market-research Archives - Viewpoints - Coldwell Banker Commercial

Feb 21, 2024

2024 Outlook Report

While today’s CRE market is healthier than during the 2008 financial crisis – with over $6.4 trillion parked in money market funds through December 2023– a significant disconnect exists between buyers and sellers

Aug 30, 2023

2023 MIDYEAR OUTLOOK: Prices Still Too High; Cash and Seller Financing Key to CRE Activity in 2023

While the overall economy has proven to be resilient to interest rate increases, the gap between buyers and sellers on cap rates is still pretty significant, which has resulted in lower transaction volumes compared to the prior year. In conversations with Coldwell Banker Commercial professionals across the country, only a few markets are seeing sellers come down on pricing to meet buyers’ expectations and create deal terms that make sense in a higher interest rate environment. The majority of property owners prefer to hold on to their assets hoping for increased valuations over last year. Buyers are trying to put deals together but believe pricing should be 10-15% less than what sellers are asking for. Properties will move only if priced right, and even then, deals are slower to close (which is an improvement from the “no-decision” days of last year). While real estate is still a desired asset class, nervousness about timing is holding buyers back. A slowing domestic economy, rising interest rates with an uncertain end and the war in Ukraine has led many investors to park their money in risk-free bonds while they wait for values to come down. Cap rate spread over 10-year US treasury yields are below historic average spreads across all property types.

Jan 24, 2023

Plan for Success: The Path Ahead

Previous segments of this blog series touched on the disconnect between workers and employers, the shifting priorities and values of the general workforce and the role management and leadership plays in DEI initiatives. In this final installment, we dive into what it will take for savvy companies to position themselves for success.

Jan 17, 2023

DEI Beyond Lip Service: Crucial Considerations

There’s no disputing that as an industry, commercial real estate lags in terms of diversity, equity and representation. It’s also undeniable that industry leaders have taken great measures over the past decade to catch up. Despite this, there’s plenty of room for improvement—especially for companies looking to retain and maintain a diverse, productive and satisfied workforce.

Dec 13, 2022

Smaller Footprints Can Lead to Big Gains for Retailers

While the past few years have seen brick-and-mortar retailers embrace big-box stores with large footprints, a recent study from placer.ai found that smaller stores come with their own set of benefits. A growing number of tenants are experimenting with reduced footprints in a variety of ways.

Dec 6, 2022

Rising Seas, Flooding Could Wipe Out $35B in Value in 30 Years

Rising sea levels are threatening millions of acres of land and properties and billions of dollars in real estate tax revenue for coastal cities. After the devastation caused by Hurricane Ian last year and Ida the year prior, this news should come as little surprise. In 2022 alone, the U.S. has experienced 15 weather and climate disaster events each with losses exceeding $1 billion and 342 collective deaths, according to the National Oceanic and Atmospheric Administration.

Nov 29, 2022

Reversal of Sentiment for Investors as 2022 Concludes

In a reversal from sentiment at the beginning of this year, investors are becoming increasingly bearish about the commercial real estate market. Faced with an economic slowdown, inflation, rising interest rates, supply chain issues, labor shortages and the threat of a recession, investors and capital providers to take a step back and reassess their strategies as this year concludes and the next begins.

Oct 25, 2022

CBC Reports Appetite Still Strong for CRE Mid-Year 2022

Commercial real estate activity remains elevated in 2022, which is a promising sign considering record-highs were reached last year. Market activity is being paced by three property types, multifamily, industrial, as well as a strong rebound in retail. A new Mid-Year Report from Coldwell Banker Commercial shows investors were eager to unlock cash flow and pushed cap rates to record-lows in 4Q21 and 1Q22 across most sectors. It is anticipated that demand for real estate will continue to be strong for high-growth markets. These positive signs comes despite widespread supply chain disruptions, inflation and political uncertainty around the war in Ukraine.

Oct 11, 2022

Rent Increases Decelerate for Multifamily Properties

New research from Yardi Matrix indicates average apartment rents increased by $10 in July 2022, their lowest rate since January. According to the latest Multifamily Report, the average rent in the U.S. was a record $1,717 last month. Still, year-over-year growth decelerated by 110 basis points to 12.6 percent, 260 basis points off the February peak of 15.2 percent.

Aug 9, 2022

The Hottest Rental Markets in 2022

Since the start of 2022, there’s been a massive wave of new residents streaming into Florida. Remote work, warm weather, and looser COVID restrictions have played a significant role in the Sunshine State becoming the most sought-after region by renters this year. Miami specifically is considered the hottest rental market in the nation. In fact, demand for apartments in Southern Florida is stronger than ever, making it difficult for apartment hunters to find a place to call home. According to a report by RentCafe, this is due to high occupancy, low supply, and record-high lease renewal rates.