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As the construction industry recovers from the initial impact of the pandemic, project volume is trending upward. There is still a market for new construction, especially in the warehouse/logistics sector, as well as a demand for large-scale renovations as investors seek value-add or opportunistic adaptive reuse projects.
If you’ve set your sights on a newly constructed or recently renovated building, don’t be fooled by the fresh exterior, updated finishes, and new systems. You may assume that new construction means reduced risk, and might even skip the Property Condition Assessment (PCA)—after all, what could go wrong on a brand-new building?
Unfortunately, plenty of problems can arise with recent construction—especially now, when builders are challenged with material and labor shortages as well as COVID-related delays. From an investment standpoint, investors in new buildings don’t anticipate significant Capital Expenditures
As the pandemic crunches schools’ budgets around the country, their real estate holdings may be a key to unlocking liquidity and reducing occupancy costs.
“The pandemic is fast-forwarding business models that were already pivoting to take into account declining enrollments, reductions in state funding, higher debt loads and more distance learning,” stated Andy Graiser, co-president of the Association of Governing Boards of Universities and Colleges on AGB’s webinar, Bolstering Liquidity by Optimizing Real Estate.
Schools such as Dowling College, the College of New Rochelle, Career Education Corp. and Kaplan University have lowered their occupancy costs by restructuring or terminating leases and boosted liquidity through structured sales and sale-leaseback transactions, according to Graiser
After a financial crisis dating to 2016 caused the College of New Rochelle’s debt service to swell, the school negotiated an interim campus leasing agreement with Mercy College and subsequent structured sale of the main campus. This followed
Today’s global travel sector, which many characterize as being “on the brink of collapse,” is simply unprecedented. Seven months into a 100-year worldwide pandemic which caused a swift, wide, and deep economic recession has decimated key travel and leisure related industries including airlines, car rentals, cruise lines, ridesharing, and tour operators. While stock markets have rebounded to near record levels, the US lodging industry continues to experience crippling stress as travel demand, which has experienced a sharp and sustained decline, continues to significantly lag pre-pandemic levels. Although most segments of lodging demand came to an abrupt halt during the COVID-19 crisis, hotels located in urban markets, particularly group and meeting/convention-oriented properties, have been most negatively impacted and will likely take the longest period to recover.
The LW Hospitality Advisors (LWHA) Q3 2020 Major U.S. Hotel Sales Survey includes 12 single asset sale transactions over $10 million, none of which are
While most people are attuned to the Presidential, Senate and House races next week, there are many critical state and local issues on the ballot on Nov. 3.
In a blog post Toby Burke, the senior director of State and Local Affairs for NAIOP, points to two ballot initiatives that will significantly impact commercial real estate by restructuring property tax revenues within their respective states.
In California, residents will vote on Prop 15. If it is adopted, it will increase the property taxes on commercial and industrial properties by an estimated $11.5 billion, according to Burke.
In Colorado, the 1982 Gallagher Amendment established a statewide mandate that the ratio between residential and commercial property tax collections is 45% to 55%, which places a high tax burden on property owners, according to Burke. Amendment B would repeal the ratio requirement under the Gallagher Amendment.
Also, Burke says several ballot initiatives