Commercial Real Estate News

Nov 16, 2017

Leading Commercial Real Estate Owners Exhibit Progress toward Water, Carbon Reductions

Some of the world’s leading commercial real estate owners and managers are making significant progress in reducing water usage, carbon emissions, and energy consumption, according to a new report from the Urban Land Institute’s Greenprint Center for Building Performance.

Building owners are driving progress as they work to mitigate the risks that come with climate change.

The report, which tracked and analyzed 8,700 properties owned by Greenprint members, demonstrated the following reductions between 2015 and 2016:

4.3% reduction in water use
3.3% reduction in carbon emissions
3.4% reduction in energy consumption

Since 2009, reductions have been significant: water use has dropped by 12.1%, carbon emissions by 17.9% and energy consumption by 13.9%. The reductions occurred even as building occupancy rose, suggesting that greater space usage does not necessarily have to cause a decline in building performance.

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Why Commercial Real Estate Owners Will Salivate Over The Republican Tax Plan

There’s a lot to love in the GOP tax plan for the commercial real estate industry.

Commercial property owners would see several benefits under bills from both the House and Senate, including lower taxes on their profits and the ability to avoid a 30 percent limit on interest expense deductions, according to the Wall Street Journal. The Senate bill would also lower the commercial property depreciation period from 39 to 25 years.

“If the bill comes together as envisioned it will be a positive for the underlying economy and that’s what America needs,” Jeffrey DeBoer, chief executive of the Real Estate Roundtable, told the Journal.
The House and Senate bills would also both preserve the beloved 1031 exchanges, which let property owners avoid being taxed on profits from property sales if they reinvest those profits into real estate.

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The Evolution Of Commercial Real Estate Debt Financing — 4 Things To Know

Nearly 10 years out of the Great Recession, the debt financing landscape for commercial real estate has evolved. Though banks remain somewhat cautious in their commercial lending, they are still originating loans — and where they have exited the market alternative lenders have stepped in to fill the void.

Below are four things you need to know about debt financing as of November 2017.

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Commercial Real Estate Financing In Chicago Drops 13% In First Six Months Of 2017

Commercial real estate financing in Chicago dropped 13% in the first six months of 2017, CrediFi found in a recent report on Chicago lending.

Windy City loan originations for commercial properties slumped from $12 billion in the first half of 2016 to $11 billion in the first half of this year.

It’s a trend that’s not unique to Chicago.

Commercial real estate financing also has been down in New York City, where originations declined 17% from 2015 to 2016. Though loan origination remained flat in the first half of this year, it likely would have fallen in Q2 had it not been for several unusually large deals.

But as we all know, even in a down market there are winners. CrediFi analyzed Chicago lending and identified the top loan originators despite the lackluster overall performance.

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Commercial Real Estate Should Get Ready For Autonomous Vehicles

Though it sounds like science fiction, autonomous, or driverless, vehicles (AVs) are closer to becoming a common sight than many realize. Despite technological and legal hurdles that need to be overcome, many believe AVs will be widely adopted within 20 years. From safer roadways to less stressed commutes and increased productivity, the potential benefits of AVs could be considered Utopian.

However, with our car-dependent society, how will AVs impact the way cities are designed and the way commercial real estate is developed? City planners will need to consider how to design roadways that cater to more-efficient vehicles, developers will need to account for decreased demand for parking, and the entire industry will need to contemplate how AVs may change the way real estate is valued.

To realize the benefits of AVs, the real estate industry needs to carefully balance today’s needs with the needs of the future.

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Are You Adapting To Commercial Real Estate Technology Quickly Enough?

catching up with the commercial real estate technology

This is a statement that has been asked so many times over the past few years. You are told to get tech, be tech or perish.

But for some reason, that statement when put within the context of the commercial real estate goes unheeded.

Why is there still so much resistance?

Why do you want to be the last one to have to change?

Ask yourself this simple question: Are you keeping up just to keep up or are you truly trying to use technology as an edge to win?

The cold hard fact is that one-third of the commercial real estate industry still runs off Microsoft Excel. Research shows us that there is not only a lack of innovation but also a lack of understanding of what innovation is and its potential impact on the commercial real estate industry.


Is The End Nigh? 7 Real Estate Experts Discuss The Unusual Length Of This Cycle

Commercial real estate experts cannot reach a consensus.

Has the market peaked? Are certain sectors overbuilt? Will this incredibly long business cycle persist, or is a correction around the corner?

Bisnow asked those questions to seven commercial real estate experts and received varying answers.

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Going Up: Drones Play A Bigger Role In Residential, Commercial Real Estate

drones in residential commercial real estate

If a picture is worth 1,000 words, what is the value of aerial photography and video captured by today’s unmanned aircraft systems, aka drones?

In residential and commercial real estate, the demand for drone services continues to rise, and uses have expanded beyond producing photos for marketing materials.

From help with safety planning before heavy equipment is brought into a new site to quick checks of subcontractor progress on a project, the broader range of what drones can do on construction sites helps justify the expense for those companies buying their own drones.

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Investors Take On More Risk As Real Estate Cycle Nears Record Run

Current macroeconomic trends coupled with billions of dollars in dry powder waiting to enter the market have pit commercial real estate buyers against sellers.

Property valuations, though cooling, are still hovering near cyclical highs, and buyers are balking at the price tags, taking into account the current length of the cycle, rising interest rates, and future exit caps.

“The reality is, most of the acquisitions being made are really, in the long run, a losing proposition for the buyers,” Yardi Matrix Director of Research and Publications Jack Kern said. “The sellers are doing really well because they are getting a premium for their properties. Buyers are losing [and] buying something that will not gain a sufficient level of value to provide returns they’re going to need.”

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