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July 23, 2016

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Summer 2016: Special Edition - Commercial Recap from the REALTORS® Legislative Meetings in D.C.

Fri, 07/22/2016 - 16:01

Welcome to this special edition of Commercial Connections, with highlights from the commercial perspective and activities during the REALTORS® Legislative Meetings & Trade Expo. While it’s a condensed glimpse of what happened during the week, the important conversations had by your commercial real estate colleagues involved at the national level has great importance and long-lasting impact. Thanks to the many members and staff who contributed photos and quotes used in this publication.

We encourage you to dig deeper, attend future meetings and help continue to... Read More

Cash Accounts for 26 Percent of Commercial Transactions in REALTOR® Markets

Fri, 07/22/2016 - 16:01

Commercial real estate investment trends were positive in 2015, with sales of large cap CRE transactions totaling $543 billion, based on Real Capital Analytics (RCA) data. However, in the first quarter 2016 sales volume dropped 20 percent on a yearly basis, to $111 billion. In contrast to the large cap transactions reported by RCA, commercial REALTORS® managed transactions averaging less than $2.5 million per deal, frequently located in secondary and tertiary markets. The Commercial Real Estate Lending Trends 2016 shines the spotlight on this significant segment of the economy.

Commercial Innovation Grants

Fri, 07/22/2016 - 16:01

The Commercial Innovation Grant Program assists REALTOR® associations with funding to help local and state associations launch new or make innovative enhancements to commercial services.

To apply, download and complete the Commercial Innovation Grant Application (.DOC, 35KB). If you have any questions during the application process, please contact Shara Varner at 312-329-8282 or via email at svarner@... Read More

2016 Q1 Commercial Real Estate Market Survey

Fri, 07/22/2016 - 16:01

The REALTORS® Commercial Real Estate Market Trends measures quarterly activity in the commercial real estate markets, as reported in a national survey. The survey collects data from REALTORS® engaged in commercial real estate transactions. The survey is designed to provide an overview of market performance, sales and leasing transactions, along with information on current economic challenges and future expectations.

Survey Highlights
  • 58% of REALTORS® closed a commercial sale.
  • Sales volume totaled $51.6 billion
  • Sales volume... Read More

FIRPTA Withholding Rate Increased to 15 Percent for High-End Properties

Fri, 07/22/2016 - 16:01

Good news for the U.S. commercial real estate industry: The Protecting American Taxpayers from Tax Hikes (PATH) Act includes two very positive FIRPTA provisions that are conservatively estimated to boost foreign investment in U.S. commercial real estate by $20-$30 billion per year.

However, as part of a package of tax changes to “pay for” the two provisions, Congress also included an increase in the FIRPTA withholding rate from 10 percent to 15 percent. It should be noted that residences purchased from foreign persons will not be affected by the higher withholding rate... Read More

Commercial Real Estate Outlook

Fri, 07/22/2016 - 16:01

 

NAR’s latest Commercial Real Estate Outlook offers overall projections for four major commercial sectors and analyzes quarterly data in the office, industrial, retail and multifamily markets.

Highlights
  • The pace of commercial transactions dropped in the first quarter of 2016, following an upbeat 2015.
  • The volume of commercial sales in LCRE markets totaled $111 billion, a 20 percent year-over-year decrease.
  • Continuing the trends from 2015, apartment transactions comprised the largest share of first quarter volume,... Read More

NAR's 2016 MIPIM Recap

Fri, 07/22/2016 - 16:01

MIPIM, one of the largest real estate property events in the world, brings together the most influential players from all international property sectors - office, residential, retail, healthcare, sport, logistics and industrial, offering unrivaled access to the greatest number of development projects and sources of capital worldwide. This past March, MIPIM drew over 23,000 attendees from 89 countries countries, and included 2,400 exhibiting companies and 4,800 investors. NAR returned to host an expanded USA Pavilion to increase awareness of commercial and... Read More

May 2016 Economic and Commercial Real Estate Outlook

Fri, 07/22/2016 - 16:01

These slides were presented by NAR Chief Economist Lawrence Yun at the Commercial Economic Issues & Trends Forum at the REALTORS® Legislative Meetings & Expo in Washington, DC, on May 12, 2016.

Lending Remains Largest Concern for Commercial Real Estate Market, Say Realtors®

Fri, 07/22/2016 - 16:01

WASHINGTON (May 13, 2016) — Realtors® specializing in commercial real estate expressed confidence in the continued recovery seen in the market but concern over the availability of commercial financing, during a commercial economic issues and trends forum at the 2016 REALTORS® Legislative Meetings & Trade Expo.

