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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More good news today (though it could be better!) with the announcement that interest rates will hold steady. With several months of no change now, investors have enjoyed greater certainty in financial planning, and we have seen increased confidence among buyers. Likewise, progress on existing development projects has been strong, and ongoing stability will enable continued growth and expansion in the property market, encouraging new investments and fostering a robust environment for future projects. #PropertyDevelopment #InterestRates #RealEstate
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Investing For 20+ Years | Managed $150M+ in Real Estate & Crypto | Strategies from millionaires so you can Invest Like the Top 1%
Top 4 Habits of Real Estate Investing: These top four habits of successful real estate investing are crucial for building a strong and profitable portfolio. First, specializing in a specific market is key. Focusing on a single location allows investors to deeply understand local dynamics, pricing trends, and potential opportunities. Secondly, understanding tax implications is vital. Savvy investors leverage tax strategies to maximize their returns, whether through 1031 exchanges, depreciation, or other deductions. Being flexible to market shifts is another essential habit. Real estate markets are dynamic, and adapting to changing conditions is crucial for sustained success. Lastly, diversifying across different types of real estate, such as residential, commercial, and industrial, spreads risk and enhances long-term stability. These habits form a strong foundation for real estate investors seeking financial prosperity and security. #realestate #investor #investing #realestateinvestor #passiveincome #investinghabits
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I recently dove into an eye-opening article on Commercial Observer discussing the ever-changing landscape of commercial real estate. The insights on investment strategies, shifting market dynamics, and emerging opportunities are incredibly relevant to our industry. As we at Finance Lobby continuously strive to connect lenders and brokers efficiently, understanding these trends is crucial. This article is a treasure trove of information that can help us all make more informed decisions and find those perfect matches in an evolving market. Let's leverage these insights to facilitate smarter, more strategic financing deals, and continue to lead the way in commercial real estate financing. #FinanceLobby #CommercialRealEstate #RealEstateTrends #InvestmentStrategies #CREFinancing #MarketDynamics https://lnkd.in/e2QdBfTv
Where to Invest in Commercial Real Estate? That Was the Question. - Commercial Observer
https://commercialobserver.com
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Underlying property fundamentals and operating performance for commercial real estate remained intact in Q1 2024; however, there are emerging signs of decreasing profitability across many of the property sectors as property owners and managers work to offset expense inflation and compete with increasing supply in certain markets. Don't miss our US commercial real estate transaction analysis for Q1 2024, which offers a comprehensive review of transaction activity across all property types. Read more: #CommercialRealEstate #USCRETransactions #USCREPerformance
US CRE transaction analysis - Q1 2024 | Altus Group Insights
altusgroup.com
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There has been a significant amount of discussion this year, including from us, regarding the potential turning point for the UK commercial real estate investment market and the expected increase in yields. Many experts believe that this turning point will come when the Bank of England starts regularly reducing interest rates, making debt more affordable and expanding the pool of potential real estate investors. As a result, sellers will feel more confident in releasing assets to the market, with a larger number of buyers ready to compete and secure the best prices. While the timing of this turning point is crucial, the speed of the market recovery is equally important, yet often overlooked. This is especially vital for opportunistic buyers who rely on acting swiftly before yields become too high. Looking at past cycles, it is notable that commercial property yields can harden rapidly once the market starts to shift.
Don’t underestimate the speed of the recovery
savills-share.com
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The real estate market has been significantly impacted by interest rates over the past year, but now that those rises seem to be slowing down, investors are wondering if 2024 will bring a recovery for the sector. However, it's essential to keep in mind that many factors other than interest rates will influence the market next year. Shareholders in real estate investment trusts and housebuilders should pay attention to these five trends to stay informed: https://bit.ly/48pSKED #RealEstate #Investors #InterestRates
Five predictions for real estate next year
investorschronicle.co.uk
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There has been a significant amount of discussion this year, including from us, regarding the potential turning point for the UK commercial real estate investment market and the expected increase in yields. Many experts believe that this turning point will come when the Bank of England starts regularly reducing interest rates, making debt more affordable and expanding the pool of potential real estate investors. As a result, sellers will feel more confident in releasing assets to the market, with a larger number of buyers ready to compete and secure the best prices. While the timing of this turning point is crucial, the speed of the market recovery is equally important, yet often overlooked. This is especially vital for opportunistic buyers who rely on acting swiftly before yields become too high. Looking at past cycles, it is notable that commercial property yields can harden rapidly once the market starts to shift.
Underestimating the speed of the recovery is a mistake
savills-share.com
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There has been a significant amount of discussion this year, including from us, regarding the potential turning point for the UK commercial real estate investment market and the expected increase in yields. Many experts believe that this turning point will come when the Bank of England starts regularly reducing interest rates, making debt more affordable and expanding the pool of potential real estate investors. As a result, sellers will feel more confident in releasing assets to the market, with a larger number of buyers ready to compete and secure the best prices. While the timing of this turning point is crucial, the speed of the market recovery is equally important, yet often overlooked. This is especially vital for opportunistic buyers who rely on acting swiftly before yields become too high. Looking at past cycles, it is notable that commercial property yields can harden rapidly once the market starts to shift.
Underestimating the speed of the recovery is a mistake
savills-share.com
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There has been a significant amount of discussion this year, including from us, regarding the potential turning point for the UK commercial real estate investment market and the expected increase in yields. Many experts believe that this turning point will come when the Bank of England starts regularly reducing interest rates, making debt more affordable and expanding the pool of potential real estate investors. As a result, sellers will feel more confident in releasing assets to the market, with a larger number of buyers ready to compete and secure the best prices. While the timing of this turning point is crucial, the speed of the market recovery is equally important, yet often overlooked. This is especially vital for opportunistic buyers who rely on acting swiftly before yields become too high. Looking at past cycles, it is notable that commercial property yields can harden rapidly once the market starts to shift.
Underestimating the speed of the recovery is a mistake
savills-share.com
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CEO at Monopoly Group Real Estate (Commercial Real Estate Brokerage) I Former NFL Player for Dallas Cowboys I Board of Directors for AthLife Foundation
What is a Cap Rate and How to Calculate It in Commercial Real Estate. Investing in commercial real estate comes with its own set of terminology. The cap rate, or capitalization rate, is an important metric for understanding your anticipated return on investment. By dividing your net operating income by the sales price, you can get an idea of how much return you can expect from an all-cash purchase on a given property. Cap rates vary depending on factors like type and location, but a typical rate of 4-6% evidences a lower-risk investment. #commercialrealestate #caprates #investment #industrialrealestate #retailrealestate #investmentproperty #investmentstrategies #commercialrealestatebroker #commercialrealestateinvestor #tamparealestate #tamparealtor #floridarealestate #floridabroker
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