08.29.2023
It’s Fall. Time to Sprinkle Pumpkin Pie Spice on Your Retail Property
The meanings of autumn: leaves turning beautiful colors, temperatures cooling, and … pumpkin spice lattes at Starbucks (and almost everywhere else in the coffee universe). Yes, PSL, the official nickname, is coming back this week.…
Read More08.29.2023
The Hard Reality of Converting an Office Into a Residence
Companies are trying their best to get their office workers to return to the office, at least a few days a week, with only middling success. Landlords are starting to face what many say is…
Read More08.28.2023
Commercial lending fell 52% in second quarter
As a wave of distress rolls towards commercial real estate, lenders are pulling back accordingly. Debt origination volumes in the sector fell 52 percent year-over-year in the second quarter, according a capital markets report from…
Read More08.25.2023
CRE Sales Volumes Show Signs of Life in Q2
Signs are emerging that the market is bottoming, and sales volumes will increase moving forward. There is a lag between offerings and closed transactions, so this recovery is likely another quarter away, according to a…
Read More08.22.2023
Challenges with managing CRE debt in North America
How high CRE debt costs became the norm Commercial real estate participants that have enjoyed a long run of abundant low-cost capital are now facing a new reality. Owners, investment managers and developers across North…
Read More08.22.2023
Office Tenants Are Renewing Leases—but for Far Less Space
The good news for office landlords is that lease signings have been increasing this year. The bad news is that the average new lease is considerably smaller than before. That means companies are committing to spend…
Read More08.22.2023
The Future Of Commercial Real Estate And Big City Budgets
More than three years after the beginning of the COVID-19 pandemic, the shift to remote work for many office workers has put the future of commercial real estate, and potentially city government budgets, on shaky…
Read More08.21.2023
Improving Indicators Bode Well For CRE Later This Year
Virtually every confidence indicator is on the rise and the threat of an imminent recession is falling while recent data show that inflation is nearing the Federal Reserve’s goals set more than a year ago.…
Read More08.21.2023
AI Investment Is Giving Tech Office Markets A Boost
Replace people with machines? The growing fear in the current wave of generative AI has had an ironic improvement on hiring certain types of workers — and the need for office space in high tech…
Read More08.21.2023
Retail defies commercial real estate’s troubles
Offices are struggling. Multifamily distress is popping up. But the retail market, long predicted to be doomed by the pandemic and e-commerce, keeps chugging along above the fray. Retailers are enjoying healthy activity, demand and…
Read More08.21.2023
A Bright Spot in Commercial Real Estate: Retail Shops
Retailers are on track to open 1,000 net new stores in the U.S. this year as retail availability hits record lows, in fresh signs of the sector’s resilience despite turmoil in commercial real estate. Landlords…
Read More08.17.2023
Total CRE Loans From Banks Hit $3T Even as Originations Cool
New reports from the Federal Deposit Insurance Corporation and Mortgage Bankers Association show a somewhat puzzling state of commercial real estate: more than $3 trillion in outstanding loans but commercial and multifamily loan originations down…
Read More08.16.2023
Commercial real estate sales volume for first half of 2023 drops below same-period sum in 2020
Commercial real estate deal activity slowed considerably across the industry's sectors in the first half of 2023, sliding to a dollar volume even lower than what was posted at the onset of the Covid-19 pandemic.…
Read More08.14.2023
WeWork is warning of potential bankruptcy. Here’s what it could mean for the office market.
