The Building Owners and Managers Assocation (BOMA) International has just announced the updated version of their groundbreaking BOMA Energy Performance Contracting (BEPC) Model to incorporate new best practices into building maintenance. BEPC was originally created in 2008 by BOMA International in a partnership with the Clinton Climate Initiative (CCI), several major real estate companies and energy service companies (ESCOs).
- Lenders Hungry for Commercial Real Estate Deals, Investors.com, June 11, 2015 – Vacancies are down and rents are rising which could mean high returns.
- What’s Really Driving Sustainability?, Commercial Property Executive, June 9, 2015 – Rosier outlook from Q1 to Q2 due to unexpected boost in corporate responsibility.
- Could This Project Transform the Industry?, GlobeSt.com, June 9,2015 – Ambitious project in Atlanta heavily factors in the human experience – not just the building’s aesthetics and function
- The $5 billion question: Will WeWork survive the next downturn?, The Real Deal, June 10, 2015 – Is their current valuation of five billion dollars and trendy business model sustainable?
- Trophy Offices Open Up Historic Rent Gap, GlobeSt.com, June 9, 2015 – Most costly and desirable office space costs 77% more than market rate.
- Builders Debate Merits of Raising Ceilings for Warehouses, The Wall Street Journal, June 10, 2015 – Ceilings soar to 40′ to satisfy market, but is the extra space being use?
- On Leasing to Unconventional Tenants, GlobeSt.com, June 8, 2015 – Creative use of industrial space could require zoning changes.
- Fast-Casual Restaurants Take Over Retail, GlobeSt.com, June 12, 2015 – Restaurants are anchoring shopping centers due to a rise in people dining out more.
- Malls Are Adapting, Not Dying, BISNOW, June 9, 2015 – Vacancies flattened in 2014 while at least some shoppers tend to prefer brick and mortar.
- In Orlando, Keyword is Urbanization, GlobeSt.com, June 12, 2015 – The need to be more connected drives shift to residences in urban settings.
- The Top 10 Multi-Family Markets, Commercial Property Executive, June 10, 2015 – Southern states dominate growth in multi-family building’s construction.
Multi-family drives market nationally, 65 percent increase in loan origination nationally, industrial is industrial-strength and top multifamily amenities capture the imagination – it’s all here in the Commercial Real Estate News Roundup for June 8, 2015.
- Recovering CRE Market Keeping Commercial Lenders Busy REJournals.com, June 5, 2015 – Multi-family financing is driving the midwest commercial real estate market with more renters plus rents on the rise.
- How Low Oil Prices Could Benefit CRE GlobeSt.com, June 4,2015 – Low prices will affect various property segments, especially energy dependent locations over the next several years. Not all the news is great.
- 10 Markets with Biggest Increases in Construction Loans National Real Estate Investor, June 4, 2015 – There’s been anywhere from 10 to 65 percent increases in loans originated in the ten strongest construction loan markets across in the U.S.
- Assemble Shared Office Growing Nationwide GlobeSt.com, June 4, 2015 – Roughly 20,000 square feet of flex rental office space to be opened at Assemble’s new Minneapolis location in the north end of downtown.
- US Office Costs Increase Amid Global Decline, GlobeSt.com, June 2, 2015 – DTZ’s “18th Annual Global Office Thermometer”shows a 4.8 percent increase in cost of occupancy in the U.S.
- Industrial Shows No Danger Signs Ahead, GlobeSt.com, June 4, 2015 – “No danger signs on the horizon.” says Jim Carpenter, Executive Director at Cushman & Wakefield.
- The Recession-Proof Sector, Commercial Property Executive, June 3, 2015 – Self-storage real estate investment trusts (REITs) do well in an up economy and a down economy.
- Investors Pressure Macy’s to Sell Real Estate, BISNOW, June 4, 2015 – Macy’s could sell and lease back some of the 447 stores Macy’s owns across the U.S. stores.
ell and lease back more of its major stores, a strategy that has been employed by other major retailers.Read more at: https://www.bisnow.com/national/news/retail/investors-pressure-macys-to-sell-real-estate-46498?utm_source=CopyShare&utm_medium=Browser
- “Perfect Storm” Driving Up Retail Assets, GlobeSt.com, June 1, 2015 – An aggressive market driven by retail that is anchored by grocery stores such as Trader Joes’s and Mariano’s is driving prices up and cap rates down per driving prices up and cap rates down whenever well-located product hits the market. (Requires registration).
- City Needs More Multifamily Development, GlobeSt.com, June 3, 2015 – Urban Land Institute’s recent presentation in Los Angeles sites more multifamily development needed with affordable housing and creative use of densely populated spaces.
- This Firm is Winning Emerging Multifamily Markets, GlobeSt.com, June 3, 2015 – Indoor-outdoor space, rooftop decks, pet-friendly amenities top the list among the elements desirable in apartment development during “Multifamily Momentum” panel at RealShare San Diego.
NAR’s latest —Commercial Real Estate Outlook offers overall projections for four major commercial sectors and analyzes quarterly data in the office, industrial, retail and multifamily markets. Historic data for metro areas is provided by REIS Inc., a source of commercial real estate performance information.
Office vacancy rates are forecast to slightly decline from 15.7 percent in the fourth quarter to 15.6 percent through the fourth quarter of 2015.
