Effective rents weighed down by growing office concession packages
Despite high office rents, elevated free rent and construction costs impair landlord cash flows
There are a lot of ways to analyze a lease transaction, and points of view vary depending on which region of the country and on which side of the negotiating table you're sitting.
Higher tenant improvement costs pin office rents to the ceiling
Office landlords cannot afford to lose money building out the type of new office suites tenants demand
For several years now, the office market has found itself in an unusual, if not unprecedented, situation. Despite record office vacancy, the price of leasing space has kept moving ...
A closer look at the office rent paradox
It is rare for office rent and vacancy to increase at the same time, but not unprecedented
Despite record-high office vacancy, asking rents for those properties have continued to climb, creating a paradox that can puzzle many in commercial real estate. How can office ren...
Despite increase in asking rents, 'real' office rents have declined
Inflation has far outstripped the slow rise in the sticker price for office space
That asking office rents have actually risen in an era of historically high vacancy rates presents something of a conundrum to commercial real estate observers. Several factors hel...
Why are office rents still climbing? It’s complicated.
Despite the laws of supply and demand, office rents keep floating higher
When office vacancy rates soar to record highs, and tenants scramble to return unwanted space to landlords in droves as they have recently, it would be natural to expect rental rat...
Major Banks Report Surge in Noncurrent Commercial Real Estate Loans
Regulators Take Notice of Growing Amount of Financing Behind in Payments, Notably Office Lending
In a number of America’s cities, office buildings that once bustled with activity now stand eerily quiet. Across the country, higher office vacancies are doing more than cutting in...
Commercial Real Estate Deal Flow Shows Signs of Revival
Property Sales Pick Up in Core Markets, Leading the Way in Emerging Recovery
In commercial real estate, numbers tell the story, and as the third quarter of 2024 unfolds, the figures are beginning to shift the perception of future deal flow toward cautious o...
Should You Buy the Flagship Office or the Fixer-Upper? The Answer May Be a Surprise.
Investors Increasingly Target Both Top-Tier Offices and Redevelopment Opportunities
“Nothing is trading” has been a familiar refrain among office investment professionals lately. It’s easy to understand why. The total number of office trades has plummeted 52% sinc...
Federal Reserve Chairman Cues Up Rate Cuts To Come
Policymakers Stand Pat for Now As Capital Markets Stir
Federal Reserve Chairman Jerome Powell said policymakers are getting closer to lowering interest rates, possibly as soon as September, if conditions warrant as policymakers wrapped...
Previous Price Holds Little Relevance in Valuing Current Office Deals
Recent Sales Hit New Pricing Lows Across the Country
As the winds of change sweep through commercial real estate, office pricing has been heading sharply lower. The pricing descent appears poised to continue until we near the expecte...
Major Brokerages Hold Onto Control of Most of Large Investment Deals
These Firms Handle Bulk of Investment Sales Across Five Major Commercial Property Types
The past three and a half years have seen significant economic fluctuations and a plunge in the number of large investment deals getting done, but that doesn’t mean large commercia...
Here’s Where Large Multifamily and Hospitality Deals Are Pricing
Capitalization Rates for Major Transactions Climb
To understand where commercial real estate is pricing this year, start by looking back to early 2022 when the Federal Reserve's interest rate hikes triggered a sharp decline in ins...
Inflation Delays the Much-Anticipated Bottom for Property Values
Elevated Treasury Yields Prove Dilutive to Asset Values, Driving Up Capitalization Rates
Global bond yields, commodities and reflating home prices all point to a persistent, if not rising, headline inflation rate in the months ahead.
Navigating the Stagflation Undercutting Commercial Property Values
Higher Interest Rates, Slowing Income Growth Require a New Playbook for Commercial Property Investors and Owners
The commercial real estate industry faces new adversity as it navigates an economic phase marked by higher interest rates and slowing income growth, an economic condition commonly ...
Commercial Real Estate Needs To Follow the "Moneyball" Principle of Adapt or Die
Operators Should Focus on Things They Control and Devise Strategies to Preserve In-Place Income
In the popular movie, "Moneyball," the general manager of the Oakland Athletics Major League Baseball team played by Brad Pitt is faced with the challenge of competing against weal...
A Quick Look at Summer’s Most Active Office Markets
Chicago and 'Smile States' Shine as Top Destinations for Office Investors
Like seasoned surfers scouting for the perfect wave, commercial real estate investors are also active during the summer, scanning the choppy investment waters for suitable investme...
Capitalization Rates Head for Higher Ground
As Rent Growth Decelerates, Investors Shift Focus to In-Place Income
Expanding capitalization rates for property sales across the primary commercial real estate sectors shed light on evolving investor sentiment, especially as interest rates remain e...
Navigating Multifamily’s Peaks and Valleys
If Recent Movements Are Any Indication, Further Price Declines Lie Ahead
Commercial real estate pricing cycles have recently run in periods of seven to 10 years and are usually accented by brief and hard-hitting bouts of volatility.
REITs Pour Capital Into Healthcare Real Estate With ‘Gray Tsunami’ Approaching
Net Income Growth of 7.6% Lured Capital Into the Sector
Real estate investment trusts closed out 2023 with a surge of investments in healthcare properties as they look to capitalize on an aging population that is becoming increasingly d...
CMBS Loans Spotlight Emerging Concerns in Hospitality and Office
Loans for Office and Hotel Properties Draw Scrutiny as More Properties Struggle With Debt Coverage
A survey of more than 35,000 commercial real estate loans in the CoStar product highlights potential risks in the hospitality and office sectors, specifically with loans financed t...