Multi-Family Properties Might Be The Way To Multi-Millions

In the current commercial real estate market, investing in multi-family homes should be on the radar. Multi-family properties don’t always have to be 20 floor sky rise apartments in a big city. They can be smaller duplexes, town homes Read more

New Real Estate View: Why The Homeless Are Big Business In New York

It's a grim scenario: In New York, there are more than 50,000 homeless. Of that number, 21,000 are children, an increase of 21 percent from last year, according to a report by the Coalition for the Homeless, a New Read more

Red Is the New Green – Chinese Investors Eye US Assets

***This blog entry is a guest post from Elton Steinberg, Marketing Associate at United Realty*** American fund managers should be aware of current and future trends that may make the Chinese account for a more significant portion of overall foreign Read more

Gimme Shelter - Foreign Investors Seek Returns and Safe Haven in US Real Estate

***This blog entry is a guest post from Elton Steinberg, Marketing Associate at United Realty*** Foreign investment has been a significant driver of the US real estate market recovery. Investors from across the globe have been responding to negative stimuli Read more

national association of realtors

CRE Opportunity in 2013

Office Buildings NYC - Real Estate NYCThe Mayans might have had a bleak vision of 2012, but the financial forecast of 2013 – as far as the commercial real estate market goes – is a future worth exploring, and possibly living in. It’s been a hard road for many Americans since the recession began eating away at the economy as far back as 2007, resulting in a calamitous decline in property values, and a rise in foreclosures. But while other sectors are slowing, the Wall Street Journal reported that the U.S. Housing market remains a key economic driver.

According to the National Association of Realtors’ (NAR) chief economist, Lawrence Yun, the market has been slowly building momentum, and the economy is expected to grow by 2.5 percent next year. The NAR’s quarterly real estate forecast finds that vacancy rates over the next four quarters are forecast to decline 1.0 percentage point in the office market, 0.6 point in industrial, 0.2 point for retail and 0.1 point in multifamily.

In a recent article, the New York Times reported home values in the first six months of the year were up by 5.9 percent (the best it’s been in seven years), and a report by The Conference Board, a private group, have pointed at an increase in consumer confidence since September. Throw in the Labor Department’s report earlier this month citing the addition of 146,000 jobs in November (which brought the unemployment rate down to 7.7 percent), and a more optimistic view is clearly on the horizon.

Forbes contributor Bill Conerly, has a less enthusiastic view of 2013, and sees only marginal improvement ahead as it relates to commercial real estate, with a real boost occurring either in 2014, or 2015. But perhaps, the real lesson here has more to do with the country’s mood than with hard numbers and statistical projections. True enough, improvement in commercial real estate will likely hinge on improvement of the national economy, but good news can be its own catalyst.

Just take a look at your own neighborhood. Some homeowners are already seeing an increase in their home’s value, however small. And more people are renting with an option to lease, as a way of getting around the stricter criterion for traditional mortgages.

While no calendar exists to give us a glimpse of 2013 before it actually happens, the evidence, so far, seems to suggest a more robust economy than we’ve seen in years, which should have a positive impact on commercial real estate.

So what comes next? If you ask me, there is plenty of opportunity out there.

Posted on by Jacob Frydman in Commercial Real Estate, News, United Realty Leadership Leave a comment

Foreign Investors Pour Capital into New York Commercial Real Estate Market

Real Estate Investment BankMany New Yorkers have the view that their city is the capital of the world. Recent commercial real estate trends indicate they might actually be on to something.  Investors from Russia to the Middle East are pouring capital into Big Apple real estate in record amounts.

Indeed, foreign investment in the U.S. real estate  market has been increasing for the past 12 consecutive quarters. Overall foreign investment in the U.S. is also surging.  According to the Commerce Department, the U.S. attracted $28.7 billion in foreign direct investments between January and March 2012. The investment trend has been led by Europeans seeking a safe haven from their own debt crisis and uncertainty about the Euro’s viability as a currency.  In 2011, foreign investment in the U.S. totaled $234 billion, a 14% jump over $205.8 billion in 2010. Two-thirds of that cash came from Europe.

In the real estate sector, foreign investment has about $82.5 billion in the 12-month period ending in March 2012—up about 24% from the $66 billion they spent the year before — but only 9% of all residential real estate sales come from international buyers, according to a recent report from the National Association of Realtors.

The Americas as a whole experienced a 1.5% increase in its Capital Value Index in the first quarter of 2012, while the rest of the world saw flat growth, according to the global real estate advisory firm CB Richard Ellis. That growth was concentrated in prime properties in Central Business District (CBD) areas, such as New York City. Others CBDs that saw investor focus included Washington, DC, San Francisco and Boston. Foreign investors are coming in with cash looking for assets that are tied to the value of the US Dollar in order to shelter their investments from the riskier European currencies. The New York City commercial real estate market has become an attractive investment for those foreign investors worrying more about wealth protection than income generation.

Several Real Estate Investment Trusts (REITs) and private fund offerings are attracting capital from foreign investors searching for a safe haven. That trend is expected to continue as long as yields on U.S. Treasury securities remain low and Europe continues to struggle.

Posted on by Jacob Frydman in Commercial Real Estate, Foreign Investors Leave a comment