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.
How to Network When You Can’t Meet Up with People
To make business connections in the age of coronavirus, people need to go online to form relationships and nurture them. That means throwing out the old strategies. It is hard to be an effective networker when you can’t shake hands, go to a conference or meet at a restaurant.
COVID-19 Will Drive Changes in Industrial Real Estate
Companies may shift from a lean-inventory strategy and position more safety stock around the country, a move that calls for additional storage space and not necessarily just in the short term.
Working With Struggling Tenants? This is What Landlords Need to Do to Protect Themselves
Even if a landlord offers rent relief to a tenant, there’s no guarantee that the retailer will survive.
“With the large retailers and probably more so with the small local businesses, there’s no certainty they will make it,” Steven J. Solomon, a locally-based managing shareholder at the law firm of Gray Robinson.
Survey: 69% Of Companies Plan to Shrink Office Footprint, Increase Remote Work
A new survey suggests working from home will be a permanent fixture of corporate life. Sixty-nine percent of corporate real estate professionals said their company will take up less real estate after spending time working from home, according to a CoreNet Global survey released Wednesday.
Investors who have like-kind exchange or opportunity zone deadlines between April 1 and July 15 now have a little more time to close their deals. The IRS issued new guidance Thursday night that granted all taxpayers, including “trusts, estates, corporations and other non-corporate tax filers” a filing extension until July 15.
The National Association of Realtors told its members the decision benefits investors who are involved in 1031 exchanges or opportunity zone investments.
Taking a hardball attitude with a landlord could backfire on the tenant.
As the coronavirus continues to wreak havoc on the US economy, commercial tenants and landlords around the US are engaging in conversations about rent relief. These are, to state the obvious, uncharted waters for many of these companies and they are feeling their way in how they handle these negotiations.
While the Fed cut rates again on Sunday, spreads have widened, meaning the cuts will have little impact on commercial real estate deals.
The Federal Reserve cut interest rates twice in two weeks in response to the impacts of the COVID-19 outbreak.
A creditworthy tenant with a certain degree of correction-resistance in its marketing strategy is a fairly sure bet to hedge against the vagaries of the greater market.
The coronavirus news gets scarier every day as the spread of the disease worsens.
Class B and C office buildings traditionally have trailed their Class A counterparts in adopting energy efficiency strategies and green leasing provisions, but they are also the asset class with the most to gain from these measures, according to a new research report by BOMA International, RMI, ULI and Yardi.