Analysts are warning of brownouts and escalating utility prices in major metro areas throughout the country this summer. What will that mean for the nation’s commercial practitioners? Some extra client hand holding but no extreme measures, say California pros who’ve been there.
Even if commercial property prices are rising, sellers can’t make a profit if taxes absorb all the appreciation. That’s why tax-deferred exchanges continue to be an attractive alternative for a growing number of private investors, companies, and even governmental bodies interested in delaying payment of capital gains taxes.
At the state and federal levels, efforts are under way to remove liability barriers to the redevelopment of brownfields, but if you have a deal that can’t wait until lawmakers act, there’s good news for you.
In the event of an economic downturn in 2001, industry developments are working in your favor. Market forces and regulatory changes have converged in a way that’ll ensure a soft landing for commercial real estate.
The increased interest in 1031 transactions by property owners looking for tax-deferred commercial real estate ownership opportunities has masked one small problem: It’s not always easy for practitioners and their clients to find good matches for the properties that they want to exchange.
Increasingly, brokerages are offering their associates a menu of compensation arrangements, from the traditional commission to salary plus bonus to hybrid plans that cap commission in exchange for other incentives--and associates are going for it.
Industrial and office practitioners around the country are reporting a slowdown, though slight, in the absorption of space among dot-com and other Internet companies—a group that has been one of the demand drivers for both office and industrial space in recent years. But don’t fret. The Internet economy is just beginning its long-term run-up.
In an age when top office and retail properties regularly sell for millions, if not hundreds of millions, of dollars, there probably aren’t too many residential salespeople who don’t occasionally think about switching to the commercial side of the business.
Landing a deal with a top-tier client. Breaking into a new international market. Being named No. 1 salesperson in a global commercial company. That’s the stuff we were looking for when we set out to identify four commercial practitioners—specialists in industrial, office, property management, and retail--for this month’s cover profiles.
As an alternative to rent, some owners are accepting warrants that allow them to buy stock before it’s available to the public--a risky strategy, particularly as venture capital for dot-coms dwindles, but one that offers the possibility of a big payoff. Other owners are requiring fledgling high-tech companies to pay a year’s rent in advance.
E-commerce’s precise impact on retail sales remains hazy. But few question that there’ll be an impact--a large one. Although projections of online retail have convinced some that the growth opportunities in bricks-and-mortar retail space will wane, others see new space opening up.
For the first time in years, the three major players--insurance companies, banks, and Wall Street conduit lenders--are battling it out for market share. That’s given borrowers a full menu of options for financing property acquisition or development and helped make 1998 and 1999 great years for commercial practitioners.
The U.S. economy could be headed for a “cold shower” before spring but will emerge stronger and more balanced, according to the two keynote speakers at TRANSACT ’99, NAR’s first international commercial real estate conference.
Bad residential tenants can wield a lot of power. They can damage property, stop paying rent, and make good residents want to leave. But a thorough tenant-screening process, residential property managers say, can prevent a world of headaches in defaults, evictions, and unnecessary turnover.
Although being online isn't yet a requirement in all areas of commercial real estate, clients are becoming more technosavvy every day, expecting to use E-mail to communicate, send a photo, or receive a lease.
Although residential practitioners have used the MLS for years, commercial practitioners haven't always shared listing information. Commercial property listing Web sites started to emerge in the mid-1990s, but an MLS-like comprehensive network of commercial property listings has yet to emerge.