09 Jul 18 By Cole Flanagan, CPA, MBA No Comments

Where Is Smart HNW Money Going?

A look into the current investment strategy and appetite of high net worth families… The folks at Money360 wanted to find out where high-net-worth investors, family offices and hedge fund managers plan to put their capital over the next 12 months. In March, commercial real estate lender Money360 Inc. polled family offices, hedge fund managers,…

03 Apr 18 By Cole Flanagan, CPA, MBA No Comments

Taking Advantage of New Tax Laws Will Require Structuring Your Business the Right Way

To reap the maximum benefits, it’s important to understand how best to structure your business in light of the new provisions of the law. Tax reforms introduced as the Tax Cuts and Jobs Act and signed into law last December are generally agreed to be the most comprehensive in more than three decades. They include several…

02 Apr 18 By Cole Flanagan, CPA, MBA No Comments

Why Amazon May Be Picking Up More Retail Locations

Amazon needs to increase its retail footprint to stay competitive in the race for quickest, cheapest delivery. Time to delivery is now the yardstick for e-commerce success, so “last mile” distribution space is of utmost importance to online retailers. With last-mile warehouse space in short supply and most of it in old, obsolete industrial buildings, it…

13 Mar 18 By Cole Flanagan, CPA, MBA No Comments

Auto Parts Sector Stays Resilient To Online Competition

Auto Parts Sector Stays Resilient To Online Competition. CHICAGO—Competition from e-commerce has decimated portions of the retail market, and landlords now make it a point to sign leases with service-oriented businesses that can resist internet competition. Many net lease investors also increasingly prefer properties occupied by such ventures. One retail category that now looks especially…

22 Jan 18 By Cole Flanagan, CPA, MBA No Comments

7 trends that will disrupt and define retail in 2018

7 trends that will disrupt and define retail in 2018 From renewed investment in brick and mortar to a growing appetite for acquisitions, here’s what to expect in the year ahead. It’s been a tumultuous time for retail, and 2017 has set records — a lot of them to the negative with store closings, bankruptcies…

19 Jan 18 By Cole Flanagan, CPA, MBA No Comments

CRE Is Well-Positioned for 2018

Drilling down further within the commercial real estate industry, property management also stands to have a strong 2018. Incredibly, at least for anyone who has lived through previous economic cycles, the current upcycle is now pivoting into its eighth year. And though there have been some concerns and a few negatives in the past year—sandbags on…

21 Aug 17 By Cole Flanagan, CPA, MBA No Comments

In Primark, Experts See a Bright New Star for Mall Landlords

The brand can expand to 300 stores in the U.S., industry experts claim. When Primark took over one floor in the former Sears anchor space at King of Prussia mall in November 2015, the retailer opened its doors just in time for Black Friday and that year’s holiday shopping season. That might have looked like a…

18 Aug 17 By Cole Flanagan, CPA, MBA No Comments

TJX Flexes Brick-and-Mortar Muscles in a Digital World: Gadfly

TJX already has a huge fleet of stores, and it is betting that there’s appetite for more of them. (Bloomberg Gadfly)—It’s back to business as usual at TJX Cos. Inc. And by that I mean the company is once again serving a slice of humble pie to the long list of retailers that are bemoaning declining store…

16 Aug 17 By Cole Flanagan, CPA, MBA No Comments

More Real Estate Players Say the Peak Is Now

The percentage of NREI survey respondents who believe we are currently at the peak of the market totaled 52 percent in July 2017. More than half of respondents to an NREI survey conducted in July said the real estate cycle has reached its peak. The percentage of survey respondents who believe we are currently at the peak of…

14 Aug 17 By Cole Flanagan, CPA, MBA No Comments

Multifamily Developers Try to Solve the Parking Challenge

If developers build too much parking, the empty spaces may be difficult to repurpose for any other use. Multifamily developers are fighting for the right to build fewer parking spaces at new apartment properties in downtown areas. “There is a growing awareness among housing officials that the required parking ratios are out of whack with reality,”…

11 Aug 17 By Cole Flanagan, CPA, MBA No Comments

Why High-Net-Worth Investors Seek Increased Real Estate Allocations

Real estate investing today vs. in past cycles is buoyed by a predictable debt and equity market and transparency. Commercial real estate has been used effectively in ultra-high-net-worth (HNW) and family office portfolios as a means to enhance yield in a return‑starved market. This enhanced yield has not been lost on the greater institutional marketplace, however,…

09 Aug 17 By Cole Flanagan, CPA, MBA No Comments

The Top 10 Markets for Investment Sales

The top 10 markets with the highest first half of the year sales volume include the following: Investment sales in the U.S. continue to lag the pace set last year. Even with an uptick in pricing, the $109.2 billion in sales that occurred in the second quarter represent a 5 percent year-over-year decline. Total first half…

07 Aug 17 By Cole Flanagan, CPA, MBA No Comments

Pullback Continues in the Investment Sales Market for Apartment Properties

Sales of single properties are slowing, suggesting broad correction in the market. Investors spent a lot less money on apartment properties so far this year compared to 2016, but prices in the sector keep rising anyway. Prices for mid-rise and high-rise properties inched up 1.0 percent year-over-year, and prices for garden-style apartment properties grew 10.0 percent…

