Commercial Real Estate News for Wednesday, Jan. 4

Good afternoon. We’ve collected three articles on commercial real estate for you to peruse on your lunch break. They detail a survey conducted among optimistic commercial investors, the top cities for foreign investors and a reason to be cautious in the office property market.

Real Capital Markets: Investors Still Sweet on Commercial Real Estate

Commercial real estate looks like it will continue to be an investment magnet in 2017. According to a survey conducted by Real Capital Markets last Novemeber, 70 percent of investors had their sights set on buying. The hottest properties were multifamily, followed by industrial, then retail and office.

Houston Slips Off Radar of Foreign Investors in Commercial Real Estate

Houston has lost some of its mojo since 2015 when it placed #3 on the Association of Foreign Investors in Real Estate’s list of best US cities for commercial investment. In the years following, it has failed to make the list again. This year’s list included New York, Los Angeles, Boston, Seattle, and San Francisco.

Caution On Commercial Real Estate

A more skittish take on the commercial real estate sector than the first article today would you have believe. A number of office property brokers comment on the plateau the industry appeared to reach in mid-2016. They caution investors against oversupplying a slowing market.

Commercial Real Estate News for Tuesday, Jan. 3

Welcome to 2017! Check out these two commercial real estate articles — the first is a look back on 2016, the second is a look forward to hospitality real estate in 2017.

2016 Another Banner Year for Commercial Real Estate

Hard to believe another year has gone by. This is a look back on the top ten commercial real estate stories of 2016 as voted on by CoStar readers.w

As Good as it Gets? Peaking Hospitality Sector Facing Mixed Outlook from Rising Supply, Growing Influence of Airbnb

After achieving an all-time high occupancy rate of 65.4 percent in 2016, the lodging sector is likely to contract slightly this upcoming year. Experts say factors like AirBnb, Brexit, and low activity in the energy sector may all negatively impact the hospitality sector in 2017.

Commercial Real Estate News for Tuesday, Dec. 27

Welcome back, we hope you had a wonderful holiday weekend! Enjoy these three articles on the state of the Brazil’s commercial real estate, a new retail company focused on tech and a review of Jacksonville’s largest office property sales.

Brazil Commercial Real Estate Prices and Lease Values Fall in Nov.

Brazil’s commercial real estate market continues to contract in the midst of the country’s recession. In November, commercial property prices dropped 0.45 percent, for a total of 3.18 percent year-to-date.

Unusual Retail Concept Puts New Spin on Tech Retailing

A retail start-up is looking at new ways to boost tech start-ups. b8ta allows shoppers to test out the newest gadgets in an hands-on environment.  Beginning in Palo Alto, they’ve since expanded to the Santa Monica and Seattle markets.

2016 in Review: Office Transactions and Leases

As the year comes to a close, BizJournals looks back on the largest office property sales in Jacksonville. Highlights in the commercial real estate market include a $195 million sale in Deerwood Park and the $54.3 million sale of The Ameris Tower.

Commercial Real Estate News for Friday, Dec. 23

Happy holidays from us at RealLaunch! Before you escape for the weekend, check out these two commercial real estate articles on foreign investments and drones.

Chinese Money Moving to US Commercial Property

The prediction of a strong dollar and a stagnant Chinese economy has many overseas investors looking to US commercial real state. “[The US real estate market is] at much lower risk at this stage of recovery than we’ve seen in the past,” said Hessam Nadji, president and chief executive at commercial real estate firm Marcus and Millichap.

How Drones Will Affect Commercial Real Estate

The future is here! How will it affect commercial real estate? This article explore how drones will impact air space and the property rights associated with them.

 

 

Commercial Real Estate News for Thursday, Dec. 22

Good morning! Enjoy these three articles on the top commercial real estate sales of 2016, the market outlook for 2017 and a list of essential people on your real estate team.

