What Commercial Real Estate Gained and Lost in New York State’s New Budget
The state budget was supposed to provide a surge of momentum for the governor’s agenda ahead of the Democratic primaries. Instead it was overshadowed by incomprehensible violence and unfettered corruption occurring within her administration. But the allocation of nearly a quarter of $1 trillion in new spending will have lasting effects on New York’s economic… Read more »
What New York Real Estate Investors Are Most Concerned About Now
Toward the start of this month, I emailed a wide array of investors, asking them one simple question: What is the issue that concerns you the most about our local commercial real estate market today? There were 847 responses, and here are the results in the order of the most mentioned issues. Politics and rent… Read more »
The Tax Break Commercial Real Estate Investors Might Need After Covid-19
The COVID-19 pandemic has had a dramatic impact on commercial real estate values, and in some cases resulted in property no longer being able to support the debt with which it is encumbered. The decrease in value of commercial property has forced many owners to restructure their debt. However, the resulting forgiveness of a portion… Read more »
Global Investors Remain Enthusiastic about the U.S. Commercial Real Estate Market
The U.S. commercial real estate market continues to be seen as attractive by global investors over both the short and long term, according to the Association of Foreign Investors in Real Estate (AFIRE) 2022 International Investor Survey Report, released in mid-April. The survey, conducted in Q1 2022, reveals institutional insight and intent towards future real… Read more »
Managing Uncertainty in the CRE Marketplace
by Neil A. Dolgin The U.S. economy made a truly spectacular recovery in 2021 coming out of the Covid pandemic. U.S. gross domestic product (GDP) and job growth were very strong, unemployment fell, wages rose, and retail sales recovered. Today’s CRE marketplace now faces unique challenges with rising inflation, the risk of a recession, continued… Read more »
At Current Rate, Available Logistics Space In U.S. Would Dry Up In Record 16 Months: Prologis
Despite Amazon’s planned pullback on new warehouse growth, rampant demand for industrial space, as well as supply chain delays, has reduced the available inventory of warehouses to historic lows, according to a new report from global industrial powerhouse Prologis. At current rates of supply and demand, logistics tenants could burn through available inventory in 16… Read more »
U.S. Hotel Rates Hit Record High
Travelers are continuing their return to hotels, and they are paying record rates for their rooms. The national average daily rate for a room in March was $146.61, the highest for any month on record, according to hospitality data provider STR. However, STR did note that, when adjusted for inflation, the March ADR was about… Read more »
What Commercial Real Estate Gained and Lost in New York State’s New Budget
Reaching a state budget deal with lawmakers was supposed to be the hardest part of the year. Gov. Kathy Hochul could barely bask in the passage of her $220 billion budget after an additional six days of closed-door negotiations with legislative leaders and a marathon weekend of votes, when her lieutenant governor was arrested for… Read more »
Commercial Cap Rates Likely to Keep Compressing in 2022 Despite Higher Interest Rates
Rising interest rates are likely to put some upward pressure on cap rates in 2022. However, the rise will be modest compared to the increase in the benchmark 91-day Treasury that has already increased by 1.3 percentage points as of the end of April from one year ago (2.7% as of April 26). This is… Read more »
Commercial real estate investors fear inflation despite growth
Rising interest rates and increasing construction costs are the biggest threats to the commercial real estate sector, according to a new report by industry data provider, LightBox. The 18-page ‘Investor Sentiment Report’, covering data during the first quarter this year, said record high inflation and the prospect of higher interest rates were “tangible threats” that… Read more »