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Class-B Multifamily Has the Potential to Outperform Top-Tier Properties
Multifamily has always been known as the darling of the commercial real estate market. The asset class has everything an investor could want, like relative recession protection and stable demand. People will always need a place to live, and that fact has solidified a permanent place for multifamily at the top of the commercial real…
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A Functional Guide to Cap Rates in Commercial Real Estate
In commercial real estate investment, there is no metric more prevalent than the cap rate. For transactional real estate investors, it’s a powerful tool used to vet prospective acquisitions, track income gains, and calculate returns. In essence, a commercial cap rate is a measure of return and risk on an investment asset. While we’ve said…
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Commercial Real Estate Forecasts Show Positive Development Signs
Predicting the economic future is a real estate developer’s favorite pastime. The job inherently requires that developers assess future risk and predict with great accuracy the economic environment into which they’ll deliver a property. The practice, of course, isn’t foolproof. Developers breaking ground in 2018, for example, could never have imagined completing the project in…
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Real Estate Exit Strategy: 5 Tools for Developers Post-Stabilization
Real estate developers talk a lot about the pre-construction phase, from land purchases to environmental site inspections and pre-construction planning. But soon after, laying foundations, tilting walls and topping off rightfully occupy a developer’s attention and budget. While the ensuing construction phase of a new property is complicated—it’s why Northspyre has created tools to help…
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An Uphill Battle: Achieving Equitable Access to Construction Capital
Earlier this year, The New York Times published a sobering examination of diversity in commercial real estate development, highlighting what stakeholders in the industry have long known to be a problem: racial disparities among real estate developers. Citing a joint report from Siegel Family Endowment, the Initiative for a Competitive Inner City, and Grove Impact,…
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A Strong Jobs Report Sends Mixed Signals to Real Estate Developers
Nearly every monthly job report this year has been followed by one sentence: “job gains were higher than expected.” Despite the Federal Reserve’s attempt to stymie economic growth and drive down inflation, strong employment has persisted. In January, job gains were so strong that the unemployment rate fell to 3.4%, the lowest point since 1969.…
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Real Estate Private Equity Partnerships Are Unlocking Opportunities for Development
Real estate developers are navigating through a uniquely challenging capital environment. Last week, in this blog piece, we explored access to debt resources for ground-up construction projects, and covered several strategies to win financing even as the debt markets tighten.
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4 Ways Developers Can Beat the Construction Capital Crunch
Acquiring access to capital is the prevailing challenge for commercial real estate developers today. Interest rates have doubled in the last 12 months, a banking crisis has catalyzed a liquidity crunch, and interest rate volatility has made it nearly impossible for developers to price a deal. In short: the constrained capital environment has suppressed lending…
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Closing the Tech Talent Gap: How Real Estate Developers Can Prepare for the Future
There is no going back. The commercial real estate industry has fervently embraced technology and integrated digital tools into daily business operations—and year after year, the industry continues to advance technology adoption. This year, JP Morgan Chase highlighted proptech as a solution to inflation, rising interest rates, and the labor shortage, and Deloitte said commercial…