National Association of Realtors® Chief Economist Lawrence Yun discussed the forces affecting commercial markets and said that while the overall market is seeing continued recovery, trepidation remains... Read More

New Lead Risk Reduction Credit

Fri, 07/22/2016 - 16:01

The EPA that the United States Green Building Council’s (USGBC) Leadership in Energy and Environmental Design (LEED) Pilot Credit program has announced a newly available “Lead Risk Reduction Pilot Credit.”  Its intent is to reduce adverse health impacts and environmental pollution in buildings through the implementation of improved maintenance and lead-safe work practices, and to provide staff with the necessary information they need to promote lead-safe practices.  It specifically focuses on lead paint in dust, soil, and water.  In order to qualify for the... Read More

Quiz: Commercial Real Estate Lending Trends

Fri, 07/22/2016 - 16:01

The information from this quiz was taken from the NAR report Commercial Real Estate Lending Trends.

Commercial Lending Trends Survey

Fri, 07/22/2016 - 16:01
Highlights
  • Commercial real estate (CRE) notched another year of growth in 2015, favored by continued macroeconomic growth and broadening capital markets.
  • Commercial vacancy rates declined for the core property types. Availability is expected to continue contracting for office, industrial and retail properties in 2016.
  • Vacancies for apartments are estimated to rise, due to gains in supply.
  • Commercial rents have risen across the board, and are projected to advance this year in the 2.5 percent to 4.0 percent range.
  • ... Read More

Webinar: Changes to the Foreign Investment in Real Property Tax Act (FIRPTA)

Fri, 07/22/2016 - 16:01

Learn about residential and commercial tax implications and compliance with the Foreign Investment in Real Property Tax Act.

Get Ready for Lease Accounting Rule Changes

Fri, 07/22/2016 - 16:01

Commercial real estate opportunities are expected to come out of changes to accounting rules that take effect soon. The Financial Accounting Standards Board is rolling out new rules on lease accounting and that will spur companies that own or lease real estate to evaluate the right mix of real estate for them. NAR Government Affairs provides a report.

Current Topics in Real Estate Taxation Webinar

Fri, 07/22/2016 - 16:01
A look at recently enacted tax changes and the outlook for tax reform

This webinar provides you with current information on recently-enacted tax provisions affecting real estate as well as the outlook for changes in the near future including:

  • The December 2015 PATH Act and its treatment of:
    • 15-year depreciation period for leasehold improvements;
    • Real estate and other business assets that can be written off immediately
    • Other tax changes for residential and commercial real estate
    • Changes to the... Read More

Commercial Price Growth Expected to Slow in 2016

Fri, 07/22/2016 - 16:01

U.S. macroeconomic momentum dropped during the fourth quarter of 2015, buffeted by global economic slowdown and financial volatility. Payroll employment offered a bright spot, closing the year with a total of 2.7 million net new jobs, boosted by private service industries. Rising employment drove demand for commercial space across the property spectrum. Vacancies continued declining in the fourth quarter of 2015, as rising rents improved cash flows.

2015 Q4 Commercial Real Estate Market Survey

Fri, 07/22/2016 - 16:01

The REALTORS® Commercial Real Estate Market Trends measures quarterly activity in the commercial real estate markets, as reported in a national survey. The survey collects data from REALTORS® engaged in commercial real estate transactions. The survey is designed to provide an overview of market performance, sales and rental transactions, along with information on current economic challenges and future expectations.

2015.Q4 Survey Highlights
  • Sixty-six percent of commercial REALTORS® closed a sale.
  • Sales volume rose 7.4 percent from a year... Read More

New Ad Campaign Urges Consumers to “Get Realtor®”

Fri, 07/22/2016 - 16:01

WASHINGTON (February 8, 2016) — Buying a home isn’t as easy as clicking a few buttons and magically getting the home of your dreams, as the current real estate advertising landscape leads many to believe. The reality is that real estate transactions can be stressful and there are often challenges and obstacles along the way.

To communicate Realtor® value in helping consumers succeed in all things real estate, the National Association of Realtors® has launched a new advertising campaign, “Get Realtor®.” The campaign targets hyper-connected and... Read More

Expectations and Market Realities in Real Estate

Fri, 07/22/2016 - 16:01
Highlights:

As 2016 gets underway, there has been a definite slowdown in the velocity of commercial real estate sales volume, per Real Capital Analytics. We expect commercial real estate to take on more of a defensive role in this environment, and as values and prices begin to level off, investors will likely benefit from it being a hard asset, as well as from its strong income flow, especially if long-term interest rates and 10-year Treasury rates remain low, as expected.

With respect to investment, it is always difficult to separate market realities from the “... Read More