Zach Edelman

How has capital shifted over the last 10 years in commercial real estate? Check out these key takeaways from my CoStar Risk Analytics colleague Joseph Biasi. 👇

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Some Investors Say CRE Could Be Close To Bottom: 1Q 2024 ValTrends Report   Adversity continues to buffet commercial real estate (CRE), including high interest rates, constrained capital availability, conservative underwriting standards, low deal volume and negative returns. But some investors believe CRE is close to the bottom, according to the latest ValTrends report, “In the Crosscurrents,” SitusAMC’s quarterly analysis of important trends in the economy, CRE sectors, capital markets and the investment environment. Download free, 28-page report for 1Q 2024 now. https://lnkd.in/gQCr-bsn

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Time to nerd out on some tech for a minute 🤓 CoStar Group, a real estate analytics provider and owner of online real estate marketplaces like LoopNet, Homes.com and Apartments.com, has reached an agreement to acquire Matterport, a global leader in immersive 3D capture solutions. Their devices are capable of capturing high-precision indoor and outdoor photographs that can be tied together for 3D virtual tours. Their devices also provide detail property dimensions, room layouts, and more. Matterport's 3D technology is utilized in nearly every sector of real estate. LoopNet's Diamond and Platinum Signature Marketing Campaigns come with these 3D tours, which are helpful in having tenants and their reps familiarize themselves with a listing before adding it to a shortlist. Advertisers on CoStar's marketplaces see the value of these immersive tours. In March of 2024, CoStar reported there were over 7.4 million views of Matterport tours, with consumers spending 20% more time viewing a listing when 3D tours were available. Do you have a listing that you would like 20% more activity on? If so, reach out. This is one of many benefits that comes with our Signature Marketing Campaign options. The transaction is expected to be completed this year. As someone that geeks out on tech, it's exciting to see CoStar leaning into this revolutionary technology. #Matterport #CoStar #LoopNet #Homes #Apartments #CoStarGroup #Marketing #Tech #RealEstate #CRE https://lnkd.in/gkQZHfAB

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How tech can optimize multifamily operations Cut costs, save time: Learn about proptech innovation, centralization, labor optimization and effective data use at multifamily properties. By Richard Patapoff Head of Proptech Solutions, Commercial Banking While multifamily properties have performed well, they face rising operations, labor and maintenance costs. To help reduce operating costs and drive efficiencies, operators can implement cost-cutting measures, including smart building technology, labor optimization, centralization and effective data use. How smart buildings can help reduce operating costs “Embracing technology unlocks efficiency and sustainability across all industries, particularly in the multifamily space,” said Witness Yi, Central Region Treasury Services Manager for Commercial Term Lending. “In today’s world of growing competition, operational bottlenecks and rising costs, leveraging technology not only keeps our clients’ costs in check but differentiates them from their peers.” Smart buildings use advanced technologies to monitor, control and optimize building systems, which can help achieve operational savings by: Reducing utilities consumption: Integrated water management and monitoring solutions can provide consumption analytics and alerts to help operators manage consumption and reduce water waste. Likewise, smart HVAC systems provide precise control of temperature and air quality based on real-time environmental data and occupancy patterns, which can can increase energy efficiency and residents’ comfort. Increasing operational efficiencies: Automated controls may reduce the need for manual inspections and adjustments, so operators have more time to focus on complex issues. Lowering repair and maintenance costs: Predictive maintenance and early leak detection can prevent major disruptions, minimize the risk of major repairs and optimize system performance to extend lifespan and efficiency.  Implementing smart building technology Once operators identify the problem they want to solve, there are two layers to implement and manage: Device layer: This is the foundational layer for optimizing building performance and reducing operational costs. These devices—the physical hardware and sensors integrated into a building's infrastructure—gather data on environmental conditions, utilities consumption and occupancy patterns. Software layer: The software layer is composed of digital platforms and algorithms that aggregate, process, analyze and act on the data the device layer collects. Software is crucial for property managers because it translates raw data into actionable intelligence, so they can make decisions more strategically. The software layer can also improve energy efficiency, help predict maintenance needs and increase resident satisfaction for smarter, more proactive building management. https://lnkd.in/ghT2YyUa

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This is a great example of how firms can gain insights that allow them to dispel misconceptions and focus on the most promising opportunities by partnering with #CRE data providers like CoStar US. Give it a read and would love to hear if you’ve had a major “Aha!” moment like this. 

