This has been a very strong year for foreign investment in U.S. commercial real estate. Nearly 20% of the total sales volume for CRE in the U.S. now comes from international capital. There are a number of factors that fuel this flurry of activity. Our economy is strong and stable, relative to other markets, and transactions are more transparent. Low interest rates and favorable spreads are attracting the attention of foreign investors with large amounts of capital to park in a safe place. Capital preservation and higher yields help to draw international buyers to the U.S. market.
CRE is a certainly brave new world, thanks to technology. Lets look at some early due diligence strategies used to vet deals. We can sign contracts and other critical documents without a pen, and then send them across the country instantly. We can look at a 3D model of a building we’ve never visited, and then see what the space might look like with specific changes in design.
While technology has radically changed many aspects of CRE, it isn’t likely to eliminate the need for due diligence. That time-honored practice that can’t be neglected, due diligence covers a laundry list of checks and verifications a buyer should complete before agreeing to the purchase of any property. It’s just as important as ever, and some of the strategies we used before technology became part of the business still work as well as ever. In fact, with our digital tools, due diligence can be more thorough and faster than it’s traditionally been.
SAN FRANCISCO, April 6, 2016 – Commercial real estate marketplace, Brevitas, announced its collaboration with one of India’s largest development companies, Embassy Group. The collaboration serves to further expand Brevitas’ presence in one of commercial real estate’s emerging markets. Brevitas is the leading online platform dedicated to off-market commercial properties. Membership is limited to qualified investors and brokers of commercial real estate assets from around the globe.
Brevitas is changing the way private transactions are conducted in the commercial space. With over fifteen billion dollars in asset listings, we are the leading online platform dedicated to private investment sales.
Mixed-use developments have been on the radar for several years, and are increasingly attractive to both domestic and foreign investors. A subtle slowdown in the hot multi-family market may be attributed in part to a preference for the live/work/play environment, especially in urban markets.
Experts point out that as much as 33% of the population desires to live in a walkable, mixed use neighborhood, for a variety of reasons. The national supply of such developments is not nearly enough to meet that demand.
One week. Two weeks. A month. Two months. Three months.
Tick, tock, tick, tock. That’s the sound of a pocketbook getting lighter… and someone being fired. The age old adage “Time Is Money” is as accurate in real estate as anywhere else.
While most individuals who work with institutional-grade and flagship commercial real estate are keenly aware of the myriad reasons that assets are sold off-market, every now and then I am approached by an individual asking me why anyone wouldn’t publicly list an asset. I mean, if you are trying to sell something, you want to get it under as many noses as possible, right?
Not so. Not when the Cost of Failure in commercial real estate is so high.