Surprising Commercial Real Estate Predictions for 2019
With the year coming to a close, it is time to look toward the new year to determine the changing landscape of commercial real estate. Some predictions for CRE in 2019 include:
High Commercial Asset Pricing
Commercial properties have been steadily rising over the last few years, and this trend is expected to continue. Apartments, industrial and suburban office properties realized significant gains over last year at 11.6%, 6.5% and 6% respectively. Although these prices are at record levels, they are maintaining these higher values.
The Current State of Real Estate Investing
As the year nears its close, it is important to consider the current market of real estate, analyze trends and consider your investment options for next year. Here is what you need to know about the current state of the union of real estate investing:
Why Now Is an Ideal Time to Add Commercial Real Estate to Your Investment Portfolio
Are you tired of watching the Stock Market go up and down hundreds of points a day? Would you like to have a quality investment that is stable and produces good cash flow? With stocks, bonds, mutual funds, crowd funding and other options, it may seem like you have an endless supply of investment options. However, investing in commercial real estate should not be overlooked. Here are several reasons why commercial real estate should be added to your investment portfolio:
Trade War Brings Uncertainty to U.S. Commercial Real Estate
China tariffs bring short-term concerns for construction and infrastructure projects, as well as key commercial real estate property sectors.
On Friday, U.S. President Donald Trump announced tariffs on $50 billion dollars in Chinese imports, escalating a trade war between the world’s two largest economies. While this move may prove to have several long-term economic and political benefits, commercial real estate professionals should watch several key factors in the short term, says CCIM Institute Chief Economist K.C. Conway.
How do you evaluate the Risk Free rate in Real Estate?
Typically, when real estate investors evaluate the risk free rate for investment purposes, they look no further than the interest rate on 10 year treasury bonds. The ten year rate is the typical time horizon for long term asset pricing. A premium is then added to adjust for the risk of the asset in order to compute the expected return. For example, if you are investing in an Investment grade property carrying a credit of BBB, you can expect a premium of 250-300 basis points above the risk free rate. So if the rate today is 3.16% for the 10 year bond, we can expect pricing to be between 5.66% and 6.16% for the real estate asset.
The Differences between Single Family and Commercial Real Estate Investments
Real estate investors may decide to invest in single family properties, commercial real estate properties or both. There are important differences between these two large categories of investments, some of which are outlined below.
How Can Commercial Real Estate Investors Protect Their Property in the Digital Age?
The digital age has not only affected how people socialize or access information, it has also impacted how people work and spend their spare time. Today, more people than ever before work from home or in independent settings. Additionally, many people prefer to shop online. While this flexibility is often coveted by consumers, it can cause difficulties for commercial landlords to find appropriate tenants who can remain relevant in this technological era. Some ways that you can protect your property even in the digital age include
How Commercial Real Estate Can Diversify Your Portfolio and Increase Your Cash Flow
A traditional investment portfolio involves stocks, bonds. This portfolio can be diversified even more by adding commercial real estate. Commercial real estate is often an attractive investment because it can diversify your portfolio and increase your cash flow. Some reasons to consider adding commercial real estate to your investment portfolio include:
Commercial Real Estate Lending Remains Robust in 2018: What that Means for You, the Investor
Recent reports indicate that commercial real estate lending continues to be at all-time highs, signaling a strength in this market and greater potential opportunities for investors. If you are considering purchasing commercial real estate, it is important to understand how this new landscape may impact your investments. Some ways that the robust lending environment will likely affect commercial real estate transactions include:
Why Commercial Real Estate is a Great Investment in 2018
Commercial real estate continues to be an attractive investment option for many individuals who wish to avoid the volatility of riskier investments and secure a steady cash flow. This type of investment has often proven to be successful in good and bad markets. Some of the benefits of investing in commercial real estate in 2018 include:
5 Tips for Smart CRE Investing
Many investors are drawn to the additional cash flow, securitization, and tax sheltering of commercial real estate. Many property managers offer services at an affordable rate that still allows the initial investor to realize a profit and sit back while collecting checks. Some smart ways to get involved in commercial real estate investing include:
TYSONS, VA, June 28, 2018 – Arthur Nachman, senior commercial broker with Long & Foster Real Estate, has been named to Washingtonian Magazine’s Best Real Estate Agents for 2018. Nachman reached the level of Platinum Agent with a Sales Volume of over $20 Million.