The markets with the lowest office vacancy rates in the fourth quarter are Washington, D.C., at 9.3 percent; New York City, 9.6 percent; Little Rock, Ark., 11.6 percent; San Francisco, 12.2 percent; and Seattle, at 12.8 percent.
Office rents are projected to increase 2.4 percent in 2014 and 3.3 percent next year. Net absorption of office space in the U.S., which includes the leasing of new space coming on the market as well as space in existing properties, is likely to total 35.6 million square feet this year and 48.8 million in 2015.
Industrial vacancy rates are expected to fall from 8.8 percent in the fourth quarter to 8.4 percent in the fourth quarter of 2015.
The areas with the lowest industrial vacancy rates currently are Orange County, Calif., with a vacancy rate of 3.6 percent; Los Angeles, 3.7 percent; Seattle, 5.8 percent; Miami, 6.0; and Palm Beach, Fla., at 6.5 percent.
Annual industrial rents should rise 2.4 percent this year and 2.9 percent in 2015. Net absorption of industrial space nationally is expected to total 110.7 million square feet in 2014 and 102.5 million square feet next year.
Vacancy rates in the retail market are expected to decline from 9.7 percent currently to 9.5 percent in the fourth quarter of 2015.
Currently, the markets with the lowest retail vacancy rates include San Francisco, at 3.5 percent; Fairfield County, Conn., 3.9 percent; San Jose, Calif., 4.6 percent; Orange County, Calif., 5.2 percent; and Long Island, N.Y., at 5.3 percent.
Average retail rents are forecast to rise 2.0 percent in 2014 and 2.5 percent next year. Net absorption of retail space is likely to total 11.4 million square feet this year and jump to 18.9 million in 2015.
The apartment rental market – multifamily housing – should see vacancy rates slightly increase from 4.0 percent currently to 4.3 percent in the fourth quarter of 2015. Vacancy rates below 5 percent are generally considered a landlord’s market, with demand justifying higher rent.
Areas with the lowest multifamily vacancy rates currently are Orange County, Calif., and Sacramento, Calif., at 2.2 percent; Providence, R.I., and New Haven, Conn., at 2.3 percent; and Hartford, Conn., at 2.5 percent.
Average apartment rents are projected to rise 4.0 this year and 3.9 percent in 2015. Multifamily net absorption is expected to total 216,300 units in 2014 and 171,200 next year.
An Atlanta transit landlord goes vertical, avoiding the perils of studying the wrong thing, and Chicago’s River North celebrates its fifth decade of renewal. Its’ all here in the Commercial Real Estate News Roundup for Sept. 17, 2014
The commercial real estate crowdfunding space gets…crowded, prime office space in Chicago fetches prices high enough that some are using the dreaded “b”-word, and speaking of high, what’s above your retail ceiling? It’s all here in today’s commercial real estate news roundup.
The NAR Commercial Forecast is out, and the news is good. With multifamily leading the pack, all sectors of commercial real estate have seen improvement in growth, lending and starts. The NAR news release reads:
The outlook for all of the major commercial real estate sectors is slightly improving despite disappointing economic growth during the first quarter of 2014, according to the National Association of Realtors® quarterly commercial real estate forecast.
I’ve written here before about the phenomenon of crowdfunding in the commercial real estate market. A fast-growing new source of investment capital enabled by a last year’s relaxation of SEC regulations, crowdfunding in commercial property might conjure up images of a “wild west”-style marketplace, where dubious solicitations sent to any Tom, Dick or Harriet hide giant risks, buried in promises of glittering payoffs announced over a bullhorn to whoever shows up to participate.
As it turns out, that would be the wrong image, at least in one case. Reaching out to the crowd for capital can go hand in hand with prudence, caution and expertise, as exemplified by a recent equity deal financing a 62,000 sq. ft. shopping center outside of Kansas City.
- A Murky Real-Estate Market Comes into Focus, WSJ, Dec. 17, 2013 – Wherein FINRA proposes new reporting rules for “untraded” REITs.
- Chinese buyers develop a taste for US commercial property, Reuters, Dec. 20, 2013 – 2013 saw an over six-fold increase in Chinese investment in US commercial property.
- An Industry Revived: Commercial Real Estate in Nevada, Nevada Business, Jan 2, 2014 – Unfinished resorts getting second lives as the Sagebrush State stages a commercial real estate recovery
- Top 10 Commercial Real Estate Moments of 2013, NREI, Dec. 31, 2013 Hilton’s IPO, UBS snags Water Tower in Chicago and Pershing Square Capital pinched by JCPenney.
- Denver Real Estate Booms as Slopes Beat NYC Bustle, Investors Business Daily, Jan. 1, 2014 – Downtown Devnver’s mile-high renaissance given the spotlight
Once again the 2013 REALTORS® Conference and Expo is right around the corner. November 8-11 in San Francisco’s Moscone Center is where this year’s commercial real estate practice program is running to keep you up to date on the sector’s many trends, tools and tactics for success.
This year includes a session on auctions featuring a very unique pair of perspectives. It can pay off to go beyond the usual listings and put in the work to find jaw-dropping bargains on all kinds of commercial property in all its sectors – land, office, retail, industrial, multifamily and specialty. All find themselves on the auction block, and most are priced to move. But finding the information about auctions in the commercial sectors is comparatively more difficult than in residential real estate. Unique processes, customs and law apply, and all the complicating factors that come with commercial property transactions aren’t any less prevalent in the auction arena.