31 Jul 17 By Cole Flanagan, CPA, MBA No Comments

Cities Will Be Vulnerable in the Next Downturn: Conor Sen

Cities have traded their historical social and economic diversity for wealth and economic specialization, making them uniquely vulnerable to future shocks. (Bloomberg View)—Cities have been the big winners of this economic cycle. They suffered the least in the great recession and bounced back first. Tech jobs have clustered in cities. Millennials — at least the well-educated…

19 Jul 17 By Cole Flanagan, CPA, MBA No Comments

Learning from Past Mistakes: Avoiding the Next Real Estate Bubble

While at first blush immediate expensing appears to be a huge tax break, the honeymoon period would end with a crash when the write-off period ended. The time may be right for comprehensive tax reform. However, certain proposals floating around Capitol Hill could do far more harm than good, drowning real estate investment and taking down markets…

19 Jul 17 By Cole Flanagan, CPA, MBA No Comments

Cap Rates Drop as Competition for Medical Office Buildings Heats Up

The intense vying for urgent care centers, surgery centers and other outpatient medical facilities is driving down cap rates in the sector. When Physicians Realty Trust announced a purchase of 18 medical office facilities located in eight states for about $735 million last month, the Milwaukee-based REIT didn’t just sweep up prime properties. It won a…

08 Mar 17 By Cole Flanagan, CPA, MBA No Comments

Self-Storage Continues To See Robust Acquisitions

CHICAGO—The nation’s largest self-storage REITs did impressive business in 2016, recording significant increases in revenues and net operating incomes, according to a new report from MJ Partners, a Chicago-based self-storage firm. But after several years of stupendous growth, there was a noticeable change last year. “The growth in revenue and operating income was still quite…

03 Mar 17 By Cole Flanagan, CPA, MBA No Comments

Seventh Inning Market Cycle Stretches On, And On

The current growth phase is proving to be the energizer bunny of real estate market cycles, and it appears that there is still plenty more power to keep it going. Since hitting bottom in 2009, the current cycle is now entering year eight of its upward trajectory. And despite signs that growth is slowing, or even flat…

02 Mar 17 By Cole Flanagan, CPA, MBA No Comments

Tips for Negotiating Triple Net Lease Sublets

The most frequent and detailed negotiations in triple net leases often center around a tenant’s ability to assign or sublet a lease without a landlord’s consent. If both parties are able to agree to reasonable compromises in a negotiation of the assignment and subletting provisions of a lease, balance can be achieved between the interest…

10 Feb 15 By Cole Flanagan, CPA, MBA No Comments

Cap Rates Decline for Big Box Retail

February 5, 2015 By Brian J. Rogal CHICAGO—“Cap rates in the single tenant net leased big box sector compressed from the fourth quarter of 2013 to the fourth quarter of 2014 by 39 bps,” according to the latest report from the Boulder Group, a net lease firm based in suburban Chicago. The decline from a…

10 Feb 15 By Cole Flanagan, CPA, MBA No Comments

Capital Flows Continue, But Shift Direction

NEW YORK CITY—Even as CohnReznick’s David Kessler notes in the firm’s 2015 commercial real estate forecast that “the land rush of the last two years has evolved into an environment where we can begin to see the emergence of supply-demand constraints,” capital continues pouring into the sector. And, Kessler tells GlobeSt.com, it will continue to…

28 Jan 15 By Cole Flanagan, CPA, MBA No Comments

Where Opportunity Lies in Net Lease

IRVINE, CA—Looking to secondary and tertiary markets and tenant quality are where the greatest opportunities lie in the net-lease sector, industry experts tell GlobeSt.com exclusively. We asked several net-lease professionals what they predict to be the greatest areas of opportunity in this sector, which suffers from lack of supply and an overabundance of demand. Check…

12 Jan 15 By Cole Flanagan, CPA, MBA No Comments

The Great Flood: How CMBS Will Handle $300B Coming Due in 2015-2017

The amount of commercial mortgage debt maturing is set to spike this year, when loans taken out during the height of the real estate bubble start coming due. Between 2015 and 2017, more than $300 billion will need to be refinanced. That’s more than 2.5 times the amount that matured from 2012 to 2014, according…

09 May 14 By Cole Flanagan, CPA, MBA No Comments

Albuquerque Multifamily – On the Upswing

As is the case in many markets across the nation, the Albuquerque multifamily market has experienced an increased demand for apartment housing since 2011. The opportunities and hurdles that face Albuquerque set the city apart from others, making for a unique and distinct multifamily market. The geographical constraints that bind the market to the north,…

31 Mar 14 By Cole Flanagan, CPA, MBA No Comments

The Net-leased Environment & What’s Next

The push for solid investment real estate, particularly Net-Leased real estate, and the reach for yield has been driving activity across the nation, as well as in New Mexico.  Lack of supply of solid investment property has driven prices to all-time highs and CAP rates to all-time lows.  As demand continues to stay high and…