Jason J. Wurtz

The NAIOP CRE Sentiment Index has increased significantly from the last survey in fall 2023. The Index rose to 52, from 46 in September, indicating that respondents expect conditions for commercial real estate development to be somewhat better over the next year. #CRE #DEVELOPMENT #CONSTRUCTION #CRENEWS https://lnkd.in/gkDwHyCh

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A recent report from BuildingDesign Media, looking ahead to the second half of the year, shows the strength of the #multifamily sector despite some economic challenges. Among the key themes are: --Demand remains steady, but rising supply and financing issues are creating headwinds. --Growth is expected to slow in the coming months, but there will be regional variations based on economic conditions and supply factors. --The economy remains stable and job growth persists, but softening rent growth and occupancy rates are emerging. --And, of course, the industry is continuing to track inflation (which is now down to 3.3%) and interest rates. https://lnkd.in/g32By27V #multifamilydevelopment #multifamilyinvestment #apartments #apartmentliving

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Seismic shifts anticipated for real estate industry's compensation landscape. In the wake of NAR’s settlement proposal, agents must chart a new way forward. In an ever-evolving real estate landscape, where markets fluctuate and dynamics shift, the role of a real estate agent transcends mere transaction facilitation. It encompasses a holistic approach to enhancing productivity, maximizing sales potential, and ensuring client satisfaction. In today’s competitive environment, staying relevant and agile is not just advantageous – it’s imperative. https://hubs.ly/Q02trv8H0 #RealEstateCompensationShift #NARSettlementImpact #ChartingNewCourse #AgentEvolution #CompetitiveAdvantage

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📊 Chart of the Day: The latest NAIOP CRE Sentiment Index survey reveals that most respondents expect improvements in commercial real estate demand, investment, and development over the next 12 months, with the Index reaching 52 out of 100, its highest score in two years.

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The assessment of retail tenants by landlords encompasses various factors, from financial stability to industry dynamics. Here are three aspects of @Northmarq's Top 100: Tenant Expansion Trends Report: 1. Consumer preference for bargains amid economic pressures has led shoppers to seek value brands like Dollar General, Target and ALDI USA. 2. Convenience plays a pivotal role in today's retail landscape, exemplified by Wawa, Inc., and Chipotle Mexican Grill, which prioritize efficient service and accessibility through initiatives such as drive-throughs and mobile apps, aligning with evolving consumer preferences. 3. There's a growing emphasis on personal wellness among consumers, creating opportunities for retailers to offer health-centric products and services. Companies like Planet Fitness and Sprouts Farmers Market are strategically positioned to capitalize on this trend by expanding their presence and providing healthier alternatives, reflecting the evolving demands of health-conscious consumers. For additional insight, check out the breakdown on GlobeSt.com: https://lnkd.in/dPUdKj7D

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Single-Tenant Net-Lease: The Backbone of Steady Performance in CRE In a dynamic commercial real estate landscape, single-tenant net-lease properties have proven to be remarkably resilient. Marcus & Millichap highlight that as of March 2024, major U.S. markets have maintained sub-4% vacancy rates, a stability that echoes five years ago. What's driving this impressive performance? • Strong Labor Market: Boosting retail spending beyond inflation • Real Wage Increases: Giving consumers more disposable income A new benchmark for core retail sales was set in Q1 2024, despite households prioritizing essentials. More people are spending on dining out and experiences, increasing foot traffic and patronage at net-leased retail spaces. Highlights: • Fast food, convenience stores, and restaurants report sub-3% vacancy rates • Primary, secondary, and tertiary markets show vacancies at 4.6%, 4.3%, and 3.5% respectively. This market tightness benefits owners in lease renewals and securing new tenants. Local and regional banks remain primary financing resources, supported by strong sector fundamentals. Among the 50 major U.S. retail markets, 34 have single-tenant vacancy rates at least 100 basis points below their long-term mean, with notable performance in the Midwest, South, and Texas metros. Single-tenant net-lease properties continue to demonstrate their strength and stability, making them a cornerstone of commercial real estate. Read the article: https://lnkd.in/eBWShGBw #CRE #RetailTrends #NetLease #CommercialRealEstate #MarketTrends #RealEstateInvesting

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The #multifamily property market is entering a new paradigm where #carriers and #insureds are embracing split tension within reason to strike harmony in our ever-dynamic #economy. And experts agree that success today requires a blend of creativity, consistency and sophistication. View more #insights here: https://lnkd.in/gHpwhPAp #propertymarket #multifamilyhousing #insurance #realestate #trends #thoughtleadership

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Demand for #multifamily 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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CRE DISTRESSED SALES • According to CoStar data, distressed sales as share of total transaction volume picked up in 2023, increasing 1.2 percentage points. Overall, distress sales are 4.7% of total CRE transactions, their highest level since 2016, although well below financial crisis peaks. • The increase is almost entirely driven by Office distress sales, which rose to roughly 9%, up 3 percentage points from 2022. Increasing vacancy rates, mixed with high interest rates and declining values, have put pressure on office properties, and borrowers that are struggling to refinance at maturity. • The increase in distressed sales largely reflects what’s happening within CRE debt. In 2023, the non-Agency CMBS non-performing rate increased by 1.21 percentage points, with 90% of the increase coming from Office deals. Both distress and default in office are coming at maturity, with 53% of the increase in the overall non-agency CMBS non-performing rate in 2023 due to Office maturity defaults. ➡ Act sooner than later! Learn how we can help you manage risks and opportunities in your CRE portfolio > https://lnkd.in/eS4rK5XD #distressedsales #cre #banks #lenders Joseph Biasi Christiane Figueiredo Mendes, MBA John Vecchione Travis Fisher Scott Bell Xiaojing Li