WeWork Inc. (NYSE: WE) leadership disclosed "substantial doubt" about the coworking company's ability to continue to operate last week and warned of potential bankruptcy risk — but the news isn't a surprise for those closely…
Read More08.14.2023
Commercial Real Estate Prices Expected to Stabilize in H2 2023, CBRE Survey Finds
Commercial real estate prices are showing signs of stabilizing as inflation moderates and the Federal Reserve nears the end of its interest rate hiking cycle, according to a new CBRE survey. The CBRE survey, which…
Read More08.14.2023
A Look at the Size of the Global Commercial Real Estate Market
A new report from real estate data firm MSCI Real Assets, “How Big Is the Global Real Estate Market?” looks at how the global professionally-managed real estate market changed over the course of 2022. As could be…
Read More08.14.2023
Industrial Market May Be Flooded with Yellow-Owned Properties
Looking for an industrial site with lots of truck parking? You could be in luck if real estate assets owned by the trucking company Yellow come on the market. The company filed for Chapter 11…
Read More08.14.2023
Experts Forecast Where Apartment Rents are Headed
The median U.S. asking rent in July is only $16 below the record high set in August 2022, according to Redfin, with the average rent being $2,038. It noted that while rent gains cooled over the…
Read More08.11.2023
Commercial Real Estate Has An Emissions Problem
It’s been eight years since world leaders came together in Paris and pledged to reduce emissions to net zero by 2050. Eight years of being told to ditch plastic, ditch meat, and ditch cars. Eight…
Read More08.10.2023
Multifamily Conditions Start to Weaken in Freddie Mac’s Portfolio
Freddie Mac CEO Michael DeVito acknowledged the difficulties apartment owners are having during the GSE’s second quarter earnings call. Rising mortgage rates are contributing to downward pressure on apartment values nationwide, forcing up the cost…
Read More08.09.2023
Big US banks are reportedly trying to dump commercial real estate loans – but buyers are scarce as pressures mount for property markets
Big banks want to some of their commercial real estate loans, but buyers are proving scarce as troubles pile up in the sector, according to report out from Bloomberg this week. JPMorgan, Goldman Sachs, Capital…
Read More08.09.2023
How This Expert Is Viewing the Big Drop in CRE Sales
As startling as the year-over-year drop in commercial real estate deal volume in the first half of the year has been, Marcus & Millichap points out that the declines are not far off from long-term…
Read More08.09.2023
11% of Office Buildings Could Realistically Be Converted to Green Multifamily
With rapidly falling office property valuations that, according to one study, could lead to $800 billion in lost value by 2030, concern about what to do in the sector is understandable. One of the potential strategies is to convert…
Read More08.08.2023
Multifamily’s Rent Growth Slowdown Shows Signs of Leveling Off
Rent growth declined to below 1% last month, only the second time since the 2010 Great Recession. And it could head down further in the next few months, according to a post by RealPage Chief Economist Jay…
Read More08.08.2023
White House Tells Federal Agencies to ‘Aggressively’ Get Workers Back to the Office
The Biden administration wants to “aggressively” get federal workers back in the office by September or October, according to an email to the Cabinet on Friday, as Axios initially reported. White House Chief of Staff Jeff Zients…
Read More08.07.2023
Commercial Real Estate Investors With Cash Continue To Bet On Interest Rates Coming Down
Challenged by rising interest rates, a sometimes staggered economy and empty office space buildings, commercial real estate (CRE) investment has become a game for the haves and the have-nots. If you have cash, there are…
Read More08.07.2023
Most pre-pandemic office leases haven’t rolled over, threatening to prolong pain in CRE
The national office market has been on a bumpy ride since the Covid-19 pandemic, and additional challenges are lurking on the horizon. A recent analysis by CoStar Group Inc. (Nasdaq: CSGP) found 55% of office…
Read More08.07.2023
13 Must Reads for Real Estate Investors (Aug. 7, 2023)
Private credit funds find opportunity in real estate “In one telling example, construction company Orion Group Holdings refinanced a $42.5 million revolving loan led by Regions Bank with a $103 million deal from a private credit…
Read More08.07.2023
How to Optimize Warehouse Space Without Increasing Facility Size
There’s plenty of potential for companies that choose to perform a comprehensive facility redesign and process improvement analysis, according to Colliers. The firm said it can yield a 5% to 15% increase in storage capacity,…
Read More08.07.2023
Single-Family Rental Rates Have ‘Seemingly’ Peaked
Rent for single-family homes, nationally, remains historically high despite a slight increase in year-over-year price growth of 0.2%, according to the Q2 National Rental Report from HouseCanary. That’s good enough, however for the data firm…
Read More08.07.2023
This is How Bad Retail and Office Valuation Drops Have Gotten
Office and retail valuation drops are becoming like accident scenes, where so many watch and find it hard to turn away. Trepp recently reported that January valuations for CMBS-office backed loans were 52% to 60%. CRED iQ…
Read More08.04.2023
Three Trends That Are Emerging In Retail
Remember all the empty freestanding storefronts and shops in malls and strip centers? Some are still vacant, but retail is adjusting to the post-pandemic and e-commerce waves, as well as to inflation, migration and remote…
