Category: CRE News

Haunted Places Series: Mizpah Hotel

October 4, 2023

Location: Tonopah, NevadaArchitectural Style: Renaissance RevivalBuilt: 1907 One of the best things about investigating the paranormal is the opportunity to take a deeper look into the past. For our first entry of 2023, we take a brief look into the old West, the mining boom of the late 19th century, and a little town with a big history. Grab your trusty steed and saddle up! This week, we visit Tonopah, Nevada’s Mizpah Hotel. The TownWhile admiring the Mojave Desert, it’s hard to imagine why anyone would want to put down their roots in a place so inhospitable. Yet in the mid-1800s, a movement was pulling people to just these sorts of places. The promises of riches, a new life, and freedom seemed out there for the taking. And so people were flooding en masse out West for the treasures hidden in the hills of the coast. Dotted across California and Nevada, small towns cropped up to support the efforts of hard-working miners. One such settlement that cropped up in this way was the town of Tonopah. A Shoshone word, meaning something along the lines of “greasewood water,” Tonopah began with the discovery of a silver-rich ore vein after prospector Jim

CRE Projections 2023: An Industry Outlook

February 15, 2023

The Commercial Real Estate market saw plenty of ups and downs in 2022. Industrial-class properties performed well and office spaces saw a modest comeback. Still, pandemic recovery has been an ongoing process and 2023 will be more of the same on that front. For the latest updates on the variable nature of CRE, let’s break down the projections for each class. Are We Heading For A Recession? It has been called the million dollar question for some time, but there has been wide disagreement about whether a recession is imminent in 2023. Analysts have been using the distinctions of “deep” or “shallow” to define the severity of a potential recession, but others have predicted avoiding the possibility altogether. Consensus is pointing towards a better atmosphere than 08’s recession, but there is still plenty of debate about what 2023 holds. For a start, market surveyors at Forbes have compiled a comprehensive overview of positive and negative indicators. With a rapidly improving labor market and signs pointing towards increased public spending, tempered expectations for the overall economy would be advisable. The Future of Office Spaces Perhaps the most interesting evolution within Commercial Real Estate has been the office space. After a massive

How To Capitalize On Migration Trends

February 8, 2023

In recent years, population shifts in the United States have led to surprising repercussions within commercial real estate. While some trends were simply accelerated due to the coronavirus pandemic, some regions have seen higher growth than anyone could have expected. Between office spaces, retail properties, and restaurants, here are a few strategies that investors should consider to capitalize on the great migration. The Pandemic’s Effect on Population Shifts According to Placer.ai, an industry leader in commercial real estate and demographic analytics, migration patterns within the United States may not have been altered as much as they seem to be based on recent news stories. The recent exodus from California to Texas and the major lull in the Northeast in favor of sunny Florida actually tracks well with what was seen prior to the pandemic. The jarring change has been the pace at which populations have been shifting. Placer reported that of new residents moving to Texas, 11.1% were from California, with a large portion moving directly to the Dallas-Fort Worth area. Overall, Texas and Florida both saw a sizable growth from the West and Northeast, with a growth of over 1.6 million new residents. Projections show that spillover from these

The White House Rental Plan: What Does It Mean For CRE?

February 1, 2023

On January 25, the Biden-Harris administration released a statement outlining their new plan to promote a more “renter-friendly” multifamily environment. Echoing notions from the “Blueprint for a Renters Bill of Rights,” this statement outlines different action strategies that combat recent “egregious rent increases” which they say have been more common within the industry. The pandemic has left its impact on many industries, and the rental sphere is no different. With new federal influence entering into the multifamily real estate industry, some investors may worry that this interference could destabilize a normally steady sector of CRE. To begin demystifying the results of these recent initiatives, let’s discuss the details of the White House’s new plan. The New Federal Oversight The primary and immediate result of this announcement is the new tasks assigned to the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB). Both agencies will begin to collect information, tracking things like methods used for tenant background checks, influence of a tenant’s source of income, and results of algorithmic tenant screenings. These efforts are intended, in part, to cut down on unfair and unequal treatment, viewed to have grown in recent years. Many are criticizing these moves as

Short-Term Leasing Opportunities With Airbnb

December 28, 2022

For property owners of multi-family real estate, a new option to drive down vacancy might have been introduced by short-term subletting service Airbnb. Referring to the new service as “Airbnb-friendly apartments,” Airbnb is advertising the service as a potential perk for tenants looking to make extra money while anticipating a tough economic season. This service is only offered at properties partnered with Airbnb, likely with liability and legal hurdles in mind. Still, depending on the negotiated rates, property owners have the potential to receive up to a 20% portion of booking revenue from any tenant activity on Airbnb. For investors and property owners interested in the potential behind this service, here is a brief overview of the publicly released details. Why Become A Partner Property? From a property owner’s perspective, there seem to be a few potential benefits in partnering with Airbnb. According to their advertising, a partnership with Airbnb is the best way to maximize value for each unit, believing that the opportunity should be a draw for potential tenants. Additionally, the association with a brand like Airbnb may provide an extra level of recognition and credibility for the property as a whole. With increased resident satisfaction and the

What Do Office Spaces Look Like In 2023?

