Patrick Wade

So we’ve been at it a few months now and we are listening! Here’s what we learned from our agent users with Valuetest.ai 1.1 going live this week: •seller concessions need to be broken out. Deal structuring will be paramount going forward! •ranges of comp price per square foot added to the analysis •a longer test drive to 30 days with unlimited use is needed •monthly subscription for unlimited use is a great option From loan officers: •they want ValueTest.ai Transaction Test on every contract •they want a refi decisioning tool that goes beyond automated values •they want differentiating tools to market listing agents •they want value adds for their buyers’ agents So excited for this update! #propmixio #valuetestai #appraisaltroubleshooting #aidrivenresearch #testdrive

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Sublease additions dropped significantly by over 40% year-over-year in Q1 2024. Growth-minded tenants are seizing the opportunity to acquire higher-quality spaces, with notable sublease transactions in the Bay Area and New York, including ByteDance’s163,000-s.f. sublease of Roku’s space in Silicon Valley. In Q2, the momentum continues with the New Jersey Institute of Technology securing a 75,000-s.f. sublease at 494 Broad Street in Newark. The demand for large-block, high-quality sublease listings remains strong, with limited availability as Carvana subleased more than 40,000 s.f. of its Marina Heights office campus to LPL Financial in April. Backfill activity is driving the decline in national sublease availability, which decreased by 2.6 million s.f. in Q1, now standing 16 BPS below peak sublease availability rates recorded in Q3 2023. #RealEstate #CommercialRealEstate #Sublease #MarketTrends

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I had a great conversation with Michael Bull, CCIM about the retail property market last week. Check out the recording here: https://lnkd.in/grHfbEXV #CRE MSCI Real Assets

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Appraisers in the U.S. need better tools that allow them to use more judgement in valuing assets. My colleague Willem Vlaming has been developing work showing that in parts of the world with low market liquidity and few comparable sales, that appraisal teams have been better able to capture the decline in asset values. http://ms.spr.ly/6040Yw5ts MSCI Real Assets #CRE

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🏢💼 Amidst fluctuations in the commercial real estate market, this recent report sheds light on a potential turnaround, signaling hope for recovery in CRE sales transactions. However, nuances across property types persist, emphasizing the need for sustained efforts and a favorable economic landscape. Read more about the evolving dynamics and the crucial role of interest rates in navigating towards pre-pandemic normalcy in this insightful analysis. Website: mclennanindustrial.com  Bio: https://lnkd.in/gJihJmJ9  Google Business Page: https://lnkd.in/gHn-YT5m  YouTube: https://lnkd.in/gxz7UURi  Instagram: https://lnkd.in/g3gNBFkV  Facebook: https://lnkd.in/gNmDVBBE  X: https://lnkd.in/g4f-8_aJ  TikTok: https://lnkd.in/g8_RtaNV  LinkedIn: https://lnkd.in/gms5TXMP #PugetSound #TenantRepresentation #LandlordRepresentation #SIOR #CCIM #IAMC #NAIOP #CRE #CommercialRealEstate #IndustrialRealEstate #Industrial #Logistics #Manufacturing #Warehouse #Seattle #Tacoma #KidderMathews #Kidder #SupplyChain #CommercialLand #WarehouseSpace #Warehouse #KingCounty #PierceCounty #ThurstonCounty #Seattle #Tacoma #RealEstate #SupplyChainManagement

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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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“#Moody's sees early signs of a recovery in #CRE as the decline in transactions slows. Despite Powell urging "patience," a rate cut later this year could bring vital relief for capital markets. … Despite the current interest rate environment, investors are still willing to invest in CRE, especially in larger projects. #Investors are willing to embark on these large projects despite the high cost of borrowing. Although total transaction volume remains subdued, the market is showing some signs of life.” - Moody's Analytics CRE #commercial #realestate

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The U.S. office market started 2024 where last year ended, as demand remained low. Economic uncertainty continued to drive tenant decision-making, leading many with near-term lease expirations to sign short-term renewals. Read the Q1 Office Report here: https://ow.ly/PXUH50RZZCS

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Multifamily rents grew modestly in the first half of 2024 as strong demand was mostly balanced by the heavy delivery pipeline in Lifestyle units and a lack of affordability in the renter-by-necessity category. Will the second half bring more of the same? Meanwhile, interest rates and capital markets continue to be big issues of concern. The Yardi Matrix mid-year multifamily outlook discusses these issues and more. The link here: https://lnkd.in/eXkt5Vf7

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I anticipate a moderately quick return to the long-term growth trend once markets stabilize. In the meantime, significant buying opportunities are expected to emerge. The ongoing devaluation of real estate is likely to create opportunities over the next several years. Specifically, the Seattle market is experiencing challenges, marked by one of the lowest transaction volumes in the country - a 78% reduction from its peak. At SmartCap, we are committed to identifying deals that offer substantial long-term value and manage leverage meticulously to safeguard our investors' capital. In today's market, buying below replacement cost is a key metric for success! https://lnkd.in/gYwhVgAD

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Listed REITs returned -0.16%, underperforming the market value weighted S&P by -151bp and outperforming the equal weight S&P by +54bp. The sector put up a valiant fight over the first 4-days of the week, but a stronger than anticipated employment report on Friday sent the sector -0.90% lower day-over-day driven by a +13bp spike in real rates. Six out of 18 subsectors were positive as specialty (+2.9%), apartments (+2%) and regional malls (+1.5%) led while office (-2.7%), lodging (-2.2%), timber (-1.6%) and commercial mortgage (-1.6%) lagged. The sector stands -4.5% year-to-date, but it +6.3% above the YTD lows in mid-April and +19.5% above the trough in October '23. Here's your pretty picture.

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Real estate in 2024 is shaped by fascinating macro trends: inflation’s impact, the surge in remote work, and the increasing demand for rental properties. Join our latest #podcast episode to explore how these factors influence investment strategies. https://lnkd.in/gXaCiRxY

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SRS' Matthew Mousavi, MBA recently spoke with PERE News about the state of the retail net lease market and the driving forces behind the slowdown of deal volume across all net lease asset types. "Occupancy rates are healthy, but the valuations are out of whack," says Mousavi. "Because we don't have a lot of distress, you don't see valuations going down, even though rates have gone up considerably. The market is inefficient now because it's frozen." Click the article to read more about the state of the retail net lease market ➡️ https://lnkd.in/gaxqvmCS #RetailInvestor #NNN #InvestmentSales #SRSCapitalMarkets #CapitalMarkets 

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Listed REITs returned +2.1% this week, outperforming the market value weighted S&P by +255bp and the equal weighted S&P by +222bp. The sector has now risen five out of the past 6 weeks. Real estate was the 2nd best of the S&P sectors trailing only energy. Sixteen out of 18 subsectors were positive as cell towers (+4.9%), industrial (+4.4%), healthcare (+3.4%) and shopping centers (+3.4%) led while lodging (-0.7%), apartments (-0.6%), diversified (+0.1%) and specialty (+0.1%) lagged. While YTD returns stand at -4.3%, valuations have risen+6.4% since the YTD trough last month and are nearly 20% above the late October 2023 trough. Here's your pretty picture.

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Very interesting article! Ready to explore new opportunities in the dynamic world of commercial real estate? Let's connect and discuss how we can turn your vision into reality! #CommercialRealEstate #RealEstateInvesting #PropertyManagement #InvestmentOpportunities #BusinessExpansion #MarketInsights#shermanoaks#apple#amazon

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