Late-Breaking Deal Yields Update to Triad’s Top Commercial Real Estate Sales of 2016

BizJournals highlights the 11 largest commercial real estate sales of 2016. There are the expected large retail lots and medical offices, but surprisingly, charter schools make the list—twice!

Improving Economy Brightens Outlook for Commercial Real Estate

The National Association of Realtors is optimistic about commercial real estate in 2017. Retail property vacancies are expected to lower by 0.2 percent, while personal incomes and consumer spending rise.

Who Should be on a Commercial Real Estate Team?

A very brief breakdown on the roles you should have filled on your commercial real estate team. An even shorter breakdown: a commercial broker, a mortgage broker, a lawyer and an accountant.

Commercial Real Estate News for Tuesday, Dec. 20

Good morning! Enjoy these three articles detailing commercial real estate news from around the U.S.

JLL Adds Third Integra Realty Affiliate

Jones Lang LaSalle is expanding its business in an attempt to strengthen its commercial real estate appraisal, valuation and advisory services in the U.S. Within the last three months, JLL has acquired just as many independent operators.

Fred’s Pharmacy Strikes Deal to Buy 865 Rite Aid Stores for $950 Million

Fred’s Inc. will purchase 865 Rite Aid store across the U.S. for $950 million in cash. The deal takes place as Rite Aid and Walgreens work through a proposed merger.

Chicago Real Estate Gives Back for the Holidays

A sample of the good will spread by commercial real estate firms in Chicago this holiday season. How is your agency positively affecting the local community?

Commercial Real Estate News for Thursday, Dec. 15

Retail Sales in U.S. Increased Less Than Forecast in November

As forecasted, November’s retail sales did not meet the forecast. This is a slow down after the previous two months of consumer spending. The information did not sway the Federal Reserve’s plan to raise interest rates this week for the first time in a year.

Interest Rate Hike No Surprise and Will Be Easily Digested, Real Estate Pros Say

The Federal Reserve announced they would raise interest rates between 0.5 and 0.75%. Their decision was based off stronger labor markets, nearly 2.0% inflation and an optimism for the American economy. Commercial real estate insiders say this was long expected and will likely have very little impact on borrowing rates.

HNW CRE Investment Trends

Growing wealth inequality bodes well for the commercial real estate market. Commercial properties offer attractive investment opportunities for individuals with money. Learn more about this emerging commercial real estate trend by downloading the full PDF from nreionline.com.

Commercial Real Estate News for Tuesday, Dec. 13

The week is just beginning, but already there’s lots of commercial real estate news to catch up on. Check out these four articles on Miami investments, CommLoan, the state of CRE and a call to brokers to work toward more affordable housing.

As Miami’s Condo Market Plummets, Commercial Real Estate Soars

The tables are turning for real estate in Miami. Long an investment hot spot for foreign money, Florida condominiums used to be the real estate most loved by those overseas. However, rising residential costs combined with a strong dollar are leading investors away from conodos and toward commercial real estate.

CommLoan Raises $2.25 Million to Provide Consumers with Access to First, Only, Marketplace for Commercial Real Estate Financing

CommLoan raised $2.25 million in its latest round of seed funding. The start-up offers a gigantic database capable of matching commercial real estate borrowers with the perfect loan for their project.

Is CRE Past Market Peak?

According to a survey of commercial real estate professionals, 44% believe the market is currently at its peak. This is down nearly 10% from the month before, but substantially higher than it was at the beginning of 2016.

The Affordable Preservation Opportunity

Housing is becoming harder to afford due to rising rents and stagnating wages. Only about 5.6 millions ‘naturally’ affordable homes now exist in the US. A growing number of commercial real estate brokerages are working hard to keep them that way.

The Donald’s Effect on Commercial Real Estate

Donald Trump is the President-Elect. Depending upon your views, this could be a great thing, or a very discouraging one. Regardless of how you feel about The Donald, his rhetoric on the campaign trail combined with some historical trends can give insights into what may be happening during his presidency with regards to Commercial Real Estate.

