Average of the top competitive rates from eXp Commercial's National Capital Markets Partner CommLoan from a database of 700+ commercial lenders as of 7/24/23
*Rates are provided for comparison purposes only. Actual rates are dependent on property and sponsor.
https://www.creconsult.net/market-trends/commercial-real-estate-financing-rate-snapshot-july-24th-2023/
Commercial real estate can be a complex and highly competitive market, and finding the right representation is essential for a successful transaction. While some may think that listing their commercial property for sale independently may be a good idea, the value of representation by an experienced broker with a national commercial real estate firm cannot be overstated. In this blog post, we will explore the benefits of listing exclusively with a broker from a firm like Exp Commercial.
Expertise and Experience
One of the primary advantages of working with an experienced broker from a national commercial real estate firm is their expertise and experience in the industry. These brokers have an in-depth knowledge of the commercial real estate market, including current trends, regulations, and best practices. They also have access to a vast network of industry professionals, including appraisers, inspectors, attorneys, and financiers, which can be invaluable during the selling process.
Professional Marketing and Promotion
Another significant benefit of listing exclusively with a broker from a national commercial real estate firm is their professional marketing and promotion capabilities. These brokers have the resources and expertise to create and implement effective marketing strategies that can help your property stand out from the competition. This includes listing your property on relevant commercial real estate websites, creating high-quality marketing materials such as brochures and flyers, and leveraging their professional networks to reach potential buyers.
Targeted and Qualified Buyer Pool
A reputable commercial real estate firm like Exp Commercial also has a broad and qualified buyer pool that is actively seeking commercial properties. When you list exclusively with a broker from such a firm, your property will be marketed to this pool of qualified buyers, increasing the chances of finding the right buyer quickly. Additionally, these brokers have the skills and knowledge to qualify potential buyers, ensuring that only serious buyers who meet specific criteria are presented to you.
Negotiation Skills
Finally, listing exclusively with a broker from a national commercial real estate firm can be beneficial during the negotiation phase of the transaction. These brokers have honed their negotiation skills over years of experience in the industry, and they can help ensure that you receive the best possible deal. They also have the expertise to navigate complex legal and financial issues that can arise during the negotiation process.
In conclusion, the value of representation by an experienced broker from a national commercial real estate firm like Exp Commercial cannot be overstated. From their expertise and experience to their professional marketing and promotion capabilities, these brokers offer a range of benefits that can help ensure a successful transaction. If you are considering listing your commercial property for sale, it is worth considering the advantages of working with a reputable commercial real estate firm.
https://www.creconsult.net/market-trends/value-of-representation-exclusively-listing-your-property-for-sale/
Off-Market Multifamily Sellers Are Leaving A Ton Of Money On The Table
Marketing a property can increase the sale price by up to 23%, which runs counter to the idea that off-market deals can achieve higher values because a buyer will be more aggressive to seal a trade.
The perception is when a seller has one buyer vying for an asset, that buyer is more aggressive and willing to pay a premium because they don’t want the seller to get into a bidding war for the property. Our research found the opposite.
This is a sign it is in the best interests of owners to undergo a marketing campaign for their properties. Growing allocations from institutional investors toward real estate are still driving a sizable pool of investors into bidding for multifamily assets, and a full campaign is what drives the premiums.
The job of a broker to create a competitive environment on behalf of the seller. Putting a building on the market determines the strongest buyer.
That may not be necessarily based on price alone. If one buyer has a higher-priced offer but weak financial backing, versus a buyer with a stronger track record, taking a lower offer is the way to go. It’s our job to give the seller those options and we do that by marketing properties and generating the highest number of qualified offers possible.
There are numerous case studies where a seller received an off-market bid, put it on the market, and the off-market buyer still bought the asset but at a higher price.
eXp Commercial Chicago Multifamily Brokerage focuses on listing and selling multifamily properties throughout the Chicago Area and Suburbs.
We don’t just market properties; we make a market for each property we represent. Each offering is thoroughly underwritten, aggressively priced, and accompanied by loan quotes to expedite the sales process. We leverage our broad national marketing platform syndicating to the top CRE Listing Sites for maximum exposure combined with an orchestrated competitive bidding process that yields higher sales prices for your property.
https://www.creconsult.net/market-trends/off-market-multifamily-sellers-are-leaving-a-ton-of-money-on-the-table/
There are several ways to increase the value of a multifamily investment property:
Renovations and upgrades: Improving the units and common areas, such as adding new appliances, updating kitchens and bathrooms, and making energy-efficient upgrades can attract higher-paying tenants and increase the value of the property.
Increase rental income: Consider raising rent prices, implementing rent control measures, and filling vacancies promptly to maximize rental income.
Amenities: Adding amenities such as a fitness center, laundry facilities, and a pool can attract tenants and increase the value of the property.
Good property management: Hiring a professional property management company can help keep the property well-maintained and attract and retain high-quality tenants.
Location: Consider the location of the property and make improvements to the surrounding area to attract tenants, such as adding walkways, landscaping, and community events.
It's important to note that increasing the value of your property takes time and effort, and it's advisable to consult with a real estate professional to determine the best strategy for your specific property and market conditions.
https://www.creconsult.net/market-trends/how-can-i-increase-the-value-of-my-multifamily-investment-property/
A new rent report reveals that the rental market has seemingly flipped: After prices surged throughout 2021 and most of 2022, they've declined almost as quickly for five of the last six months.
U.S. rent prices decreased by 0.25% from January to February 2023, according to the latest data from rental listings site Rent.com. While it's a smaller decrease than in previous months, it brings the U.S. monthly average rent price down to $1,937 — lower than its August 2022 peak of $2,053.
