Daniel Fetner’s Post

Investing in commercial real estate is an exciting opportunity. However, it's important to remember that market conditions and the economy may dictate how you do business. Being mindful of continued issues such as supply chain bottlenecks and e-commerce may make you consider a path leading to multifamily housing or industrial buildings instead. This information shares more on current industry events worth paying attention to. #creinvesting #commercialrealestate  

After a few years of turmoil in the real estate industry and the wider economy comes The Great Reset, according to Emerging Trends in Real Estate 2024, a report published by the Urban Land Institute and PwC. The idea that the industry is going back to normal after the pandemic is as gone as the optimism of 2021 and 2022.The following are trends detailed by the report. -5 Days A Week Is Good And Dead -Retail Reaches A New Normal The 2010s weren't kind to U.S. retail, as e-commerce ate into sales. But in 2024, retail will continue to exceed expectations -The Debt Threat CRE capital has become expensive and much harder to get -AI Is Bigger Than Ever, But It's Mostly Still Potential -Core Isn't Core Anymore -People Are Still Flocking South -Long-established norms about how CRE portfolios should be put together, including the definition of “core,” are crumbling, -Multifamily: Build, Baby, Build The multifamily sector has been vexed by most of the same headwinds as other commercial properties -Out Of Nowhere, Insurance Is An Issue -What Worries CRE Most When considering strictly development and real estate issues, participants in the report were most worried about construction costs. #CRE

In Forbes' recent article, discover compelling insights into why commercial real estate presents unparalleled investment opportunities. Explore the dynamic landscape of the market, from office spaces to retail properties, and uncover the factors driving their potential for high returns. This article delves into the resilience of commercial real estate amidst economic fluctuations, highlighting its ability to provide stable income streams and long-term value appreciation. Moreover, it discusses emerging trends such as the rise of mixed-use developments and the growing demand for industrial properties fueled by e-commerce. At Kaye/Bassman Construction & Real Estate, we recognize the significance of staying ahead of the curve in the commercial real estate sector. Our team of expert recruiters is dedicated to sourcing top talent and providing invaluable industry expertise to support your investment endeavors. Read the full article to gain actionable insights that can shape your investment strategy and propel you towards success in the competitive world of commercial real estate. Let KBIC be your trusted partner on your journey to maximizing investment potential! https://lnkd.in/gaEqQ3CV #RealEstateInvesting #CommercialRealEstate #InvestmentOpportunity #KBICInsights

Ultimately, it is antiIn 2023, the commercial real estate industry is anticipated to maintain its resilience in the face of various challenges, including inflation and increasing interest rates. On the other hand, certain segments of the market are anticipated to do better than others. Multifamily properties should continue to do well because there is still a high demand for rental accommodation. In addition, industrial buildings should do well because e-commerce is just getting bigger. Given that more businesses are implementing hybrid work models, office buildings should experience some weaknesses. As more people shop online, retail properties should continue to face challenges that the commercial real estate market will mostly be constant in 2023, with certain segments of the market outperforming others. The market for commercial real estate is a dynamic and intricate field. A handful of the variables influencing the market are the trends anticipated to mold it in 2023. Making informed investment decisions requires keeping up with the most recent trends and advancements in the sector. Read the full report here: https://lnkd.in/eCUF-X7k #realestate #commercialrealestate #properties

Delighted to share that we have sifted through a plethora of real estate wheeling and dealings to bring you our top picks for May. The real estate market has always been a veritable goldmine for the well-informed investor and in this tumultuous climate, it is more pivotal than ever to keep your fingers on the pulse of the industry. • Top Tier Commercial Properties - The office market is seeing a resurgence as companies elect to bring their employees back to the office. We’ve seen select premium commercial space transactions closing quicker than ever. Top tier locations offer the stability and strong returns that hedge funds thrive on. • Distressed Retail Assets - Although e-commerce has caused a shift, we've unearthed some favorable opportunities in this sector. If you’re a risk-taker, distressed retail assets could provide significant upside when the market recovers. Buy low, sell high - the golden rule applies everywhere, particularly in the real estate market. • Affordable Housing - This sector has shown incredible resilience. As affordable housing projects are usually backed with government support, this can provide a consistent stream of revenue. The caveat with affordable housing is ensuring that the project is in line with government policies. • Rezoned Industrial to Multifamily Residential - Industrial to residential rezoning stands out amongst our picks. It offers not only diversification in the portfolio, but also a sizeable appreciation potential as cities continue to morph and grow. We must remember that the real estate landscape is vast and continually evolving. It's important to not only stay dynamic in our approach but also carry out meticulous due diligence in our investments. Ultimately, the opportunities are there, waiting to be unlocked by those willing to take the plunge. These are exciting times indeed! The real estate market is providing glimpses of its might and my team and I are thrilled to uncover the innumerable possibilities. Let's continue the conversation in the comments below. Let's dive deeper into which opportunities pique your interest or have caught your eye!

