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Seizing the Moment: Developers’ Opportunity in Affordable Housing
Housing shortages have sent mortgage rates and rents soaring across the United States, and in 2022, the median rent-to-income ratio reached 30% for the first time in over 20 years. The lack of affordable housing development in high-demand, job-rich areas is having a ripple effect across communities, causing an increase in rates of homelessness and…
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Real Estate Investment Strategies for Every Commercial Property Rating
In today’s world, we’ve made it a habit to grade nearly everything. A young child’s arithmetic abilities, the strength of concrete and even eggs all receive letter grades. The financial markets equally rely on a grading system to rate stocks, bonds and credit quality—and commercial real estate assets follow suit, also receiving letter grades to…
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The State of Ground-Up Developments Heading into 2024
Ground-up development, or projects built on raw land or by demolishing an existing structure to build on a scraped lot, continue to be a popular pursuit among both developers and investors heading into 2024. By looking at the real estate trends of the past couple of years, from innovative construction materials, sustainable style and architectural…
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Class-B Multifamily Has the Potential to Outperform Top-Tier Properties
Multifamily has always been known as the darling of the commercial real estate market. The asset class has everything an investor could want, like relative recession protection and stable demand. People will always need a place to live, and that fact has solidified a permanent place for multifamily at the top of the commercial real…
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Top Multifamily Development Trends to Prepare for in 2024
Multifamily housing development has an unclear future as an asset class, with strong fundamentals complicated by a turbulent economic outlook. Market fundamentals have remained strong over the last year, stabilized by strong demand and healthy occupancies. However, the asset class may be in decline by the end of 2023 due to dislocated capital markets, supply…
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Real Estate Due Diligence: Essential Checklist for Commercial Properties
Real estate due diligence is the process that encompasses all the actions that go into investigating and analyzing a site’s potential risks and opportunities before a transaction is finalized. By conducting a thorough diligence process, you can mitigate risk over the lifecycle of a project, get an accurate picture of the project’s financial health, and…
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A Functional Guide to Cap Rates in Commercial Real Estate
In commercial real estate investment, there is no metric more prevalent than the cap rate. For transactional real estate investors, it’s a powerful tool used to vet prospective acquisitions, track income gains, and calculate returns. In essence, a commercial cap rate is a measure of return and risk on an investment asset. While we’ve said…
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NOI Meaning in Real Estate: Unpacking Net Operating Income
Financial metrics are vital for your development team to track, helping you demonstrate a project is financially viable and will deliver high returns. From the Internal Rate of Returns (IRR), cap rates, and Return on Investment (ROI), your team is likely to use key data metrics to show a project’s profitability to potential investors. Net…
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Commercial Real Estate Forecasts Show Positive Development Signs
Predicting the economic future is a real estate developer’s favorite pastime. The job inherently requires that developers assess future risk and predict with great accuracy the economic environment into which they’ll deliver a property. The practice, of course, isn’t foolproof. Developers breaking ground in 2018, for example, could never have imagined completing the project in…