An empty office building doesn’t have to remain an office building — and an old supermarket doesn’t have to continue to house groceries. As the needs of communities evolve, the way people use older buildings can also evolve. Repurposing commercial real estate gives you the opportunity to revitalize an older building and breathe new life into a neighborhood or town.
Is the Retail Apocalypse – Fact or Fiction?
If you read the headlines, you would believe the Retail Apocalypse is imminent with announcements seemingly each week of new store closures. In fact, earlier this year, we posted a story called Retail Store Closures Pick Up Speed, Says Report based on a report by Fung Global Retail and Technology Tracker. But a new report by IHL Group entitled Debunking the Retail Apocalypse provides an alternative perspective. Their research shows that retailers and restaurants are planning to open 14,248 locations in 2017 compared to 10,168 announced closures. A net increase of more than 4,000 new stores is a very different story than what is captured in the headlines. And the projections for 2018 are even stronger with more than 5,500 openings projected.
Today’s guest post is by Dave Morris, CCIM, Sales Executive with Xceligent and former president of St. Louis CCIM, SIOR, Missouri Commercial Realtors, and St. Louis Commercial Realtors chapters. Connect with David on LinkedIn: DavidMorrisCCIM
CRE Brokers’ Ingredients to Success
What do top producers do differently than average brokers? They adhere to a discipline of hard work, market knowledge, and relationships.
Big mergers, global buyers desire one-stop-shopping, industrial pricing may be at its peak, Wal-Mart shrinking, Apple’s fresh look, booming multi-family market — and more. It’s all here at the Commercial Real Estate National News Roundup for September 8, 2015.
- Cushman & Wakefield Takes Historic Leap Forward, Commercial Property Executive, September 3, 2015 – Consolidation continues to shake up the CRE industry.
- The Cloud’s Impact on CRE is Clear, GlobeSt.com, September 1, 2015 – Construction pipeline for data centers surges.
- How the Global Economy is Affecting US CRE, GlobeSt.com, August 31, 2015 – Lower oil prices coupled with few jobs overseas cause investors to continue to be bullish on the US property market.
- Top Tech Cities in U.S. Commanding Hefty Office Rent Premiums, World Property Journal, September 2, 2015 – Opportunities for CRE investment trending way up in markets that command up to an 87% rental premium.
- It’s Not About Where You Do the Work, GlobeSt.com, September 2, 2015 – Productivity trumps location for many in today’s office market.
- The Most Dominant Office Market Trend, GlobeSt.com, August 31, 2015 – Tenants are expanding and bringing out of state divisions to the Tampa office market.
- Hot Baltimore-Washington Corridor Industrial Market Sees Another Sale, Commercial Property Executive, September 4, 2015 – Investors rush to buy property in industrial “promised land”.
- NY Investor Grabs East Baltimore Industrial Site, Commercial Property Executive, September 2, 2015 – Existing tenants make acquisition very attractive.
- Industrial Pricing Heads Toward Peak, GlobeSt.com, September 1, 2015 – Sales activity for industrial properties approaches 2007 high.
- Can Wal-Mart Support 5,200 Stores?, 24/7 Wall St., September 4, 2015 – Will Wal-Mart’s empire expand or decrease in 2016?
- Apple Stores are About to Change in this Huge Way, Fortune, September 2, 2015 – Apple stores to get a fresh new look soon.
- Retail Development Picks Up in Louisville, GlobeSt.com, September 2, 2015 – National retailers flock to the I-65 corridor in Louisville’s metro area.
- High Walk Score Makes MF Stand Out, GlobeSt.com, September 4, 2015 – Value-added properties that offer high walkability and family fun are very desirable in suburban areas.
- The Latest on Rent Growth, Commercial Property Executive, September 1, 2015 – Multi-family rent growth holding strong, but volatile international stock market may trigger a cooling soon.
- Steady Hiring Favors Multifamily, GlobeSt.com, August 31, 2015 – Consumer confidence and a record number of 20 somethings in the market drive multifamily income opportunities.
- The Largest Company in Each State (247wallst.com)
- ‘Game-changing’ $2B deal to merge Cushman & Wakefield, DTZ complete (bizjournals.com)
- Commercial Real Estate News Roundup For August 31, 2015 (commercialsource.com)
More women needed in CRE, Orlando retail and office buildings are in great demand, industrial market strong in Kansas City and more. It’s all here at the Commercial Real Estate Real Estate Roundup for August 10, 2015.
- How Can CRE Industry Attract More Women?, GlobeSt.com, August 5, 2015 – Miami CREW builds network for women.