Why Investing in Commercial Real Estate Beats Residential estate ? 💰📈 As a startup in the property sector, we often been asked where the real opportunities lie: commercial real estate or residential estate? 🤔 Let's dive into why commercial real estate stands out as a superior investment choice.🤑 1. Higher Returns on Investment (ROI): Commercial properties typically offer a higher ROI compared to residential properties. According to CBRE, the average annual return on commercial real estate investments is around 9.5%, 🤯 whereas residential properties average about 4.5%. 2. Long-Term Leases: Commercial leases are generally longer, often spanning 5-10 years, providing more stability and consistent income. This reduces the risk of frequent tenant turnover and associated costs.📉 3. Professional Tenants: Businesses tend to maintain their properties better than residential tenants, as the condition of the property reflects on their business. This can lead to lower maintenance costs and higher property values. 4. Diversification Opportunities: Commercial real estate offers a variety of investment options, from office buildings and retail spaces to industrial warehouses and multi-family units. This diversification can help spread risk and tap into different income streams.🏢 5. Tax Benefits: Commercial real estate investors can benefit from various tax deductions, including mortgage interest, property depreciation, and operating expenses. These deductions can significantly enhance the net profitability of your investments. 6. Growing Market Demand:📈 The demand for commercial spaces is on the rise, driven by the expansion of businesses and the shift towards e-commerce. According to JLL, the global commercial real estate market is expected to grow at a CAGR of 10.6% from 2021 to 2028. At Property Verse, we've helped numerous investors navigate the commercial real estate market, achieving substantial returns and building robust investment portfolios. 💰 Our expertise ensures that you make informed decisions for better results and a more secure financial future.🚀 Investing in commercial real estate not only offers substantial financial benefits but also aligns with the broader trends of a growing economy. 🇮🇳🚀 As businesses continue to expand, the demand for commercial spaces will keep rising, making now the perfect time to consider this lucrative investment.🏫 Ready to explore the opportunities in commercial real estate? Let's connect and discuss how you can maximize your investment potential with PropertyVerse.🤝 Ayush Bhasin Shiv Kumar Singh Yash Vats Property Verse #RealEstate #investing #portfolio #management #MarketResearch #Property_verse

As we move through 2024, the commercial real estate market is experiencing a dynamic shift. Investors are becoming more selective, focusing on high-quality assets that meet the needs of today’s tenants. In PwC’s latest Emerging Trends in Real Estate report, key insights reveal that while economic headwinds and credit challenges persist, there are significant opportunities for savvy investors. Here are some highlights: 📉 Transaction Slowdown: Despite available equity, transactions are down as buyers and sellers struggle to agree on pricing. This has created a market ripe for strategic acquisitions. 📈 Inflation Eases: The worst of inflation appears to be behind us, providing a more stable environment for investment. The Federal Reserve is expected to pause interest rate hikes, which could boost market confidence. 🏢 Office Sector Challenges: The bifurcation in the office market continues. Premier properties in top locations are thriving, while older buildings face high vacancies. Adaptation strategies, including potential demolitions and land repurposing, are on the table. 🌳 Sustainability: As climate risks grow, so does the urgency around sustainability. ESG initiatives are becoming a critical focus for property owners and managers. 🔍 Investor Caution: With interest rate uncertainty, investors are cautious yet ready to capitalize on undervalued assets. The market’s highest buy rating since 2010 signals a favorable entry point for acquisitions. For a deeper dive into these trends and more, check out the full PwC report: https://lnkd.in/eKvyF5Qr

