David Galowich

🌆🏢 From Fixer-Uppers to High-Rises: A Commercial Real Estate Advisor's Guide to ARV vs. Value-Add 🌟 Hey there, fellow investors! 👋 As a commercial real estate advisor, I get a front-row seat to the exciting (and sometimes confusing) world of property investment. 🏠➡️🏢 Lately, I've noticed more residential investors wanting to dive into commercial real estate. But here's the catch: the strategies that work for flipping houses don't always apply to office buildings and retail spaces. 🏢💡 One common confusion? The concept of "ARV" (After Repair Value). Many clients come to me, eyes sparkling with dreams of quick flips and tidy profits, asking about the ARV of commercial properties. That's when I gently break the news: ARV, as you know it, isn't really a thing in commercial real estate. 🏠❌🏢 Curious about how to navigate these waters? 🌊 Check out my latest guide where I break it all down! 🔍👉 Read the full story here: https://bit.ly/45GJRGg #CommercialRealEstate #RealEstateInvestment #PropertyInvestment #InvestSmart #RealEstateTips #ValueAdd

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Discover key insights from PRISM 2024! Manus Clancy outlines five reasons for optimism in the commercial real estate market. Learn more: https://lnkd.in/eN5P-6cP #LightBoxRE #PRISMPerspectives #PRISM24 #CRE #CommercialRealEstate

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NAHB predicts a significant pullback in multifamily starts for 2024. Are we surprised? Multifamily Developer Confidence is in Negative Territory. In the fourth quarter of 2023, multifamily developer confidence remained in negative territory, as revealed by the Multifamily Market Survey (MMS) conducted by the National Association of Home Builders (NAHB). The survey produces two key indices: the Multifamily Production Index (MPI) and the Multifamily Occupancy Index (MOI). The MPI, which gauges sentiment about current production conditions in the apartment and condo market, scored 41, below the break-even point of 50. Meanwhile, the MOI, measuring the industry’s perception of occupancies in existing apartments, registered 77. Tight lending standards and high development loan costs continue to hinder financing for new multifamily projects. Given the substantial supply of multifamily units under construction, NAHB predicts a significant pullback in multifamily starts for 2024 #realestatedevelopment #realestateinvesting #passiveincome #multifamily #realestate #multifamilyinvesting #multifamilyrealestate #firsttimedeveloper #raisemasters30 #cre #financialfreedom

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Join Charles Kahn, AIA, LEED AP and Joey Wang (Multifamily Specialist at Keller Williams Realty, Inc.) next Wednesday for a webinar breaking down zoning regulations, including the new state Density Bonus law, AB1287. Many in the real estate world are already familiar with AB1287, which offers significant financial incentives to residential developers to double the size of their developments if they meet certain affordable housing requirements. What may come as a surprise, however, is where the law can offer the most value: to the small, local developers building in low- and mid-density districts. While high-rise buildings in high-density districts have an inherent advantage of greater efficiencies and economies of scale to bring down the cost per housing unit, AB1287 creates an opportunity for smaller developments to realize similar benefits. Small local developers will be better able to recoup their investments and make a profit, which in turn will encourage them to build more housing. This could lead to thousands of additional units coming onto the market each year. While AB1287 may not be the magic bullet to solve the state’s housing crisis, given the relatively inexpensive cost of construction of low-rise housing, the sheer potential number of such projects could make a real dent. Learn more at the upcoming webinar - register now at https://bit.ly/4dpeIuf to secure your spot! #densitybonus #zoning #housingdevelopment

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👀 Guess who was featured in Fortune Magazine-online? 2024 IREM President Libby Ekre, CPM, our 2024 IREM President, shared some insightful thoughts on the value of CPM certification for real estate management professionals across different asset classes. Dive into the article to get some valuable industry insights! https://bit.ly/3UI6kgV📰🏢 #RealEstate #CPMCertification #IREM #FortuneEducation

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It’s no surprise that Fortune Magazine listed Institute of Real Estate Management (IREM)’s CPM certification as one that provides the most value and sets property management professionals apart from their peers. Read IREM President Libby Ekre’s insights on the value of an IREM education. #assetmanagent #propertymanagemt #CPMCertification #IREM #FortuneEducation

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During a livestream presentation, Bright MLS’s chief economist highlighted some of the most misunderstood topics or mistaken beliefs about real estate. #realestatenews #realestate #realestatefacts #housingmarket #realestateagents

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A surge in #multifamily construction pushed U.S. housing starts up 3% in June to a seasonally adjusted annual rate of 1.35 million units, the U.S. Department of Housing and Urban Development and the U.S. Census Bureau said earlier this week. New construction in the multifamily sector rose 19.6%, while single-family starts were down 2.2% for the month. The rise in multifamily construction could lead to more financing opportunities for lenders specializing in #construction #loans and permanent financing for multifamily properties. More insight from Connect CRE below: https://lnkd.in/gVkxigpG

