November 13, 2018
LD: What career path did you want to take when you were in college?
VB: I knew I wanted to be an entrepreneur and start a business some day (it was the heyday of Internet 1.0 after all!), however, there was no particular industry that grabbed my attention. I was just attracted to the idea of “doing deals”, creating something, and learning a lot. As a result, I decided to focus on investment banking or law so that I could get exposure to transactions and different industries, and ultimately elected to go to law school.
LD: What events in your career path brought you to your current position as CEO of Arbor Lodging Partners?
VB: Prior to starting Arbor Lodging, I was a real estate and private equity attorney with large law firms in New York. I worked with very talented colleagues and driven clients while getting exposure to complicated transactions, but that side of the business was not for me. Continue reading Spotlight Interview: Vamsi Bonthala, CEO Arbor Lodging Partners
October 10, 2018
Contributing Author: Chris Cunningham
It’s that time of year again. Summer went by too fast, winter is approaching too soon, and you need to know what should be done to prepare commercial properties for the coming months of cold weather.
You want to protect your investment from damaging freezing cold temperatures and snowfall. Before any threat of Frost, sprinkler systems should be blown out professionally to prevent any stagnant water left in the pipes from freezing and cracking pipes. If you skip this step you will be spending big bucks for repairs in the spring. Continue reading Winterizing Commercial Properties
September 05, 2018
Commercial Real Estate Portfolio Management Software has finally been made simple. After making a name for themselves with their residential analyzer software, the seasoned team at STRATAFOLIO have created a CRE Portfolio Management Software that communicates with other software, eliminating double data entry and mitigating the errors that come along with it.
We’re all familiar with the adage you can’t manage what you can’t measure. Although most people would agree with this statement, many companies jump through hoops putting measuring into practice. A vast majority of companies are not able to accomplish this even if they wanted to. If this is you, you are not alone. Measuring and monitoring for many commercial real estate organizations that manage real estate are complicated. An Altus report stated that nearly 78% of organizations worldwide use multiple software systems that don’t communicate with each other. This structure makes understanding global cash flow, asset performance, and overall expenses very hard. Continue reading Commercial Real Estate Portfolio Management Software that Cooperates with your Other Software
August 08, 2018
Contributing Author: Sean O’Shea
We are always told that ‘Asset allocation’ is critical to your Investment Portfolio. This is true for your real estate portfolio, too. NNN assets can play a role; but your selection criteria needs to be is more than, merely, debating cap rates, in our experience. We have stated in a number of prior Net Lease Blogs, “Not all Net Lease properties are the same”. This has never been more true.
The supply of these NNN properties has improved, significantly, since 2009-2010 Great Recession period; and we have a decade of low interest rates, the result of the Federal Reserve policies, with rates gradually moving upwards with rates increasing the margin of error due to very, very thin ‘spreads’. Cap rates going up; not down, as we have had the luxury of low rates in the last ten years. It covered a number of potential miscues…The Market is, now, changing; and extra care is required for best investor results. Continue reading How do NNN assets play a role, as a bond-equivalent investment, in an uncertain environment, like 2018-2019?
August 02, 2018
Contributing Author: William F. “Felton” McLaughlin – CCIM, SIOR
When is it time to start the time-consuming search for new office space? Typically that decision is driven by one or more of the following: an upcoming lease expiration date, space that’s either too small or too large for your current needs, and/or the desire to own vs. lease. Whatever the reason, there are some important things to consider as you head down the sometimes arduous path to finding new office space.
Time– The amount of time remaining on your existing lease term can either be an asset or a liability to you. Tenants that are not sweating out a lease expiration are less likely to be pressured by landlords looking for a quick commitment. So, it is imperative to start the process early before that expiration date starts to erode your negotiating leverage with prospective landlords.
Team– Have you picked the advisors you will need? A short list should include the following: Continue reading Do You Need Tenant Representation for Office Space?
July 10, 2018
Contributing Author: Jay Verro, CCIM
With the ever-changing landscape in the office leasing market, it makes sense for landlords to have an ever evolving 5-year plan. Generally speaking, office leases in the Albany MSA market are 3 to 5-year lease terms, often with matching length renewal options.
With corporate downsizing, company mergers, telecommuting and smaller office size requirements, there is an incredible amount of space options available to tenants. Landlords who do not recognize that fact along with those who lack the creativity to get a lease to the finish line will sadly end up with vacancies for an extended period.
While challenging to accept, landlords need to be informed that not every asset appreciates in value. Continue reading Timing Your Exit Strategy as An Office Landlord
April 17, 2018
Contributing Author: Jay Verro, CCIM
After a long winter in our region, most folks are eager for nicer weather. Take advantage of the nicer weather by taking a trip to your local Town or City Assessor’s Office. While mundane sounding, the effort could be well worth it when you get your property tax bill.
There isn’t a fixed percentage at which a property must be assessed at in New York State. Many communities rely on the state to provide something called an “Equalization Rate”. Each community determines its “Total Assessed Value” (AV) while the state determines the municipality’s “Total Market Value” (MV).
TOTAL AV ÷ TOTAL MV = EQUALIZATION RATE (ER) Continue reading Take a Closer Look at Your Commercial Property Assessment
April 10, 2018
Contributing Author: Chad Gleason, CCIM
It is not often that the State of Washington attends international real estate conferences, but with the incredible growth of the Greater Seattle Area and growing interest from international investors, Washington State made its debut at MIPIM 2018. MIPIM (Le Marché International des Professionnels de l’immobilier)is an international property, real estate development and investment event hosted annually in Cannes, France. From the official press release from MIPIM, there were over 26,000 real estate professionals, many city and political leaders, with well over 4,500 investors from over 100 countries, who came together for the 4-day event at the Palais des Festival, Cannes. They came to see, share and network with what the world has to offer in real estate investment and development. Continue reading Seattle, Washington goes to the Côte d’Azur / Seattle goes to MIPIM 2018
April 04, 2018
Contributing Author: Nick Miner, CCIM
It is amazing how fast the first quarter of each year always seems to fly by. It is a non-stop, press on the gas pedal type of quarter and 2018 was no different than 2017; well, maybe?
In looking back at total transaction velocity for Phoenix Metro in 2017, there was on average about 260 closings a month (office, retail, industrial, land, apartments, etc.). When you look at 1Q18, that number is about 192 closings a month; a net drop of almost 26% just in transaction velocity. This is before a deep dive into any one product class; just the macro look at transaction velocity.
There are several reasons that could go into the drop in transaction velocity with one of the main issues being tax reform and the debates leading up to the final product. The banter back and forth in Washington definitely had the investment markets captivated as to what would ultimately be passed. Continue reading 1Q18 Officially in the Books
Contributing Author: Sean O’Shea
We believe it is, in fact, helpful to have some historical sense of the evolution of the Net Lease Niche of the Real Estate Industry to have a better sense as to how these asset fit into the investment objectives of investors small and large in today’s maturing marketplace.
If you think about it, real estate, as an investment asset class, is a relatively recent development. It was always an entrepreneurial endeavor and was fueled as a worthy investment vehicle going back to the ‘mid-70’s and ERISA provisions, in those days total assets of private pension funds amounted to something like $164 billion dollars; today, of course, its in the “Trillions.” Continue reading A Net Lease Asset History Lesson