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☆ The commercial real estate market is showing some cracks
▼ + stars: | 2023-04-05 | by ( Phil Rosen | ) www.businessinsider.com time to read: +5 min

But before we get too intergalactic, this morning we're stopping off in the commercial real estate space. In the wake of March's bank tumult, commercial real estate has frequently been noted as the next domino to fall — and one corner of the market is already showing signs of stress. A few things to remember:Higher interest rates have made it more expensive for both American households and large commercial real estate owners to buy or refinance property. Small and medium-sized banks hold 80% of US commercial real estate debt outstanding. What are the biggest risks, in your view, facing the commercial real estate market for the second quarter of 2023?

☆ America's Parking Addiction Hurts the Economy, Drives up Housing Costs
▼ + stars: | 2023-04-04 | by ( Jeral Poskey | ) www.businessinsider.com time to read: +10 min

A society committed to housing and feeding its people will ensure plenty of land is dedicated to homes and farms. According to the builder WGI, the average parking stall in the US costs $27,900 to build, more than the cost of many new compact cars. The money and resources dedicated to parking could be used for other purposes, but breaking our country's reliance on parking has been difficult. Parking accounted for about 27% of per-unit costs, regardless of whether the resident owned a car or not. Better transportation, better land use, better citiesEfforts are underway to finally rid America of its unhealthy devotion to parking.

☆ Big real estate landlords are finally starting to decarbonize, creating an $18 trillion market that this Blackstone portfolio company plans to profit from at every turn
▼ + stars: | 2023-04-03 | by ( Alex Nicoll | ) www.businessinsider.com time to read: +7 min

The Blackstone portfolio company Legence wants to be a one-stop shop for landlords. A Real Estate Board of New York study found that the total penalties could top $213 million. Its ICS became the strategic planner, its CMTA, which designed the first net-zero school in the United States, designed the upgrades, and its Gilbert Mechanical installed the new heating, cooling, ventilation, and lighting hardware. How to do itIt may still be a challenge to coordinate decarbonization processes, which don't come naturally to large-scale real-estate operators, Boland said. Legence plans to grow the business's geographic scope and increase its depth in current markets, including Colorado and California, Sprau said.

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☆ Commercial real estate is struggling with rising rates and bank woes, but the cohead of a $21 billion lender said it's the best time in his more than 20 year career
▼ + stars: | 2023-04-03 | by ( Alex Nicoll | ) www.businessinsider.com time to read: +3 min

High interest rates, office woes, and less bank funding are chilling commercial real estate. But a top commercial real estate lender said there's never been a better time for firms like his. It's a bleak time in commercial real estate, and it can be hard to find any rays of sunshine. One Bank of America analyst just warned commercial real estate presents a major risk regional banks that own a disproportionate 68% of the sector's loans. While interest rate uncertainty is clouding the commercial real estate outlook, some transactions could provide clarity to the market, de Haan said.

☆ U.S. cities are filling up with luxury apartments despite 'housing recession'
▼ + stars: | 2023-04-02 | by ( Carlos Waters | In Carloswaters | ) www.cnbc.com time to read: +2 min

Scores of luxury homes are coming to major cities across the United States. "You often see new housing branded as 'luxury,' in part because it's new," said Ethan Handelman, deputy assistant secretary at the U.S. Department of Housing and Urban Development. "When you get to affordable housing, we need to be providing some additional capital and/or rental assistance to help make that housing affordable to the people who need it most." Builders say the high cost of housing in the U.S. is related to the large amount of regulation in the housing sector. In 2022, the Biden administration announced a housing action plan that aims to shore up housing supply within five years.

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWhy cities are filling up with luxury apartmentsAn apartment building boom is unfolding in the U.S. This is a welcome signal as many cities remain stuck in a housing shortage. The shortfall in home supply has pushed many people into budget-stretching rents. Many of the new multifamily structures feature "luxury" amenities, such as pools and easy access to transportation. Washington policymakers are now attempting to address regulations that slow the pace of homebuilding, in an attempt to resolve rent inflation concerns.

