04.02.2024
Downtown Vitality Index: The cities are best-positioned for success in the hybrid era
While the hybrid world has dealt a harsh blow to many downtowns across the nation, the lingering impact has been far from uniform. That’s according to the latest Downtown Vitality Index from The Business Journals, which analyzed…
Read More04.01.2024
How Large Will Losses Be in Commercial Real Estate?
There will be losses stemming from commercial real estate, or CRE, portfolios for US banks, but they will be manageable for our coverage. We think New York Community Bancorp NYCB was uniquely risky and would have been…
Read More04.01.2024
Industrial Sale Prices Up 9.6% Over Previous Quarter
Average sale prices for industrial assets saw a considerable increase — up by 9.6% from the previous quarter and by 2% year-over-year, which is notable, considering the challenges posed by rising interest rates, tighter capital…
Read More03.29.2024
Retail, Multifamily Still Landlords’ Markets in This Analysis
Moody’s CMBS view of CRE markets, with its red-yellow-green traffic light symbolism is once again lighting up U.S. property markets as of the end of 2023. They use data from CBRE Econometric Advisors, sometimes additional…
Read More03.26.2024
REALTOR® Party News Alert: Chicago Voters Reject Transfer Tax After Advocacy Blitz
The ballots have been counted, and thanks to an uphill fight led by the Illinois REALTORS® and supported by NAR, voters soundly defeated a detrimental real estate transfer tax proposal in Chicago. The tax hike,…
Read More03.26.2024
Commercial Real Estate Investment Looking Very Positive
New retail and leisure research has revealed a boom in commercial real estate activity over 2023. The latest report by the Local Data Company and Green Street, covering key developments across the entire GB retail…
Read More03.26.2024
March 2024 Commercial Real Estate Market Insights
During the second month of the year, the Commercial Real Estate (CRE) market presented a mixed picture, with certain sectors showing resilience while others continued to face uncertainties and losses. The office sector has unquestionably…
Read More03.26.2024
Apartment Rental Fraud Becoming Increasingly Sophisticated
Organized rings of fraudsters and other bad actors are using a range of sophisticated deceptive practices to obtain apartment leasing, according to a new survey of more than 400 property management professionals by RealPage. More…
Read More03.25.2024
From Vacant to Vibrant
The city of Mt. Pleasant, Mich., home to Central Michigan University, sought to develop a vacant and contaminated parcel of land adjacent to its city hall. After other developers walked away from proposed projects, Michigan…
Read More03.25.2024
Making Moves in a Complex Age
Each year, members of The Counselors of Real Estate vote on the 10 big-picture themes likely to have the greatest influence on real estate in the coming year. Although the Counselors’ 2023–24 list was released…
Read More03.25.2024
Troubled Commercial Real Estate—The End Of “Extend And Pretend?
Sharp reductions in value for office buildings have many waiting for a major collapse in commercial real estate (CRE), which in turn would damage city and state budgets and possibly threaten major bank failures. Thus…
Read More03.24.2024
Navigating the Choppy Waters of Commercial Real Estate’s New Dynamics
Commercial real estate is facing a do-or-die moment. The realm of commercial real estate is wading through a quagmire in several significant markets throughout the nation, with grave declines in market value shadowing the low…
Read More03.21.2024
Industrial Market Will Resume Expansion in 2025, Experts Say
NAIOP pinpoints 2025 as when the industrial market will start to expand. It estimates that quarterly net absorption of industrial space will average 14 million square feet per quarter over the next two years, or…
Read More03.21.2024
Yesterday Was A Good Day for Industrial Real Estate
Dual announcements yesterday gave industrial real estate’s long-term prospects a significant boost, specifically those facilities that cater to EV and semiconductor manufacturing. In one development, the Environmental Protection Agency issued new tailpipe pollution limits that…
Read More03.18.2024
Higher Interest Rates, Lower Demand Equals Less Industrial Construction
During the pandemic, industrial properties were probably the hottest ticket around. The need to distribute and sell products at physical arms-length, the sharp explosion e-commerce, the shutdowns of businesses — logistics, warehousing, and the development…
Read More03.18.2024
Office Sector Questions Are Beginning to Find Answers
For the office sector, 2023 left lingering questions amid record underperformance in vacancy and net absorption. While there still may be a long way to go, Colliers’ Office Market Outlook report offered some hope, including nearly a third of…
Read More03.18.2024
Commercial Real Estate’s Systemic Threat: Separating Fact From Fiction
They say perception precedes reality. In the case of commercial real estate finance, then, the divergent opinions surrounding the health of capital markets has produced gossip, innuendo, rumors and fear. “Doom loop,” “meltdown,” “downward spiral,”…
Read More03.18.2024
Commercial Real Estate Trends & Challenges in 2024
The real estate sector has experienced notable growth from shiftingconsumer demand and the COVID-19 pandemic. Grand View Research forecasts a 5.2%annual growth through 2030. However, real estate businesses must prepare for challengessuch as insurance market…
Read More03.18.2024
Law firm office-leasing activity hit a milestone in 2023. It could fuel a domino effect.