According the the Emerging Trends in Real Estate 2024 report, which is detailed extensively in the following article, the top trends to look for are a retail rebound, changing sentiment about climate risks and worsening affordability. In addition, commercial real estate trends to watch for are: Hybrid work staying popular, debt coming to the forefront, expanding business in the Sun Belt (Southern United States), AI advancements and renovation of downtown areas. Over the past 18 months, about 35 million square feet of new retail space has emerged in the U.S. Office building, on the contrary, are losing their appeals due to hybrid work. Rising debt can crowd out private CRE industry investments, which leads to slower economic growth and higher interest rates. AI has the potential to predict climate risks, identify investment opportunities and create higher-performing real estate portfolios. CRE developments may need to be re-positioned to spotlight their sustainability. Concerns are growing about "urban doom loops" in downtown areas, as empty office buildings have been left behind with relocation to suburbs or office downsizing. If you haven't heard us, or anyone in the real estate world talk about it this year already, U.S. housing affordability is at an all-time low. Affordability has experienced the fastest-ever deterioration over the past three years, with mortgage rates more than doubling. To solve affordability, housing needs to be built at all price points. https://lnkd.in/giqtRf4r

Seizing Opportunities in Commercial Real Estate! Yes, the U.S. commercial real estate market is navigating a sales decline, but guess what? Every challenge holds an opportunity! 📉💡 Despite uncertainties linked to higher borrowing costs, there's a silver lining. Some investors are currently in a wait-and-see mode, creating a unique window for strategic moves. How are you positioning yourself in this landscape, especially if you're holding commercial retail properties? 🤔✨ Historical data indicates that recovery takes time, but it also showcases resilience and eventual growth. In previous downturns, the office sector faced challenges, yet opportunities emerged as prices stabilized over time. How can we turn these patterns into profitable strategies today? 🏢📊 The industrial and retail sectors may be experiencing complexities, but remember, innovation often thrives in challenging times. Are you exploring new avenues within these sectors, unlocking hidden potentials? 🔄🚀 The multifamily sector, with its rapid adjustment in previous downturns, offers insights into navigating change effectively. How can we apply these lessons to maximize returns in today's market? 🏘️💰 Let's not just weather the storm, let's ride the wave of opportunity! 💪✨ Whether it's evaluating property values or exploring strategic sales, I'm here to collaborate. 🌐💬 #CommercialRealEstate #OpportunityInChallenges #RetailInvestments #StrategicMoves 🚀🌟

Is tenant demand back in the Inland Empire? Yes, No and Maybe. How's that for an answer? YES: ☀️ Per CBRE, gross activity surged to over 12M SF in Q2 2024 as new leasing and user sale totals rebounded from eight consecutive quarters below 11M SF. ☀️ Positive net absorption in Q2 2024 signaled market strength as pre-leased deliveries led to 3.8M SF of positive net absorption. After several quarters of anemic leasing activity in the IE, the first half of 2024 has started strong as landlords have dropped lease rates and offered generous concessions to attract tenants. NO: ⛈️ Per Supply Chain Dive, after a positive start to the year showed signs of an industry rebound, manufacturing growth has plateaued as the Federal Reserve declines to lower interest rates. ⛈️ “Interest rate uncertainty has caused companies to focus more on liquidity and be extremely cautious with any form of investment, including people, inventory/working capital and Capex,” Timothy R. Fiore, chair of ISM’s Manufacturing Business Survey Committee. This means that many industrial tenants are unlikely to reinvest in their business and expand into new space while we are still in this higher interest rate environment. This uncertainty causes people to pause and not make decisions regarding their future real estate needs. MAYBE: 🌥️ Although the IE showed positive net absorption of 3.8M SF this past Q2 2024, this was really because the IE West carried the entire market with 5.4M SF positive absorption while we saw -1.6M SF of negative absorption in the IE East. Why was most of the demand in the IE West? One theory that I concluded is that most of the leasing activity has come from Chinese Third Party Logistics (3PLs) firms. Historically these Chinese 3PLs do not want to cross east into Fontana past the the I-15 Freeway. When the market was hot with 0.2% vacancy these tenants had no choice and the entire IE market was leasing up faster than buildings could be built. Now that the IE West has availability and is more affordable, it is clear that the preferred location for tenants is the IE West. Why are Chinese 3PLs more prevalent tenants in the market these days? They have always been around but generally speaking their lack of credit history on paper didn't excite institutional landlords when there were plenty of tenants with solid credit competing for the same space. Now has been the time for Chinese 3PLs to shine and landlords have been willing to do deals with these tenants as long as they can provide significant credit enhancement. Additionally, I suspect that there have been more Chinese 3PLs leasing space in order to get product out of China and on US soil. This way they can get out in front of the November 2024 US election where tariffs on Chinese imports to the US have been a hot topic. The second half of 2024 will be an interesting one to say the least with more questions than answers.