Commercial Real Estate News Wrap Up: March 24, 2016
An index on residential and CRE property sentiment conducted by First American Financial Corp. showed that optimism in purchase volume across all sectors grew last quarter. Overall sentiment in the Real Estate Sentiment Index dropped based on concerns about market production by agents over “prices hampering affordability and access to credit,” according to Mark Fleming, chief economist at First American. Globest.com reported that industrial properties took the lead among commercial property types. That marks a change from Q4, when office properties had the highest expectations.”
Aging multifamily assets may impact the capital needs of investors. Even though the MF market remains strong, putting aside enough capital for additional maintenance and repair costs for borrowers when calculating underwriting models is imperative, according to a recent story on National Real Estate Investor. “Building stock that was constructed more than 20 years ago must account for a variety of additional maintenance and repair issues as the expected useful life (EUL) of these components nears expiration,” the publication reported. The story went on to list some typical affect financing for a purchase or refinance of properties more than 20 years old.
A new CRE tech firm recently launched in Northern California to help businesses find office, retail and warehouse space. Digsy partners with local CRE agents to pair users up with what they call “search butlers.” Since it launched a year ago the company has helped more than 100 businesses find space, according to a story on cre.tech. “…You waste a lot of time trying to find space when you should be spending it growing your business,” said Disgy co-founder Andrew Bermudez. “We’re bringing Digsy to Northern California to help companies to save precious time finding commercial space.”
8+1 (That’s 9) Things You Need To Know
- Record setting Chicago office sales – good or bad?
- CBRE: Rising minimum could be costly to industrial building tenants
- Will apartment renters pay more for green features?
- Project reclaiming abandoned stretch of NJ coast
- Four brick and mortar retailers killing it right now
- CRE: How hot is too hot?
- Why your real estate firm needs a cross-functional technology committee
- Multifamily data platform ResiModel names new board director
- Six women changing Dallas CRE