Read More08.02.2023
City of Albuquerque partners with national software provider to improve permitting system
The City of Albuquerque has teamed up with Tyler Technologies Inc. (NYSE: TYL) to improve the city’s permitting process. The City’s planning department hopes to accelerate Albuquerque’s growth with an online system where developers and citizens can…
Read More08.02.2023
Banks Expect to Tighten Standards for CRE Loans Even More
A new Federal Reserve report noted that banks continue to get nervous overall and in particular about commercial real estate. “Regarding loans to businesses, survey respondents reported, on balance, tighter standards and weaker demand for…
Read More07.27.2023
Report: U.S. Commercial Real Estate Faces Mounting Stress as Delinquency Rates Surge
The U.S. commercial real estate sector is grappling with ongoing challenges as the post-pandemic environment reshapes traditional business models. According to a recent report by credit rating agency KBRA and Reuters, the delinquency rate for…
Read More07.27.2023
Commercial real estate hit hard by Fed’s rate hike campaign
The Fed’s rate hike campaign – including its latest increase of 25 basis points on Wednesday as it fights inflation – has led to a rising number of defaults in multifamily loans and endangers the…
Read More07.27.2023
Look To Hospitality For The Future Of Commercial Real Estate And In-Office Work
When you walk into the 30,000-square-foot space that constitutes Rockbridge’s new headquarters in Columbus, Ohio, there’s a good chance you won’t realize you’re in a private hospitality investment firm. The entrance resembles a high-end restaurant…
Read More07.27.2023
Smaller Apartment Markets Become a Great Investment Opportunity
Due to work-from-home and hybrid work options and the appeal of more affordable lifestyles, many people have left big cities behind and are calling less costly, less congested smaller markets home. In such places, the…
Read More07.26.2023
Fewer mega deals in national industrial sector as market returns to pre-pandemic activity
The Covid-19 pandemic saw more companies, especially in third-party logistics and e-commerce, clamor for mega warehouses measuring 1 million square feet or larger. That trend appears to be waning, as companies reassess their space needs…
Read More07.26.2023
Retail Space Demand Drops As Consumers Burn Off Savings
Rising household savings accrued during the pandemic gave the consumer ample amounts of money to spend, bolstering consumption until recently and pushing up inflation. But today’s higher interest rates are starting to bite into spending…
Read More07.26.2023
Multifamily Syndicators Face CRE Debt Exposure
When fighting the potential economic collapse of the pandemic turned into a zero interest rate policy, the result fanned commercial real estate development in all ways, shapes, and forms. One of them was multifamily syndicators,…
Read More07.25.2023
Out of the Office: Second Quarter 2023 Multifamily and Commercial Real Estate Investment Update
In our real estate outlook for 2023 we tweaked the third component of the tried-and-true guidance to property investors, suggesting instead “Location, Location, the Fed.” Indeed, considering the actions, and potential actions, of the Federal Reserve have…
Read More07.25.2023
Apartment Developers Turn to Non-Bank Lenders for Construction Loans
Apartment developers are finding ways to pay for new construction projects–without using loans from traditional banks. For years, multifamily developers have relied on large, short-term loans from banks to finance the construction of new apartment…
Read More07.25.2023
Office Sales Continue Their Slide
To no one’s surprise office investment sales continue to plummet, reaching $14.8 billion in the first half of 2023 compared to $43.7 billion in the same period last year, according to Commercial Edge. The national…
Read More07.21.2023
Meet the Commercial Association of Realtors New Mexico’s new executive director
The Commercial Association of Realtors New Mexico hired Nathan Brooks, a former firefighter and real estate veteran, as its new executive director. After graduating high school in New Hampshire in 1995, Brooks joined the U.S. Air Force. He…
Read More07.21.2023
CRE Carrying Costs Are Nearly as Burdensome as Interest Rates
Little things can add up. For CRE, that is a range of costs including insurance, utilities, taxes, and other operating expenses. That can burden a property just as easily as higher interest rates. According to…
Read More07.20.2023
Biden Administration Announces Actions on Rental ‘Junk Fees’
The Biden administration announced an additional front — rental housing — for its standing opposition to so-called junk fees for consumers. “From repeated rental application fees to surprise ‘convenience fees,’ millions of families incur burdensome costs in…
Read More07.20.2023
NAR Commercial Real Estate Metro Market Report | 2023.Q1 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 More07.19.2023
More Office Delinquencies On the Way, Says Moody’s Analytics
Many economists have started to ask whether a soft landing — an ultimate reduction of inflation without the appearance of significantly higher unemployment or a recession — might now be possible. Some indicators are looking positive, and…
Read More07.19.2023
Builder Confidence Rises Despite Rising Rates, Material Costs, Labor and Lot Inventory
Low inventory may not be good for potential homeowners shopping for a home but it’s keeping builders feeling a bit more confident that there are buyers eager for new single-family homes. This was the conclusion…
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