Posts Tagged as Commercial Real Estate

Commercial Real Estate Trends That Are "Outside the Box"

Commercial Real Estate Trends That Are “Outside the Box”

Will Politics Throw a Wrench in Commercial Real Estate Works?
Political and global economic uncertainties could significantly affect commercial real estate over the coming year. What will come to pass? Only time will tell…

2017 Headlines to Watch
Be on the lookout – politics may toss the industry a big curve ball in the following arenas:

Lender Regulation
CMBS lenders are gearing up the “skin-in-the-game regulations” that are part-and-parcel of the Dodd-Frank Act. Requiring CMBS lenders to hold on to 5% of new deals or assign the risk to a B-piece buyer. These efforts to reduce risk could lead to a changed commercial-lending landscape, lowering revenue for everyone from property owners to deal sponsors and loan distributors.

Strategies are expected to change as a result of risk-retention rules. However President Trump, who called the Dodd-Frank Act a “disaster” and “disgrace,” noted he “will be working to dismantle it.” Though unlikely to be repealed, it’s could be significantly reduced under the administration.

Rising Interest Rates
Deregulation and other economic stimuli, including a larger deficit, are expected to continue to fuel rising interest rates. An indicator of a stronger economy and typically associated with a strong real estate market, rising rates could prove a double-edged sword. However, they’ll constrain property deals, making commercial real estate less affordable and inviting more cautious borrowing and lending.

Foreign Investment
Administration-induced trade reductions and continued friction between the U.S. and other world powers are expected to continue to muddy waters. Chinese investment in U.S. commercial real estate may be on the downswing according to reports from the financial press in late November of last year. While the E.U.’s BREXIT deal may (or may not) raise the appeal of American real estate investments.

Political uncertainties giving you a commercial real estate headache? We don’t have a crystal ball – but we do have your back. Lobby for control of your business. Contact Properties Online today.

Growing a Family? Read more Here.

The Top Real Estate Trend for 2017 – Housing Market Fragmentation

Taking a chunk out of real estate trends for 2017: Housing market fragmentation. And like a nightmare math problem in a cinder block sized textbook, it’s all Greek to real estate professionals nationwide.

What’s the main factor in this problem?
In a wide range of locations and segments, buyers and sellers are doing the math… And coming up with different results. Small home inventory is miniscule, thus this segment is seeing sharper price growth than larger, higher-end options. Urban areas are appreciating faster than the ‘burbs… Leaving sellers to pull their hair over figuring out an ‘ideal’ listing price – and sellers shaking their heads as they struggle in vain to determine ‘fair’ housing prices – and offers. How’s an agent to advise his clients?

The sum of the parts
The best move for families will depend on their situation:

• Growing family?
Now’s the time to upsize. The average price of a 2 bedroom climbed 59% nationwide, while 4 bedrooms saw a more modest 41% rise. For those looking to move-on-up, this offers the best of both worlds: Huge buying – and selling – advantages.

• Starting out or sizing down?
For first-time buyers, retirees and others looking to cash-out and scale-back, low supply and greater competition have created a tight market. Here flexibility is key: Handling updates will earn a better deal, as will willingness to move from the city center. Case in point: Price per square foot in metro areas: 54% rise; Urban cores? 76%.

The financing factor
Real estate trends of record-low mortgage rates also aren’t expected to last, and the costs will add up: Just a half-point rate jump from 3.7% to 4.2% adds $864/year on a $250,000 home – so buyers should also consider this when making the decision to stay or change the status quo.

Real estate trends creating problems you can’t figure out how to solve? School yourself with the help of Properties Online today.

It's True that Every Good House Has a Good Bathroom.

Luxury Market Trend: Bathrooms With a View

Real estate selling can lead you to some interesting conversations. For example, you may be answering questions like: “Does the bathroom have a view?” Strangely enough, the latest must-have in the luxury market is bathrooms with a view – and potentially neighbors.

So why the indecent exposure?
Previously tucked away in homes, hence the name “water closet,” we humans, especially those of the female persuasion, spend quite a long time in bathrooms – around 8-10 hours a week on average. Today, however, time spent in the loo is being looked at as a place to refresh and renew, and exposure to natural light alongside views that bring the outdoors in are now resulting in the transformation of the humble bathroom to more of an at-home health spa.

