Commercial Real Estate News Wrap Up: May 4, 2016

Omnichannel retailing is having an impact on commercial real estate. When a consumer shops it’s no longer a choice between online versus bricks-and-mortar experiences. People shop in a blended way by looking in a physical store for sizes and styles then purchasing on a mobile device. Or they order items online but want to pick up and return in store. According to a new story in Commercial Property Executive, this is affecting lease structures at retail properties since landlords depend on income from a retailer’s in-store sales above a break point where they get a percentage of sales. But if the physical store is becoming more of a showroom or pickup location then sales may not reflect this new paradigm. “There’s recognition that physical stores are still very important, but the challenge is how can landlords capture that without the transparency of where sales are coming from,” said Melina Cordero, CBRE’s Head of Retail Research. “I think there’s going to be a shift in leasing structure in how retailers report sales to landlords.”

CRE lending showed strong results in April. According to a story on Trep Talk the third week of April ended on a high note, after a strong showing the week before. “Commercial mortgages grew at an annualized rate of 19.3%. Multifamily mortgage lending surged, with an annualized growth rate of 27.1%. The weekly figures for all three areas – construction & land, commercial mortgages and multifamily mortgages – grew at rates well above the recent trend,” reported the website. The performance just added to an already strong rate of growth year-to-date.

Seems like CMBS loans are making a comeback for Multifamily. After a choppy start this year, CMBS lenders are back in the action according to a story on National Real Estate Investor. “CMBS has come back substantially and all CMBS lenders are quoting and actively chasing deals,” said John Manning, managing director for commercial real estate services firm JLL. Overall, CMBS issuance in 2016 YTD is still down 41% versus 2015, according to Commercial Mortgage Alert.

Almost $1 trillion in commercial mortgage debt will mature over the next three years translating into billions of dollars in loans coming due every month. Liberty SBF plans to capture a significant portion of that refinance opportunity by allocating capital towards its existing bridge lending platform for commercial property investors and its 90% LTV loan for owner-occupied commercial properties, according to a recent press release. Working with brokers and other intermediaries, Liberty SBF will provide much needed liquidity to the wave of maturing mortgage borrowers, paying up to 4 points in referral premium income to approved brokerage partners.

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

  1. Drone vid shows progress on new Apple campus
  2. NYC Hudson Yards expected to contribute more than Iceland’s GDP
  3. Demand should keep up with record hotel construction
  4. Austin growing population and incomes attracts investors
  5. Large Bank Stocks Pull Back After Fed Interest Rate Inaction
  6. CRE execs approach 2016 with more caution
  7. CRE heavy hitters of Houston named
  8. 17 top Industrial markets
  9. U.S. CRE origination mixed in Q1