Beating the High Cost of Property Insurance
Here are several strategies to try.
As the risks and costs of the effects of climate change become increasingly clear to investors, many are considering complex new strategies to try to tamp down or mitigate the rising costs of CRE property insurance.
Essentially all industrial demand is going to new buildings in Tampa Bay
Weakness in older properties contributes to vacancy rising to the highest level since 2016
Older buildings have been shedding tenants at a brisk pace so far this year. For industrial properties larger than 100,000 square feet, pre-2020 built properties have recorded negative 1.3 million square feet of absorption year to date.
Why Private Capital Is Voraciously Buying Up Office Assets
Small private equity firms are able to buy office assets below replacement cost—giving them a strong competitive market advantage.
Without question, the office sector has been the most challenging commercial asset class following the pandemic.
Small-bay industrial properties in these Central Florida suburbs have availability rates below 3%
Fast growing suburbs in the Sunshine State Have Very Few Options for Small and Mid-Sized Tenants
According to the most recent Census Bureau data, Florida ranked among the top three states in the U.S. for population growth between mid-2022 and mid-2023 on both an absolute and percentage basis.
‘Ticking time bomb’: Plunging office values alarm Washington
Four and a half years after the pandemic sent workers home, the office property bill is finally coming due.
The market for office buildings — already reeling from higher vacancy rates amid the rise in remote-work policies — has been crushed by high borrowing costs, and while the Federal Reserve is at last preparing to cut interest rates, it may be too little, too late.
Southwest Florida Multifamily Markets Hit Decade-High Vacancy Rates
Rebound in Renter Demand Unable To Keep Pace With New Completions
Southwest Florida is in the midst of a significant supply wave, which is impacting multifamily vacancies across the region.
CBRE Survey: Cap Rates Have Peaked
Improved sentiment driven by Fed's accommodative signals decline in bond yields versus October 2023 peak
Most respondents expect the expansion in commercial real estate cap rates to have peaked, CBRE said in a bi-annual survey, which polls the company's capital markets and valuation professionals on the direction of cap rates and the magnitude of the change they expect during the next six months.
Saxum Real Estate Partners Acquires Netpark Office in Tampa
Private Developer Sells 950,000-Square-Foot Mall-Turned-Office Complex
Saxum Real Estate Partners, a New Jersey-based investment firm, acquired a 947,176-square-foot office complex in Tampa, from a private developer for $45 million, or about $47.51 per square foot.
Tampa Office Investors Target Smaller Buildings
The Tampa office market recorded roughly $480 million in total sales volume over the first six months of 2024. And while the overall office investment trend has been towards smaller buildings trading, a significant portion of year-to-date deal volume can be attributed to the $150 million sale of 100 North, a 42-story office tower at 100 N. Tampa St. in the city’s central business district.
4 Ways that Data is Changing the Way We Transact
Due diligence practices are adjusting rapidly as investors examine their target acquisition through modern lenses that affect the way asset information is collected and used, as well as new key KPIs related to long-term asset performance.
What's Changed in CRE Sales Trends
Prices per square foot, cap rates, and occupancies were some of the top trends during May 2024.
Crexi's National Commercial Real Estate Report for May saw some overall positive changes for property owners.
At the top, they saw the asking price per square foot climb by 3.76% across the marketplace, accompanied by a cap rate compression from 6.82% to 6.6%. While that is good news on the surface, asking rents aren't necessarily what tenants pay.
Tampa Industrial Tenants Face Significant Rent Increases
Asking Rents Up Nearly 70% Since 2019
Asking rents averaged less than $8 per square foot in 2019 and are now above $12.60 per square foot on a triple net basis. Industrial asking rents increased an incredible 68% for the Tampa region since the end of the second quarter of 2019, with several areas surpassing even that.
CRE on the Chopping Block Among Companies Worried About Inflation
There are economists who insist that the US is not yet in a recession and economists who say it is, or at least will be soon. Business executives can't delay their actions for the final ref's call, so they're making plans, many of which involve cutting expenses, including real estate.
Ten Issues That Will Impact CRE for Rest of 2022
LaSalle is expecting a high-impact second half of 2022, according to its Mid-Year Update.
The firm provided the top 10 issues it believes could steer commercial real estate's direction, including those related to bonds, returns, capital flows, expenses, energy, construction and central banks.
59% of Small Retailers at Risk of Shutting
Small businesses say inflation is a bigger challenge than pandemic, half say they'll cut holiday ordering.
Nearly half of small business owners, including 59% of retailers, say they are at risk of shutting down in the fall, up 12% from last year's survey, according to a new report from Alignable, an online referral network for small businesses.
Cap Rates Might Finally Start to Rise Again
According to a First American Financial Corporation analysis, cap rates might finally start to recover some of their value.
The firm's potential capitalization rate (PCR) model for the first quarter of 2022 "estimates capitalization rates based on the historical relationship between interest rates, rental income, prevailing occupancy rates, the amount of commercial mortgage debt in the economy, and recent property price trends.
8.6% Inflation Means Serious Planning for CRE
The CPI calculation—consumer price index, or what’s commonly called inflation—was expected to run warm, but not like a Miami August afternoon on the beach without an umbrella for shade.
“A Labor Department inflation report proved many traders were wrong with identifying peak inflation,” wrote Edward Moya, senior market analyst for the Americas at OANDA, in a note.
How The Pandemic Really Impacted CRE Asset Classes
Just two years ago, more than 20 million people lost their jobs at the onset of the COVID pandemic. Companies were scrambling to transition their workforces to remote work, toilet paper was in relentlessly short supply, and the outlook for in-person businesses was bleak at best.
Mixed-Use Properties May Help Solve Retail and Office Challenges
While industrial and multifamily sectors quickly soared after the onset of the pandemic, not all did. Office was hurt and is still limping. Certain types of retail held its own, like those anchored by a grocery store; many didn’t.
But reports about the two different sectors come to the same conclusion: mixed-use may be a way for retail and office to help one another.
Small Companies Face Pressure to Act on Sale-Leasebacks
Sale-leaseback transaction volume will continue to accelerate as owners rush to lighten balance sheets and hedge against risk from a rising cost of debt before cap rates expand and spreads widen later this year.