Telecommuting or remote working enabled by technology and online access has long been a commercial real estate market worry. The phenomenon of employees skipping on commutes and avoiding distant offices has raised fears of a softening national demand of office space since at least 1996. As reported by Global Workplace Analytics, regular remote working at home among the non-self-employed population has grown by 103% since 2005.
The commercial real estate data ecosystem is an exciting place where study of routine market phenomena promises to expose new knowledge and improve our perception of market trends. When it comes to routine phenomena in the CRE industry, construction permitting and construction abandonment are great examples. Abandoned construction can follow permit issuance, even though issuing a permit reflects a milestone in a commercial property development where forward-looking diligence, commitment and optimism on the part of the underwriters, the developer and local government are all at high enough volume to actually break ground on a project. What can the data on construction permitting and abandoned construction show us about that area?
Today’s guest post is by Steve Golin, SVP, Strategic Accounts at Xceligent.
The 2016 election season bought another crop of nine states joining Colorado, Washington, Oregon, Alaska and Washington DC in approving recreational and medicinal marijuana sales at the retail level. While the growth and occupancy of storefront retail establishments is the most conspicuous sign of a burgeoning industry, the behind-the-scenes marijuana real estate uses of cultivation, manufacture and processing have proven to be the most impactful on the supply of industrial real estate in markets where cannabis has been legalized.
The Las Vegas Raiders stadium land deal has crossed a major milestone. On May 2, 2017, the Associated Press was the first to report the activation of a sale deed for a 60+acre site near the Strip in Las Vegas for the construction of a stadium to house the NFL franchise Oakland Raiders when the team completes its move to Las Vegas in 2020.
The food desert is that stretch of town or region where no grocery stores are operating, forcing residents into leaving the area to shop for basics, or worse, subsist on junk food for lack of better choices. In social and health terms, food deserts are a serious problem, but in economic terms they can represent commercial real estate opportunity. CRE investors seeking to profit from filling local needs can do much worse than finding highly populated areas that are underserved by grocery stores. These areas cry out for the development of food stores to fill the gap. Tools to find these areas are very helpful for acquisition and site selection – but where can one find these tools?
Earlier this year, we looked at Cincinnati’s new Amazon air hub. One quarter on from that Cincinnati warehouse announcement, what is the wider economic picture for logistics and warehouse property in “Blue Chip City”?
According to Xceligent’s 1st Quarter Industrial Market Report for Cincinnati, unemployment fell to 5% in January of this year. Coming along for the ride on the wave of economic good news are two markets: Cincy’s industrial and office property markets. When people go to work, you generally have to put them somewhere, and that’s where Cincinnati’s expanding options in industrial and office property come in.
The Federal Reserve Beige Book, the national summary of the economy as published eight times yearly by the Federal Reserve Board arrived April 19. What’s the commercial real estate national market picture at-a-glance? Here’s an executive overview by district.
The real estate investment trust (REIT) is an investment vehicle with a particular sensitivity to borrowed capital. REIT risk tied to capital source is heightened because the legal structure of a REIT is centered on distributing the vast majority of its earnings to shareholders. This means the REIT is prevented from holding back significant capital reserves, which in turn means it must borrow to finance its acquisitions and operations. That borrowing takes the form of credit from bondholders and from banks.
US Attorney General Jeff Sessions has gotten to work on clarifying the US Department of Justice’s posture on legal marijuana. The move couldn’t come sooner for the commercial real estate industry supporting this growing sector of the economy.
The enforcement of federal marijuana laws in the face of legalization by 29 states is of considerable concern to commercial real estate markets; based on the latest wave of state legislation passed, nearly 1 in 5 Americans now have access to state-legal marijuana, a figure that encompasses a whopping 68 million people.