07.18.2022
Retail Sales Improved Last Week. Or Did They?
Meanwhile, consumer confidence remains low, supply chains face fresh problems, and some experts are wary. When consumers spend, it makes most everyone in business and economics happy. That money drives almost 70% of GDP. There’s…
Read More07.18.2022
Seniors Housing Investors Brace for Rising Cap Rates
Exclusive research shows that investors expect rising interest rates and other pressures to push cap rates up over the next 12 months. Rising interest rates and pressure on NOI are contributing to expectations for higher…
Read More07.16.2022
Business Incubator to Open in Valencia County
Entrepreneurs in Valencia County will soon have another resource to help launch their businesses as the Valencia County Business Incubator prepared for its soft launch this weekend. Co-founder and interim director Ben Romero said the…
Read More07.15.2022
‘Proving Them Wrong’: South Valley Groups Spur Economic Growth
It’s a weekday in mid-July and small businesses are using the kitchen and freezers at the South Valley Economic Development Center, readying their business for sales later in the week. Workers at the Agri-Cultura Network,…
Read More07.14.2022
How Multifamily Borrowers are Adjusting to Rising Interest Rates
Some buyers are trying to renegotiate prices, but a net result of recent moves could be a tightening in the spread between multifamily cap rates and yields on 10-year Treasuries. With the recent rate hikes…
Read More07.13.2022
Compressed Cap Rates and Higher Risk Pushes Multifamily Investors to Forgo Older Assets
With a shrinking delta in cap rates between assets of different vintage, many investors opt to go with lower risk newer properties and fewer capital expenditures. Over the past few years, the delta between cap…
Read More07.13.2022
Flight To Quality Continues for Office Sector
There is a widening divergence in absorption and rent growth. Office sector leasing was flat in the second quarter, but the so-called flight to quality continued to gain speed, leading to what JLL has called…
Read More07.13.2022
What CRE Investors Should Consider When Contemplating a Recession
In general, real estate has delivered positive returns through most recessions. Investors “shouldn’t be afraid of an impending recession” and should instead consider what the economic picture will look like over hold times of three,…
Read More07.12.2022
Why the Pandemic Downturn Has Been Amid the “Most Benign” for the Office Sector
For two years, headlines have screamed about a bloodbath in the office sector. Research from Moody’s Analytics shows those headlines have little in common with reality. When COVID-19 kept a big part of the U.S.…
Read More07.12.2022
CRE Property Prices Down 4.9% From Recent Highs
Stock and bond repricings catch up to alternative assets. It’s hard to remember that basic truth of Newtonian physics that what goes up, unless snagged by a high-flying eagle, eventually returns under force of gravity.…
Read More07.12.2022
What Gene Therapy’s Record Year Could Mean For CRE
A seismic transformation in biomanufacturing real estate is having a direct impact on the availability of space. The cell and gene therapy (CGT) industry is on track to hit a record number of regulatory approvals…
Read More07.11.2022
Investors Should Think Risk Factors, Not Asset Classes
The path forward for markets will depend on the success of the Fed, the strength of the labor market and the persistence of inflation. Rather than using the traditional asset-class analysis, I have found employing…
Read More07.11.2022
Multifamily Rent Increases Come at a Price to Landlords
Tenants expect more while turnover costs remain high. Multifamily, with industrial, has been one of the shining parts of commercial real estate since the pandemic turned normal upside down and shook it. The ability to…
Read More07.08.2022
There ‘Simply Isn’t Space to Lease’ in Industrial Anymore
Rent growth climbed 19% YoY, according to Cushman & Wakefield; space now fetching $8.36 per square foot. Industrial leasing activity fell below 200 million square feet in Q2, according to Cushman & Wakefield’s report, but…
Read More07.07.2022
Another Wave of Shipping and Supply Chain Challenges is On the Way
Labor, trucking, unions are among the issues, not to mention back-ups at ports. After a period of relative sanity, another wave of shipping congestion is expected to happen soon. By now weary retailers are familiar…
Read More07.06.2022
The Apartment Markets at Greatest Risk for Oversupply
While the industry plays catch-up on housing construction, Apartments.com points to several markets perhaps going in the wrong direction. Multifamily construction in the US is at its highest level in 40 years. Currently, there are…
