Commercial real estate is a dynamic industry. Keep up with happenings with Spaces’ monthly recaps of the most valuable industry articles we’ve recently come across, focused on news in Ohio, Michigan and Pennsylvania.
CRE Investing: Tips from the Experts
With the New Year in motion, experts across a variety of industries forecasted trends, successes and failures for the year to come.
CreInvestEd President, Jeremy Cyrier examined the real estate industry in a report entitled, “6 Commercial Real Estate Investing Predictions for 2013 and Beyond.” A major consideration: tax reform implications, which “will lead to more conservative underwriting.” Says the press release about the report, “with looming changes in Washington, investors are cautious about how far taxes will go and what the overall impact on property values will be.”
Cyrier predicts an upturn in the industrial market, as well as retail, land and apartment. However, he warns investors to be weary of office space investments, due to current trends in shrinking square footage per employee.
Despite the current market, what remains to be shaken is the long-term viability of real estate investments. The founder of Baron Capital Group, Ron Baron, divulged valuable strategies for real estate investors in a recent interview with Forbes. He shared that since its birth three years ago, a real-estate mutual fund he developed is up 70 percent, and is among Baron’s top “in flow, money” funds.
JLL Leaders Attend World Economic Forum Annual Meeting
The Forum, “focused on shaping the global, regional and industry agendas,” was held January 23 – 27 in Davos-Klosters, Switzerland. JLL professionals attended the meeting and provided insight into the daily happenings and discussions within Notes From Davos.
Forum speakers and leaders broached a variety of economic topics including the effects of digital technology, debt, employment and much more. However, there did seem to be an overarching mood throughout the forum, according to Alastair Hughes, CEO of Jones Lang LaSalle Asia Pacific.
Hughes described the mood as “cautious optimism.” He noted that all attendees seemed positive about the economy, but Western debt, youth unemployment, and a few other pinpointed risks point to caution. But, economic predictions are looking up. Jones Lang LaSalle Europe Middle East and Africa CEO Christian Ulbrich said, “The mood has been good.”
Visit Notes from Davos for a full conference recap.
What to Expect From Your Real Estate Firm in 2013
CRE goes mobile. Over the span of one year, CRE industry mobile use rose 61 percent, according to In Motion Real Estate Media. It’s expected that “by 2013, mobile phones & tablets will be the most commonly devices used to access websites in the U.S.”
Knowing these facts, expect to see your real estate firm move to more mobile-friendly websites and applications.
Are you in the market for a new real estate asset? According to GlobeSt.com, commercial real estate lending will become increasingly competitive in 2013. GlobeSt.com predicted flexible standards and increased sources of capital, allowing lenders to get competitive. Be aware of the state of lending before adding to your portfolio.
GlobeSt.com reported, “2013, from all perspectives, will be the year that lending in the sector will truly hit its post-crash stride, with borrowers finding capital to finance growth—as well as refinance old debt.”
News Wrap Up: In Our Region
- Nitto Denko Avecia, Inc. bought the Girindus America Inc. building at Reading Road for $9.5 million. The deal was inclusive in Avecia’s complete purchase of the pharmaceutical business.
- The 10-acre property at Holiday Office Park was sold to Neyer Properties, who plans to renovate the currently standing complex. Paycor Inc. currently leases a great deal of space in the office, but will relocate next year.
- In a unanimous vote, Cuyahoga County confirmed relocation. The County will move into a building at the corner of Euclid and Prospect, built by Geis Cos. The new building, which is a piece of the Ameritrust restoration, will span 222,000 feet and eight floors.
- Downtown Cleveland has acquired the self-proclaimed, “largest independent provider of title insurance, appraisals and settlements services.” Title Source, which also works closely with Quicken Loans, opened a new office at 250 Huron Road.
- Large concentrations of office development around Columbus have sprung up at three wide compass points – west, north and east of the city – but the biggest hub of top-quality suburban office space can be found in the Dublin submarket. Dublin currently offers more than 3.7 million square feet of Class A office space.
- CSX Corporation forecasts completion of the intermodal cargo facilities expansion by the end of this month. The development totaled $59 million.
- Ford Motor Co. continues to sell land at the former plant located in Wixom. Trident Barrow Management purchased 239 acres, and has yet to announce plans for development.
- The 90-year-old building at 440 E. Congress in downtown Detroit has been sold to Broder and Sachse Real Estate Services. The real estate group intends to enhance building conditions.
- Napier Turbochargers was purchased by Wabtec Corporation as a suitable company addition. Napier Turbochargers generates $55 million annually, and employs 150 people.
- The historic Commonwealth Building, constructed in 1906 and spanning 20 floors, is now on the market. E.V Bishoff Co. president, E.V. Bishoff, set the price at $4.2 million.
Please feel free to add any relevant industry news we might have missed in the comment section below.