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Recent Blog Posts
Technology and the Commercial Real Estate Market – How Things Have Changed and What Lies Ahead
Technology has impacted every major industry in the world, including the commercial real estate market – but how? Do the changes affect everyone in the CRE sector or just some people? Also, what can investors expect in the future? The following information explores the answers to these questions, and it provides details on where you can find quality assistance to meet your commercial real estate and investment needs.
How Shifts in Purchasing Behavior Are Affecting CRE
If you have noticed that you are buying more things online and fewer things at the store, you are not alone. In fact, most Americans can say the same thing. What does all this have to do with CRE? Investors who once built shopping malls and shopping centers are struggling, but many who have purchased warehouse space are seeing a boom.
The Need for Improved Data Collection and Communication
Tenant-Landlord Disputes - Actions That Can and Cannot Be Taken by a Landlord or Tenant
While most tenant-landlord relationships end with little fanfare, there are situations in which one must take some form of action against the other. For example, a landlord that has denied a tenant of suitable living conditions may be held legally liable for their actions. In contrast, a tenant who has failed to pay their rent may be evicted through legal action. The following information explains those actions, and it provides details on actions that cannot be taken by either a landlord or tenant. You shall also learn how the assistance of an experienced attorney could improve the outcome of your landlord-tenant dispute.
Permitted and Restricted Actions for Tenants
When a landlord is in default of the lease, tenants have only a few permitted actions they can take. If the residence is uninhabitable, or if the landlord is refusing to make repairs that have caused the property to become unfit (Chicago only), the tenant may then file an official complaint with the landlord. While this is nothing more than a letter that states your concerns and intentions, should the landlord fail to make the appropriate repairs, it
When a Desire for Aesthetics Causes Zoning Complaints in Your Neighborhood
One might like to think that they can do whatever they want with their property, but as one Illinois family is learning, that is not always the case. After purchasing a swing set for their children and placing it in the front yard, someone filed a complaint and they received notice that they were in violation of the local zoning laws. Now they are at risk of being forced to remove the swing set and they may even incur fees – all because of neighborhood aesthetics. What can you do if faced with a similar situation? The following explains.
Why Zoning Laws Exist
In the right context, zoning laws can preserve communities. As an example, zoning laws do not permit industrial development in certain residential areas; this protects the community from noise and air pollution and preserves its aesthetics. Unfortunately, some communities can go overboard with their zoning laws. They become overly restrictive, prohibiting anything and everything that makes each home unique.
Survey Reveals CRE Market's Biggest Concerns in 2018
The risk that an investor assumes during commercial real estate transactions can be largely attributed to the industry's volatile nature. However, there are additional factors at play as well. In fact, the third annual Real Estate Market Sentiment Survey revealed that there are two main issues concerning real estate executives for the year 2018: rising interest rates, and supply and demand. Learn more about these concerns in the following sections, including how an experienced commercial real estate attorney can help you to mitigate the risks that you could face in your next commercial real estate project.
CRE's Rising Interest Rates
Rising interest rates within the CRE market have been a concern for some time now, which is why most savvy investors and executives have taken steps to prepare for the inevitable. Unfortunately, preparation can only take a person so far – especially if interest rates exceed the market's “pain threshold,” the rate at which investors and executives are likely to be adversely affected. Industry experts say this threshold falls at about 150 basis points, and that the market could far exceed it in 2018, which has many investors concerned. Thankfully, there are some smart investment moves that industry executives can use to grow and expand their portfolio, even in the face of rising interest rates.
Banks Agree to Relax CRE Lending Rules
After the recession, banks tightened their lending requirements for all borrowers. Individuals in the commercial real estate market took the hardest hit. Several institutions stopped offering lending options to CRE investors altogether, and all remaining lenders were bound by federal regulations. Of particular concern was the requirement that all CRE transactions valued at $250,000 or higher had to be valued by an independent third-party. Thankfully, the Federal Reserve, the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) has recently relaxed this requirement. Learn why this matters and how it could give you the freedom you need to expand your investment portfolio in the following sections.