☆ 20-year-old college dropouts explain how they built a 28-unit real estate portfolio with less than $1,000 in savings combined
▼ + stars: | 2023-04-01 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +9 min

Caleb Hommel and Chuck Sotelo didn't have any savings when they decided to invest in real estate. It was during the thick of the pandemic that they started thinking about investing in real estate. If they can invest in real estate, anyone can, emphasized Sotelo: "We had no experience in real estate. We didn't have any credit, we didn't have any money, and we didn't really have any connections before we started networking during junior college. A lot of people are in better spots than that, so I definitely think anybody can get started in real estate.

☆ It's not easy being a bicyclist in the US. Better infrastructure could help.
▼ + stars: | 2023-03-30 | by ( Eliza Relman | Juliana Kaplan | ) www.businessinsider.com time to read: +8 min

Advocates are asking for more funding for bike safety measures, in addition to e-bike tax credits. The best way to address biking safety concerns, advocates say, is to build better bike infrastructure, including a robust system of bike lanes. If passed, the law wouldn't directly address the most pressing safety and infrastructure concerns facing bicyclists, but advocates say it could help. At the same time, this growing community of new bicyclists would likely demand better bike lanes and other infrastructure. Ultimately, advocates say it's about return on investment: More bikes, and better bike infrastructure, could lead to big savings for commuters and a rethinking of how everyone navigates their landscape.

☆ Commercial real estate loans are the next major risk for banks, a top analyst said. Here are the top 20 institutions exposed to property debt.
▼ + stars: | 2023-03-30 | by ( Alex Nicoll | Daniel Geiger | ) www.businessinsider.com time to read: +2 min

Silicon Valley Bank's historic collapse this month helped trigger the failures of a few other financial institutions and weeks of chaos in the world of finance. On Friday, a Bank of America analyst pinpointed commercial-real-estate loans as the next major risk for banks. Regional banks like Silicon Valley Bank hold 68% of all commercial-real-estate loans, many tied to struggling sectors, like office buildings. Even more worrisome, a massive $450 billion in commercial-real-estate loans is maturing this year, and most of that is held by banks. Silicon Valley Bank wasn't a major lender to the sector, but the failed Signature Bank, the 10th-largest lender on this list, was.

☆ A senior economist at Interactive Brokers shares why home prices across the country will fall another 11% over the next year — and why a 2008-size crash he had expected won't come after all
▼ + stars: | 2023-03-29 | by ( William Edwards | ) www.businessinsider.com time to read: +5 min

Interactive Brokers Senior Economist José Torres says home prices will drop 15% peak-to-trough. The weakening in the housing market will continue into Q4 of this year or Q1 of 2024, according to José Torres, a senior economist at Interactive Brokers. Affordability is measured by home prices and mortgage rates relative to incomes. Yardeni ResearchTorres thinks affordability will stay at relatively depressed levels in the months ahead because he sees mortgage rates staying high. As for mortgage rates, consensus among firms like Goldman Sachs, the Mortgage Bankers Association, Moody's, and others is that 30-year rates will remain above 5%.

☆ Premarket stocks: Commercial real estate is in trouble. Why you should be paying attention
▼ + stars: | 2023-03-27 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN —Economists are growing concerned about the $20 trillion commercial real estate (CRE) industry. After decades of thriving growth bolstered by low interest rates and easy credit, commercial real estate has hit a wall. Before the Bell spoke with Xander Snyder, senior commercial real estate economist at First American, to find out. Before the Bell: Why should retail investors pay attention to what’s going on in commercial real estate right now? So the health of the market has an impact on the larger economy, even if you’re not interested in commercial real estate for commercial real estate’s sake.

☆ This LA mansion is staring down an April 1 deadline before the seller loses millions
▼ + stars: | 2023-03-24 | by ( Ray Parisi | ) www.cnbc.com time to read: +8 min

EstateLuxShootTrying to unload an expensive mansion in the midst of a banking crisis with the LA real estate market softening and uncertainty looming large isn't exactly great timing. Feinberg, like all luxury mansion sellers in LA, is also contending with the new mansion tax approved by voters in November. Yann IppolitoFor homes priced between $5 million and $10 million, sellers will have to pay the city 4% of the total sale price. According to his calculations, all of those sellers combined would have racked up a mansion tax bill of almost $131 million. "When New York implemented the mansion tax in 2019, there was a surge in closings just short of the July 1 start date and a void of sales in the following months," he said.

