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How A Real Estate Asset Valuation Reset Will Impact CRE Developers
A wide bid-ask spread has characterized the commercial real estate investment market this year. Due to the rampant rise in interest rates over the last 18 months, buyers and sellers cannot seem to get on the same page about asset values. Buyers expect—as is standard during an elevated interest rate environment—lower asset prices to offset…
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Shifts in U.S. Industrial Hotspots Forge New Development Opportunities
The pandemic was an epic disruptor. In a matter of weeks, it grounded international travel, sent millions of workers home from the office, froze commerce and upended global supply chains. The long-term effects of these changes are still manifesting, but they are proving to be significant. While the commercial real estate industry has focused on…
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5 Ways Sustainable Building Materials Are Replacing Old Standards
In the last few years, the commercial real estate industry has made an ardent effort to confront climate change. Commercial buildings are responsible for 39% of global energy-related carbon emissions, according to the World Green Building Council. Building operations, like heating, cooling and power, are responsible for the majority—about 75%—of a building’s carbon footprint; so,…
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How to Leverage Automation Across the Real Estate Development Process
When many Americans get home at the end of the day, they unlock their front door with a cell phone and turn on the house lights with their voice. Air conditioners switch on instantly, home assistants play music and the ovens begin heating up for dinner, all without touching a button. It’s all made possible…
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4 Alternative Capital Sources for Multifamily Development
Capital drives commercial real estate development. It fuels the years-long endeavor—taken without cash flow or revenue—until the project is complete. For the last decade, capital has been readily available at a historically low cost, but now, the tide has turned. With widespread economic uncertainty, rising interest rates and a banking crisis earlier this year, banks…
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Key Migration Trends Every Commercial Real Estate Developer Should Know
In March 2020, The New York Times published “The Great Empty,” a photo series of desolate plazas, subway stations, city streets and concert halls. Las Ramblas in Barcelona, Santa Monica Beach in Los Angeles, The Spanish Steps in Rome, Times Square in New York, Place de la Concorde in Paris and the Red Fort Fair…
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Construction Management Fees Rise Across Asset Classes
Construction costs are a staple pain point for commercial real estate developers. After all, they account for the majority of the cost associated with building a new property, and can be difficult to estimate. This has been particularly true in the last couple of years. Total construction costs have increased more than 40% since the…
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4 Commercial Real Estate Devolopment Trends Shaping Exits in 2023
Commercial real estate investment is suffering from an identity crisis. With a whiplash-inducing rise in interest rates and the possibility of a recession coming in late 2023 or early 2024, investors aren’t quite sure how to proceed. Accordingly, commercial real estate investment volumes are down 53% so far in 2023 — but not for want…
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The Three Trends Curbing CRE Ground Up Construction Starts
Gaining an accurate snapshot of the current state of ground-up construction isn’t easy in today’s market. If developers were to simply look at demand fundamentals, there’s plenty of incentive to build in most commercial real estate asset classes. Multifamily in particular is undersupplied across the country, but industrial, data centers, life science and healthcare are…