-
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…
-
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…
-
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…
-
Remote Work Has Transformed the Definition of Class A Office Space
It’s no secret that the pandemic rocked the office sector. No commercial real estate asset class has been impacted more by the global Covid-19 outbreak, which sent nearly 50 million US office workers home to work remotely. For many, remote work became a permanent change. Now, office property owners and corporate leadership are grappling with…
-
Real Estate Investment Strategies for Every Commercial Property Rating
In today’s world, we’ve made it a habit to grade nearly everything. A young child’s arithmetic abilities, the strength of concrete and even eggs all receive letter grades. The financial markets equally rely on a grading system to rate stocks, bonds and credit quality—and commercial real estate assets follow suit, also receiving letter grades to…
-
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…
-
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…
-
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…
-
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…