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Office Space Trends: Key 2024 Trends for Developers
The outlook for commercial office real estate as an asset class will be mixed in 2024. Overall, demand for office space is in a continued decline, with the majority of employers in urban areas continuing to downsize and vacancies keeping rents low. However, many workers have returned to office in some capacity, and demand for…
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The Real Estate Developer’s Guide to Yield on Cost
Yield on Cost (YOC) is a financial metric you can use to evaluate the performance and profitability of a real estate investment. By determining your project’s yield on cost, you can measure risk against potential return and compare the asset to other potential opportunities. The yield on cost is unique from other financial metrics in…
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Seizing the Moment: Developers’ Opportunity in Affordable Housing
Housing shortages have sent mortgage rates and rents soaring across the United States, and in 2022, the median rent-to-income ratio reached 30% for the first time in over 20 years. The lack of affordable housing development in high-demand, job-rich areas is having a ripple effect across communities, causing an increase in rates of homelessness and…
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The State of Ground-Up Developments Heading into 2024
Ground-up development, or projects built on raw land or by demolishing an existing structure to build on a scraped lot, continue to be a popular pursuit among both developers and investors heading into 2024. By looking at the real estate trends of the past couple of years, from innovative construction materials, sustainable style and architectural…
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Top Multifamily Development Trends to Prepare for in 2024
Multifamily housing development has an unclear future as an asset class, with strong fundamentals complicated by a turbulent economic outlook. Market fundamentals have remained strong over the last year, stabilized by strong demand and healthy occupancies. However, the asset class may be in decline by the end of 2023 due to dislocated capital markets, supply…
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Real Estate Due Diligence: Essential Checklist for Commercial Properties
Real estate due diligence is the process that encompasses all the actions that go into investigating and analyzing a site’s potential risks and opportunities before a transaction is finalized. By conducting a thorough diligence process, you can mitigate risk over the lifecycle of a project, get an accurate picture of the project’s financial health, and…
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NOI Meaning in Real Estate: Unpacking Net Operating Income
Financial metrics are vital for your development team to track, helping you demonstrate a project is financially viable and will deliver high returns. From the Internal Rate of Returns (IRR), cap rates, and Return on Investment (ROI), your team is likely to use key data metrics to show a project’s profitability to potential investors. Net…
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Dodging Pitfalls: How to Secure Your Next Real Estate Development Deal
Market uncertainty and obstacles in the development process posed by COVID-19 have made securing a real estate development deal more challenging than ever. From high inflation and unstable cap rates to unpredictable costs in the construction process, many factors can derail an important deal. Successful real estate developers need to be able to dodge pitfalls…
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Mastering the ABCs of Student Housing Development
In recent years student housing development has become an increasingly popular sector of the industry. Developers and investors see a reliable, growing market in the form of undergraduate or graduate college or university students looking to live in residential properties located on or near campus that cater to their unique needs. These projects tend to…