☆ The premium Americans are paying for a mortgage versus rent hasn't been this big since the housing bubble peaked 17 years ago
▼ + stars: | 2023-03-24 | by ( Phil Rosen | ) www.businessinsider.com time to read: +3 min

The monthly payment for a newly purchased home at the end of 2022 was $1,176 more than apartment rent. That premium is the widest it has been since 2006, near the peak of the housing bubble. Expensive real estate prices and high interest rates are driving the gap been mortgages and rent. Limited housing inventory in the US has kept prices elevated, and the Fed's aggressive interest rate hiking campaign over the last year has made mortgage payments more costly. On Thursday, mortgage giant Freddie Mac reported that mortgage rates fell for a second consecutive week, offering some relief in affordability.

☆ Here are Tuesday's biggest analyst calls: Apple, Meta, Harley-Davidson, Exxon, Amazon, Roblox & more
▼ + stars: | 2023-03-21 | by ( Michael Bloom | ) www.cnbc.com time to read: +5 min

Here are Tuesday's biggest calls on Wall Street: Morgan Stanley upgrades Meta to overweight from equal weight Morgan Stanley said it sees a more "structurally" disciplined company. " Morgan Stanley upgrades Emerson Electric to overweight from neutral Morgan Stanley said shares of the multinational tech company are too attractive to ignore. Morgan Stanley reiterates Apple as overweight Morgan Stanley said Microsoft is a long-term threat to Apple that's worth watching. Morgan Stanley upgrades Harley-Davidson to overweight from equal weight Morgan Stanley said the stock is attractive at current levels. Morgan Stanley reiterates Exxon as overweight Morgan Stanley said it likes the oil and gas giant's robust "competitive positioning."

☆ It took a progressive Virginia suburb 8 years to let developers build apartments instead of single-family houses. It shows how hard it is to build middle-class housing in the US.
▼ + stars: | 2023-03-21 | by ( Eliza Relman | ) www.businessinsider.com time to read: +12 min

Arlington, Virginia, is finally set to pass a "missing middle" housing policy after years of debate. Arlington is just the latest community to address missing middle housing as a part of a broader national reckoning. Across the country, critics of increasing housing density in single family neighborhoods are disproportionately older, wealthier, white homeowners. Advocates of missing middle housing say there's a deep generational gap when it comes to housing density. Despite the massive effort it took to come to the verge of passing missing middle housing, Arlington officials predict change will be slow and limited.

☆ Kathy Hochul’s Plan to Force NYC Suburbs to Approve More Housing Sparks Battle
▼ + stars: | 2023-03-20 | by ( Jimmy Vielkind | Photographs Jeenah Moon For The Wall Street Journal | ) www.wsj.com time to read: 1 min

HUNTINGTON, N.Y.—Backhoes are finally clearing the earth for the development of Matinecock Court, an affordable-housing complex in this Long Island suburb that was first proposed 45 years ago. To housing advocates, a multifamily project first floated when Jimmy Carter was president is the ultimate example of unreasonably restrictive suburban zoning and the reason for a push by Democratic Gov. Kathy Hochul to change the rules. To Long Island officials, who have long been concerned about traffic and school crowding, Matinecock Court was a challenge to the inviolate need for local control over land-use decisions.

☆ San Francisco Bay area to phase out natural gas heating appliances
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Carlos BarriaMarch 16 (Reuters) - The San Francisco Bay area will phase out natural gas-powered furnaces and water heaters beginning in 2027 to improve local air quality and public health. It is the latest move by local officials in the United States to eliminate natural gas, a fossil fuel, from heating homes and buildings. Eliminating natural gas appliances would mean transitioning to electric equipment such as heat pumps. Currently about two thirds of Bay Area households use natural gas appliances, according to the regulator. They will apply to water heaters in single-family homes in 2027, furnaces in 2029, and multifamily and commercial water heaters in 2031.

☆ Rent control policies are gaining support nationwide. Here's why economists still think it's a bad idea.
▼ + stars: | 2023-03-15 | by ( Juhohn Lee | ) www.cnbc.com time to read: +2 min

In response, support for rent control policies has gained traction. But this isn't the first time such policies have had widespread support. After the massive economic disruption caused by World War II, the federal government imposed rent control on roughly 80% of rental housing between 1941 and 1964. Economists argue that rent control would deter developers from building more homes, which would only worsen the housing supply crisis in the United States. Watch the video to find out why so many economists are against the idea of widespread rent control.

