6 Overlooked Investment Opportunities in Commercial Real Estate
In commercial real estate, smart owners exploit every available opportunity to maximize their net operating income (NOI) and create new, leveragable equity. Over time, small changes can generate millions of dollars in cash flow and added value, which will be critically beneficial as you grow your CRE portfolio. From parking to vending machines, these profit-boosting… Read more »
How new grocery delivery apps are impacting New York’s real estate market
New quick-commerce grocery delivery companies sweeping New York City have several things in common: they’re all app-based, their couriers primarily travel on electric bicycles and scooters, and their goal is to get customers their groceries within 20 minutes. The speed of delivery is the backbone of their business model, and they accomplish it with “dark… Read more »
Where is Commercial Real Estate Headed?
by Neil A. Dolgin Welcome to 2023 and the questions that are on everyone’s mind: Will we have recession? Will it hit hard? Will there be a soft landing? Economists expect economic growth to slow this year, and we will narrowly avoid a recession. Wherever I turn, however, everyone has their own point of view. … Read more »
Why Eric Adams’ Zoning Changes Are Vital For A Post-Pandemic New York
New York Mayor Eric Adams has come forward with significant land use proposals in the past few weeks, all under the rubric of “City of Yes.” Although much of the attention is focused on Adams’ proposals to generate 500,000 new housing units, there is another significant component of City of Yes that has been overlooked:… Read more »
Commercial Real Estate Pricing Growth Slows to Pace Not Seen Since 2020
U.S. commercial property price growth slowed in November to an annualized pace not seen for more than two years, according to MSCI Real Assets. The RCA CPPI National All-Property Index rose 4.9% from a year ago and fell 0.4% from October, representing an annualized decline of 4.6%. The industrial index maintained its spot as the… Read more »
What Would It Take to Turn More Offices Into Housing?
There’s about 998 million square feet of office real estate across the United States that’s available but in search of a tenant. That’s thousands of old cubicles, conference rooms, pantries and cafeterias sitting in ghostly quiet. That’s a vast amount of empty space — nearly 13 percent of the market — that could be turned… Read more »
The party is over in commercial real estate. Here’s what to expect in 2023.
An era of cheap debt that helped lift prices on hotels, office buildings and other U.S. commercial properties to dizzying new heights has ended. Borrowers thirsty for financing have watched mortgage rates roughly double in 2022 from the 3% lows, spillover from the Federal Reserve’s inflation fight that could cost several million people their jobs…. Read more »
New York City Comptroller Brad Lander Releases Annual Report on the State of the City’s Economy and Finances
New York City Comptroller Brad Lander released the annual “State of the City’s Economy and Finances” report. This report provides an analysis of the City’s fiscal health and position ahead of the annual budget process, which begins early in the new year. Despite higher-than-usual uncertainty, major indicators including strong job growth point toward continued economic… Read more »
More Turbulence Expected for NYC’s Real Estate Market in 2023
After a less than stellar 2022 for the New York City real estate market, the new year isn’t expected to bring much relief for landlords. An economic slowdown, rising interest rates and remote work will continue to weaken office leasing and are expected to cause the value of real estate sales to drop 15.9 percent… Read more »
2023 Outlook on Commercial Real Estate
The 2023 commercial real estate outlook indicates there may be challenges ahead. Retail is at a crossroads, and the future of office space is unclear. Plus, supply chain issues persist, and inflation is near 40-year highs, prompting the Fed to steadily increase interest rates. But there are a few bright spots in the commercial real… Read more »
What’s in Store for Commercial Real Estate
The 2023 commercial real estate outlook indicates there may be challenges ahead. Retail is at a crossroads, and the future of office space is unclear. Plus, supply chain issues persist, and inflation is near 40-year highs, prompting the Fed to steadily increase interest rates. But there are a few bright spots in the commercial real… Read more »
2023 Commercial Real Estate Outlook
by Neil A. Dolgin The outlook for commercial real estate in 2023 is opportunistic. While we see continued uncertainty and challenges ahead, we also see some unique opportunities. Inflation remains high and interest rates are increasing. Yet the industrial sector remains strong. Retail is growing. And the medical office sector continues to thrive. So how… Read more »
Prologis Predicts Significant Drop in Warehouse Development
Prologis is predicting that U.S. warehouse development starts will drop to a 7-year low, as rent growth exceeds 10%. Starts are already 30% below their peak in Europe and Prologis expects that to continue in the US. The warehouse property owner says the rapid rise in the cost of capital is the culprit and starts… Read more »
Are Investors Pulling Money Out of REITS
While specific segments of the commercial real estate (CRE) market such as industrial and healthcare are performing well, others like office and retail are alarming investors. Rising interest rates are heightening those concerns. In response, investors are actively reducing their exposure to the CRE market. According to The Wall Street Journal, real estate investment trusts… Read more »
Goldman Predicting U.S. Will ‘Narrowly’ Escape Recession, Even As Banks Tighten Lending
Goldman Sachs is pegging chances of the United States entering a recession in the next year at 35% and predicts interest rates will hold steady next year. The UK and Europe are already in recession due to the hit to real incomes from surging energy bills, per the investment bank’s research report examining the macro… Read more »
Adams Reveals Plans for NYCFC Soccer Stadium, Affordable Housing at Willets Point
After more than a decade of negotiations, New York City has finalized a deal to build a professional soccer stadium and affordable housing at Willets Point in Queens, next to Citi Field. The stadium will offer a permanent home for New York City Football Club (NYCFC), the city’s peripatetic professional soccer team that has played… Read more »