Retail Sales is Expected to Top $4.44 trillion this Year

June 11, 2021

Retail sales are doing better than initially expected earlier in the year. The National Retail Federation has revised its annual forecast for 2021, projecting that retail sales will now grow between 10.5% and 13.5% to between $4.44 trillion to $4.56 trillion this year. In February, NRF projected that retail sales would grow 6.5%. By comparison,…

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CRE Executives Advise Investors to Take Careful Consideration before Investing due to Hedge Inflation

June 8, 2021

Commercial real estate has long been a tool to hedge inflation by storing value. But after 15 years of dovish Federal Reserve monetary policy, massive stimulus from tax cuts and then pandemic aid, and disrupted supply chains, the usual may not be the new normal. Investors seeking an inflation hedge should look carefully at CRE…

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Inflation, Labor Shortages worries CRE Executives based on the Latest Poll

June 4, 2021

Commercial real estate executives looking at the future are worried about labor shortages, inflationary pressures, and the outcome of current policy proposals in Washington. A comparatively greater worry for the future than the optimism for the current environment came out in a second quarter poll of the leaders by The Real Estate Roundtable. For the…

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Office Tenants Are Snatching Up Space in New Development Projects

June 1, 2021

The pandemic has stunted office leasing activity across the country and put a cloud of uncertainty around future office usage—but there could be some hope ahead. New construction office projects have seen healthy leasing activity, according to Brian Michel. While new construction projects are often in demand because they offer the highest quality and latest…

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Inflation and CRE Profits

May 28, 2021

Inflation is the current hot mess controversy of the moment among economists—and, as a result, US business. The concern: trillions in fiscal stimulus from the government and a dovish monetary policy from the Fed in place since the Great Recession could fuel a wave of pent-up demand from millions emerging from pandemic isolation, causing a…

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Seattle Tops Foreign CRE Investors Choice

May 26, 2021

Traditionally, you could comfortably pencil in Manhattan for the top spot in the US for cross-border investment on Real Capital Analytics’ US Cross-Border investment Compendium. But that changed in Q1 as Seattle (with an 11% YOY decline) took the top spot in the 12 months through Q1 2021, after moving up from the No. 2 spot…

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Appraisal Values For Distressed Assets Continue to Drop – Retail is at 36.9%

May 24, 2021

Appraisals for distressed CRE assets are continuing their COVID-induced decline, with valuations for specially serviced assets slumping 33% in the period spanning October 2020 through March 2021, according to a new report from KBRA. Over the last 12 months, the 1,078 updated appraisal values reported by KBRA were 30.2% lower than the values appraised at…

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Single-Family Construction Declined in April

May 19, 2021

Single-family starts fell 18% in April, pulling down total construction starts 2% in April to a seasonally adjusted annual rate of $853.5 billion, according to Dodge Data & Analytics. Multifamily starts rose 5%, which limited the slide of overall residential building starts to 12% and a seasonally adjusted annual rate of $387.8 billion in April,…

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Q1 Investment Sales, Pricing Demonstrates Signs of Recovery

May 17, 2021

The investment sales showed strength for commercial real estate in the first quarter, said Colliers International in a new report. Aggregate pricing was up 7.8% year-over-year and investment volume reached $96.7 billion. “While lower than Q1 2020 volume, data across multiple asset classes demonstrates we are on an accelerated road to recovery,” said Colliers which…

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Overall Outlook for CRE Investment Remains Strong and is Getting Stronger for 2021

May 10, 2021

The overall outlook for CRE investment remains strong and is getting stronger for 2021, though office will remain the “wildcard” as companies and workers continue to grapple with how, where, and when to return to physical office space, according to a new analysis by Marcus & Millichap senior vice president John Chang. “In general, the…

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