If you're considering investing in a multifamily venture, or if you're already in the market, there are challenges and opportunities to watch for in the coming year. From rent trends to supply and cost factors, here's what to expect in 2019.
A common dilemma that many business owners face is whether to own or rent a business property. The decision often involves some consideration of what, if any, tax benefits are involved. Indeed, it can be taxing to understand all of the facts, nuances, codes and exemptions involved. After doing some research into the benefits of buying versus leasing commercial real estate, I was surprised to find so few articles that help make the issue accessible for those who are not tax law experts.
6704 NE 47th Ave. is a fantastic opportunity to own an incredibly functional warehouse with multiple up-side opportunities. With the ability to easily demise the building, or have it as a single clearspan space, the property is ideal for an owner/user, investor, or both.
19365 89th is a fantastic opportunity for an owner/user or tenant looking for the rare building that has up to 20,000 SF of secured yard, functional warehouse space, showroom, and multiple loading options. All in an ideal location.
Strong investor interest in U.S. commercial property markets has led to a surprising rebound in transaction volume in the first half of the year, though Colliers International U.S. Chief Economist Andrew Nelson does not foresee this rebound carrying over into the new year.
Warehouse space keeps getting harder to find as the drive toward online retail sales pushes more goods into already-squeezed U.S. distribution centers.
The availability of industrial property declined in the third quarter as nearly 50 million square feet of warehousing capacity came onto the U.S. market in the three-month period, according to real-estate brokerage firm CBRE Group Inc. CBRE +0.46% Distribution and e-commerce fulfillment operations are moving into new space just as quickly as it is being built, CBRE said.
With a growing number of employees working from home and 96% of people shopping online, protecting your commercial investment property is more important today than it has ever been.
Real estate investing often comes down to one big question: residential or commercial space? While residential investors may think they have the knowledge and skills to enter the commercial real estate(CRE) game, there are many differences between the two markets. Without a solid understanding of property valuation, rent structure and the various segments of CRE, you may find yourself in over your head.
Little Family Members, a Pet Supply distribution company, approached Matt Lyman to help them find a new facility for their business. Matt Lyman used inside market knowledge to find multiple off-market spaces. Once toured and selected, Matt created leverage between competing spaces to drive the deal terms in the Tenants favor, and not only got them a substantial, better-than-market concession package, but in last minute negotiations, got a full office renovation and expansion paid for by the Landlord.
As the president of a development company and co-manager of a private equity real estate fund, I’ve had the unique opportunity to spend hours analyzing market trends in pursuit of good real estate deals. Much of that time has been spent looking at secondary and tertiary markets. Over the last 20 years we have successfully purchased, entitled and developed projects in nearly every asset class in secondary and tertiary markets across New Mexico, Texas, Florida, South Carolina and Arizona.
Imagine a world where property transactions are fast, efficient and free of cumbersome contracts.
Five years ago, this may have seemed like a pipedream that was light years away. But as new technology begins to seep into the commercial real estate landscape, this dream could soon become a reality. Blockchain, the technology that allows information to be stored and distributed through a digital ledger, will begin to impact commercial real estate. Blockchain functions on a decentralized system, meaning transactions can be completed without intermediaries. Instead, digital contracts allow users to exchange anything of value, from property to shares, through an encrypted ledger that can be stored and shared.
PORTLAND, OR—Demand for office space remains strong. However, inventory continues to rise significantly this year with more than 550,000 square feet of construction delivered in the second quarter alone, to be followed by another half a million square feet for the balance of 2018, according to a recent report by Cushman & Wakefield. As this new product comes on line, competition for major tenants will heat up, swinging the pendulum back to the lessees’ favor.
Coworking made its mark as a solution for startups in need of a flexible, affordable place to house their teams while they proved out their idea. Spaces like WeWork, Industrious and Knotel became popular not only for their flexibility, but for the stellar amenities they offered. CEOs could treat their teams like royalty—think high-end coffee, beer on tap, HR perks and free events—without ever signing a long-term lease.
