Commercial Real Estate News Wrap Up From Liberty SBF: June 15, 2016


Not everyone is predicting a bubble in the CRE market. Price levels could level off or even decline, but according to a recent survey released by the UCLA Anderson School of Management, CRE developers in California still have a positive outlook on CRE in that state across all asset types including office, MF, industrial, and retail. “California commercial real estate is booming once again and optimism about the future has not been dampened by the Fed’s interest rate policy,” researchers wrote in a summary of results. Although they say that the good news is “tempered by the fact that commercial real estate is a highly cyclical industry.”

A new forecasting service will help CRE researchers at REITs, public pension funds and other institutional investors. The subscription service, called ForeGround, will “help make sense of the huge volumes of data now available on many commercial sectors,” reported “ForeGround will help researchers communicate with C-Suite executives by turning data into customized charts and graphs that ‘tell a story.'”

Multifamily is still a hot market but deal volume and pricing are moving in different directions. “Surprising (to some) is that while deal volume has pulled back, pricing is still tight. Normally one might expect these to move together,” said Jim Costello, senior vice president with New York City-based research firm Real Capital Analytics (RCA). Despite the mixed news, apartment properties are still an attractive asset for investors as more young people and seniors seek out rentals.

Community banks have lead growth in CRE lending in Q1 according to the FDIC. While commercial banks slightly increased their lending by 1.6%, community bank lending grew by 11.9%.

8+1 (That’s 9) Things You Need To Know

  1. Mixed-use development gains traction with retailers in Austin
  2. Industrial trends point toward abundant demand for development and investment
  3. Developer borrows $220MM to convert Woolworth Building in NYC 
  4. NJ “Gold Coast” sees record prices
  5. Is there cause for concern in CMBS? 
  6. A CRE market of mixed signals
  7. Slideshow: CRE Investment Risk by Region 
  8. Minneapolis has become a hub for microbreweries 
  9. expands to distribution facility in OH