Foreign Investment in U.S. Commercial Property Drops Almost 50%

(Bloomberg)—Foreign investment in U.S. commercial real estate plunged in the first half of 2019 as signs of a global economic slowdown made buyers more cautious. Deals totaled $16.9 billion, down from a record $32.7 billion in the same period last year, according to a report by CBRE Group Inc. Much of the decline was in spending on large mergers and …

Lenders Won’t Cover Rising Construction Costs on Multifamily Projects

Low interest rates are not enough to make up for the rising cost of construction on new apartment building projects. “The drop in interest rates will not make a bad project look good,” says Matthew Swerdlow, director of capital services for Ariel Property Advisors, a real estate and advisory services firm based in New York City. “If it didn’t work …

How Today’s Rental Property Owners Can Prepare for Marijuana Legislation

Ten years ago, there were only 13 states in the U.S. with laws allowing medical marijuana use and zero allowing recreational use. By the end of 2018, 33 states and Canada had legalized medical marijuana and 10 of these states allowed recreational use. These figures are continuously on the rise as legislation is passed in more states and municipalities. At …

6 ways to close your commercial real estate deal faster

Two weeks ago in this space, I discussed the reasons a commercial real estate deal was taking so long to close. As promised, today I will discuss ways to close your commercial real estate deal faster. Our discussion two weeks ago focused on several areas that I will use as a framework for today’s conversation. Search: Before you search, give …

Apartment Sector Cap Rates Take a Slight Dip in First Half of 2019 | National Real Estate Investor

For years, apartment experts predicted that yields on investments in apartment rental properties would rise. Years passed, but cap rates in the sector remain historically low, and are getting lower. “Cap rates have not risen in the last five years,” says Chris Espenshade, managing director with real estate services firm JLL. “Why should we expect they would rise in the …

Tensions Over Tariffs Are Causing Higher Construction Prices | National Real Estate Investor

“Approximately 60 percent of the cost increases we’ve seen recently are directly related to tariffs,” says Aaron Trascritti, director of client relations for Summit Contracting Group, a multifamily general contractor. The U.S. government continues to confront its main trading partners on what it calls unfair trade practices, placing heavy tariffs on goods from these countries. These include tariffs on goods …

What’s Technology Doing to Commercial Real Estate? — Real Estate Tech News

For years, the narrative about the commercial real estate industry’s relationship with technology was one of missed opportunity. While many business sectors quickly latched onto the technological revolution of the 1990s, commercial real estate professionals by and large maintained the status quo for their day-to-day operations, which on some level kept the industry from realizing the benefits of widespread technology …

Opportunity Zone Funds Are Attracting More Investors | National Real Estate Investor

(Bloomberg)—The wealthy masses are starting to bet their money on a new U.S. tax break after more than a year of indecision. The latest data point: Bridge Investment Group announced Tuesday it has $509 million that it is deploying in projects in opportunity zones. The money was gathered from about 500 investors, according to a person with knowledge of the …

Akerman Survey Finds Optimism About Real Estate Market Outlook | National Real Estate Investor

U.S. real estate executives continue to feel optimistic about the industry’s prospects in 2019, according to the results of the 2019 U.S. Real Estate Sector Report released this week by the national law firm Akerman LLP. 1. In a survey conducted by the firm, 37 percent of executives said their outlook for the real estate market this year is “marginally …

Confidence in U.S. commercial real estate sector abounds

Confidence in U.S. commercial real estate sector abounds   Industry leaders are optimistic about the state of commercial real estate in the United States based on factors such as a solid economy, tax reform, opportunity zones and other advancements. That’s according to a recent survey from Akerman, a law firm based in Miami. More than 200 C-suite and senior real estate …