The legal industry leased more office space last year than it has since the Covid-19 pandemic. In 2023, U.S. law firms leased a collective 16.9 million square feet, according to Cushman & Wakefield plc (NYSE: CWK).…
Read More03.15.2024
National Association of REALTORS® Reaches Agreement to Resolve Nationwide Claims Brought by Home Sellers
CHICAGO (March 15, 2024) – The National Association of REALTORS® (NAR) today announced an agreement that would end litigation of claims brought on behalf of home sellers related to broker commissions. The agreement would resolve claims…
Read More03.14.2024
Will Commercial Real Estate Sink or Swim in 2024?
In 2024, we anticipate that the commercial real estate industry will continue to face distress with some stabilization. This alert focuses on three subsets of the commercial real estate market: retail, office, and multi-family. Each…
Read More03.14.2024
The commercial real estate time bomb
Office vacancy rates have climbed sharply in the wake of the pandemic after falling steadily in the decade before, reaching a record 13.1 percent last year, according to data from the Treasury Department’s Financial Stability Oversight…
Read More03.13.2024
New incentives aim to jumpstart conversions of office buildings. Here’s why they won’t be a silver bullet.
Municipalities have long used incentives to spur investments they hope to see in their cities, or to solve for a persistent problem they've deemed requires private-sector participation. Now, city officials are introducing or expanding upon…
Read More03.11.2024
Navigating Commercial Real Estate In 2024: Top Trends To Look Out For
During my real estate journey, there has been one major learning that I hold paramount: Staying abreast of and informed about emerging trends is key. My father is a real estate developer, so I have…
Read More03.11.2024
Industrial On Track to Deliver Weakest Q1 Performance in a Decade
Industrial is feeling a big pinch in the first quarter of 2024. The period isn’t over, so the final figures aren’t in, but according to data from CoStar Group, if the current data trend continues,…
Read More03.08.2024
Is Steve Mnuchin the Guy to Stop the Commercial Real-Estate Crisis?
Steve Mnuchin, the former Treasury secretary, was the rare figure to have escaped ignominy during the Trump administration, serving four uninterrupted years in his job without a scandal or an indictment to trail him during…
Read More03.08.2024
Four Commercial Real Estate Trends To Watch In 2024
As we begin 2024, commercial real estate investors are keeping a close eye on the trends most likely to dominate news headlines and impact portfolio performance in the coming year. Most importantly, industry players are…
Read More03.07.2024
After a quarter-century of conservation, does ABQ have enough water to grow?
With over 300 days of sunshine a year, New Mexico residents are used to waking up to the warmth of the rising sun. However, as the rest of the world also heats up, many environmental…
Read More03.06.2024
Another Multifamily Shift: Less Call for Three-Bedroom Units
There was noted heavy demand for more space during the heights of the pandemic. When offices and schools were closed, along with cafes, libraries, and other places that might offer a place to work or…
Read More03.05.2024
Can commercial real estate bear the high cost of debt?
What is the first question CRE managers are asking these days? Alison Chave says it’s interest rates. Commercial real estate is a levered game. The sudden, steep rise in interest rates that took place particularly…
Read More03.05.2024
Industrial Expected to Remain Resilient This Year
Expect continued resilience but on a muted scale for industrial assets in 2024, according to Newmark, which said in a recent report that economic uncertainty continues to exert pressure on consumers, developers, occupiers, and investors.…
Read More03.04.2024
Why it’s not all doom and gloom for commercial real estate
After decades of growth bolstered by low interest rates and easy credit, commercial real estate has hit a wall. Office and retail property valuations have been falling since the pandemic changed where people live and…
Read More03.04.2024
Property Risks to Watch in 2024
At MBA’s recent CREF conference, the prevalent outlook seemed to be optimism tempered with uncertainty. Many in the commercial real estate lending space believe that things will improve over 2024 to varying degrees depending on the…
Read More03.04.2024
Multifamily’s Bounce Back Will Be Sharpest in These Markets
It’s not quite “Don’t Worry, Be Happy,” but a new note from CBRE emphasizes that multifamily problems will eventually end. “Markets are never static and strong rent increases are likely to resume in traditionally higher…
Read More03.04.2024
Post-pandemic Market: Winners and Losers in Commercial Real Estate
The COVID-19 pandemic has reshaped the commercial real estate market, creating a divide between winners and losers. A variety of factors that include retailers and brands over-expanding, changing consumer behavior and macroeconomic forces such as…
Read More03.02.2024
Can subleases save the commercial real estate market?