Read More07.06.2022
Texas v. New Mexico Water Trial Delayed For Settlement Talks
A trial in the case Texas brought against New Mexico centered around Rio Grande water use has once again been delayed. This delay comes amid negotiations that could lead to a settlement. In the case,…
Read More07.06.2022
New Study Shows How Drought Led To Deadly Temperatures In The Southwest In 2021
With the changing climate, incidents like droughts and heatwaves can be interlinked. This was the case in 2021 when the drought conditions in the southwest United States triggered record-breaking heat, according to a study published…
Read More07.06.2022
How Office Landlords Are Trying to Raise Their Physical Occupancy Levels
With human interaction cited among the main reasons for workers to go into the office, landlords are focusing on common spaces and gyms. COVID-19 may be less of a threat today than it was a…
Read More07.05.2022
Retail, Office Cap Rates Rise in Q2
Consequently, transaction volume in the second quarter of 2022 was down approximately 15%. Inflation has finally pushed cap rates in the single tenant net lease sector to increase, with cap rates ticking up by five…
Read More07.05.2022
The Atlanta Fed Can’t Keep Up With the Bad Economic News
One day it’s -1% GDP growth. The next morning it’s -2.1%. It’s not official. Only the National Board of Economic Research says when the US economy had dropped into a recession. And the final numbers…
Read More07.05.2022
Three Amenities Owners are Adding to Office Buildings
Invest in these areas to create buildings people want to work in and transform office space that meets tenant expectations Landlords are joining the amenities arms race and competing for tenants by redefining how space…
Read More07.04.2022
Real Estate Needs To Be In The Community-Building Business If It Wants People Back At The Office
Sartre might have thought hell is other people, but when it comes to getting workers back to the office, existentialism is out and community is in. Landlords and employers have tried it all to lure reluctant Americans…
Read More07.01.2022
The Unintended Consequences of Excessive Transfer Taxes
Find out about the negative economic consequences of real estate transfer taxes for both residential and nonresidential real estate from a June 2022 study by Sage Policy Group partially funded by NAR. It provides a…
Read More07.01.2022
New Mexico’s Paid Sick Leave Law Goes Into Effect
A group of legislators, advocates and individuals celebrated the start of New Mexico’s Paid Sick Leave law, which officially starts Friday. The Paid Sick Leave bill passed after a bitter fight between Democrats in the…
Read More06.30.2022
Can the U.S. Supply Chain Withstand New Disruptions?
The country’s ports are experiencing a reduction in backlogs. But global instability is leading companies to hoard warehouse space. After more than two years of pandemic-related disruptions the U.S. supply chain is facing new challenges,…
Read More06.29.2022
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 More06.29.2022
Lumber Prices Head Up Again but Without the Jet Propulsion
The increase may be seasonal, with prices remaining steadier than they have in the recent past. If you were buying lumber, June 13 was a good day with spot prices and futures down to $528…
Read More06.29.2022
Multifamily Rent Growth Continues to Outpace Inflation
JLL adds that inflation is also showing signs of slowing. Real estate has long enjoyed the reputation as an inflation hedge. According to data and analysis from JLL, even with the spikes in CPI the…
Read More06.28.2022
Rising Interest Rates, Inflation Lead Investors to Reassess Which CRE Assets to Pursue
Multifamily and industrial continue to be in demand among commercial real estate investors, in spite of the new challenges. But the investment environment is changing and with it the calculus for which assets to invest…
Read More06.28.2022
Multi-Housing Rent Growth Continues to Climb
JLL Capital Markets experts say the average effective rent growth exceeds inflationary growth, which is a good sign for investors The momentum surrounding multi-housing rent growth has continued in 2022 and is currently outpacing inflationary…
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
How Developers Can Overcome NIMBYism
Marilee Utter of the Counselors of Real Estate shares her “long short-cut” for developers to overcome the community opposition that can stall projects. Over last two years, cities across the country have experienced marked growth,…
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. View the June 2022 LIN Thank Yous 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 More
