Clearing dead wood so the forest can grow: A 22-story office building in S.F.’s financial district recently sold at a steep discount that works out to about $200 a square foot. (Before the pandemic, buildings nearby were selling for upwards of $800 per square foot.) So, this is really bad news for downtown S.F., right? No, this is how capitalism … and, in particular, commercial real estate … works. https://www.sfchronicle.com/bayarea/article/another-downtown-s-f-office-building-sells-steep-18341627.php #CRE

Vielen Dank, liebe Kollegin #EmmanuelleWargon für den wertvollen 🇫🇷-🇩🇪 Austausch über Versorgungssicherheit, Netzausbau und Wasserstoff. Die Zusammenarbeit zwischen #CRE & @BNetzA läuft hervorragend.
@BMWK

Merci, cher collègue #EmmanuelleWargon, pour le précieux échange 🇫🇷-🇩🇪 sur la sécurité d'approvisionnement, l'expansion du réseau et l'hydrogène. La coopération entre #CRE Energie & @BNetzA se déroule extrêmement bien.
@BMWK

As empty as downtown office buildings are in some cities, there’s an even more visible problem downstairs … all those vacant storefronts at ground level. They are the bad results of a good thing, the acceptance of mixed uses by developers. The challenge for #downtowns and developers now may be to rethink what “mixed” means. Could it be something other than #retail or restaurants? https://www.nytimes.com/2023/09/04/upshot/cities-downtowns-vacant-storefronts.html #CRE

“A challenge but we made it work”: So how WILL cities adapt and fill all that empty office space? With uses we can hardly imagine now but will seem like common sense in retrospect. Like the three-story health spa that helps customers relax in a suburban D.C. building where hundreds of bureaucrats once labored. https://www.washingtonpost.com/dc-md-va/2023/08/28/empty-office-buildings-commercial-vacancy-zoning/ #CRE

The end is not nigh: There’s a valuable form of analysis called “systems thinking” that seeks to understand trends as, more or less, forces of nature. But systems thinking is analysis, not prediction. The “urban doom loop” theory does explain why downtowns … and some cities … are in a bad place right now. But cities can and will adapt. That’s why the next few years may be turbulent, but the doomsayers will be wrong. https://www.washingtonpost.com/business/2023/08/28/commercial-real-estate-economy-urban-doom-loop/ #CRE

Reviewing some recent housing development projects underway in my neighborhood, I tallied almost 900 new housing units currently in the predevelopment and permitting phases, mostly multi-family mixed use with some affordable units. In a suburban neighborhood.

After doing the math and reviewing census data, this means my “suburban” neighborhood near light rail will be denser than all but 5 census tracts in Portland itself, outside of downtown.

#pdx #portland #transit #realestate #cre #pnw

So some of you may know that I started my own business after leaving the formal commercial real estate industry in September of 2022. Today I performed a property inspection for my first client who's an out-of-area owner. He lives in Southern California and owns a building is in northern California.

Celebrating tonight! I took a 100 photos wrote a 3 page report and a 2 page summary of recommendations for things he could do to protect himself as the building owner and his tenant is the building occupier.

#cre #PropertyManagement #RiskManagement

In 1942 economist Joseph Schumpeter described capitalism’s tendency to destroy old forms of economic value as “the gale of creative destruction.” Well, a stiff wind is blowing through downtown S.F. these days. And if you have the nerve to ride it out, here’s your opportunity to own two luxury hotel properties. The current owners, collars up against the wind, are just … walking away. https://www.sfchronicle.com/sf/article/s-f-hotel-owner-city-recovery-to-take-7-years-18279484.php #CRE

“Is anyone ever going to lease these suburban offices again?” With all the handwringing about the future of #downtowns, don’t forget that the same forces are at work in suburban “edge cities” … basically, empty offices and plunging #CRE values. Also like downtowns, the suburban districts suffering most are those with the fewest residents. https://www.washingtonpost.com/dc-md-va/2023/08/05/empty-office-buildings-vacancy-rate-suburbs-virginia/

Tom Wolfe could have written a novel about this. Oh, wait. He did! Real estate is a humbling business. You can have a good location, a great vision, a good team and patient investors … and yet things outside your control (like a pandemic or a financial collapse) can bring everything to tears. This happens again and again in a part of Atlanta known as South Downtown. https://www.ajc.com/opinion/columnists/opinion-patience-not-enough-when-it-comes-to-atlantas-south-downtown/JI5BNALTGBBCZMA6UJKRIRZZA4/ #CRE

U.S. Economy Outperforms Expectations in 2nd Quarter
https://www.realpage.com/analytics/us-economy-continues-growth-2nd-quarter/
#RealEstate #CRE #Multifamily #RealPage

Rents and Occupancy Falling Fast in the Mountains/Desert Region
https://www.realpage.com/analytics/mountains-desert-region-leading-apartment-market-decline/
#RealEstate #CRE #Multifamily #RealPage

Stellar 2Q Apartment Demand in Key Markets
https://www.realpage.com/analytics/markets-solid-2nd-quarter-demand/
#RealEstate #CRE #Multifamily #RealPage

I don't know how many of you know that I quit my job in September of 2022 and decided to launch my own business in March of 2023 but today I officially launched my website and I'm out in the world.
Www.schultecreservices.com
#CRE #COMMERCIALREALESTATE

Office Valuations Plummet – Examining 2023 Maturities Across Age of Collateral
https://www.trepp.com/trepptalk/office-valuations-plummet-examining-2023-maturities-across-collateral
#Trepp #CRE #RealEstate

U.S. Economy Outperforms Expectations in 2nd Quarter
https://www.realpage.com/analytics/us-economy-continues-growth-june/
#RealEstate #CRE #Multifamily #RealPage

Bank CRE Loan Performance Q1 2023: Higher Delinquency Rates & Risk Concerns, Origination Slowdown
https://www.trepp.com/trepptalk/cre-loan-performance-higher-delinquency-rate-higher-risk-q1-2023
#Trepp #CRE #RealEstate

European Market Update: CRE Bounce Back; CLO Pricing; Potential UK CMBS Deal
https://www.trepp.com/trepptalk/european-market-update-cre-bounce-back-clo-pricing-potential-uk-cmbs-deal
#Trepp #CRE #RealEstate

U.S. Metros Continue Gaining Jobs
https://www.realpage.com/analytics/job-growth-continues-us-markets/
#RealEstate #CRE #Multifamily #RealPage