- Commercial Mortgages Rise 29% Y-O-Y, GlobeSt.com, August 4, 2015 – Going strong with the commercial mortgage rate rising 16% quarter to quarter.
- U.S. Construction Spending Climbs 0.1% in June, Market Watch, August 3, 2015 – Yes, 0.1% in residential, but flat in non-residential and commercial building.
- Orlando Retail and Office Spiking, GlobeSt.com, August 7, 2015 – According to commercial real estate brokerage firm, Marcus & Millichap job growth will be up in Orlando by 3.9 % this for a total of 44,000 more jobs.
- 5 Secondary Office Markets to Watch, National Real Estate Investor, August 7, 2015 – Real estate services firm, JLL reports office property sales were up 19.6 % this last year with Q2 2015 being the best quarter since the downturn of 2008.
- 5 Takeaways from Half-Year Office Sales Performance, National Real Estate Investor, August 3, 2015 – First half of 2015 shows 400% gain in sales in two secondary markets, Raleigh/Durham, N.C. and St. Louis, MO. according to New York’s RCA a data and analytics company.
- Industrial Developers Confident but Careful, GlobeSt.com, August 5, 2015 – Kevin Matzke with Clarius Partners reports ground will be broken for more large industrial space in Chicagoland in 2016.
- Kansas City Industrial Market Surges, GlobeSt.com, August 4, 2015 – Bureau of Labor Statistics reports a healthy outlook for Kansas City industrial employees this coming year.
- Who’s Opening and Closing Stores?, National Real Estate Investor, August 6, 2015 – Bed, Bath And Beyond looking fluffier as time goes on, while old-line grocery names are drooping.
- Retail Investors Prefer Coastal Markets, National Real Estate Investor, August 6, 2015 – The water brings the commerce, the commerce brings the customers.
- Retail is ‘A Big, Interconnected World’, GlobeSt.com, August 5, 2015 – JLL’s Leasing board welcomes a new expert.
- U.S. Builders Remain Optimistic about Senior Housing Market, World Property Journal, August 7, 2015 – The demographic truth behind the graying of the baby boomer generation has groundbreaking consequences.
- New Trends in MF Rental Patterns, GlobeSt.com, August 4, 2015 – Handling the disruption to decades-old patters of suburban migration is an apartment market near you.
- How Multifamily Developers Can Do Well and Do Good, BISNOW, August 3, 2015 – Why do good when you can do well AND do good? Well, you can do both. Which is good.
- Commercial Real Estate Roundup For August 3, 2015 (commercialsource.com)
Like-kind exchanges get a census, Q2 sales slump, office construction booms in ten markets, an intergovernmental turf war, and what does $12 million get you in Milwaukee? It’s all here at the Commercial Real Estate National News Roundup for August 3, 2015.
- Jim Mc Shane Shares His Thoughts On The Next Generation Of Leaders – REJournals, July 31, 2015 – A giant in spec buildings and leasing muses on the state of leadership.
- Like-Kind Exchanges: Highlights from Arizona -NAR, Economists’ Outlook Blog, July 31, 2015 – NAR article counts some 1031 exchanges and comes up with some interesting figures.
- Sales Growth Slow in Second Quarter – GlobeSt.com – July 27, 2015 – Is lower volume due to higher CAP rates, concern over potentially rising interest rates or something else?
- The 10B Real Estate Class : Lessons from the Case of WeWork – Coydavidson.com – July 30, 2015 – Shared office space matchmaker company snags giant valuation – Coy Davidson muses on the fallout.
- Top ten US markets for office construction from Len Rockwell – Lllenrock.com – July 29, 2015 – Raleigh at number ten and Houston at number one. Where is your market?
- 15 Years for Mega Office Leases – GlobeSt.com – July 30, 2015 – What starts with AutoTrader and ends with Google?
- Cincinnati Industrial Market Hits Historic Low – GlobeSt.com – July 31, 2015 – Just like the Cincinnati Reds 2015 baseball season, industrial markets in the Queen City are similarly slumping.
- Biotech Real Estate Boom Shows No Letup – GlobeSt.com – July 29, 2015 – Biotech growth reaches many corners of the country, says Boston conference.
- Twin Cities Industrial Market Accelerates – GlobeSt.com – July 29, 2015 – Minnesota’s submarket leads industrial growth with 90% new construction in bulk warehouse facilities.
Grandbridge Real Estate Capital Closes $8million Loan for Minnesota Apartment Complex – REJournals.com – July 30, 2015 – Minnesota apartment deal comes in with $8 million in insurance dollars.
Why You Shouldn’t Worry (yet) That Developers Are Bringing Too Many Apartment Units To Your City – ReJournals.com – July 31, 2015 – Apartment markets not saturated yet, says July Matrix survey.
