The commercial real estate industry has weathered the aftershocks of the pandemic, battled supercharged operating expenses brought on by inflation, and endured the pain of rising interest rates clogging up the flow of capital. The industry currently is amid a historic reset. While fundamentals for most asset classes remain favorable, the investment sales market seems …
Read more “Delaware Commercial Real Estate Summary – Midyear 2024”
Commercial real estate continues to face a growing number of challenges, from inflation to geopolitical events to the Fed’s ‘higher for longer’ interest rate outlook. All these factors have an impact on sales volume, pricing, debt, and refinancing. So where does distress manifest from in the commercial real estate world? Overall, commercial real estate fundamentals, …
Commercial real estate is a cyclical and capital-intensive business, and has long been known for its strength and volatility. Over the years, it has been susceptible to various changes have influenced its overall condition. Sensitivity to interest rates, overbuilding, shifting economic conditions, financial crises, and demographic trends amongst others all have played significant roles in …
Delaware’s three counties have been operating under an antiquated 35- to nearly 50-year-old base dates for their property real property tax assessments; in Sussex, New Castle, and Kent Counties, the last assessments were in 1974, 1983, and 1987, respectively. The assessment methodology was challenged by a lawsuit filed in early 2019 whereby litigants argued that …
Read more “Delaware Real Estate Tax Reassessment Update – Kent County”
The Federal Reserve is watching commercial real estate borrowing more closely as a potential risk to financial stability. They note the potential for loan defaults and inability to refinance given a correction in property prices. Losses on CRE loans “will depend on their leverage because owners of buildings with substantial equity cushions are less likely …
The industrial real estate market has proved to be one of the more resilient major commercial property types, both during and after the pandemic. Inflation-adjusted retail goods sales and truck tonnage are at high levels, and containerized imports at U.S. seaports are posting seasonally adjusted all-time highs. The T-12 figure of 12.6 percent rent growth …
The national office vacancy was 20.5 percent as of Q2 2023 according to JLL. The office sector is facing persistent challenges associated primarily with the work from home movement and functional obsolescence. The remote or hybrid work model has caused a structural change in the way tenants view and utilize their space needs. The office …
Media headlines of bank failures, the Federal Reserve’s continued interest rate hikes, a coming wave of distressed real estate, and the threat of an impending recession have caused uncertainty, and the amplification of a doom and gloom market outlook that creates unnecessary anxiety. This anxiety has spilled over to the consumer as 79 percent of …
Announcements by the Fed regarding monetary policy changes, bank failures, and elevated interest rates have caused many commercial developers and investors to pause and reevaluate their paths going forward. Excluding the office sector, market fundamentals of occupancy and rent growth have been good in most property sectors. However, the current market is full of uncertainty …
Challenges facing investors today include navigating the ever-shifting macro-economic environment. However, even with macro-economic uncertainty, commercial real estate fundaments remain on good footing. Market uncertainty is just causing developers & investors to pause in order to recalibrate their strategies. The local commercial real estate market remains active although sales activity might be slowing. Below is …