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According to a recent Bisnow article by Taylor Driscoll, the first half of this year was supposed to be when interest rates began coming down, providing a lifeline to struggling commercial real estate owners. But it now appears the Federal Reserve may not be coming to the rescue anytime soon. 📈 High-interest rates profoundly impact the commercial real estate sector, particularly influencing borrowing costs, investment returns, and overall market dynamics. As rates climb, the cost of financing or refinancing properties escalates, potentially stifling new projects and pressuring existing owners with variable-rate loans. Conversely, the enduring high rates can freeze less capitalized owners out, leading to distressed sales or foreclosures, which can alter market values and create opportunities for well-capitalized investors. Integrating artificial intelligence (AI) in this sector could be a game-changer, offering CRE owners and investors tools for better asset optimization. AI can enhance decision-making processes through predictive analytics, improve operational efficiencies, and enable more personalized tenant experiences, thereby maximizing asset values even in challenging economic climates. Trends in commercial real estate influenced by interest rates: 1️⃣ Increased adoption of AI and technology solutions for asset management. 2️⃣ Growth in distressed asset sales and foreclosure rates. 3️⃣ Shift in investor focus towards more resilient asset classes. Link to article: https://lnkd.in/gdkaATBH Learn more at realsage.com Tags: #proptech #cre #multifamily #ai

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Managing Existing Portfolios Top Priority For CRE Firms, Managers https://lnkd.in/esZVCCim #commercialrealestatebroker #commercialbroker #commercialleasing #commercialproperties #commercialdevelopment #commercialspace #commercialrealestate #commercialforsale

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When is the best time to invest in CRE? As the saying goes, is there any time better than the present?   For a long time we, at Capital Markets at JLL​, have been discussing the advantages of investing in CRE within the current environment.   Higher interest rates, lower pressure on pricing, and the demand on many owners to refinance create a perfect investment opportunity. From private individuals looking to diversify their portfolios to hedge funds questioning how we’ve consistently outperformed them, there are many eyes on the market.   For investors with cash in hand, this interest is quickly turning into action. Every day, we’re seeing more and more people moving their money into the sector, closing the now narrow window of opportunity and contributing to a justified case of FOMO.   As I explained to Lauren Lawley Head, however, there is still time to act - drop me a line to find out how. https://lnkd.in/gJNFxyCg  

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As the 2024 Presidential election approaches, will it shake up the commercial real estate market? Our latest findings reveal some surprising insights. Curious to know what really influences deal volumes? Click here to find out: https://lnkd.in/gU_5u3j4 #CRE #CommercialRealEstate #RealEstateInvesting #Election2024 #MarketInsights #InvestmentTrends #PropertyManagement #RealEstateNews #FriedmanRealEstate

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We are now past the halfway mark in 2024! Is the CRE market performing as you anticipated this year? Check out the insightful report by Bisnow, featuring input from industry professionals discussing the most surprising developments so far. While there might be mixed opinions on what comes for the remainder of this year, it's encouraging to note the positive aspects and resilience in our sector. #CRE #MarketInsights #IndustryUpdate https://bit.ly/3xZqbky

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San Francisco sublease availability to lease expirations ratio by submarket shows surprising story Read more: https://lnkd.in/e7Rctgag San Francisco's #CRE market is on the brink of big change! With 34 msf of lease expirations approaching, some spaces are already available for sublease as tenants streamline their operations. The South Financial District leads with sublease space, yet it comprises only 18% of the total expirations, indicating a mix of renewals and pending decisions. Tech companies represent 45.8% of upcoming expirations, followed by financial services (18.8%) -- meaning over half of SF's currently occupied space will be up for renewal before 2030. The next five years will be crucial for reshaping the city's commercial footprint. #SanFrancisco #Office #AVANTbyAY #AYdifference

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Exciting Update from the Commercial Real Estate Sector! Based on the NAIOP CRE Sentiment Index conducted April 3-11, 2024: https://lnkd.in/eugDAfcH I recently came across the latest NAIOP CRE Sentiment Index for Spring 2024, and the results are promising! The index has climbed to 52, a significant rebound from last September, indicating positive expectations for the commercial real estate (CRE) industry over the next 12 months. 📊 Key Highlights: -Optimistic Outlook: Most components of the Index show improved sentiment, with capital market conditions, debt, and equity availability leading the way. This shift is likely due to the anticipation of falling interest rates. -Sector Demand: Industrial, retail, and multifamily properties are expected to see favorable demand, while the office sector may continue to face challenges. -Deal Volume: Developers and building owners foresee a slight increase in deal volume, reflecting better capital availability. -General Conditions: A separate score for general industry conditions sits at 58, suggesting an overall positive economic outlook. 🔍 Notable Insights: -Respondents expect interest rates to be lower, improving capital market conditions. -Despite rising construction costs, there's a growing optimism about occupancy rates and effective rents. -The commercial office sector remains a wildcard, with some predicting ongoing difficulties due to functional obsolescence and lease expirations. As someone deeply invested in the CRE sector, it's encouraging to see these positive trends and the optimism shared by industry professionals. What are your thoughts on the evolving landscape of commercial real estate? Are you seeing similar trends in your projects and markets? Let’s discuss! 💬👇 #CRE #RealEstate #MarketTrends #NAIOP #SentimentIndex #CommercialRealEstate #Investment #Development #EconomicOutlook

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