The Untapped Potential of Sale-Leasebacks
80% of respondents said they had never done a sale-leaseback transaction, despite the fact that 40% have mortgaged debt on their real estate holdings.
Sale-leasebacks are continuing their meteoric rise in the M&A world, and private equity firms that aren’t yet taking advantage of these arrangements “could be leaving money on the table,” according to a new survey by the Association for Corporate Growth.
Land Poised to Become a More Popular Investment
A migration from cities could push growth in the land market.
In a Gallup survey conducted at the end of 2020, 48% of Americans said they would choose to live in a town (17%) or rural area (31%) rather than a city or suburb if able to live anywhere they wished.
Why US Office Demand Is Likely to Slump 15% Post-Pandemic
Green Street has encapsulated two major trends driving the office sector right now to provide a tangible (and grim) number for office demand post-COVID: -15%.
COVID-19 has wrought a slew of changes to the sector, with social distancing stabilizing densification, or less square feet per worker, a trend that’s dominated office for the last decade.
When Hotels Recover, Vaxxed-Up Baby Boomers Will Be Leading The Charge.
The return of global travel and the recovery of the hotel real estate sector will be slow and patchy, but travel company Tui gave an insight into who might be in the vanguard, certainly in the UK — over 50s first in the line to get vaccines.
20 CRE Acquisition Mistakes to Avoid.
It can be quite easy to make a costly mistake in what seems to be a routine deal.
One of the most important procedures involved in acquiring a CRE asset is the entire acquisition process. The acquisition process includes soliciting deals from brokers and sellers, visiting the properties, analyzing the markets, underwriting the properties, due diligence analysis, negotiating the agreement of purchase and sale, arranging the debt and equity capital, and closing the purchase.
Force Majeure Language Proliferates in Leases.
Since the pandemic began, nearly one-third of commercial leases in the US negotiated since March include the pandemic as a force majeure event, according to a survey by LexisNexis.
Robert DiPisa, real estate attorney and co-chair of the Cannabis Law Group at Cole Schotz, notices similar trends.
Dry Powder Will Bid Up Distressed Properties. Here’s Where Else to Invest.
While there are many predictions about waves of distress hitting the commercial real estate market, John Chang, senior vice president, director of research services at Marcus & Millichap, thinks there will be few truly distressed assets reaching the market.
Office Jobs Are Recovering Faster Than Usual For a Recession
The recovery of office-using jobs in the third quarter suggests a bright future for physical offices.
Don’t count office out yet. While the office sector has clearly struggled through the pandemic, office-using employment recovery indicates future demand for physical workspaces.
The Many Uses of Old Banks
If banks don’t become restaurants, they can also work as medical, office, food service, or general retail space.
While many banks may be looking to close locations over the next few years, there is some good news for owners of those assets: COVID-19 has shown value in having a drive-through.
CRE Valuations Will Take Further Hits, Even If Pandemic Ends In '21
The pandemic and the economic dislocations in its wake so far have had a distinct impact in commercial real estate valuations, though it has been uneven across property types, according to a new report by Real Capital Analytics.
Protecting Your Most Valuable Asset: Five Threats to the Longevity of Your Roof
When it comes to commercial real estate assets, the most expensive system in your building is usually your roof. Particularly in industrial buildings today, million-dollar roofs are not uncommon.
Amid Pandemic CRE Buyers and Sellers Grow Even Further Apart on Pricing
The two sides have different ideas on pricing, while cap rates in CRE properties are largely unchanged from levels reached in 2019. The chasm between commercial property buyers and sellers widened in the third quarter due to the Coronavirus pandemic, putting a strain on sales.
Percentage Rent Leases Are Coming, With Lots of Questions
If there is widespread adoption, some questions need to be answered, including which sales should be included in the retail calculation. COVID-19 has accelerated many dramatic trends in the retail industry.
Sellers Are Still Looking in the Rearview Mirror on Pricing
There continues to be a significant gap between buyers and sellers on pricing, but sellers are starting to face the music. The continues to be a significant gap between buyers and sellers on pricing.
Moody’s Analytics Forecasts US Office Vacancy Rate Hitting Historic High of 19.9% in 2021
Moody’s Analytics today announced its new forecasts for commercial real estate (CRE) rents and vacancies, covering eight property types and more than 3,000 submarkets across the US. The forecasts reflect the latest curated Q2 data on US CRE markets collected by the Moody’s Analytics Real Estate Information Services (REIS) group.
A Financial Crisis Is Looming for Smaller Suppliers
High-profile bankruptcies, refinancing deals, and drastic cost-cutting involving the likes of Brooks Brothers, JCPenney, Hertz, Neiman Marcus, Ford, and GM are testament to the financial distress wrought by the Covid-19 pandemic.
Office Space Demand Expected to Drop 10-15% as More People Work From Home
The expected reduction in office demand may be offset by de-densification, another new trend.
A new report suggests the office real estate sector, especially in gateway cities like New York, San Francisco and Washington, DC, will feel the pain for years from the pandemic-led work from home trend.
What to Consider When Your Tenant Wants a Lease Modification
Landlords have several options to keep current tenants intact or reduce the financial ramifications if the tenant needs to step back from its current office footprint.
As people return to work in office buildings following the COVID-19 stay-at-home orders, tenants may be envisioning a new normal — one in which fewer people come into work at any particular time, less office space is needed due to downsizing or more work from home opportunities, or the office space needs to be physically altered to allow for social distancing.
Commercial Real Estate Market Struggles as Residential Sector Rebounds
Only 19% of property managers in the study reported that rents were being paid on time, while the rest reported that they had tenants who were unable to pay, according to a new report from the National Association of Realtors.
COVID-19 Will Cast A Long Shadow on the Office Sector
Demand for office space is likely to fall with companies embracing remote work in higher numbers.
The commercial office space sector is in for a long, bumpy ride thanks to COVID-19.
Demand for office space will remain low through the remainder of 2020 and likely well beyond that due to health concerns from the coronavirus and the rapid rise in remote work—a trend that was already on the rise but accelerated by the virus.