Commercial Real Estate News Brief: January 2013

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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

Cincinnati

Cleveland

Columbus

Detroit

Pittsburgh

Please feel free to add any relevant industry news we might have missed in the comment section below.

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