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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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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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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…
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Summer of Sales: Why Retail Real Estate is Standing Strong
Despite six months of intense economic volatility, American consumers surprised economists by increasing their spending this spring. The Commerce Department reported that the value of consumer spending rose in April and May year-over-year instead of falling as predicted. Bloomberg attributed the upward trend to bigger-than-expected purchases in nine out of ten retail categories. Christopher Rupkey,…
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Know Your CRE ABCs – A Guide to Real Estate Property Classes
One of commercial real estate’s most complicated and contentious issues is the differences between property classes. Building classification can be confusing despite being a crucial aspect of urban development.
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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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Navigating Real Estate Development Loans: A Comprehensive Guide
Real estate development loans are a type of financing for developers who want to purchase raw land and carry out development on it. The loan is considered a short-term acquisition loan since the funds are being dispersed to prepare the grounds for further construction or sale. You would use a land development loan primarily to…
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Empty Hallways: Why the Office Market Is Still Struggling
Since the coronavirus pandemic began, the American office market has faced unprecedented challenges. Government lockdown mandates prompted millions of businesses and institutions to operate remotely or with limited onsite staff.
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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.…