Office of Inspector General Challenges HUD Policy Regarding Public Housing For Over-Income Families – JDOffice of Inspector General challenges HUD, intra-governmental turf war results.
- National Spotlight: Walmart Announces New Small-Footprint Stores in St. Louis – Llenrock.com – August 1, 2015 – Wal-Mart, The largest employer and retailer in the US gets small.
- App-less mobile tool strives to engage shoppers, boost traffic and sales – Retailcustomerexperience.com – July 31, 2015 – Exciting shoppers with apps in a marriage of brick and click.
- Marcus & Millichap sells Wisconsin department store for $12 million– REJournals.com – July 29, 2015 – What does $12 million get you in Milwaukee? Why, a shopping mall, of course.
Seniors, minorities and millenials push multifamily growth, industrial markets looking very healthy, more companies are moving their headquarters to urban centers, Class B housing on the rise for working class families and more. It’s all here at the Commercial Real Estate National News Roundup for July 27, 2015.
CRE markets look strong for the near future, Google considers move to an abandoned shipyard, Fannie Mae helps low income families secure units in multifamily properties, retail struggling during tough Q1 and more. It’s all here at the Commercial Real Estate national news roundup for June 22, 2015.
- Commercial Real Estate Forecast after the Fed Tightens, Forbes, June 18, 2015 – CRE investments look strong for at least the next two years.
- RealtyMogul.com Transforms CRE Capital Markets, Commercial Property Executive, June 16, 2015 – Impressive–RealtyMogul.com reels in a quarter billion dollors in commitments in their first two years.
- Five Commercial Real Estate Market Trends You Can Bank On, National Real Estate Investor, June 15, 2015 – Find out if the bull will run away as the rates rise or will e-commerce drive away more retail outlets first.
- Investors Real Estate Trust (IRET) Agrees to Sell Nearly All of Office Property Portfolio, Street Insider, June 18, 2015 – IRET sells off 39 office properties and set its sites on a new mixed use project.
- EXCLUSIVE: Google Eyes S.F.’s Hunters Point Shipyard for Future Office Space, San Francisco Business Times, June 15, 2015 – Will Google take over former Candlestick Park site leaving Silicon Valley behind?
- Denver’s River North Real Estate Market in “Feeding Frenzy”, The Denver Post Business, June 16, 2015 – Record setting 40 million dollars in property change hands in past 90 days.
- 8 Best Markets For Industrial Real Estate, National Real Estate Investor, June 17, 2015 -Strong opportunities for growth across the U.S.
- Retail Sector Has a Tough First Quarter, Faces Longer-Term Obstacles, National Real Estate Investor, June 18, 2015 – Retail environment is ripe for vacancy compression and rent growth.
- “Living Services” Promises To Radically Change Retail-Consumer Interaction, Retail Customer Experience, June 19, 2015 – Deep dive into real time data aims to improve customer satisfaction.
- Freddie Mac Helps Preserve Low-Income Rental Housing by Purchasing $215 Million Loan for Harbor Point in Boston, CNN Money, June 19, 2015 – Here’s good news—roughly a third of the mixed income units will be available for low income families.
- MacArthur Impact Investments Help Advance Energy Efficiency Financing for Multifamily Housing, RealEstateRama, June 16, 2015 – $31 million dollars on the way for energy efficient improvements for the multifamily market
Bringing an objective, research-oriented approach to issues in commercial and residential real estate is Counselors Of Real Estate (CRE), a group whose advisors deliver unbiased and trusted advice to clients and employers. Sporting a CRE designation before the NAR Expo 2014 this morning was David Lynn, CEO of Everest High Income Property who sought to sum up the entire coming year in a list of ten issues affecting the real estate marketplace for commercial as well as residential.
Mainland China’s investors have hiked their rates of investment into US primary commercial real estate markets. Eclipsing rates of investment by Malaysia and Hong Kong for the first time, the Chinese mainland has for the first time sourced more capital for US CRE deals than its Asian neighbors and shows no signs of backing off.
Driving the trend in part is China’s insurance industry, which has experienced explosive growth in the 21st century. The risk business in China is one of the clearest examples of capitalism’s power to reshape expectations. In 1999, China’s then $10 billion in life insurance premiums took a mere seven years to grow to $46 billion, and the industry is still considered in its infancy. Fed by IPOs and joint ventures with foreign insurers (such JVs having been prevented by government regulation before China’s adoption of the World Trade Organization (WTO) frameworks), the actuarial arts are now an eye-popping feature of the Chinese economy.