Relaxed Lending and Your Investment Portfolio
Forbes Real Estate Council Reveals which Real Estate Markets Are Booming in 2018
To be successful as a real estate investor, you need a vision. More importantly, you need to be willing to change your vision, according to the market trends. For example, you may have started out as an investor who buys and flips houses, but the trends show that such investors are making smaller returns. As such, you may need to expand your portfolio into another market (i.e. commercial real estate or residential rental properties).
Where you invest is also important. After all, it does little good for one to invest in areas that are distressed or declining. To help you find direction, the Forbes Real Estate Council recently revealed which market areas are expected to boom in 2018. Furthermore, you shall learn how the aid of a seasoned real estate attorney can help guide your investment choices for the future.
Expanding Your Investment Portfolio - Why Now is the Time to Invest in Commercial Real Estate
During the U.S. economy crash of 2018, financially savvy investors jumped into the real estate market. Many started out in residential properties, which were being repossessed at an unprecedented rate. Most of the properties were distressed, but substantial profits were still made. Now, with climbing rates and other indicators of market shifts, residential investors are being encouraged to expand their portfolios. One sector worth considering is the commercial real estate (CRE) market. Learn why, and discover how an experienced real estate attorney can minimize you minimize the potential risks in the following sections.
Why Commercial Real Estate?
With the possibility of turbulent markets ahead, investors are encouraged to add more stable equity to their portfolios. Commercial real estate typically offers a better risk-return profile than other real estate sectors. For example, the absolute return on CRE backed by private debt (secured debt with a collateral contingency) ranges between 6 and 12 percent. Additionally, this sector does not experience the same daily swings as other markets. Use of collateral in a commercial real estate transaction can also minimize the risk of a default, and it ensures there is an asset safety net, should default, or a decline in the market occur.
Examining How Driverless Cars Could Impact the CRE Market
With autonomous cars becoming more commonplace, experts are now saying that it is no longer a matter of "if" the commercial real estate market will be impacted, but "when." Smart investors know that means they need to start planning now - before the future arrives. Learn more about how you can stay ahead of the trend of driverless cars, and discover how the assistance of a seasoned commercial real estate lawyer can help you mitigate against the potential issues that may arise along the way.
Autonomous Cars and CRE Development
To be successful as a CRE developer, one needs to stay ahead of the trends, but autonomous cars are not just a trend; they are becoming a way of life. The government believes they have the ability to reduce the number of traffic fatalities that America experiences each year, so they are pushing to have more cars developed and tested. People and businesses are responding, en mass. In fact, rideshare companies are already using autonomous cars to increase their profit margin. Countless others are hoping to follow suit.
Construction Corruption - What Every CRE Investor Should Know
Commercial real estate investors heavily rely on the work of construction companies. Sadly, corruption within the construction industry is costing investors millions of dollars each year. Learn how you can mitigate against such issues during your next real estate transaction, and discover how the aid of a competent real estate attorney can save you both time and money.
Construction Corruption is Rampant in CRE Development
One would like to believe that the stories of corruption are one-offs, rarities that can be easily avoided. Unfortunately, nothing could be further from the truth. Corruption in form of bribery, larceny, extortion, grafting, and bid-rigging are rampant in the construction industry, and CRE developers are some of the most heavily impacted victims. If hit severely or frequently enough, corruption could have a permeant and catastrophic effect on a developer's bottom line.
Tariffs Already Affecting Prices in the CRE Market
There is only one true constant in the commercial real estate market: prices change and fluctuate on a regular basis. Unfortunately, those changes in the market can dramatically affect the success of a project. Consider those who are currently under contract and facing price hikes from the recently imposed tariffs; many are starting to realize that they cannot complete their projects within their proposed budgets, so they may be forced to either abandon their ventures or hope that the losses can be made up elsewhere. However, there are some benefits to the tariffs for existing real estate developers, and those that are facing challenges because of the tariffs can mitigate the issues. Learn more, including how a skilled real estate attorney can help.
Tariffs and New Project Budgets
1730 Park Street, Suite 117, Naperville, IL 60563
630-778-3818
