Real Estate Blog

Commercial Real Estate Investment Trends To Watch In 2017

The world is “oversupplied,” and it is predicted that profound economic impact, implications for property market fundamentals, and commercial real estate pricing will be affected in the investment and CRE markets in 2017. According to National Real Estate Investor, high transaction volume, increased investor flows, and strong fundamentals will shape the United States property market this year.  Here are the five trends that will play a significant role: Global economic and political uncertainties. The Brexit vote in the U.K. has added new uncertainties that will not be fully understood, much less resolved, in the near term. The IMF has downgraded ...
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A Look at Global Shopping Center Development

Development activity for shopping center space around the world continues t be focused in China. According to a Global Viewpoint from CBRE Research report, more than half of the shopping center space under construction in the 180 countries surveyed is taking place within China’s borders. The report indicated that Shanghai takes first position with 3.3 million sq. m. of space under construction—more than the combined total of all 86 European cities excluding those in Russia and Turkey. Just behind Shanghai is Chengdu with 3.2 million sq. m., followed by Shenzhen and Tianjin with 2.7 million sq. m. and 2.5 million ...
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Market Indicators: A “Slowing” $11 trillion Commercial Property Sector

Is danger ahead in 2017 for the commercial property sector? According to a recent article by the WSJ, defaults are rising in a key corner of the commercial real-estate debt market just as borrowing costs are set to jump, raising the likelihood of a slowdown of the $11 trillion United States commercial property sector in 2017. The article indicates that a “financial crisis-era regulation is about to take effect.” According to analysts, commercial real-estate borrowing is more expensive and complicated. “At the same time, interest rates have increased since the election of Donald Trump as the nation’s 45th president last week ...
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Commercial Real Estate Still Continues To Firm

  Reit.com recently took a look at the Urban Land consensus outlook in which it was indicated that commercial real estate still continues to firm. The “ULI Real Estate Consensus Forecast” is a semiannual survey of economists and analysts at the nation’s leading real estate organizations. The forecast findings include both near-term and longer-term projections for a wide variety of key economic and industry indicators, ranging from employment figures to housing starts to property sector performance. The most recent survey was conducted in September, and involved 51 leading real estate economists/analysts from 37 organizations. Results were released on October 19 with a ...
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Meeting The Demographic Challenge In The Urban World

  One of the most powerful forces transforming the world economy today is demographic change. In a recent McKinsey & Company report, global population growth was indicated to slow and urbanize plateaus in many regions, the outlook for cities and their growth changes profoundly. “Cities, which have powered the world economy for decades, are now facing a significant demographic challenge to their growth,” the report indicated. How they respond to the pressures will be critical for the health of the global economy in the years ahead. The MGI findings include: Population growth has been the crucial driver of cities’ growth. In a ...
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Investors: What Donald Trump Means For Your Stocks

  While the current stock market may look optimistic to some investors, factors such as Donald Trump’s candidacy may play a role in providing lasting sustainability in the rally. Last November, United States home sales rose higher, with homebuilding stocks emerging as winners in the present market, any investor surely thanked the improved home sales numbers back then. Donald Trump and Hillary Clinton were noted to “barring something extreme” by The Street’s Jim Cramer this month, as he referenced this in terms of political uncertainty which Cramer views must be resolved. For investors, Cramer also stated that we can now resume preparing ...
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Real Estate Sector “Optimistic” on Trump’s $1 Trillion Infrastructure Plan

  As uncertainty is said to be “enormous” with Donald Trump as president, there are real estate executives who have an optimistic view when it comes to Trump’s promise to improve infrastructure through his proposed $1 trillion infrastructure plan to be implemented within the next ten years. Joseph Sitt, the CEO of Thor Equities stated during a Swiss Economic Forum event earlier this year, “I have been saying for a long time that investing in modernizing our infrastructure will improve the U.S. economy as well as create much needed jobs for the working class, and thus be a driver of economic ...
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What Real Estate Developers Think About South Florida and Trump

  It looks that South Florida real estate developers are viewing Donald Trump as president-elect as a "boon" to the area's real estate environment. It doesn’t help to add to the fact that he is rooted in the real estate industry to begin with. Here is a further take on what real estate developers are saying, according to The Real Deal: Ezra Katz, founder and CEO of Aztec Group “Our future president is a very knowledgeable real estate and construction person, and he understands the world of real estate better than any politician, ever,” Katz told TRD. “He will create jobs that are ...
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“Uncertainty Is Absolutely Enormous” When Trump Is President

  Economists believe that Donald Trump's win as America's president "upends" United States economic forecasts. According to the Wall Street Journal, Donald Trump’s surprise win is set to force U.S. economists to rip up their forecasts as the world’s largest economy sails into uncharted waters. Prior to last month’s election, economic forecasters typically agreed that in the United States. continued moderate economic growth would be promising. Federal Reserve policy makers, Congressional Budget Office analysts and Wall Street economists were predicting gross domestic product growth around 2 percent and unemployment below 5 percent for the next few years. A Fed interest-rate which was ...
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South Florida Commercial Real Estate After The Election…

  Now that the commercial real estate market has witnessed the selection of Donald Trump, our next president, we can now look forward to reconnecting with the real world again. “Commercial deals also have not been immune to the political uncertainty,” according to The Real Deal. In an article which highlights that Colliers International South Florida broker Mika Mattingly has seen longer due diligence periods for commercial deals, but not a slowdown because of it. “Investors are jittery,” she had told TRD, and also added to her statement that the commercial market is due for a correction regardless. “People like to ...
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