Matt Wilson, CBI, CEPA’s Post

📉 Big changes in the commercial real estate landscape! Recent data from Altus Group reveals that national CRE deal activity has dropped to its lowest levels since 2011. Amid ongoing market challenges, the office sector continues to stand apart. 🏢💼 https://ow.ly/KGoe50UcAgo #CRE #CommercialRealEstate #MarketTrends #CapitalConnect #eXpCommercial

📉 Big changes in the commercial real estate landscape! Recent data from Altus Group reveals that national CRE deal activity has dropped to its lowest levels since 2011. Amid ongoing market challenges, the office sector continues to stand apart. 🏢💼 https://ow.ly/KGoe50UcAgo #CRE #CommercialRealEstate #MarketTrends #CapitalConnect #eXpCommercial

Are you seeing priorities shift from quantity over quality in commercial real estate? I have been noticing this for a while, and I think it's great news! This recent article in the globe and mail add some interesting perspective to this transition: "In commercial real estate, tenants’ priorities are shifting from quantity to quality" https://lnkd.in/gkbJKVP6 #CommercialRealEstate #OfficeDesign #FutureOffice #HybridTeams

• Private capital and tenants have overtaken institutional investors as the main buyers of office properties, reflecting a shift in market dynamics since the COVID-19 pandemic. • The office sector’s share of real estate transactions dropped from 44% in 2007 to 17% in 2023, indicating a significant change in investment preferences towards industrial and multifamily properties.

🏢 Multifamily, Office Cap Rates Have More Room to Expand 📈 Cap rates, a key metric in commercial real estate, have been steadily rising over the past few years, indicating dropping property values and limited growth prospects. According to CBRE, this trend may continue, particularly for office and multifamily properties as noted in an article published today on GlobeSt.com. Here are the four estimation techniques CBRE used: 1. Historical Spread Analysis from 2010-2020: * Multifamily: 230 basis points * Office: 280 basis points * Retail: 320 basis points * Industrial: 340 basis points 2. Fair Value and Gordon Growth Model: * Office sector shows the furthest cap rate expansion potential. 3. Debt Service Coverage Ratio (DSCR) Implied Cap Rate: * Indicates office sector has room for higher cap rates. 4. REIT-Implied Cap Rate: * Office sector cap rate differs significantly from REIT-implied cap rate. CBRE suggests that office and multifamily sectors may see further cap rate expansion due to the changing dynamics post-pandemic, indicating potential distress and market weakness. https://lnkd.in/gtxTEpbE

Achieving success in commercial real estate investing requires a strategic approach, thorough research, and effective management. Here are four tips to help you succeed: 1. Conduct Thorough Market Research - Understand Local Market Trends: Study the specific market you’re investing in, including demand for different property types (e.g., office, retail, industrial), vacancy rates, rental rates, and economic indicators. This will help you identify opportunities and risks. - Analyze Comparable Properties: Look at recent sales and lease comparables to assess the value of potential investments and set realistic expectations for returns. 2. Diversify Your Portfolio - Property Types: Invest in different types of commercial properties, such as office spaces, retail centers, industrial buildings, and multifamily units, to spread risk and capture growth in various sectors. - Geographic Diversification: Consider investing in properties across different locations to mitigate risks related to local market downturns and economic changes. 3. Focus on Long-Term Value Creation - Value-Add Opportunities: Look for properties where you can add value through renovations, improved management, or re-tenanting. This can increase property value and rental income. - Sustainable Investments: Consider properties with green certifications or energy-efficient features, as these can attract higher-quality tenants, reduce operating costs, and appeal to future buyers. 4. Build a Strong Network - Collaborate with Experts: Work with experienced brokers, property managers, and real estate attorneys to gain insights and navigate the complexities of commercial real estate deals. We have over 50 years of expertise - Call Us Today (610) 444-7770 #cre #CREi #commercialrealestate #beilercampbellcommercial #realestate #commercialrealestateinvesting #investing #realestateinvesting

🏢 Current Trends in the Commercial Real Estate (CRE) Market: As we unpack Q1 2024, John Ricciardi, our Senior Subject Matter Expert at Built, dives into the latest from the Moody's Analytics CRE Q1 Preliminary Trend Announcement. It looks like the trends we saw last year are still making waves in the CRE market. Hybrid work models are continuing to reshape the office and retail sectors, but despite these changes, the overall CRE market is holding steady. Challenges & Opportunities: The commercial debt is expected to soar to $929 billion this year. Despite ongoing uncertainties, there are significant opportunities for innovation and reimagination in the market. Success will depend on the ability to integrate across sectors and adapt to these evolving trends. Sector-Specific Insights: Multifamily: Delays in multifamily projects persist, primarily due to economic and financing challenges. Although asking and effective rents have seen a slight decline, the market is beginning to stabilize. Office: The vacancy rate has hit a record 19.8% as the shift towards hybrid work continues to influence demand. This trend is also causing a slight drop in effective rents, indicating minimal or negative rent growth. These data points highlight the dynamic nature of the CRE market and underscore the importance of staying informed and adaptable. At Built, we're committed to providing innovative solutions that help navigate these complexities. Connect with us to learn how our tools can enhance your CRE strategies and keep you ahead in this changing market. #CommercialRealEstate #RealEstateTrends #MarketInsights #CRE #Built

CRE Updates Office and Multifamily Sectors Lead Recovery: The U.S. commercial real estate market saw a notable recovery in Q3 2024, with office sales increasing by 13% year-over-year (YoY) and multifamily sales growing by 9% YoY. Retail and Industrial Performance: Retail sales declined by 27% YoY, while industrial sales remained steady with a 7% price increase. Alternative Sectors Growth: Alternative sectors now represent 37% of the U.S. CRE market, valued at $9.9 trillion, indicating a shift towards diversification. Significant Transactions: Notable deals include Waterton's $155.8 million purchase of suburban Boston apartments and Eagle Property Capital's $82.6 million acquisition in Florida.

The SF Bay Area’s commercial real estate market is seeing a surge in private investor activity. With institutional players pulling back, private investors are capitalizing on opportunities in multifamily housing, retail, and industrial spaces. Their local expertise and long-term focus are reshaping the market, proving that agility is key in today’s evolving landscape. How are you positioning yourself to thrive in these changing times? Are you agile enough? DM to explore opportunities. #BayAreaRealEstate #CREInvesting #MarketTrends #SanFrancisco #CRENews

As the commercial real estate landscape shifts, IRR offers a fresh perspective on where the market is headed in October 2024's Midwest Real Estate News published by REjournals. IRR's CEO, Anthony M. Graziano, shares insights into the sector’s resilience, despite high interest rates and rising construction costs. Anthony notes, “Our analysis highlights key trends such as adaptive reuse in the industrial sector, resilience in multifamily markets, and evolving office dynamics as the industry adjusts to new work patterns.” This article highlights national property trends and investment metrics from IRR's 2024 Mid-Year Viewpoint Report, covering office, multifamily, retail, and industrial markets. From elevated vacancy rates in office spaces to strong demand driving growth in industrial properties, the commercial real estate sector is responding to market shifts with flexibility and strength. For a closer look at what’s driving the future of CRE, read the full article in Midwest Real Estate News: https://lnkd.in/eWakuWVM #CommercialRealEstate #CRE #IntegraRealtyResources #MarketTrends #MidwestRealEstateNews #2024MarketOutlook #RealEstateInsights