What is the Status of Commercial Real Estate Today?
In May, I think we all thought (or at least hoped) that the COVID -19 situation would be under control by now. Well, it isn’t nor is it clear what the long-term impact on our lives will be.
What is the Status of Commercial Real Estate Today?
CRE Entrepreneurship at Georgia State: Get Ready
One thing I have not done, but always wanted to do, is step inside the classroom. That is about to change. This fall I teach CRE Entrepreneurship at Georgia State. The course is an extension of how I mentor—this should be interesting for both me and the students.
DRED: Death and Real Estate Decisions
Most people view making decisions about death with dread. No one likes to think about his own demise, but it is important to make smart decisions now, especially if you own real estate.
The Only Thing We Have to Fear is Fear Itself
As we emerge from this economic catastrophe caused by the fear of COVID-19, we need to consider how we take advantage of the investment opportunities it will present.
Coronavirus Impact: Change Will Be Our Constant
Change will be our constant as we consider the impact of the coronavirus on the economy, urbanization, healthcare and, perhaps most importantly, people and their habits.
Coronavirus Pandemic Impacts Commercial Real Estate Sectors
Coronavirus COVID-19 is impacting all commercial real estate sectors, some more drastically than others.
Restaurants Hit Hard Amid Coronavirus Pandemic
You never see the lightning bolt that hits you. Coronavirus COVID-19 has taken us all by surprise and continues to baffle us with its strength and uncertainty. It’s difficult to write a post about the current climate because it changes daily, hourly even. Every day, we hear of communities requiring residents to shelter-in-place as more orders are announced, clarifying which businesses can operate and which must shutter their doors. Real Estate Recessions: Causes Real estate market recessions are NOT always the result of real-estate activities, such as overbuilding, loose underwriting or easy financing. Sure, there have been real estate recessions caused by these actions, but not always. Often there are non-real estate triggers—think of the mid-70’s oil embargo, the Iraq War, inflation in the 80’s and 9/11. These events usually expose underlying market weaknesses and cause the debt markets to lock up, resulting in sharp declines in real estate fundamentals.
Philanthropy in Atlanta: The Multiplier Effect
We are accustomed to seeing headlines about big philanthropic donations or seeing billionaire’s names on buildings, but do you ever stop to think about the massive multiplier effect these philanthropic donations have? On everything from job growth to real estate worth to quality of life? In Atlanta, we have a multitude of big givers—from Home Depot’s Bernie Marcus and Arthur Blank to the Coca-Cola-affiliated Robert W. Woodruff Foundation to CNN’s Ted Turner. Let’s take a deep dive into how philanthropic giving impacts Atlanta, focusing specifically on Bernie Marcus. Growth of The Home Depot The Home Depot got its start with two entrepreneurs and two Atlanta stores, one in Doraville and one in Decatur, in former Treasure Island locations. Marcus and Blank grew that humble beginning to 2,200+ stores, simultaneously profiting from the DIY craze and revolutionizing the industry. The growth of Home Depot in Atlanta significantly impacted Atlanta. First, think
Job Seekers: Make Yourself Stand Out
For many, a new year means a new start in their personal or professional lives—whether it’s hitting the gym, abstaining from alcohol or seeking a new job. Whatever resolution or aspiration you set, you need a commitment and a plan to succeed. This is exactly what I tell my mentees entering the work force: Not only do you need a plan; you need to make yourself stand out. But how do you do that? Create a solid resume, prepare for and attend job fairs, seek relevant internships and market yourself with confidence. Atlanta’s Job Growth in 2020 The forecasts are in, and the good news is you can secure a desirable job in the ATL. Despite positive numbers, this is not easy. According to a recent Bisnow article, “Metro Atlanta’s rocketing job growth has slowed in recent years, from more than 4% in 2014 to 1.5% in August [2019].” But
CRE Bubble? Not If, But When
Recent NREI article “Low U.S. Interest Rates Are Fueling a Bubble in Commercial Real Estate” claims it is not a matter of if the CRE bubble will pop, but when it will pop. I wholeheartedly agree with author Jay Rollins’ assessment and strategy. We’ve already seen investor push back on properties purchased post-2015 that are now back on the market. The current owners paid too much, thinking prices would increase, but in my opinion, the market has flattened—with further appreciation less likely than price deflation. The spreads between real estate yields and other financial instruments are historically low, and like Rollins, I have to believe that interest rates will increase sooner rather than later. I certainly don’t see them decreasing. The best opportunity for upside today is in new development, which has considerably more risk than buying existing assets. Historically, developers get caught by recession and rising interest rates. This time will be
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Asset Servicing, Acquisitions, Investments
Stan Sonenshine
770-512-0496 office
404-290-0778 cellTax Credits
Steve Rothschild
404-350-4159 office
404-312-2414 cellAddress
1266 West Paces Ferry Road
Suite 415
Atlanta, GA 30327