Covid Impact on CRE Values
March 2, 2021 — Covid’s impact on CRE values varies based on asset type (industrial, multi-family, office, and retail) across the U.S. Some of the impacts are temporary disruptive changes while other are fundamental deteriorations that have only been accelerated with COVID-19.
Six Considerations for Commercial Real Estate Investors Facing Uncertain Market Conditions
October 28, 2019 — In 2015, Sam Zell, founder and chairman of Equity International, sold his multifamily portfolio of more than 23,000 apartments for $5.3 billion. At the time, many industry insiders thought that Zell had sold at the top of the market – just as he had sold his office portfolio in 2007 before the market crashed.1 While Zell walked away from the deal with plenty of profit, multifamily prices have continued to rise – meaning that he could have done even better if he held on.
Watch Out for Rising Bank Exposure to CRE
October 28, 2019 — All the market indicators point to clear sailing for commercial real estate investment. What could possibly go wrong? Hopefully nothing, but the next couple of years will be a good time to closely watch government regulatory agencies for actions that could trigger a downturn.
CRE Capital Flows Through a Changing Landscape
July 18, 2018 — Commercial real estate debt and equity markets have been more or less in balance for several years now, and the consensus is that this state of equilibrium may continue through 2019, barring unforeseen problems. The impact of the biggest problems we were facing—the global impact of Brexit, the “wall of maturities” in the CMBS market, Dodd-Frank’s strict lending rules—has been mostly absorbed without throwing CRE capital markets out of balance.
Opportunity Funds May Supercharge After-Tax Yields, But Risks Remain
May 24, 2019 — A new type federally qualified investment vehicle known as an opportunity fund allows individuals and entities facing capital gains taxes to defer and reduce their tax bite, while paying no additional tax on appreciation of the investment. The only catch is that investment has to be limited to designated areas known as opportunity zones, and the real estate investment requires significant capital improvements to the asset (generally ground up construction).