Coming out of the water closet
Forget hiding out in dark bathrooms where the only window is nano-sized and overhead. Today’s luxury clients long for bathrooms that offer views from every conceivable point: Tub, shower, sauna – even the toilet. No longer an afterthought, today’s high-brow baths offer quite the ambiance: Lie in the tub while taking in the night sky, or take in the view over a waterway or cityscape while enjoying a rain shower from a picture window or entire wall of glass that can frost to opaque at the flip of a switch.

Sweet en suites
Once used as a handy way to take advantage of dead square footage, bathrooms are now soaking up prime locations in homes, taking advantage of the best views and maximizing light. From New York to sunny Miami and California, city locales to those surrounded by Mother Nature, bathrooms are capturing views never before expected – and sending uber-rich buyers out in search of homes with more luxurious lavatories.

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Prices Rise for Convenient Locations

Commercial Real Estate Delinquency Rates Climb – Watch Out In 2017

Commercial real estate trends point to prices falling by as much as 5% in the next 12 months.

What gives?

A storm is brewing, creating a tsunami of issues for the commercial sector. The global surge in U.S. property investments that drove record values in years passed is expected to wane alongside lower oil prices and disjointed debt markets. Property sales by publicly traded landlords, debt maturities, and tightened regulations are furthering the trend. The instability is creating a volatile commercial real estate selling atmosphere, with uncertainty about U.S. policies following the presidential election worsening matters.

Let it rain

Commercial mortgage-backed securities (CMBS) float amidst a tumultuous market in which borrowing costs for landlords are higher, inhibiting future price growth. Properties in small cities, dependent on Wall Street banks for funding, have been hit especially hard – a global market rout in February sent prices plummeting after Wall Street dealers were unable to provide liquidity when hedge funds were forced to sell CMBS holdings. Regulations such as Dodd-Frank are also not helping the situation, making it increasingly expensive for banks to hold securities.

Cold front

The market has shown signs of cooling since the start of the year, with commercial property values in big cities declining 3% in just the past 3 months. New York, the biggest market, is forecasted to decline as much as 30% over the year. Even REITs (real estate investment trusts) are being affected, with shares trading at prices that undervalue holdings (shopping malls, office buildings, hotels, etc.), leading them to become net sellers.

Bailing out

Despite the expected downturn in commercial real estate trends, the sun could break through the clouds, presenting new opportunities in the form of bargain prices for investors, and opening opportunities for investors to bail out borrowers who’ve come up short.
Are you prepared to weather upcoming commercial real estate trends? Properties Online is here to help. Contact us today.

How to Handle Hard to Answer Questions at Your Open House

Tips to Helping Your Sellers Focus on Selling a ” Product” Not a Home

What seller wouldn’t love to maximize the speed of selling their home, alongside the price? Putting a new look on an old battle could help them pull it off. Real estate selling tips looking at home sales from a different perspective – selling the home as a marketable “product” rather than a home – can achieve both these goals.

Drive real estate selling speed and pricing with these no-nonsense product marketing tips:

• Set the stage.
Drive-by shoppers WILL judge a book by its cover, making an instant determination to schedule a viewing with this simple act alone. Your front yard must look beautiful and maintenance-light. Don’t break the budget (new driveways/added garage) – a few new plants, grass, mulch, and a lot of lawn maintenance (raking, weeding, hedge trimming, pressure washing) will do the trick.

• Add a little sparkle and shine.
As opposed to major renovations, which can take a long time, focus instead on simple ways of creating a fresh look. The more “new” a home looks, the better the impression. The more “move-in ready,” the more buyers will pay. Deep clean every corner and crevice, particularly in the kitchen and bath, and reap big rewards. Neatly apply new trim and fresh paint. New moderately priced flooring, and you’ve got a trifecta of marketing potential at minimal cost.

• Move it or lose it.
Little stuff (clutter) prevents would-be buyers from visualizing themselves in the space. It also robs appeal, making spaces appear smaller.

• Make it look good.
Well planned, professional photographs (not amateurish phone snaps) equate to professional marketing materials. With the glut of online shopping, this is not someplace to scrimp.

• Go low to sell high.
Price just a bit low. This makes the home visible to more buyers, enhances your “product’s” bargain appeal, and entices multiple offers, competitive bidding, and a fast sale.

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