Real Estate Blog

Commercial Real Estate Lending Bounces Back in Q2

Commercial real estate lending volumes continue to thrive, bouncing back from its winter slump in the second quarter. Commercial real estate lending volume surpassed its 2015 levels. The area has been one of several asset classes which were severely affected by the global economic crisis, having witnessed property values decline by more than 25 percent in various markets. Experts even had predicted there would be a drop of 50 percent for worst affected regions. According to CBRE, United States loan origination volumes grew 5.7 percent year-over-year. CMBS lending volume is down from last year. Banks had increased their United States ...
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A Look At Donald Trump’s Potential $0 Tax Bill

Donald Trump's potential $0 Tax Bill might just be the reason why we do Commercial Real Estate Development. According to the New York Times, perhaps the reason that Donald Trump hasn’t released his tax returns is because he’s not actually been paying any Federal taxation. The key point, is if the New York Times prediction is indeed true, then no one would ever conduct commercial real estate development. However, it is clearly obvious today that people are involved in commercial real estate development. “But this specific tax “break”, depreciation on commercial real estate, is entirely justified by the basic economics ...
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Commercial Real Estate Trends to Watch For the Remainder of 2016

Surprisingly, the United States property market landscape in 2016 has remained very similar to what it was like in 2015. This result is a mix of mediocre and impressive numbers, due to interwoven themes which came into play and, yet, poised good opportunity for investors who were savvy. These opportunities brought technological, economic, and demographic trends to the CRE market. The United States Federal Reserve announced last December that the central bank forecasted growth in America to be stable. With inflation is being under control in the United States and in the emerging markets. The United States employment also remains ...
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The Off-Price Retailer Sector Is Hot – Even In Physical Space

During the next five years, the off-price retailer sector is predicted to continue to outperform and build momentum in the apparel retail segment. According "Off-Price Retailers Continue to Build Momentum on Value Appeal,” latest report by Moody's Investors Service, off-price retailers are anticipated to experience apparel revenue growth of 6 percent to 8 percent, outperforming the broader apparel segment by a collective 4 percent in the timeframe. Christina Boni, a VP and senior analyst at Moody's highlighted that "TJX Companies, Ross Stores and Burlington continue to outpace overall apparel, which are growing at a much slower pace. In contrast, the ...
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Billionaire Investor Sam Zell Sees “Global Woes” To Push US Into Recession

Contrarian billionaire real-estate investor Sam Zell has warned that the US economy is ‘in the ninth inning,’ but predicts ‘milder’ downturn ahead. In a recent story with the WSJ, the chairman of Equity Group Investments and of apartment landlord Equity Residential warned that it isn’t immune to problems in the world economy. Those problems include low oil prices, falling import demand from emerging economies, volatile financial markets, deflation, possible negative interest rates and currency exchange rate fluctuations, he stated. “I’m not being pessimistic, I’m being realistic,” Zell stated earlier this year at a real-estate conference in New York. Mr. Zell ...
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Why CRE Could Be An Asset Bubble

The Fed’s George has said that commercial real estate could be a potential asset bubble. The commercial real estate market is a potential asset bubble that “bears watching,” said Kansas City Fed President Esther George earlier this year. George was pushing for the United States central bank to “stay the course” and gradually raise interest rates. George joined the Fed in 1982 and served much of her career in the Division of Supervision and Risk Management. She began by becoming a commissioned bank examiner and eventually served for ten years as the District’s chief regulator. In that capacity, she was ...
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Efficiency Standards May Save Commercial Real Estate Billions

As we all know, the commercial real estate industry conducts deals in the billions and millions as a "norm." The opportunities to save billions of dollars are appealing to any industry across the board. According to IMT.org, (Institute for Market Transformation), the United States spends more than $400 billion dollars on energy for American buildings. The majority of these buildings were constructed prior to modern energy codes existing, consuming more energies. When fixing old drafty buildings, the United States has grown to become a $20 billion dollar industry. While the U.S. redoubles its reducing greenhouse gases commitment, the experience of ...
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REITs Boosting South Florida CRE

For South Florida, REITs had come into the picture about 15 years ago, changing the local commercial real estate market. According to Wayne Ramoski of Cushman & Wakefield, REITs invest across a broad array of sectors, from office buildings to shopping malls and hotels. Ramoski said there also are health care, timber and infrastructure REITs during the RCA Midyear Update. In Miami, low interest rates and improved employment have boosted REITS. “The way REITs develop and hold is very different than a local developer would expect,” Ramoski said. “It’s brought in an institutional class of developer. They are here because ...
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Commercial Real Estate Embraces Art

Art is not a trend. Art it here to stay! Art is is becoming even more popular with buyers when seeking out commercial, residential and hotel buildings. “Developers are trying something special because they have to get creative in order to attract new customers,” said Angel Law, head of residential investment at DTZ Cushman & Wakefield in Hong Kong. This includes using new color schemes, layouts and furnishings that are “different from the square boxes that used to sell,” she said to the WSJ. Property prices have doubled since 2003, according to UBS. Real estate developers in Hong Kong are ...
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U.S. Industrial Availability at 15-Year Low, Thanks To E-Commerce

It looks like new constructions may be a key contributor to curbing tight supply and rising United States rents. CBRE sees the US industrial availability has declined in the first quarter to 9.2 percent, down 20 basis points from the fourth quarter. This has been the 24th consecutive quarter of its availability at a decline. According to the new 2016 industrial index report by CBRE, industrial space in the U.S. declined in the first quarter of 2016 to the lowest level since 2001 and rents remain on an upward trajectory, while new construction is poised to limit both trends over ...
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