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An analysis of commercial real estate transactions in Q1 along with predictions for the rest of the year has been published by Altus Group. The key points I take away from this article are; The predicted rapid return to high levels of CRE transaction activity in Q1 did not occur with activity still down by more than 20% on Q1 2023. With expectations for CRE activity remaining high and interest rate cuts by the Federal Reserve being pushed back the likelihood of a late-2024 rise in activity is increasing. Emerging indications suggest declining profitability in numerous property sectors as owners and managers strive to counter expense inflation and contend with rising supply in specific markets. One of the largest expenses for any commercial real estate owner is property taxes and with markets as they are decreasing these taxes is becoming more desirable every day. If an expert opinion on how you could reduce these taxes sounds beneficial don't hesitate to reach out through LinkedIn or email me at adam.chettle@altusgroup.com For the full article; https://lnkd.in/eFmdSVEf #CRE #CommercialRealEstate #CRETransactions #MarketConditions #PropertySector #AssetValuation #RealEstateInvesting #MarketInsights #MarketTrends #AssetManagement #RealEstateMarket #CapitalAllocation

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Distressed property sales surged to a 10-year high in Q1 2024, constituting 6.7% of transactions, up from 6% in 2023. The multifamily sector doubled its distressed sales percentage compared to last year, while retail saw a notable increase from 4.1% in 2023 to 6.3% in Q1 2024. This trend reflects a broader interest in distressed assets, with appraisal work at Walker & Dunlop's Apprise firm spiking by 80% in January compared to the previous year, potentially signaling a renewed appetite for acquisitions.

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Check out our 2024 Q1 Las Vegas #multifamily market report, which leverages real-time data and analytics, keeping you current on market trends. Explore the latest insight in an easily digestible way: https://lnkd.in/eB47_ECq #CRE #investors #occupiers #multifamilycre #lasvegasmultifamily #multifamilyinvestments

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U.S. REITs raised $17.6 billion from secondary debt and equity offerings in the first quarter of 2024, according to Nareit. That’s up nearly 20% from $14.9 billion in the same timeframe last year, although well short of the quarterly totals seen in 2021. #cre #finance

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The #multifamily sector is experiencing several headwinds, including rising #construction and operating expenses, a surge in new supply, rising borrowing costs and, in some cases, falling rental rates – but everything may not be as black-and-white as it appears. Check out my 2024 outlook here: https://lnkd.in/d3wJ_jhD #CommercialRealEstate

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Office delinquencies ticked upward by 30 basis points from Q4 2023 to 6.8% as Q1 ended, according to MBA. Lodging delinquencies rose 20 bps to 6.3%, while industrial delinquencies were up by 30 bps to 1.2%. Retail delinquencies declined 30 bps to 4.7%, while those for multifamily were unchanged at 1.2%.

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In The New York Commercial Real Estate World, 421-a = 485-x! This 421-a replacement was fiercely fought over for a long time, and debate will continue over whether this new tax break for multifamily developers will have the intended results. Those results? More housing supply with current supply at 50-year lows! Interest rates will play a major part in any deluge of new projects, but the passing of 485-x is a start. Depending on the deal structure, developers will get tax breaks spread over 40 years in exchange for some of the following... From the article at Gothamist 'NY finally has a housing deal. Will it work?', written by David F. Brand and Jon Campbell... '...The latest iteration, now known as 485-x, will generally require participating developers to make a quarter of the apartments in their projects affordable to individuals with average earnings of no more than $80,000 a year or families of three earning around $112,000 annually. It’s a significant drop from the last tax break, which allowed developers to create “affordable” units priced at higher income tranches many New Yorkers could never touch...' _____________________________________________ If You Are Buying Commercial Or Residential Property In New York State, You MUST Protect It…That's Where Title Insurance And Due Diligence Comes In! Do Some Research Concerning The Title Insurance Provider That Will Be Used For Your Real Estate Purchase In New York! Watch ‘If You’re A Homebuyer In New York You MUST Protect It…That's Where Title Insurance And Due Diligence Comes In!' here https://lnkd.in/eME5S_3u. And remember that it’s your RIGHT to choose the title company you would like to use! Hallmark Abstract Service...You Buy Real Estate, We Protect It! #multifamily #taxbreaks #affordablehousing #nycrealestate #contruction #apartmentinvesting #CRE #nyc #485x #421a

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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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Investors keep asking, ‘Where are the deals?’ The main answer is that CRE transaction volume today is the lowest it’s been since 2009, according to GreenStreet. That’s an ~85% drop from the recent peak in transaction volume for deals over $25M. Ouch! With so few deals to choose from, coupled with CrowdStreet's rigorous deal screening process, there are few deals to get excited about. Market forces will likely spur more transaction volume later this year. CrowdStreet’s deal preferences have evolved along with the market. Join us to learn what generally makes sense in today’s CRE market. Where Are the Deals? Understanding Scarcity in CRE 📅 Thursday, June 13, 2024 ⏰ 10am PT/1PM ET 📍 Register here:

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