Another Successful Deal! 🎉
1124 N. Broadway is officially leased! After representing both the seller and buyer in the sale of the building, Michelle Gibbs and Roger Moore have secured a tenant for this 18,324 SF office space for the new owner. Here’s to a job well done! 🌟
#Leased#CRE#KnoxvilleCRE
I have frequent debates on this topic, with my think tank group and there seems to be serious confusion regarding large commercial assets and the "Loss" trade price.
This is the 1st wave of a commercial correction, which is long overdue. Bad debt has been a shell game for a very long time. The Fed's came up with a plan to allow the reclassification of bad debt on bank balance sheets to mitigate a repeat of our last RE crash. Bank insolvency is extremely disruptive to our economy due to the amount of speculation surrounding bank failures, so the Feds created a backstop solution to keep the value of the dollar afloat.
Unlike the crash in 2008, banks are now incentivized to rewrite bad debt so that the financial balance of any single sector is not disrupted too abruptly.
I assume that "you" have experienced how different the creditor collection practices have become in today's environment. When you fall behind on a debt obligation, the bank now eagerly calls you with a solution! Creditors welcome a workout or forbearance because the government provides massive subsidies and incentives for delaying paper from being reclassified. Without the manipulation of the timing at which bad paper hits the market, the severe disruption in economic stability would have been unmanageable.
I'm not a conspiracy theorist whatsoever and I am not trying to say that our government is out to get us by manipulating our banking system with ill intent. The opposite is my case in point.
The government is manipulating the economy through bank debt, in an effort to reduce the fallout from the Covid shutdown. It takes a very long time to recover from that type of world disruption without manipulation. Every sector of every economy within every country was affected negatively, in a very short period.
Think about it! Neither the governing world powers, nor the World Bank was experienced enough or prepared well enough to handle a biological disruption of this magnitude. They need to quit pretending that they have it all figured out, because they don't and we shouldn't expect them to.
This was unchartered territory and everyone should be working together to figure "this" out for human survival.
Don't panic when buildings of this size trade for "yesterday's" values.
The more that trade, the closer we are to realizing true organic stabilization.
Chief Executive Officer at Land Bank Turkey. Real Estate Investment Consultancy and Development.
On today's episode of commercial real estate selling for pennies on the dollar:
A Los Angeles office building just sold for 52% less than its price five years ago.
The office building was originally purchased in 2018 for $92.5 million.
Now, it sold for $44.7 million even after over $11 million in renovations.
Just weeks ago, the Aon Center in downtown LA sold for $147.8 million, 45% less than its previous purchase price in 2014.
This is a crisis.
https://lnkd.in/dSeu89ND
Why Designers and Other Consultants Who Work in Urban Revitalization Should Be Concerned About Falling Office Values
If office values fall 40% or more (which is likely for buildings in lesser locations), this "arrow in the quiver" won't be available for downtown, transit-oriented, and other forms of mixed-use development. With the internet now accounting for 30% of non-food and non-automotive retail sales, stores and restaurants are also harder to develop.
For revitalization strategy, that leaves housing and hospitality, which only work together in lifestyle locations. The solution to too much office space? Make every location "lifestyle", so that people will want to be there regardless of the time or day.
Chief Executive Officer at Land Bank Turkey. Real Estate Investment Consultancy and Development.
On today's episode of commercial real estate selling for pennies on the dollar:
A Los Angeles office building just sold for 52% less than its price five years ago.
The office building was originally purchased in 2018 for $92.5 million.
Now, it sold for $44.7 million even after over $11 million in renovations.
Just weeks ago, the Aon Center in downtown LA sold for $147.8 million, 45% less than its previous purchase price in 2014.
This is a crisis.
https://lnkd.in/dSeu89ND
It's being predicted that 2024 and 2025 will be the two worst years on record for commercial office buildings in terms of the amount of floor space that tenants are giving back or vacating across the country. Some buildings are being sold at discounts as steep as 70% from prior years. 1740 Broadway in NYC just sold for $185 million, down from $600 million a decade prior. Are we going to see a turn around in the commercial real estate market or will this decline continue?
https://lnkd.in/gzGpwqYQ
The new normal for Commercial Real Estate (CRE):
Properties are selling for less than half of what they were worth just 5 years ago.
A downtown Los Angeles office building that sold for $92.5 million in 2018 just sold for $44.7 million.
2 days ago, the Aon Center, Los Angeles' third largest building, sold for 45% less than its last purchase price in 2014.
All as real estate giants like WeWork file bankruptcy and flood the market with supply.
The strength of #housing continues to mask the weakness of #CRE.
#realestate
In The News today: Jeff Finan of Hayes & Sherry completes long-term lease for 125,000 s/f at 10 Briggs Dr. East Greenwich, RI
Hayes & Sherry represented the landlord, Leahey Briggs Associates, LLC.
The leased space consists of 100,000 s/f of warehouse area and 25,000 s/f for office. The property is shared by top Rhode Island businesses with global reach and provides proximity to highways and Quonset Business Park.
The lease was facilitated by Jeff Finan, a partner at Hayes & Sherry.
“In this market, there is a very low vacancy rate for attractive, large spaces, and even fewer that checked off the boxes the tenant was looking for,” said Finan. “As a result, we were able to negotiate a strong rent structure for our client.”
via: New England Real Estate Journalhttps://lnkd.in/d2HGZdcE#cre#commercialrealestate#RhodeIsland#rirealestate#providenceri#commercialbrokers#officespace#sior
It's important to understand a property's "fine print" when you're looking to purchase an apartment. There are different types of ownership and different costs to consider when looking at every option.
🏙️ Condo: an individual unit in a building, each owned separately.
🏙️ Co-Op: an individual unit where buyers own shares of the corporation, instead of the deed to the unit itself.
🏙️ Loft: A living space in a building not originally designed as housing (often former industrial buildings), typically featuring large, open spaces and few walls. Lofts often fall under the "condo" umbrella of ownership.
Each option comes with its own set of rules, financial obligations, and (sometimes) restrictions. Want to understand the differences better and determine what scenario works best for you? Let's talk! 📲
#condos#coops#westchesterrealestate#westchesterrealtor#marcianoteam#kellerwilliams#kwny#themoreyouknow
Advisor/Associate at NAI
2moGreat job! NAI Koella | RM Moore