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How CRE Investors Can Prepare for a Recession in 2023
It isn’t exactly breaking news that commercial real estate investors are worried about a recession. Widespread concerns over economic turbulence have been looming all year, driven by rising inflation, increasing interest rates, and, perhaps most importantly, two consecutive quarters of negative GDP growth, the standard threshold of a recession. However, the National Bureau of Economic Research…
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New CRE Asset Classes Steal the Spotlight in 2023
Commercial real estate investors have been making the safe bet for the last two years. With widespread uncertainty, capital has favored stable investments in high-profile asset classes with strong fundamentals. Industrial and multifamily properties have overwhelmingly ranked the highest for transaction volume in Q3 202. By contrast, more unstable property types like office, retail, and…
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How Wealthy Renters Are Changing the Multifamily Market
The multifamily rental housing segment has not always been the booming market it is today. Americans have historically preferred home ownership to renting their living spaces. But in the 15 years since the Great Financial Crisis, a demographic known as renter-by-choice or lifestyle renters have changed the conversation.
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How the Fed’s Sixth Interest Rate Hike Will Impact CRE Development in 2023
In early November, the Federal Reserve raised interest rates for the sixth time this year to curb soaring inflation. The interest rate for federal funds to 3.75 to 4%, its highest level in 14 years. The Fed indicated more rate hikes are coming in 2023. The government’s fiscal policy shift has significant implications for the…
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The State of CRE Construction Pricing and How Technology Can Help
Rising construction costs are plaguing the commercial real estate industry. Since the start of the pandemic, prices for materials have increased more than 35%, making it one of the most pressing concerns for developers—but for more than a year, developers have been battling a secondary issue: price volatility. We covered the topic last summer when…
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Why CRE Developers Are Still Coming Up Smiling
You might call it survival of the fittest. Developers are managing to persevere through scores of global, domestic, and local challenges to expand construction pipelines and push projects forward. Despite all the obstacles, rising interest rates, inflation, a defunct supply chain, a looming pandemic, and war in Europe—US construction volumes grew in the year’s first…
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Why Industrial Real Estate Development is Getting More Difficult
The U.S. industrial real estate market entered a boom period due to the rapid expansion of e-commerce amid the onset of the coronavirus pandemic. Leading providers like Amazon snapped up logistics buildings to quickly meet an unprecedented surge in demand. But for the first time in two years, the segment has begun to stagnate nationwide.
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Is the Hotel Real Estate Market Revival Here to Stay?
Hotel revenue plummeted in 2020 as COVID-19 prompted worldwide travel restrictions and self-quarantine orders, but it has begun to recover recently.
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3 Trends That Will Shape the Commercial Real Estate Sector in 2023
On balance, 2022 has been a good year for commercial real estate. S&P Global estimates transaction volumes will total $800 billion, with the industrial, retail, and multifamily asset classes driving activity. This year also saw less proven property types like cold storage, data center, and life sciences emerge as investment magnets.