Latest Commercial Real Estate Market News & Investment Advice in Los Angeles
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The Death of the Shopping Mall
August, 2017
by Karl Niehaus, President, CREI
Commercial Overview:
THE DEATH OF THE SHOPPING MALL. As mentioned in the section above, business is good for all, except those businesses being replaced by e-Commerce. By 2022, analysts estimate 1 out of every 4 malls could be out of business. In 2017 alone, 8,600 stores are estimated to close and 9 national retail chains have already filed for bankruptcy. 2017 has already seen over 5,300 retail closings, including Sears, Macy's, JCPenney and Kmart. Payless announced it would close 400...
read moreE-Commerce is Challenging Commercial Leasing
April, 2017
by Karl Niehaus, President, CREI
Commercial Overview:
E-COMMERCE IS CHALLENGING COMMERCIAL LEASING, making companies like Sears & Macy's close stores. Payless Shoes will close 400 stores, Ralph Lauren will close its 5th Ave flagship & GameStop will close up to 225 stores, all because of online shopping. Having technology resistant tenants will be key for landlords going forward.
Economic Overview:
STRONG LABOR MARKET LEADING TO HIGHER INTEREST? The strengthening jobs market has been core to the Federal Reserve's debates on...
read moreStrong Jobs Creation Numbers but Weaker Spending? Cap Rates Jump, Reversing Long-Term Trend
December, 2016
by Karl Niehaus, President, CREI
Commercial Overview:
CAP RATES JUMP, REVERSING LONG-TERM TREND: Cap rates for single tenant CVS, Rite Aid and Walgreens properties all increased significantly in the 3rd quarter of 2016. Investors seem most concerned by US antitrust regulators' requirement that Walgreens sell between 500 and 1,000 stores before they will approve its plan to acquire Rite Aid. The potential merger of the 2 retail giants has also slowed transaction volume in drug store sector as investors wait to see how it...
read moreUSA Consumers Gaining Confidence? High Optimism for Commercial Real Estate
August, 2016
by Karl Niehaus, President, CREI
Commercial Overview:
HIGH OPTIMISM FOR COMMERCIAL REAL ESTATE: 92% of Real Estate executives are predicting continued growth in commercial real estate. Here is what the experts had to say: • Strong fundamentals, including low interest rates and continuing improvement in the U.S. economy are two primary factors instilling investor confidence. • 56% of real estate executives cited global disruption and a volatile investment market as the most pressing issues impacting the real estate...
read moreRate Hike Still Coming? And Commercial Market Review
April, 2016
by Karl Niehaus, President, CREI
Commercial Overview:
NATIONAL ASSOCIATION OF REALTOR'S (NAR) MARKET REVIEW: NAR reviews the performance of the Commercial Real Estate market. Here is the summary of what is happening in the 1st quarter of 2016.
• The pace of commercial transactions dropped in the 1st quarter of 2016, following an upbeat 2015.
• The volume of commercial sales in primary markets & cities totaled $111 billion, a 20% year-over-year decrease.
• Continuing the trends from 2015, apartment transactions...
read moreRetailers Selling More and More is Good for Real Estate. USA Economy Has Recovered?
December, 2015
by Karl Niehaus, President, CREI
Commercial Overview:
REAL ESTATE RECOVERING? Commercial property sales through December 2013, found that the recovery in U.S. commercial real estate markets advanced in 2013 as broad gains in net absorption, rents, sales activity and pricing extended across markets and property types during the year. The upbeat performance was driven by relatively steady economic growth and job gains of 2.3 million or 1.7% in 2013. During the year, expanding businesses accounted for the highest aggregate net...
read moreUS Economy Grew Faster Than Expected Between April & June
August, 2015
by Karl Niehaus, President, CREI
Economic Overview:
GOOD NEWS: US ECONOMY GREW FASTER THAN EXPECTED BETWEEN APRIL & JUNE. The economy grew 3.7% in the second quarter, a very big upward revision from the first official estimate, 2.3%, according to the Commerce Department's measure of GDP. The upward revision is welcome news as China's slowing economy is sparking volatility in stock markets, plunging currencies in emerging markets and potentially delaying a rate hike from the U.S. Federal Reserve. The good economic data...
read moreInterest Rates Have Gone Up, How Does That Affect Real Estate?
April, 2015
by Karl Niehaus, President, CREI
Commercial Overview:
FOREIGNERS KEEP INVESTING IN USA REAL ESTATE. While we may see some domestic changes in 2016 due to uncertainty regarding the cost of borrowing money, continued foreign investment in U.S. real estate seems almost assured, influenced heavily by economic and social instabilities abroad. The Association of Foreign Investors in Real Estate (AFIRE), whose membership represents an estimated $2 trillion (+) in global real estate holdings, shows in its 2016 annual survey that...
read moreSmall Loans Ticked Up Appreciably During 4th Quarter Of 2014
December, 2014
by Karl Niehaus, President, CREI
Commercial Overview:
COMMERCIAL PROPERTIES ADVANCE TO 2007 PEAK, with pricing for retail properties are now within 11.4% of its previous high. The Retail Index rose 15% over the 12-month period, the strongest annual gain among the four major property types, according to the CCRSI. Overall industrial and office property prices are within 14.4% and 21.2% of their previous highs, respectively, while pricing in the multifamily sector, is now 1% above its previous peak. The retail market...
read moreCommercial Properties Advance to 2007 Peak
August, 2014
by Karl Niehaus, President, CREI
Commercial Overview:
Commercial Properties Advance to 2007 Peak, with pricing for retail properties are now within 11.4% of it's previous high. The retail index rose 15% over the 12 - month period, the strongest annual gain among the four major property types, according to the CCRSI. Overall industrial and office property prices are within 14.4% and 21,2% of their previous highs, respectively, while pricing in the multifamily sector, is now 1% above it's previous peak. The retail market...
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