December 21, 2022

Over the past few years, commercial real estate has been through the ringer. Relying on data-driven, easily predictable trends has been much more difficult for investors and property owners. Although plenty of uncertainty remains as a hindering force for office spaces, workers are making their voices heard. In the future, property owners will need to adjust their strategies in order to capitalize on the best tenants. While many investors are opting to diversify their holdings through multifamily conversions, the key to succeeding with office spaces in 2023 could be more about specialization and adaptation. Identify The Purpose Of The Office SpaceAfter work-from-home mandates transformed the way employers and workers viewed the workplace, the standing of office properties within the market has been less stable. While the realities surrounding office spaces vary depending on location, the truth is that most property owners still see their tenants using their offices in the traditional manner. For the most part, the old-school 9-to-5, 5-day workweek is still the standard. However, as reported by JLL Technologies (a leading voice in PropTech), 84 percent of property management teams see a portion of their tenants using a hybrid work model. Class-B and C office properties are projected

Why Brick-And-Mortar Retail Isn’t Going Anywhere

December 14, 2022

Pointing out that the COVID-19 pandemic had far-reaching effects on the economy is not a new revelation, but it begs repeating as we encounter and adapt to our evolving industries. In the retail sphere, the public had to drastically change their routines to meet their basic needs, and in turn, vendors had to learn new ways to meet the altered demand. In many ways, this forced adaptation has been a good thing for consumers. More options are available today than ever before when it comes to the retail shopping experience, whether it’s the expanded role of e-commerce, curbside pickup, or increased online integration from brick-and-mortars. According to the International Trade Administration, while e-commerce was already seeing a steady increase in retail market share, 2020 marked nearly a 5% growth (from 13.6% to 18% total market share. Rather than dropping to pre-pandemic levels, e-commerce has continued where it left off, moving back to its more consistent growth levels, and it’s predicted to continue at a similar rate. While acknowledging these trends, retail property owners may worry what this could mean to their brick-and-mortar investments. Although it is true that the retail sphere is rapidly shifting, current trends seem to show that

What To Expect During A Hotel Property Inspection

December 7, 2022

As we are heading into a new year, now may be a good time to start looking forward. New investments could be on the horizon, or perhaps new resolutions to improve on past ventures. In the hospitality industry, a commitment to excellence should always come with a property inspection. Whether through an annual property maintenance inspection or through an insurance underwriting experience, hotel property inspections are the best way to demonstrate responsibility and proactively work for your guests’ best interests. Insurance underwriting inspections don’t need to be a nerve-wracking experience. Just as with any home maintenance or property inspection, underwriting inspections are meant to provide a clearer picture on the condition of a property so that realistic expectations can be outlined. For commercial property owners unfamiliar with the process, however, it may be useful to break down some of the items and processes that go into a standard hotel property inspection. When Hotel Property Inspections Are Common In order to operate a successful and safe hotel business with confidence, a good insurance plan is key. Insurance underwriting inspections are an important step to setting up new coverage, so this should be expected after any new property acquisition, after considerable upgrades

What is ESG? (And Why Does It Matter?)

November 23, 2022

Commercial Real Estate is a varied field where people of many different backgrounds converge. New ideas and strategies are actively traded as everyone is looking for the best way to get a strong return on investment. While looking to accomplish these lofty goals, you may have run into an unfamiliar term: ESG. Many CRE investors have prioritized ESG while developing their portfolio and are starting conversations on blogs and on podcasts citing its importance. To get you caught up to speed, here is an overview of ESG, why it has become a topic of discussion, and how it might change how you operate within CRE. What is ESG?To keep it short: ESG is an acronym that stands for Environment, Social, and Governance. It is a type of unstandardized philosophy by which commercial real estate investors (and investors, in general) filter their investment pursuits, with special care for these three “pillars.” One might also consider it a moral standard that an investor chooses to adhere to. The term “ESG” was first referenced in 2004, through the United Nations’ “Who Cares Wins” report. Here, the term is used much as it is used today, as a recommendation on how to build sustainable

Coworking Spaces: What They Are, and How To Manage Them

November 9, 2022

In case you were unaware, Covid changed a lot of things. It is unlikely that we will ever again experience such a sudden change to the way that we conduct business or live our lives. However, new innovations and adaptations have been forced into the forefront of commercial real estate as the result of new worker demands. Of particular note has been the growth in popularity of coworking spaces. The Rise of Coworking SpacesCoworking spaces aren’t a new phenomenon. They actually date back to the mid-2000s as technological advancements offered the potential for new lifestyles, like the digital nomad. Through the pandemic, workers around the world were forced to adapt to remote operations, and as work preferences have changed, more and more offices have closed completely. For some, this new standard is welcome, but others have missed the camaraderie and social stimulation that comes from working in an office. It has been with these conditions in place that coworking spaces have seen a renaissance. But what exactly is a coworking space? In coworking spaces, workers pay for memberships to work alongside other independent members, usually from different fields (eg. freelancers, entrepreneurs, artists, etc.). Coworking spaces are similar to offices in