For many family offices, Opportunity Zones might be just the, well, opportunity they are looking for, investment-wise. However, families should not move forward without digging deeper into the investment. With various tax benefits for investors, it all may seem like it's just too perfect for a family not to participate in a real estate investment within an Opportunity Zone. However, the fundamentals should not be lost when looking at these projects within the area. Just because it's in an Opportunity Zone doesn't make it a good investment.
Cost segregation studies, or cost segs, have been a widely used accounting tool by real estate investors as a way to preserve capital and realize significant tax benefits through accelerated depreciation, asset reclassifications and easier write-downs when assets are disposed of. However, with tax reform, many investors are asking whether or not cost segs will continue to benefit them.
Multifamily investors are still able to get low interest rates on permanent loans as different lender groups continue to compete for market share.
“The competition between the agencies and life companies is creating bidding wars on the debt side, with increased interest-only and decreased spreads a requisite to win deals,” says Brandon Harrington, managing director with JLL Capital Markets.
“I started investing in real estate in the early aughts, and clearly a lot has changed since then. In my infancy as an investor, I was frustrated by the lack of tech available for networking and finding investment-quality properties. On the heels of that was the need to connect so I could secure capital for investments. In my desperation, I tried to use MySpace to find the resources needed to launch my investment career. It’s not hard to imagine how ineffective that little experiment worked out.”
The New York Times is calling the early fire season of 2018 the new normal as more than 100 wildfires burn across the United States.
These devastating fires are burning homes and structures, destroying forests, fields, and hillsides, and taking lives.
The traditional path to buying an investment property is to save money for a down payment, then get a mortgage to cover the rest. But that’s not the only path. From time to time, I get questions from the landlords who use Availabout how they can finance a rental property if they don’t have enough in the bank for a down payment.
A lot of the investors that I work with have some experience investing in single family homes but they want to know more about some of the advantages and disadvantages of investing in apartment buildings. The following lists are not meant to be exhaustive lists detailing every single advantage and disadvantage of investing apartment building and single family homes.
Industrial developers in coastal U.S. markets are cashing in on the extraordinarily high demand by small businesses for for-sale modern warehouse facilities of between 25,000 and 40,000 sq. ft.
E-commerce is transforming retail real estate, and yet the most drastic changes may still be ahead.
For millennia, retailers have used stores to physically show their wares. When customers decided to buy something, money changed hands, and they took their purchases home. In this long-standing model, stores occupied a prominent position in the supply chain.
We all know how important having a retirement fund is, even if you’re decades away from reaching your golden years. One way to pad your retirement fund or make some money in the meantime might include investing in senior living. It’s not just paying for your own retirement — it’s investing in the kind of infrastructure you want to have access to when you retire.
Are you still putting your best bet on brochures & a sample flat? Or are you still making your clients imagine spaces for ideas? Well, changing the way people experience and search for property, through technology, innovation and design is no longer a thing of the past.
The 2017 Commercial Real Estate Lending Trends Survey by the National Association of Realtors® confirmed that only 30% of all commercial real estate transactions are all-cash. That is why for the vast majority of transactions, the prospective seller and their agent will always defer to the buyer with proven financing in place versus the offer that only has empty promises as proof they will get the money to close the deal.
Part of McDonald's long-term success comes the fact that it owns the land and buildings at most of its locations – and its franchisees pay it rent. Today's entrepreneurs can follow the lead of the golden arches and build wealth by owning their commercial property and becoming a landlord themselves.
Before we begin with the types of commercial real estate loans, let’s first talk about what the commercial loans are and how can they help you. When you search them online, there is very difficult vocabulary that you come up with.
The American Society of Civil Engineers (ASCE) gave the country’s vital infrastructure a D+, citing a US$2 trillion investment gap, in its 2017 report. Currently, the United States doesn’t rank within the top 10 countries for efficient and reliable infrastructure, according to the World Economic Forum’s Global Competitiveness Index.
According to a new report by global real estate consultant CBRE, the U.S. commercial real estate lending market remains robust in 2018, despite financial market volatility and heightened trade tensions.