Commercial Real Estate News Wrap Up From Liberty SBF: June 7, 2016June 7, 2016
The retail sector has a lesson for other industries suffering from the drastic change caused by the internet. People have fewer reasons to leave the house to shop but innovative retailers have found a way to attract consumers to their bricks-and-mortar stores keeping their brands front of mind. Experiential retail is helping to pull people off their couches. The lessons learned in retail can be applied to other Commercial Real Estate sectors as well, according to Peter Muoio, Ten-X’s chief economist. He compares what stores have experienced with online shopping to what hotels are seeing with services like AirBnB and office buildings with a shift in the way people work and companies divide up office space. “I really think the key is acknowledging changes in the way the world is today and not try to force things back to what you are used to,” said Muoio.
When will the Feds raise rates? Federal Reserve Chair Janet Yellen put the possibility of ringing the bell on a rate hike further off into the future on Monday morning. May’s jobs report was of a concern to Yellen calling it “disappointing.” Only 38,000 jobs were added and even though the unemployment rate dropped to 4.7%, economists say this is due to people dropping out of the job market rather than the unemployed finding work. Yellen did say that a gradual increase in rates would be “appropriate” but most think a hike as early as June is off the table.
The commercial real estate market is never flat. It’s in constant flux. This, reports Globest.com, is why owners are paying more than they have to in real estate taxes. “State laws require that commercial property be assessed at fair market value,” said Anne Sheehan, CEO of Real Property Tax Advisors in a recent interview. With fluctuations in the price of commercial real estate and rental rates, any business that owns commercial property should be looking at their taxes to see if they can save money. “Whether your holdings are retail, commercial, industrial, mixed-use, multifamily or hospitality related, you are impacted by your property taxes,” said Sheehan.
8+1 (That’s 9) Things You Need To Know
- Four reasons Atlanta will weather the next storm better
- 1920s Chicago synagogue set for adaptive reuse by new owners
- U.S. industrial market might be hitting a peak
- What effects will new legislative measures have on CRE?
- Hot CRE investment niches
- Central TX Amazon.com warehouse set to hire 1,000
- 10 powerhouse CRE investors
- Millennials turning CRE on its ear in Austin
- Sam Zell learned about supply and demand on streets of Chicago