3 Pitfalls of Purchase and Sale Agreements
Purchase and Sale Agreements can sometimes be fraught with problems if due diligence has not been applied or if professionals are not involved in the process. Real estate deals may fall through, costing valuable time and money. Many potential problems can be avoided by using a trusted and professional real estate broker who also has access to other professionals in the real estate industry. Some of the potential pitfalls that you may encounter in a purchase and sale agreement include:
3 of the Most Frequently Asked Questions in Commercial Real Estate
The commercial real estate process can be confusing and many people have questions about it. Three of the most frequently asked questions in commercial real estate that I receive include:
Why Should I Hire a Commercial Real Estate Broker?
Many people make the mistake of thinking that they can handle their own commercial real estate transactions. However, they may quickly learn about the pitfalls of this approach when their sale falls through or they get in over their heads. A commercial real estate broker can protect a person’s interests during the buying or selling process. A good broker has access to the latest listings and research and can help match a property to your needs. He or she is familiar with commercial landlords, buyers, sellers and developers and can use these connections to help you find the right deal. He or she can discuss your needs with you and narrow down certain buyers or properties that you should target.
Long & Foster’s Arthur Nachman Named Top Producer March/April 2018
TYSONS, Va., June 6, 2018 – Arthur Nachman, senior commercial broker with Long & Foster Real Estate, has been named top producer for March/April 2018 for Long & Foster’s Commercial Division located in Tysons, Virginia.
Long & Foster’s Arthur Nachman Named Top Salesperson for 2017
TYSONS, Va., June 6, 2018 – Arthur Nachman, CCIM, senior commercial broker with Long & Foster Real Estate, has been named top salesperson for 2017 for Long & Foster’s Commercial Division located in Tysons, Virginia.
The Risks & Benefits of Triple-Net (NNN) Properties
One of the most popular property types in commercial real estate are “triple net,” also known as “NNN” deals. These are typically single-tenant retail properties leased to tenants with high credit ratings on “net, net, net” terms (hence the NNN acronym), meaning the tenant is responsible for real estate taxes, insurance, and all maintenance.
At first glance these triple-net deals appear to be the perfect investment. They are typically new or nearly new, have no management responsibilities, a long-term lease to a quality tenant, stable cash flow, attractive financing, and the unique tax benefits only real estate provides.
Arthur Nachman Named to Long and Foster’s Gold Team
Long & Foster Commercial Division Represented Seller in the Sale of 12,801 SF Herndon Office Condominium
TYSONS, Va., May 4, 2018 – Long & Foster Real Estate announced today that Arthur Nachman, CCIM, of the Long & Foster Commercial Division in Tysons, Virginia, recently closed a $2.65 million transaction in Herndon, Virginia.
Long & Foster Commercial Division Represented Client in the Sale of Verizon Wireless Store and the Purchase of Patient First Clinic
TYSONS, Va., May 4, 2018 – Long & Foster Real Estate announced today that Arthur Nachman, CCIM, of the Long & Foster Commercial Division in Tysons, Virginia, recently closed a $3.12 million transaction in Rock Hill, South Carolina, and a $3.89 million transaction in Midlothian, Virginia, for a total amount of $7.01 Million in a 1031 Exchange.
Why It’s Time to Add Commercial Real Estate to Your Investment Portfolio
Investing in commercial real estate can help you diversify your investment portfolio and enter into an area that can help you achieve your financial goals of long term growth, stable monthly cash flow, and security. Commercial real estate investors can move into the commercial real estate market by acquiring one property and renting it out long-term, or alternatively, they may wish to purchase a property, renovate it and flip it for a profit. Some compelling reasons to consider commercial properties for your investment portfolio include:
3 Keys to Successful Passive Investing in Commercial Real Estate
Owning commercial real estate can provide a steady stream of securitized income for many years. Owning and profiting from real estate can be accomplished through carefully selecting the right property and being focused on a clear and concise investment strategy. Below are three successful strategies to succeed as a commercial real estate investor.
The Greatest Windfall to Real Estate Investors in a Generation
At the end of 2017, Congress passed and President Trump signed the Tax Reform and Job Act (“TRJA”) of 2017. It is the most sweeping change to real estate investing in the past 30 years. In the past an owner had two options. He could depreciate the improvement over 39 years or elect to Cost Segregate and take some of the improved value over 5, 7, 15, or 39 years. In addition, he could elect to take 50% bonus depreciation of any improvement with an economic life of 20 years or less in the year of acquisition. Now, an owner can take all of the depreciation (100%) of any improvement segment with an economic life of 20 years or less in the year of acquisition. In addition, he can exempt 20% of any income generated by the investment if it is held in a pass through entity like a Limited Partnership (LP) or a Limited Liability Company (LLC).
Arthur Nachman Launches New Website
Commercial real estate and leasing specialist Arthur Nachman of Long & Foster Commercial Division launched a new website today at domain address www.arthurnachman.com. Nachman, a senior commercial broker, is experienced in leasing, investment sales, land development and many other facets of commercial real estate.
