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Understanding the evolution of this process and the perspectives of banks towards these properties provides invaluable insights into the current real estate landscape and opportunities for investors.
Although opportunities to acquire distressed CRE have been few and far between thus far, conditions may lead to a significant uptick in the sale of troubled office assets in the coming years. It’s long due, as industry observers have been anticipating a wave of distressed office listings since the pandemic’s onset first unsettled the office market.
Distress was supposed to arrive at commercial real estate’s door in 2021, but it never materialized. Research by Real Capital Analytics (RCA) shows there were low levels of troubled CRE assets that hit the market, despite the dire predictions and investors’ expectations that 2021 would produce opportunities to buy properties at steep discounts.
Gentrification is a controversial topic in many markets in the U.S. because it can significantly impact specific areas and residents in those communities. According to Million Acres, some of the poorest and most distressed urban neighborhoods across the country have experienced revitalization via gentrification and redevelopment. That has been accomplished through national and local tax incentives and resulted in billions of dollars in development funds, and municipal grants flowing into those improvements. Gentrification might seem like an easy solution for struggling cities, but there are many complicated factors to consider. In this article, we explore the positive and negative impacts of gentrification on real estate markets, and what investors and government officials should consider when looking to gentrify an area.
Opportunity zones were created as a result of the Tax Cuts and Jobs Act of 2017, as a way to encourage real estate development and corporate presence in low-income communities. By using this program, investors are able to defer an unlimited amount of tax, as well as receive additional tax benefits and exclusions, assuming that certain requirements are met on gains reinvested into a Qualified Opportunity Fund, otherwise known as a QOF.
The following article features contributions from Virginia Wilson (affiliated with Coldwell Banker Commercial Caine) and Dan Stiebel (affiliated with Coldwell Banker Commercial Schmidt)
It’s no secret that one of the most impactful additions to recent Tax Code has been the creation of a specific investment incentive program under the 2017 Tax Cuts and Jobs Act. This program, which focuses on certain low-income communities known as Opportunity Zones, is designed to help spur economic development and growth in otherwise distressed areas by enabling savvy real estate investors to delay taxation on capital gains until December 31, 2026 – but only when they invest the gains into one of these Qualified Opportunity Zones. What’s more, this particular program has additional tax breaks built in for real estate investments that are held for 5, 7, and 10 years.
Every industry has its own lingo, but there are some fields that really have a lot of jargon – and commercial real estate is definitely one of those fields. If you don’t have a background in CRE or CRE experience, it’s easy to feel overwhelmed. In talking to new CRE professionals, we hear this expressed over and over, so we thought it would be a good time to share 10 of the most common terms in commercial real estate that everyone should know.
It has been said that it is only a matter of time before blockchain, the proprietary technology that supports cryptocurrencies such as Bitcoin, will begin to infiltrate industries all around the world. And, believe it or not, even historically traditional industries are not immune to the disruption – commercial real estate included.
Recent years have seen a boost in repurposing projects for underutilized industrial properties around the country. This has positive effects on areas that had become urban “dead zones,” breathing new life into disused neighborhoods.