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 »
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 »
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 »
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 »
Medical office sector maintains high demand as other commercial real estate sectors struggle
Health care real estate is viewed as a stable asset among investors Despite commercial real estate challenges that started during the pandemic, the medical office sector remains one of the most resilient and a favorite for investors, according to JLL’s Healthcare and Medical Office Perspective report. Absorption has outpaced new supply and occupancy has remained… Read more »
Fed’s Rate Hikes Aren’t Bulldozing Commercial Real Estate— Yet
The Federal Reserve’s announcement of another 0.75 percentage point interest rate increase continues the central bank’s grim war with inflation. Higher rates are doing damage across the economy, which has never stabilized after the Covid-19 shock. But commercial real estate, vital to cities’ economic and fiscal well-being, hasn’t taken a big hit—yet. Ever-higher interest rates… Read more »
Real Estate Makes Up Larger Share Of NYC’s Tax Revenue Even Amid Value Reset
Real estate taxes have steadily become a larger and larger part of New York tax collections over the last eight years as the city faces a fiscal crisis. In the financial year ending 2021, real estate-related taxes made up 54.1% of tax collections, up from an average of 51.9% between 2015 and 2018, according to… Read more »
Multifamily, Development, Industrial Trades Push Brooklyn’s Investment Sales To $5.56 Billion
Investment dollars poured into Brooklyn’s commercial real estate market in the first six months of the year, accounting for a quarter of the $22 billion in commercial property sales across New York City in 1H 2022, second only to Manhattan which saw 53% of the city’s dollar volume. The dollar volume in Brooklyn totaled $5.56… Read more »
Changes to Supply Chain Will Benefit Commercial Real Estate
Online shopping is now the preferred method for 68% of consumers, which has increased significantly since the beginning of the pandemic. Since the pandemic began, supply chain issues have impacted the eCommerce sector significantly. What does this mean for the commercial real estate industry? Keep reading as we discuss what is causing the changes to… Read more »
Commercial Real Estate Is Slowing Down in Q3 2022
After the strong rebound for the U.S. economy in 2021, growth in 2022 has slowed in the face of rising inflation, the household income squeeze, and geopolitical events. While the economy continues to deal with elevated inflation, data shows a slowdown in the growth of commercial real estate. Demand for apartments and office spaces is… Read more »