By the time you read this, we will have exhausted two months of 2024. Christmas lights will be appearing in home improvement retailers in no time. But I digress. Last month, I wrote about subleases.…
Read More03.01.2024
Apartment Rents Turn Positive After Six Months
Rent growth has returned to the apartment sector for the first time in six months, according to the March 2024 Apartment List National Rent Report. Staying in line with seasonal tendencies, prices ticked up 0.2…
Read More02.28.2024
Here’s where office space inventory is actually shrinking — and what’s driving the trend
Office inventory is holding steady or shrinking in select cities across the country, due in part to an increase in conversion projects and a slowdown in new construction. That's according to a recent analysis by…
Read More02.27.2024
JPMorgan’s Jamie Dimon isn’t too worried about commercial real estate
JPMorgan Chase (NYSE:JPM) CEO Jamie Dimon believes commercial real estate issues will only worsen if there is a recession, and a lot of property owners can handle the current level of stress. "If we don't…
Read More02.26.2024
Will CRE Portfolio Deals Return in 2024?
When a Fortune 500 company puts a massive apartment portfolio consisting of 11,000 communities on the market, people take notice and ask questions. “Investors can draw conclusions from the Lennar portfolio sale that even the largest operators…
Read More02.23.2024
Economic downturn, tech slump send commercial real estate prices tumbling
Rental prices for office space in Israel plunged by 16 percent last year, as tech firms — global and local — have been downsizing and driving up the supply of commercial property, according to a…
Read More02.23.2024
What Many Get Wrong About the US Office Market
There’s a widely accepted narrative about the office market: Covid-19 came and companies, often under government demand, closed their offices and had people work from home. When things returned more or less to normal, employees…
Read More02.22.2024
Commercial Mortgage Lending in U.S. Shows Signs of Stabilization in Late 2023
According to new data from CBRE, commercial real estate lending in the U.S. demonstrated signs of stabilization at the end of 2023, with borrowing costs appearing to have peaked, even as transaction activity remains subdued.…
Read More02.22.2024
KC Fed commercial real estate index continues to fall, but numbers don’t tell full story
The Federal Reserve Bank of Kansas City’s commercial real estate index continued to drop in the last quarter of 2023, with falling absorption rates and lower loan demand being the primary culprits. The Kansas City…
Read More02.22.2024
The Rent Burden Has Eased But Not for Everyone
The year 2022 was a tough one for renters. The rent-to-income, or RTI, ratio peaked, driven by high multifamily rent increases that were chasing growing property prices and falling cap rates. Last year was an…
Read More02.20.2024
Retail’s Occupancy Expected to Be Highest in CRE
Retail is positioned to become the US’ highest occupancy commercial real estte category, according to a new report from Marcus & Millichap. The firm said this long-term forecast is bolstered by a consumer base that…
Read More02.20.2024
The Changing Direction of Industrial CRE
The future of industrial CRE is strong, but advancing in a new direction, according to a report from Newmark and NAIOP. CRE for advanced manufacturing is the wave of the future, while warehousing and distribution…
Read More02.16.2024
Office and Retail Can Find Value in Teaming Up
Office landlords are increasingly willing to invest in and collaborate with local retailers, making upfront investments to sustain the space and bolster the overall building environment, according to a new report from Colliers. This is…
Read More02.16.2024
Commercial real estate is in big trouble — and the problems may have major financial fallout
The tremors rattling US commercial real estate are spreading to other countries and sectors, and threaten to escalate into a financial earthquake as refinancing deadlines loom. Some investors aren't worried about falling through the cracks,…
Read More02.16.2024
Office and Retail Can Find Value in Teaming Up
Office landlords are increasingly willing to invest in and collaborate with local retailers, making upfront investments to sustain the space and bolster the overall building environment, according to a new report from Colliers. This is…
Read More