As of February, 12 of the 50 most populous U.S. cities have declining year-over-year rent prices, according to Rent.com data:
Oklahoma City had the most dramatic decline, with year-over-year rent prices dropping by 15.71% in February. Prices there fell 8% between January and February of this year.
Even with the recent price dip, year-over-year U.S. rent prices are still up 1.7% as of February. However, that's a remarkable climb down, considering that year-over-year rent growth was double digits for most of 2022.
Raleigh, North Carolina, has seen the most growth, with a year-over-year rent price increase of 19% as of February, according to Rent.com.
The most significant factor in recent rent price declines is a glut of new rental units in 2023, "the largest in 50 years," says Thomas LaSalvia, director of economic research at Moody's Analytics. Rental unit vacancies have increased slightly as well, he says.
Demand for apartments has also cooled off, which has eased prices. He says this is due to an "affordability crunch" caused by high rent prices and an uptick in unemployment.
"This is very much a supply and demand story where demand is easing a little bit, and supply growth is picking up," says LaSalvia.
He says that with so much economic uncertainty, people probably think twice about moving, especially those looking to move out on their own.
"A newly graduated college student would be less likely to enter into an apartment market, or at least go with a studio or one-bedroom themselves," says LaSalvia. "In some of the higher cost areas, they might consider finding roommates to lower costs."
Even with fewer renters seeking out new homes, demand is still strong enough for a slight overall increase in U.S. rent prices yearly. Moody Analytics expects rent price growth of 2.5% to 3% for 2023.
Barring a recession or unforeseen events, rent prices are expected to grow annually by 3% to 4% in 2024 and 2025, says LaSalvia. That's roughly the same rate that prices rose in the years leading to the pandemic.
Source: Why rent prices dropped for the third straight month
https://www.creconsult.net/market-trends/why-rent-prices-dropped-for-the-third-straight-month/
As the Chicago suburbs face record-high office vacancies, the future of suburban office is likely to hinge on the conversion of outdated buildings into modernized mixed-use spaces, CRE experts said during Bisnow’s Future of the Chicago Suburbs event on March 21.
Powering Chicago's Elbert Walter III, Edwards Realty Co.'s Ramzi Hassan, EQT Exeter's Tammy Kelly, Tucker Development's Aaron Tucker, Opus Development Co.'s Paul Robertson and NAI Hiffman's Stephen Chrastka.
With suburban office vacancies averaging around 26% in Q4 — and as high as 33.2% in the northwest suburbs, according to NAI Hiffman — owners are facing the reality that many companies aren't returning to offices in sufficient numbers, leading them to consider different uses.
“A lot of communities haven't really embraced the need to reposition their offices to something else, so they're hanging on for that mythical office tenant that may be coming at some point in the future,” Opus Development Senior Director of Development Paul Robertson said. “It's probably going to take them a couple of years to figure out that that's not going to happen. We need to do something else with it.”
A new type of office space conversion is the “metroburb,” a term used to describe Bell Works Chicagoland, which hosted the event, as a metropolitan destination in the suburbs that incorporates offices, residential, retail and dining into one community. Inspired by Somerset Development converted the 150-acre corporate campus for AT&T in Hoffman Estates into the self-contained Bell Works Chicagoland.
“We started developing the metroburb pre-pandemic because we saw a trend,” Inspired by Somerset Development President Ralph Zucker said. “The pandemic accelerated the trend, and that trend is that people don't want to drive an hour into the city, give up two to two and a half hours of their life. It's about the level of retail. It's about the great bar. As those things are coming to the suburbs, there's less reason to schlep to the city.”
Suburban office parks that are struggling with vacancies might need to rethink how their spaces are used and consider converting them into public-facing spaces like restaurants or bars, Zucker said.
“The challenging ones are the ones that are within an office park where there is only other similar uses, and I think they're going to have the hardest time,” Wright Heerema principal Roger Heerema said. “I think ones that are maybe located on a fringe, I think maybe communities will be more open to the rezoning that's necessary to make them viable, but I think it's a tough question.”
Office-to-residential conversions are another option developers are considering.
“We're looking at office buildings to convert from office to multifamily,” Robertson said. “The challenge: The floor plates don't lay out very well, but there's just too much commodity office out there, and I think you will see some of that either get demolished or repurposed into other uses.”
Wright Heerema Architects' Roger Heerema, Heritage-Crystal Clean's David Chameli, Inspired by Somerset Development's Ralph Zucker and 25N Coworking's Mara Hauser.
Indeed, some older office buildings that aren’t well-suited for conversion might just need to come down as companies reduce their leased square footage in office buildings, Heerema said.
“As we're looking at a shrinking office need, I think most companies that are re-signing leases are signing for a smaller amount of square footage than what they're occupying currently, so I think some of these buildings are going to just not be viable as office buildings,” Heerema said.
However, suburban office spaces are often sitting on valuable pieces of land, so Zucker encourages companies to consider redevelopment before tearing down.
“Don't wait for the bank to take it back,” Zucker said. “Create value in your community by rezoning it on your own.”
Despite challenges with office occupancy, suburban offices tend to offer more space for employees to spread out, which is particularly helpful as social distancing concerns persist.
“I think when you look at downtown offices, they tend to be, in some cases, more density than offices in the suburbs, where people are sitting sort of on top of each other more, but then also having to get to the office via public transportation,” Heerema said.
The offices that thrive in the future will create social environments that compel people to leave their home offices, and the key to doing that is creating environments focused on “comfort, convenience, variety and community,” Heerema said.
“I think the office market is discovering that the ultimate amenity, it's not the gym,” Zucker said. “It's not the cafe. It's life. It's people. We're social animals.”
Source: Mixed-Use Conversions May Be The Future Of Chicago’s Suburban Office
https://www.creconsult.net/market-trends/mixed-use-conversions-may-be-the-future-of-chicagos-suburban-office/
