Commercial Real Estate News Wrap Up: May 11, 2016May 11, 2016
Distressed CMBS properties saw a dip in valuation. National Mortgage News reported that “values of properties underlying 495 loans in Fitch’s realm dropped 0.5% versus a 1.5% gain noted in the previous period,” according to Fitch Ratings. Retail saw the biggest declines. Assets in special servicing for more than four years increased 0.9% in property value.
A majority of executives surveyed say they are still bullish on CRE. The DLA Piper’s 2016 State of the Market Real Estate Survey showed that 62% of those asked expect that the CRE market will perform well this year but that’s down from 89% in 2014. “The confidence level is still pretty high,” said Jay Epstien, co-chair of DLA Piper’s global real estate practice. “The confidence level might be down from where it was, but real estate is still in a very good place. ‘Cautious optimism’ is the right adjective to use when describing how executives feel about commercial real estate today.” Lower inventory of available properties might have as much to do with the drop in confidence as economic headwinds.
How to attract young talent has been a hot topic in the CRE industry. Commercial Property Executive featured a news video on the subject recently based on commercial real estate service firm SVN’s “scientific approach to the industry’s aging employee base: It conducted a study to determine what will attract the next generation of workers.”
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