3 Reasons Why Sunbelt Real Estate is Looking Bright

You hear the statistics in the news all the time: people and businesses are moving to the nation’s South and Southwestern regions at an unprecedented pace. Thanks to the low cost of living, appealing tax benefits and its namesake clear, sunny weather, the Sunbelt—which includes states across the lower half of the country—is the new boom region. But while this trend has gained more attention lately, it’s not necessarily new. Thirty years of U.S. Census data paint a clear picture of the South and Southwest as long-standing hotspots for population growth in the U.S. In fact, the regions that compose the Sunbelt have edged out the East and Midwest in terms of net growth over 28 of the past 30 years of data. That population boom has translated into strong business performance for the region. Economic growth for Florida, Texas and California alone accounted for more than 28% of the total Gross Domestic Product in the U.S. through 2018. Click to read more at www.benzinga.com.

Renter Nation

A decade into this growth cycle, apartment developers in many metro areas still can’t build projects fast enough to keep up with demand. At the same time, rising costs and increased competition for renters are pushing both developers and investors to fine-tune late-cycle strategies to avoid potential missteps. Industry data sources paint much the same picture. Vacancies remain incredibly tight with rent growth that is still positive, although moderate, and outpacing the rate of inflation. According to a Mid-Year Market Update from Freddie Mac, national vacancy rates were hovering at 4.1 percent with annual rent growth averaging 4 percent. Data from Reis show stable, but slightly higher vacancies at 4.7 percent and effective rents that increased by 1.3 percent in the second quarter. “Everything that I see and read seems to indicate that we have more runway left in terms of the positive metrics that are contributing to multifamily being the darling of real estate,” says Reid Bennett, CCIM, senior vice president, National Council Chair of Multifamily at Sperry Van Ness | Chicago Commercial. Click to read more at www.ccim.com.

It’s Time For Buildings To Smarten Up

What are the growing priorities among those who manage commercial real estate? According to recent research, smart technologies and energy efficiency are climbing the ladder. CIL Management Consultants, a management consultancy, surveyed landlords, property managers, agents and suppliers about what they’d like to see implemented in the buildings they oversee. More investment in smart building technologies was a clear favorite going to the top of the agenda. More than half (58 percent) of respondents indicated that smart controls and sensors are important to building management. The vast majority (92 percent) report increased spending in this area. The added cost of these smart controls will likely lead to their implementation only within prime real estate, at least in the near term. That means Class A properties and top-tier markets. “Properties in larger cities with higher rents can justify refurbishments and upgrades, so it is these buildings which are seeing the early investment,” said James de La Salle, director of CIL’s built environment practice. “Older buildings and commercial real estate out of larger cities are likely to take longer to adopt this technology.” Click to read more at www.rejournals.com.

Jamie Henderson to Join Capital One as Head of Commercial Real Estate

NEW YORK, Nov. 22, 2019 /PRNewswire/ — Capital One announced today that Jamie Henderson will join as Executive Vice President and Head of Commercial Real Estate starting in January 2020. Henderson will report directly to Michael Slocum, President of Commercial Banking and Northeast Market President. “Jamie is a seasoned real estate lender and investor with both private and public company leadership experience across multiple asset categories,” said Slocum. “Combined with his experience in building diverse, high performing teams, I have full confidence that Jamie is the best person to lead and grow our Commercial Real Estate business.” Henderson has nearly 20 years of experience in commercial real estate and served most recently as a Partner and Head of Real Estate Debt at Ares Management Corporation and CEO of Ares Commercial Real Estate Corporation. Click to read more at www.prnewswire.com.

American Ventures CEO Reveals Science Behind Multifamily & Commercial Real Estate

NEW YORK – November 19, 2019 — Shravan Parsi, founder and CEO of multifamily and commercial real estate investment company, American Ventures, today announced the publication of The Science of the Deal™: The DNA of Multifamily and Commercial Real Estate`A pharmaceutical scientist by education, Shravan Parsi is determined to bring an analytical approach to an industry in need of clarity. In The Science of the Deal™, he outlines the technical information needed to learn how to invest in multifamily and commercial real estate, how to understand what makes a good potential investment and when to walk away. With The Science of the Deal™, Shravan Parsi encourages investors and investment firms to step outside of their typical comfort zones and put their money to work in ways that could upstage their expectations. In an industry that accounts for about 20 percent of the country’s GDP—that’s $3.9 trillion—there is plenty of opportunity for highly motivated individuals equipped with an expert approach to create a lucrative venture. Shravan himself has successfully acquired over 4000 units in the multifamily real estate space along with several successful commercial real estate investments by co-investing and partnering with private equity groups, family offices, and accredited investors. Click to read more at www.forbes.com.

BoyarMiller Capital Markets Breakfast Panel

• After recovering from the last recession, the stock market has leveled out and most stocks are ‘fully priced’; therefore cash is looking in other directions for deployment

Professional money managers such as pension funds, endowment funds, life companies, etc., are experiencing yields lower than planned, and are in some cases pushing funds into private equity in search of higher yields

• Although there are some faint ‘caution lights’ blinking in the financial markets, there are not any firm indications of recession…perhaps a flattening or slight downturn, but nothing serious

• Tariff wars are creating uncertainties and specific issues with some companies that are rippling through the economy; some companies and industries are starting to really hurt due to the president’s tariff wars

• The prospect of an out-of-control Washington is scary to all business decision-makers and tariffs are just one thing contributing to anxiety; how do you plan with extreme polarization?…although cooler heads usually prevail

Click to read more at www.rednews.com.