in multifamily, according to a new analysis from CBRE — at least for prime assets. That probably isn’t a shock to many in the industry. Interest rates are up, as are…
Read More01.26.2023
Sourcing Investment Opportunities That Go Beyond the Headlines
Investors should look beyond headlines to find CRE opportunities over the five-year horizon, according to one industry watcher. “So much depends on each investors’ strategy, risk tolerance, knowledge, experience, capital, and geographic focus,” says Marcus…
Read More01.24.2023
New Mexico’s unemployment rate has dropped to the lowest level in nearly 15 years
The unemployment rate continues to drop in New Mexico and last month was no exception. According to data released Tuesday by the New Mexico Department of Workforce Solutions, the unemployment rate came in at 3.9%…
Read More01.24.2023
The US Is Nationally Rent Burdened for the First Time
The US is now rent-burdened nationally for the first time, according to new research from Moody’s, as wage growth increasingly trails rent growth. The national average rent-to-income (RTI) reached 30% for the first time in…
Read More01.24.2023
New Mexico’s unemployment rate has dropped to the lowest level in nearly 15 years
The unemployment rate continues to drop in New Mexico and last month was no exception. According to data released Tuesday by the New Mexico Department of Workforce Solutions, the unemployment rate came in at 3.9%…
Read More01.23.2023
Tight Industrial Supply Turns Subleases Profitable
Some dynamics of logistical and industrial space leasing are feeling pressures of inadequate supply, according to a panel of NAI Global industrial and logistics real estate experts meeting virtually. Although demand pacing ahead of supply…
Read More01.23.2023
Expiring Interest Rate Caps to Fuel Distressed Property Sales
An exponential increase in the cost of interest-rate caps—insurance that CRE borrowers with floating rates purchase to hedge against rate increases—may soon spawn a wave of property sales in an increasingly distressed market. In 2019,…
Read More01.23.2023
Mega-Deals Reinforce Foreign Appetite for U.S. Real Estate
GFH Financial Group, a Middle East-based investment group, kicked off 2023 with an announcement that it had bought a majority stake in Big Sky Asset Management, a $2 billion U.S.-based real estate asset manager focused on…
Read More01.19.2023
3 REASONS COMPANIES ARE ADDING FLEXIBLE OFFICE SOLUTIONS TO THEIR CORPORATE REAL ESTATE PORTFOLIOS
With hybrid work quickly becoming the norm, flexible office space has only risen in popularity coming out of the pandemic. The number of people working in coworking spaces, for example, hasn’t just continued to grow steadily—it’s…
Read More01.19.2023
Where Demand for Industrial Space is Coming From Now
Logistics and parcel delivery remains No. 1 in million square feet requirements for industrial space but other industries have been making traction, according to a new report from JLL. The report showed that the automotive…
Read More01.19.2023
January 2023 LIN Properties
At the January 2023 LIN Meeting, 8 excellent properties were presented. Thank you for presenting properties and attending the meeting! View the properties here. View the Thank Yous here.
Read More01.19.2023
January 2023 CCIM Deal Making Session Properties
Thank you to all of the brokers, sponsors, and guests who attended the January 2023 CCIM NM Deal Making Session and to those who shared their properties. Click here to view source PDF. Click here…
Read More01.18.2023
Apartment Landlords Could Start Fighting Over Renters This Year
Multifamily rents are falling as fewer households move and recession fears mount — and one industry expert predicts the balance of power between landlords and tenants will continue to change in turn. Apartment List’s national…
Read More01.13.2023
Underwriting Assumptions Exceed Pre-Pandemic Levels for Prime Multifamily Assets
The average multifamily going-in cap rate increased by 38 basis points (bps) to 4.49% in Q4 2022, exceeding the pre-pandemic Q4 2019 average of 4.16%. Heightened market volatility and higher borrowing costs have pushed the…
Read More01.11.2023
The Present Danger of a US Debt Default
The current political machinations in the US House of Representatives, and what Kevin McCarthy promised to win the speakership, is likely to turn into one of the fiscally riskier situations the country has faced in…
Read More01.11.2023
What’s Happening With the Yield Curve Is Anything But Straightforward
Watching experts trying to follow financial markets and explain what their movements mean sometimes seems like people slipping on an icy sidewalk in winter, waving their arms about as they try to maintain their balance.…
Read More01.11.2023
Why Retailers Will Continue To Open Stores This Year, Despite Economic Fragility
Last year was one of the best years for retail real estate. Vacancy rates in Q3 were 4.3%, according to JLL, down from the 6.3% in Q2 reported by The Wall Street Journal as the lowest rate…
Read More01.09.2023
New Apartment Demand ‘All But Evaporated’
Demand for new apartment leases has “all but evaporated” as consumer confidence remains low and inflation continues to rise, according to the latest data from RealPage. In other words, say farewell to the days of…
Read More01.06.2023
Industrial Supply Outpaced Demand Again In Q4
Industrial supply outpaced demand for the second straight quarter in Q4 2022, with overall absorption net absorption down 9.4% quarter over quarter and 15% over 2021′s year to date total, according to new research from…
Read More01.06.2023
A New Metric Puts More Pressure on the Office Market
According to CBRE, when it comes to office the king of the metrics for the second year running is utilization: cost per seat, design density and vacancy tied for second place. This comes from CBRE’s analysis, 2022-2023…
Read More01.05.2023
Industrial Sublease Space Ticks Up As Demand Moderates
Sublease space is on the rise for the industrial sector, including some inventory that’s been listed in facilities still under construction. In addition, an elevated number of spaces greater than 200,000 square feet have been…
Read More01.05.2023
Downward Rent Growth Revisions Favor Tenants
Yardi Matrix has revised downward its apartment rent forecast for 2023 to 3.1% from 3.5% and expects to see all that growth in the first two to three quarters of the year, according to Andrew…
