To fully understand and thrive in commercial real estate one has to understand much more than the simple “bricks and mortar” that make up a building. A successful commercial real estate broker (developer, investor, or lender) wears many hats and should have knowledge across a variety of different industries and disciplines.
An in-depth analysis of the private student housing market at University of North Carolina conducted by Triad Real Estate Partners. Triad Real Estate Partners concentrates in private student housing and multi-family real estate brokerage. Triad Real Estate Partners’ research team compiles in-depth student housing market research reports on leading Universities in the United States.
Total Enrollment: DOWN 0.86%
Fall 2018 saw Florida State’s total enrollment decline for the third time in the past four years, although none of the decreases accounted for more than 1% of FSU’s roughly 41,000 students. Between 2000 and 2010, enrollment at FSU grew from 33,951 to 40,416 – an increase of 19.04%. The subsequent eight fall semesters have been essentially stagnant. Since fall 2011 total enrollment has oscillated, though always landed between 40,600 and 41,400.
Contributing Author: William F. “Felton” McLaughlin, CCIM, SIOR
When it comes time to sell a commercial property that sits in a challenged location, the first course of action for a seller and/or the listing broker should not be to wonder about the size of the discount that should be placed on the valuation of the property. Rather, focus your efforts on all characteristics of the property that are either unique or offer some sort of competitive advantage. If you can identify how these unique features benefit the user, you can market the challenging property more effectively.
As the recent sale of a veterinary medical office building will show, we discovered some unique property attributes that helped the seller achieve a sale price close to the asking price.
There has been a lot of discussion, recently, in broader investment circles, that we have come through ten years since the “Great Recession of 2008-2009,” and that some scale of a Recession is on the horizon, whether Q4 2019 or mid 2020, which suggests, a round of “defensive investing” may be in order.
Having come through this period of historically compressed cap rates (higher prices) across all asset classes, none has been more pronounced than the NNN retail sector of the real estate investment industry.
Immediately after the Great Recession, when debt sources were becoming more diverse, both debt and equity were available, in abundance, in the multi-family or recycled housing sector, since you had a new captive audience of former home owners (newly created renters) who, in some markets, actually rented their own prior homes from their new hedge fund landlords, who had swooped in and bought up bank REO assets en masse in certain markets like Phoenix.
Commercial property owners who lease out their buildings to others have multiple choices when designing the lease. Even after the lease is designed, further consideration must be taken to determine the execution of the designed lease.
In the event a commercial property owner has chosen to utilize a triple net lease with their tenant, the next choice to be made is how to handle taxes, maintenance, and insurance costs. The landlord has two options: 1) purchase their own insurance and pass through the cost of the policy to the tenant or 2) to allow the tenant to purchase their insurance directly.
As we kick off a new year, we are always looking for ways to improve our brokerage services and provide the best possible experience for our clients. In 2019, we will be focusing on numerous things to continue being the best commercial real estate brokerage we can be. Setting guidelines and goals can help balance your calendar, while increasing your success and happiness throughout the year.
As many much smarter ‘guys’ than me (and smarter women, too) are reviewing the last year; and struggling with Forecasts for 2019, at this time, there has been a lot of discussion about Fed Policy on rates and their impact.
We think some useful language, is to characterize ‘asset bubbles’ or the asset inflation that these policies may have created as a real thing. Actually, many are referring to this period as the ‘Bernanke-Yellen Asset Inflation’ period.
Wow, another year is coming to an end already! Time to start wrapping up year end closings, preparing for the holidays and looking ahead to 2019.
2018 proved to be the year of the Fed Rate Hikes! While rate hikes have been predicted for several years, they occurred this year. By comparison, the Fed Fund Rate was 1.0% in Q12017 and 1.5% in December 2017. In 2018, the first 3 quarters saw 0.25% increases with another 0.25% increase anticipated this month. It’s realistic that we’ll end 2018 at 2.5%. Many are forecasting another 0.5% increase in both 2019 and 2020, while others forecast a potential reversal in the continued upward rate trends.
As a commercial real estate (CRE) broker or salesperson, you may operate as part of a group, however, you are also an independent contractor, and in many ways, operating your own business. This means you should be developing a marketing strategy of your own, in conjunction with your firm’s marketing plan, to help you grow your personal brand, get more listings, and become a leader in your market and/or area of specialization.
There are many great tools available to help business owners leverage technology, and this is equally true for marketing yourself, growing your brand, and measuring your efforts.
Here are some tools you might want to consider adding to your toolkit.
Water can cause some of the most extensive damage to commercial buildings. Knowing this, many business owners would like coverage in the event that their building is damaged by water. However, business owners would be surprised to learn that most commercial policies do not provide coverage for water/sewer backup or for traditional flooding. Sometimes these coverages can be provided by endorsement to the commercial property policy, while other times a separate policy will need to be purchased to provide coverage.
To begin, it’s important to define the terms and understand the difference between the two causes of loss: