John Ehle

Great topic Michael Webber and a question we are asked frequently. Dire characterization of the office market is often overstated, however we have seen rate drops in specific asset classes. Whether extensive up-front concessions or rent reductions depending on asset class, it's an extremely favorable TENANT's market.

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Family offices are making waves in the CRE capital markets! This article by Brian Pascus gives the most thorough snapshot of the recent and current activity of family offices in CRE. I strongly urge my network to read the entirety of the article which includes contributions from a fantastic group of experts. “Every time the market is bottoming out, it would appear to be the most opportune time to buy, and the buying wave is always started by high-net-worth individuals and families,” said Bob Knakal. “What we’re seeing today is that the investment wave is, yet again, being led by high-net-worth families.” Since March of 2022 (the start of interest rate hikes), the majority of my team's deals have been bought by family offices with either 100% cash or bank financing from a bank where they have deposits. #InvestmentSales, #CapitalMarkets, #CommercialRealEstate, #CRE, #RealEstateInvestment; Brian C. Adams, Kevin Aussef, Zach Redding, Nicco Lupo, David Perlman, Jay Neveloff, Dan Berman, Ran Eliasaf, Richard Byrne https://lnkd.in/egMJRSc3

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Interesting discussion about today's turbulent commercial real estate market capital markets and the path forward with Mike Van Konynenburg of Eastdil Secured. Definitely worth a listen!

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This article delves into the intricate interplay of finance's psychological and mathematical aspects, shedding light on the recent spikes in Treasury yields and their ripple effects on commercial real estate. As Treasury 10-year yields surge to levels reminiscent of pre-financial-crisis times, concerns mount over market absorption capabilities amidst weakening auction performances and inflation anxieties. With $386 billion in bond sales looming and a backdrop of shifting Fed policies, the CRE landscape faces heightened borrowing costs and investor hesitancy, underscoring the pivotal role of market sentiment in shaping financial outcomes. Dive into the full article for a comprehensive analysis of these critical dynamics. #oregonrealestate #portlandrealestate #oregon #oregonrealtor #portlandrealtor #portlandoregon #pnw #commercialrealestateagent #portland #commercialrealestateagent #pdxrealestate #pdx #pdxrealtor #CRE #pnwcommercialrealestate #officespace #warehouse #realestateinvesting #industrialspace #flexspace #commercialproperty #business #land #portlandrealestateagent

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Big money is coming back into the CRE space, albeit cautiously. We have seen this in a number of our recent listings, with our 4-property self-storage portfolio generating offers in the very low 5% CAP rate range - with buyers underwriting to low 7% returns in year 2. The de Jong l Becher Self Storage Team has an active pool of listings, connect with the team to discuss this, or to find out what your assets are worth. At this time the inventory of for sale properties is still relatively low and buyers are buying! #selfstorageinvesting #selfstorage #selfstorageindustry #selfstoragefacility #creinvesting

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Really interesting article from Greg Lyon of Nadel Architects regarding office to multi family conversions and potential solutions for vacancy in the urban core. 𝐏𝐚𝐫𝐚𝐥𝐥𝐞𝐥𝐬 𝐭𝐨 𝐨𝐮𝐫 𝐰𝐨𝐫𝐥𝐝 𝐢𝐧 𝐭𝐡𝐞 𝐍𝐖: ·        In downtown Tacoma, three ownership groups have committed to multi family conversions of large-scale office properties. One is successfully completed and stabilized, two are in process and an additional building is on the market with the potential for conversion.   ·        In downtown Seattle, the Queen Anne Plaza building and the former Seattle Post-Intelligencer building have recently traded for residential conversion. We anticipate that we will continue to see Class B and C buildings trade at a low enough basis to justify residential conversions.   ·        Greg mentions that the suburban office market should also be viewed as an opportunity for residential conversion, and we would agree. We currently have a client in the process of converting a suburban office building to residential, and we think this trend will begin to gain momentum.   ·        Another solution for absorbing vacancy in the urban core is catering to the smaller square footage office tenants. The sub 10,000 SF tenants are significantly more active than the larger square footage. We are currently working with ownership groups to multi-tenant floors and deliver spec suites in order to simplify the process for tenants. Drew Frame Kathleen Afichuk https://kmteamframe.com/

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As the industrial market slows down it isn't surprising to see Prologis forecast less demand as vacancy rates begin climbing nationally. The industrial market saw unprecedented rent growth since the start of the pandemic but that was an unusual set of circumstances unlikely to be completed. Overall, the industrial market is healthy and not overbuilt in most markets. Here in South Florida we have a wave of new product delivering over the next few quarters which will push the average vacancy rate a little higher and even though deal velocity has slowed, the long term demand for industrial space is more than likely. #JLLindustrial #warehousing #logisticsproperties

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Latest edition of Heard in Public Comment: "All multi-family deals should be made using steel---wood is just too dangerous." Going to file that one right next to "All planes should be made out of the black box material" FYI: Construction pricing is down 13.24% from June 2023.....but you already know that because you follow our Construction Pricing Exercises in our Book of Deals. If you don't, shoot me a message and I'll send you the link!

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Need to evaluate the potential of subletting your commercial space? ChicagoBroker.com is here to help! Contact us for a complimentary, no-obligation review to determine if subleasing is the right move for you during these challenging times. If it's not a fit, you don't have to worry about it. Reach out to Steve at 312.840.9002 for expert advice and support. #LeaseReview #SubleaseSolutions #CommercialSpace #ChicagoOfficeSpace #RealEstateAdvice #BusinessAdaptation #WorkspaceStrategy #SubleasingOptions #OfficeSpaceSolutions #RealEstateConsulting Jameson Commercial Jameson Sotheby's International Realty

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In Q1, Link Logistics further tailored our portfolio to prioritize high-barrier markets with favorable supply and demand fundamentals. We executed $6.5 billion of refinancings as our team leveraged our scale and data insights to take advantage of value-creating opportunities. Learn more in our latest update: https://lnkd.in/etWnHi_b #industrialrealestate #logisticsrealestate #datainsights

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The Colliers Q1 Office Market Report is out, and while Oakland's office market is still struggling due to a lack of overall demand from office tenants, we witnessed positive signs indicating stabilization in the market. Please see below for market commentary and let me know if you have any questions or would like to discuss. "Despite ongoing challenges, the Oakland metropolitan office market is showing signs of stabilization with steady vacancy rates and lease rates for Class A and Class B properties. Class A properties currently have a vacancy rate of 19.7% and asking lease rates of $4.63/SF, while Class B properties have a vacancy rate of 16.1% and asking lease rates of $3.31/SF. The first quarter witnessed significant leasing activity, highlighted by notable transactions involving Science Corporation, FEMA, and Kyverna Therapeutics securing substantial spaces.   Key market trends include a decline in sublease vacancy rates across various submarkets and a 1.7% year-over-year increase in employment, alongside crucial tenant benefits such as improvement allowances and rent abatement driving leasing dynamics. Despite the complex market environment, the Oakland market's strategic location and return-to-office trends suggest potential improvements ahead."   Read the full report here: https://lnkd.in/g_8gQqyz   #Oakland #OfficeLeasing #BayAreaRealEstate #CRE  

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Yardi projects U.S. apartment rent growth to improve next year with continued growth in secondary markets and improved conditions in high-growth markets. In our view, higher financing costs and cap rate expansion will create an interesting window for investment ... assuming we have sellers. https://lnkd.in/gB6FXt3v

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DCC and CAC Charges: Are Cities Profiting More Than Developers? I just completed a pro-forma analysis on a prospective property for our client, and it seems like the city stands to make more money than the developer, who bears all the risk. Development Cost Charges (DCC) and Community Amenity Contributions (CAC) are essential for community growth, but their current structure often feels disproportionate. Developers face significant upfront costs and risks, yet the heavy fees can overshadow potential profits. This imbalance raises concerns about municipal policies stifling development. Already due to restricted financing availability we are seeing slower project starts and this is not going to help either, more so hindering community growth and housing availability. A balanced approach is needed. Policies should make DCCs and CACs more aligned with the economic realities. What are your thoughts on DCCs and CACs in your city?

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AvalonBay Communities (AVB), along with the six other largest apartment REITs, reported robust rent growth for renewals. 📈 Many residents opted to stay in their homes amidst rising interest rates, which have driven up the cost of homeownership. 🏡 This trend underscores the continued appeal and stability of the rental market in uncertain economic times. #REITs #EconomicTrends #MarketInsights

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"Apartments.com Renters Survey Reveals Accelerated Moving Schedules" - Some great recent insights from Costar/Apts.com's recent renter survey include: • Renters are looking to move-in sooner (30% w/in 3 months) and making decisions more quickly (avg. 27 days vs. 46 in 2021). • Most renters (68 percent) said they expect to seriously consider only two or three properties. • In-unit laundry remains a requirement for most renters (76%). • Renters want to hear back within 2 days (87%). https://lnkd.in/eiNsY8W2

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The U.S. office market started 2024 right where last year ended, as demand remained low. Marianne Skorupski and Steig Seaward analyze the latest figures and share their perspectives on office market trends for the first quarter of 2024. Read more: https://ow.ly/ieQM50RFOZ0

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Our Industrial Construction Cost Guide below offers insight into the factors driving the #industrial real estate market in 45 key cities which can affect capital planning and budgeting. 

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