- Self-Storage Strategies
In 2012, The Wall St. Journal reported that public self storage real estate investment trusts outperformed their office, apartment, and hotel competitors. The continuing strength of the sector through 2013 has put interest in self storage acquisitions at an all
- Preserving History
- Rising Tide
The Fed’s latest rate hike in June 2017 was its third since December 2016, with the goal being to raise the Federal funds rate to 3 percent by 2019.
- FASB Changes Ahead
New accounting rule will impact commercial real estate leases.
A proposed accounting rules change could substantially alter the way thousands of U.S. businesses treat leased real estate, which could have a seismic impact throughout the U.S. market and beyond.
The proposed change, which could take effect as
- Beware of Loan Provisions
The language in preprinted lending documents could cause you plenty of trouble.
When buyers purchase a property with financing or are refinancing an existing loan, they often see loan documents that are either preprinted or generated by a document assembly program. In either case, making changes to preset te
- In Sync
Should the Federal Reserve continue with gradual increases in interest rates, the market will adapt by making slight adjustments, which will be reflected in the movement of cap rates. However, most analysts are predicting that 2017 will see two interest rate adjustments by the Federal Reserve in response to rising employment and higher inflation rates.
- Defeasing CMBS Loans
With the real estate market on a significant upswing and lenders across the U.S. loosening their purse strings, defeasance activity has picked up substantially over the past two years. According to industry reports, more than $13.2 billion of commercial mortgage
- Capital Rescue
Mezzanine financing rescues deals when traditional lending cannot bear the risk.
With conventional lenders both restricted by regulations and wary of riskier ventures, mezzanine financing is playing a stronger role in providing equity for commercial real estate developments. For example, a builder wanted
- Learning from Experience
Opportunity zones have plenty of potential, so here are lessons to be learned from the industry’s experience with EB-5 visas.
- Theft Alert
Research from the likes of BDO and NAREIT finds that Real
Estate Investment Trusts are facing performance risks, potential market
volatility, and heightened attention from investors after outpacing the
Standard & Poor's 500 during most of 2016.
REIT fund managers can either follow or ignore guidance on the
financial opportunity that commercial building energy retrofits offer to
maximize earnings and sustain a competitive advantage. Ignoring
guidance presents major performance risks.
- Carbon Credits
Energy and carbon credits can help to reduce variable operating expenses, increase net operating incomes, lower capitalization rates, increase internal rates of return, and mitigate risk. These dynamics reflect the changing characteristics of socially responsible investment models and create a
- Distressed Decisions
With the real estate collapse several years behind us, the industry has been riding a wave of available distressed commercial properties. But this groundswell of opportunity also brings a groundswell of risk. Knowing what to look for can ensure that
- Why Comply?
Until the financial crisis in 2007, banks and other lenders seldom included restrictive financial debt covenants in their commercial real estate lending agreements. Today, debt covenants are becoming far more commonplace in commercial mortgages. Many property owners who are refinancing
- Like-Kind Exchanges
- Going Green
With sales approaching $10 billion in 2018, the emerging cannabis industry looks to establish itself despite obstacles related to nonstandard property development.
- Follow the Money
If you are like many commercial real estate brokers these days, 85 percent of your transactions are lease deals and only 15 percent are sales. Purchase transactions are often a frustrating secondary source of income, as closings are harder to
- Valuing Rentals
A cap rate allows parties to efficiently evaluate whether the asking price for a property is justified by the income it generates. But with multifamily rental buildings in urban areas, this method makes it particularly difficult to value. Learn why.
- Energizing Tax Benefits
In response to the growing focus on energy conservation, Congress passed the Energy Policy Act of 2005 or EPAct, which created tax incentives to encourage the construction and retrofitting of energy efficient buildings. Although initially scheduled to sunset after two
- Evolving Landscape
In the ever-evolving regulatory landscape, a new CMBS bill, under the
Dodd-Frank Wall Street Reform and Consumer Protection Act, is slated to
take effect in December. This bill, comprised of a new set of risk
retention rules, will require CMBS lenders to retain a portion of the
value of the loans they issue as opposed to selling them off as bonds.
Commercial real estate brokers can capitalize on a growing market by understanding its unique needs and challenges.
Startups aren't exactly synonymous with big money for commercial real estate brokers. New businesses are often looking for small spaces and short-term deals. However, brokers would be wise to gi
- A Bridge to Success
In a strengthening multifamily market, bridge financing can be an attractive option for investors seeking to acquire or reposition multifamily properties with low occupancy numbers, planned renovations, or other operational challenges. High demand in today’s market has created a scarcity
- Seeking Balance
As the economy recovers from the Great Recession, construction lending is slowly resuming its place as an important component of real estate lending. For example, in Chicago, there has been a flurry of multifamily developments, and currently two major office
- Money Talk
Finding today’s best commercial real estate financing is a very different assignment than it was a decade ago. Savvy commercial real estate investors know that economic factors, such as jobs and geography, play a bigger role than in previous years.
- Cyber Scares
Foreign Capital Buys Offices In 2014, foreign capital was particularly focused on office assets, purchasing $17 billion of U.S. office properties, according to CBRE. That amount represents 45 percent of last year’s foreign investment in U.S. commercial real estate. More
- Competitive Conundrum
Net lease developers can thrive with the right capital partners.
During the last five years, real estate developers have benefited from an aggressive lending market coupled with falling capitalization rates. This has increased interest and competition in build-to-suit and speculative development.
As cap ra
- 1031 Games
CCIMs are often involved in Internal Revenue Code Section 1031 exchanges for their clients and for their own real property interests. While tax deferred like kind exchanges were first authorized in 1921, it was the Tax Reform Act of 1986