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Midyear Check-In: Commercial Real Estate Market Gains Momentum
The year began with unbridled optimism. After a challenging 2023, commercial real estate stakeholders welcomed the start of a new year with high hopes for a swift change. Market experts expected lower interest rates and more capital availability; increased investor appetite with stabilized pricing; and healthy occupier demand. Many of those anticipated changes, unfortunately, didn’t…
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Going Green: How All-Electric Buildings Are Changing the Conversation
Commercial real estate developers are voraciously pursuing sustainable construction practices. From publishing aggressive ESG targets to building to green certifications, there have been a number of ways that developers can reduce the carbon footprint of a commercial property. Now, innovative developers are going one step further to ensure the carbon neutrality—or even negativity—of a new…
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Office-to-Apartment Conversion: Can Developers Make It Work?
Commercial real estate developers are well aware of the national housing shortage. To meet current demand, the nation needs to add 4 million to 5 million new homes. Housing development is at the epicenter of the problem. The construction rate began to slow in 2000. By 2020, 5.5 million fewer homes were delivered compared to…
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Developers Gain Optimism: What It Means for New Construction Activity
You might feel like every successful developer has a crystal ball with the ability to peek two or three years into the future and understand what a community will need. In reality, of course, there is no crystal ball. Instead, there are metrics and data (and a little bit of luck) to forecast trends that…
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6 Cities Affordable Housing Developers Should Target for New Construction
Commercial real estate investors and developers have expressed a commitment to addressing the nation’s affordable housing crisis. According to the National Low Income Housing Coalition, the US needs 7.3 million affordable housing units to meet current demand, but of course, some cities are suffering from a greater shortage than others. The coastal markets and major…
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4 Reasons Developers Should Watch Eminent Domain Law This Year
Eminent domain activity is heating up, and developers should pay attention. From the Infrastructure Investment and Jobs Act, which passed in 2021, to evolving legal definitions and policy, eminent domain cases are becoming more common and more complex. Developers are increasingly coming into contact with eminent domain activity—both to their benefit and frustration—and it’s important…
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3 Low-Income Housing Tax Credit (LIHTC)Trends Developers Need to Know
Low-income housing tax credits (LIHTC) are the backbone of affordable housing development. The longstanding government program has helped to create opportunities to develop new affordable housing by providing tax credits that offset affordable rental rates. In light of the national housing crisis—the National Low-Income Housing Coalition estimates that there is a shortage of 7.3 million…
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The Multifamily Market Finally Shows Signs of Recovery
The multifamily market is undeniably the darling of the commercial real estate sector. Through the turbulence of the post-pandemic era, multifamily has outperformed other asset classes, with 95% occupancy and 4% rent growth in 2023. Still, the sector has also experienced its fair share of dislocation. Investment volumes fell 60% last year, new construction starts…
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Inside the Guessing Game: Interest Rate Predictions for 2024
In commercial real estate, interest rates are always a hot topic. In the many years leading up to the pandemic, investors and developers were absorbed with trying to guess when interest rates—which at that time had been at historical lows for an extended period —would increase. Today, everyone is trying to guess when they will…