How Technology Impacts Commercial Real Estate
Real estate has always been a strong way for average Americans to invest. It is an accessible niche, and if you are lucky enough to hit the upswing of real estate trends and a strong market, you can come out the other end immensely successful. But as we enter a new technological and autonomous world, has this idea that we need physical property to run a business and be successful changed? Our technology has made our lives much easier, but what are the consequences? The real estate market, especially commercial properties, has suffered from this modernity.
Top 5 Questions and Answers to Your Commercial Real Estate Questions
When you are attempting to choose a commercial real estate broker to serve as your tenant representative, finding the right one can be a challenge. Finding the right broker is a task that requires he/she have a good personality and strong skill set. Let’s look at the top five questions and get some clarification how this entire process works!
Long & Foster Commercial Division Represented Buyer in Purchase of Three Dollar General Stores
TYSONS, Va., Feb. 21, 2018 – Long & Foster Real Estate announced today that Arthur Nachman, CCIM, of the Long & Foster Commercial Division in Tysons, Virginia, recently closed a $5.6 million transaction in Atlanta, Georgia, and Eufaula, Alabama.
Things to Consider Before Investing in Real Estate
Commercial real estate investment is a term used to describe an individual, group or entity that purchases properties solely for business purposes. It doesn’t stop there as the properties are then leased to entrepreneurs or business owners who in turn pay rent to the property owner. Properties that fall into this category include office, retail, industrial buildings, and warehouses.
10 TIPS FOR CHOOSING A COMMERCIAL REAL ESTATE LOCATION
In truth, the commercial building you choose will impact your business, either negatively or positively. Ideally, the location, size and appearance should make your operations seamless and smooth while adhering to environmental regulations. Here are some tips – in no particular order – to consider when choosing a commercial real estate location.
ARTHUR NACHMAN LAUNCHES NEW SOCIAL MEDIA PAGES TO CONNECT WITH CLIENTS
Arthur Nachman, Senior Commercial Broker with Long and Foster Commercial Real Estate, has joined the world of social media by creating official pages on Facebook and LinkedIn. The pages feature Nachman’s primary goals of assisting clients to get their dream property and help reduce investment risks.
FIVE CRITICAL MISTAKES INVESTORS MAKE
During my career I have witnessed commercial investors making the same mistakes over and over again. They believe the old adage “LOCATION…LOCATION…LOCATION” is the way to economic prosperity in the real estate sector. While location is important, it is farther down the list then you might imagine.
How to evaluate whether nonrated tenants are creditworthy.
In the millions of strip malls nationwide, owners might deal with one supermarket or big box store – a rated tenant – and dozens of smaller businesses that are nonrated tenants.
In Commercial Real Estate Investing Location isn’t Everything
When bringing up the subject of investing in commercial real estate versus residential real estate one will always spark an enlightening conversation. Any real estate professional is aware of the benefits involved in real estate investing. Property owners benefit from significant cash flow, tax advantages, positive leverage and reduced risk.
FOLLOW THE CASH
I am always amazed at all the pundits professing why markets go up and why they go down. Everything from politics and interest rates to military actions can be the cause. When all you need to do is follow the CASH. Markets go up and Markets go down based on the amount of net cash flows entering and exiting that particular market. We see the stock market going up almost every day and we hear it is because the new tax plan is going to be passed. The reason is so simple… follow the cash.
ARTHUR NACHMAN IS NAMED TOP PRODUCER FOR JANUARY 2016
Published: December 21, 2017
Long & Foster Commercial Division, located in Tysons Corner, Virginia has named Arthur Nachman, CCIM, as the top producer for January 2016. Long & Foster is the largest privately-owned real estate companies in the United States.
Long & Foster Commercial Division Represented the Buyer in the Purchase of a Multi-Family Property in Richmond, Virginia
VIENNA, VA., November 17, 2017, Long & Foster® Real Estate, Inc., the largest independent real estate company in the United States, has announced today thatArthur Nachman, CCIM, of Long & Foster Commercial Division in Vienna, VA., represented the buyer in a total volume of $10.2 million dollarsin Richmond, Virginia.
1031 Exchange Myths
Published: August 8, 2010
For close to two decades our firm, Realty Exchange Corporation, has been involved with IRS Internal Revenue Code Section 1031 and like-kind exchanges on a daily basis. During this time we have been involved with educating folks on how to do a like-kind exchange in accordance with the current law and guidance. Over the years we have heard and been questioned about many exchange myths, and lately we have had new myths spring up — thus, the reason we selected exchange myths as the topic for the article in this edition.