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A surge in #multifamily construction pushed U.S. housing starts up 3% in June to a seasonally adjusted annual rate of 1.35 million units, the U.S. Department of Housing and Urban Development and the U.S. Census Bureau said earlier this week. New construction in the multifamily sector rose 19.6%, while single-family starts were down 2.2% for the month. The rise in multifamily construction could lead to more financing opportunities for lenders specializing in #construction #loans and permanent financing for multifamily properties. More insight from Connect CRE below: https://bit.ly/3Y6oP1R

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How to Implement the STP Marketing Model in CRE in 6 Steps: https://lnkd.in/eTCTGV5X #CommercialRealEstate #STPmarketing #CREInnovation 

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Thank you to Institutional Real Estate, Inc. for the insightful discussion on the evolving dynamics in the multifamily sector. As we observe asset values adjusting, DB Capital Management is strategically positioned to leverage the emerging opportunities. I'm excited about what the future holds and appreciate the chance to share our perspective. https://lnkd.in/gH6HtDtX #multifamily #multifamilyrealestate #multifamilyinvesting #DBCapital

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Demand for #apartments has pushed absorption to one of its highest points in 24 years. In the first and second quarters of 2024 alone, 257,000 units were absorbed – "essentially in line with the all-time high set in the pandemic-era demand swell which saw about 270,000 units absorbed in the first half of 2021," according to a recent report from RealPage Market Analytics. Click here to read more from GlobeSt.com:  https://lnkd.in/gvXHxwUg

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#2minmorningworkout adjust and assisted by a growing use and benefit to all of #AI I read an article on CoStar Group called Big Dollar Deals Pulled Lower By Interest Cost The primary outcomes from the commercial real estate data for March 2024 are: 1. **Divergence in Property Prices**: There is a distinct divergence in the commercial real estate market, with large, high-value transactions (represented by the value-weighted index) showing significant declines due to higher interest rates, while smaller, often cash-based transactions (reflected by the equal-weighted index) posted gains. 2. **Sector-Specific Variations**: Different sectors of the real estate market reacted uniquely to economic conditions. Office property prices, particularly in large markets, fell sharply, whereas retail and hospitality sectors showed signs of growth in smaller transactions. 3. **Interest Rate Impact**: The volatility in interest rates over the past six months has had a pronounced effect on property prices, particularly impacting larger-dollar transactions that typically involve financing, while smaller-dollar, cash-based deals were less affected. **Summary**: In March 2024, the commercial real estate market displayed significant variability influenced by interest rate changes, with large, financed properties suffering price declines while smaller, cash-based deals generally gained in value. Sector-specific responses further underscored the complexity of the market dynamics, highlighting the divergent paths of different types of properties and markets. Super impressed and using this to help gather and process thoughts! Trinity Commercial Group ⚽️ Mark Bole Cindy Schooler, CCIM,CAM Matthew Fredrickson Doug Olson

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Our acquisition strategy is foundational to our success. The process not only mitigates potential risks but also firmly positions us for robust asset performance. 💪 #multifamily #realestate #acquisitionstrategy

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Demand momentum in the multifamily sector is surging. From January to March 2024, nearly 104,000 apartments were occupied, marking the strongest first-quarter net absorption on record. Historically, only about 12,500 units were absorbed during this period over the last 30 years. With spring and summer traditionally being strong months, net absorption is on track to hit a three-year high. April saw a significant recovery, with the average vacancy period dropping to 28 days, and new lease applications and renewals reaching multi-month highs. Discover the full report [on www.marcusmillichap.com/] If you have any questions, contact us: J.J. Taughinbaugh 📞650.391.1807 Yuri Sergunin 📞650.391.1764 #commercialrealestate #sfbayarearealestate #marketresearch #realestatetrends #industrialinvesting #industrialrealestate #cre #employment #crereport #multifamily #realestatemarket

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WS Communities returns the keys for 28 multifamily properties in Los Angeles, addressing over $1 billion in debt. This move impacts a substantial portion of the company’s portfolio in the region. The properties in question include both existing apartment buildings and development sites, reflecting the company's financial difficulties amid rising costs and market challenges​. This marks a major shift in WS Communities' strategy, as the company attempts to navigate a challenging economic landscape. The properties will revert to the lenders, who now face the task of managing and potentially offloading these assets in a volatile real estate market. This development highlights broader financial pressures facing real estate developers in Los Angeles and highlights the complexities of large-scale property management in an uncertain economic environment​. Do you think we will see a lot more properties go into foreclosure? https://lnkd.in/gBzXCH4W

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