☆ Multifamily properties are seeing muted growth, says Cadre's Ryan Williams
▼ + stars: | 2023-03-14 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMultifamily properties are seeing muted growth, says Cadre's Ryan WilliamsRyan Williams, Cadre founder, joins 'Closing Bell: Overtime' to discuss how interest rates are impacting the commercial real estate sector.

☆ A real estate investor whose firm says it holds $282 million in assets shares 8 insider tips that will give any beginner an edge, even if they have no cash to start
▼ + stars: | 2023-03-12 | by ( Laila Maidan | ) www.businessinsider.com time to read: +10 min

But unlike other investment opportunities, real estate appealed to him because there were numerous areas where an investor could exercise control to increase the return on their investment. "The reason why I like real estate investing compared to the stock market is that the stock market is incredibly efficient. "Whereas real estate can definitely be an inefficient marketplace where you can gain the advantage." Start in places like real estate associations that regularly host events, conferences, and even breakfasts in cities across the country. You don't need a university degree to become a real-estate investor, but you can give yourself a head start with a few courses.

☆ 'Zoom rooms' and hideaway offices show how remote work is changing the way we design new homes
▼ + stars: | 2023-03-11 | by ( Stephanie Stacey | ) www.businessinsider.com time to read: +7 min

Family homes with two offices and "Zoom rooms" with camera-ready lighting are popular. The real-estate site Zillow told Insider offices were mentioned in 11.5%% of all listings in February 2023, up 4.5% from February 2022. Amanda Pendleton, Zillow's home-trends expert, told Insider a home office was no longer a "nice-to-have luxury." "When people don't have enough space or cash for two full-sized offices, they're replacing rooms," Hester said. She told Insider Veev's homes had LED strips around the edge of the ceiling to make even lighting that works well on camera.

Real estate crowdfundingReal estate crowdfunding is a strategy that allows enterprises to raise capital from large groups of individuals. Real estate investment trusts (REITs)If you want to wade into real estate, investing in a real estate investment trust (REIT) will provide exposure to the market without the time and cost commitment of buying your own property. Invest in your own homeFinally, if you want to invest in real estate, look closer to home — your own home. Strategies for successful real estate investingWhatever form your real estate investment takes, certain strategies will stand you in good stead. Pure investment plays — which don't involve hands-on management from you — include real estate crowdfunding, investing in real estate limited partnerships, and buying into real estate investment trusts.

The case for falling rentSomething strange is happening in the apartment market. More than 971,000 apartment units were under construction across the US at the end of 2022, the second-largest number on record. There's only so much people are willing to pay,'" said Jon Leckie, a researcher for Rent, a platform that helps landlords market their properties. For now, though, the wave of supply that's already underway should keep rents in check over the next couple of years. Now, as landlords shift their focus from jacking up rents to filling up units, renters can once again look ahead to better days.

☆ Converting empty office buildings into apartments sounds like a no-brainer, but big landlords are resisting for one big reason
▼ + stars: | 2023-02-23 | by ( Alex Nicoll | ) www.businessinsider.com time to read: +7 min

Three experts tell Insider office prices need to fall before conversions are commonplace. But for these plans to be successful, the world of real estate must address the elephant in the room: Office buildings are simply too expensive. Moody's laid out some basic math: In 2021, the average New York apartment building traded at $434 a square foot. Now in the US, he's up to the same business but not yet with the vacant office buildings that dot the downtowns of large metropolises. Among them is an older, 130,000-square-foot St. Louis office building, which represents some of the city's most outdated stock, Rubin told Insider.

☆ Billionaire Grant Cardone says he and other real estate investors will 'save the day' and prevent a home price crash
▼ + stars: | 2023-02-20 | by ( Alcynna Lloyd | ) www.businessinsider.com time to read: +4 min

High home prices and mortgage rates have sparked a downturn in US real estate. Grant Cardone, a billionaire real estate manager, says investors will prevent that from happening. While the housing slump is escalating this year, there's a brighter future ahead, billionaire real estate fund manager Grant Cardone told Benzinga, as published by Yahoo Finance. As the real estate market softens, strategists at Goldman Sachs projected various markets, including Austin and Phoenix, will likely see peak-to-trough home declines of more than 25%. Single family homes may be a new frontier for the billionaire known for authoring books such as How to create wealth investing in real estate.

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