Over the last 70 or so years, a trend of recession usually occurs during the first year of a new president’s tenure. This is often due to the implementation of fiscal policy changes which tend to be more blunt than nuanced. As the administration settles in, the myriad of relationships between regulatory agencies, markets, and foreign and domestic policy goals will normalize which generally helps the economy normalize as well.

Trump and The Fed

 

However, with Trump, uncertainty rules the day. No one knows for certain how he’ll influence the Federal Reserve, what his policy decisions will be, or how he and his administration will impact the economy.Mount Rushmore

Due to the strong jobs market and generally positive economic indicators, it is unlikely that the Federal reserve will raise interest rates in December, and analysts expect one interest rate hike, if any, over the next three Fed Board meetings.

Capital markets will be holding their breath, and this means that new construction might slow. If capital markets do take a shock due to the election results, appointees, or new policy initiatives, construction financing could be hard to come by.

Foreign Investors

Due to Trump’s protectionist rhetoric, many foreign investors are eager to invest in real estate as soon as possible, fearing potential restrictions in the future.

This same rhetoric might affect the risk tolerance of foreign investors who have started investing in secondary and tertiary markets, making them pull back to first tier coastal markets alone. We may be looking at an opportunity for domestic investors to snag promising investment opportunities.

The Bottom Line

The Trump administration brings with it a high level of uncertainty, given President-Elect Trump’s lack of political record. It is unlikely that his policies will specifically impact commercial real estate, but it is highly likely that the economy will decline in the first year he’s in office. Economic growth will be impacted, and therefore commercial real estate will be indirectly affected.

Most importantly though, will be the Federal Reserve’s rate hike. While this rate hike will most strongly affect home builders and the growth of new homes, raising interest rates makes for a more difficult borrowing environment.

5 Traits of a Successful Commercial Real Estate Developer

Ask people what a commercial real estate developer does and you’re likely to get a different answer from all of them. The fact is, being a real estate developer is a complex blend of architecture, finance, managing, engineering, hand-shaking and more. There’s no straight shot to becoming a real estate developer, but we’ll highlight some of the characteristics it takes to succeed as one.

Education:

education graduation commercial real estate

There are many, many routes to becoming a commercial real estate developer. Some risk-taking entrepreneurs eventually stumble into the job through long hours of hard work and a dash of luck. Most developers though attend college and study the foundations of developing buildings.

Commercial real estate development is a vast field that requires a working understanding of many different areas. Those considering it as a career could travel a number of education avenues to reach their destination. Four year degrees in studies like Civil Engineering, Architecture, Urban Planning, or Business Real Estate would all provide you with a handle on some stage of the development cycle.

Whether you’re an entrepreneur or a student, getting hands-on and dirty with development projects is the surest way to learn.

Relationship Building:

Here is an incomplete list of people you will have to interact with if you become a real estate developer: lenders, lawyers, tenants, investors, general contractors, civil engineers, architects, brokers, and more! All of these will require that you spend time cultivating relationships with them. The stronger your ties and the more trust you create, the likelier you and your projects are to succeed.

Risk Tolerance

gambling commercial real estate

Commercial real estate development is an inherently risky job. There’s no guarantee your investment will pay off and the majority of the risk falls on you and your investors’ heads. But with big gambles can come big rewards. To excel as a developer is to understand the bets worth taking and the ones that should be left on the table.

Problem-Solving

Developing commercial real estate is a gigantic machine with lots of individually moving parts—meaning there’s plenty of..creative..ways for something to go wrong. As the developer, you’ll have to be ready for both the expected and the unexpected. When an event eventually occurs that blindsides you, you’ll have to be quick enough on your feet to mitigate any damage.

Curiosity

A successful developer is one who can ask the right “Whys?”. Research your local market until you understand which sectors affect each other. With enough knowledge, you’ll begin to notice patterns and trends before your competitors. This type of understanding can lead to better decision making and planning for the future—like preparing for a buyer’s market when you recognize the signals for one.