Read More01.05.2023
What to Expect From the CRE Finance Markets This Year
Distressed office loans will likely “pile up” into 2023, according to experts from Trepp, who predict there will be billions in unresolved office loans by year-end. “Maturity dates will come and go; loans will reside…
Read More01.05.2023
Downward Rent Growth Revisions Favor Tenants
Yardi Matrix has revised downward its apartment rent forecast for 2023 to 3.1% from 3.5% and expects to see all that growth in the first two to three quarters of the year, according to Andrew…
Read More01.05.2023
Expect Fed Rates to Exceed 5% in 2023
A few days into 2023 and it’s time for some bad economic expectations beyond what most have projected. Bankrate’s 2022 Q4 survey of economists has come in with a consensus expectation that the Federal Reserve’s…
Read More01.04.2023
Eight CRE Experts on Their Outlook for the New Year
Inflation and interest rates—unsurprisingly, these economic indicators are top of mind for nearly everyone as 2023 gets underway, and the commercial real estate industry is no exception. Those looking to invest in or finance income-producing…
Read More01.01.2023
2023: A Year of Opportunity for U.S. Manufacturing
Despite the global economic turmoil of the past two years, we are amidst a once-in-a-generation shift of global manufacturing footprints, and 2023 should continue to be a year of opportunity for manufacturers in the United…
Read More12.30.2022
This Year Marked a Turning Point for Multifamily Fundamentals
There’s good news in 2023 for multifamily says a CBRE report. Overall demand should hold steady. But a moderating force of new units is coming online, so don’t expect the results of the previous two…
Read More12.29.2022
Most Fund Investors Think CRE Assets Are Overvalued
Nearly three-fourths of investors believe commercial real estate assets are overvalued, which could mean storm clouds are on the horizon for the sector next year as a recession looms. Preqin’s 2022 November investor survey reveals…
Read More12.21.2022
Top Ten CRE Predictions for 2023
2022 has been a tumultuous year for the CRE industry and more volatility is expected in 2023. Below are my Top Ten CRE Predictions for 2023. Short-term interest rates will increase by at least 1.0%…
Read More12.20.2022
Construction Starts Tumble in November
Silver linings are hard to find lately in total construction starts data. According to the Dodge Construction Network, starts overall fell by 18% in November with each nonresidential building starts down 25%, nonbuilding shed 21%,…
Read More12.19.2022
Will Investment Sales Recover in 2023?
CBRE forecasts a 15% year-over-year drop in U.S. commercial real estate investment volume in 2023, although it will exceed the pre-pandemic record annual total in 2019. Investment activity likely will bottom out in the first…
Read More12.16.2022
The ‘Bad’ Retail Sales Report Is More Complicated Than It Sounds
At first glance, the advance monthly sales for retail and food services numbers released by the Census Bureau (part of the Commerce Department) were disappointing, down 0.6%, plus or minus 0.5%, from October to November. But if…
Read More12.16.2022
As Office Values Plunge, Owners Appeal Tax Assessments
Municipalities and school systems that depend on property taxes to fund their budgets may face shortfalls due to the plunge in office values—especially in cities that do annual property assessments—as more and more building owners…
Read More12.14.2022
The Contradictions of 2022 and Emerging Trends for 2023
2022 will be recalled as one of the most interesting and contradictory years in history. The stock market dropped precipitously, and inflation peaked at its highest in decades. Yet, through it all, advisors thrived in…
Read More12.14.2022
Inflation Moderates More, But How Will the Fed React?
There was some moderate good news on the inflation front, with seasonally adjusted overall inflation up 0.1% month over month in November. Significantly better than October’s 0.4%. Without seasonal adjustment, the year-over-year view was 7.1%. Slowing…
Read More12.13.2022
How Attractive Are Office-to-Apartment Conversions Right Now?
Conversions of obsolete office buildings to multifamily use have been going on for some time, but investor interest in these projects is accelerating due to anemic demand for office space in many major U.S. cities. However, the…
Read More12.13.2022
Office Absorption Likely to Significantly Slow In 2023
Recent research from NAIOP reveals that office sector absorption is likely to slow dramatically in 2023, with predictions for the entire year coming in just slightly higher than fourth-quarter 2022 estimates alone. Net office space…
Read More12.13.2022
Rent Control Largely Failed This Year But Expect It to Re-Emerge in 2023
With the mid-term elections behind us, it’s a good time to recap the status of rent control across the country. The National Multifamily Housing Council (NMHC) is tracking 23 states that have such proposals or…
Read More12.12.2022
As Women in CRE Switch Jobs, The Industry’s Progress in DEI Efforts Faces a Setback
Women across the nation are switching jobs at the highest rate ever witnessed. Women in leadership positions are particularly mobile—and at a higher rate than men in leadership. To put the scale of the problem…
Read More12.12.2022
What Online Shopping Could Mean For Smaller Retailers
Online shopping on Black Friday hit new records this year despite an overwhelmingly gloomy economic outlook, with shoppers spending more than $9 billion the day after Thanksgiving and $11 billion on Cyber Monday. And what’s…
Read More12.12.2022
Prologis Predicts Significant Drop in Warehouse Development
Prologis is predicting that U.S. warehouse development starts will drop to a 7-year low, as rent growth exceeds 10%. Starts are already 30% below their peak in Europe and Prologis expects that to continue in the US.…
Read More12.09.2022
Last Year’s Stellar Industrial Numbers Won’t Happen Again But That’s Okay
Last year the industrial asset class knocked it out of the park in terms of performance. Industry watchers hoping for a repeat will be disappointed, James Breeze, CBRE’s senior director and global head of Industrial…
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