Bolstered by limited supply and a light construction pipeline, retail real estate is performing well and is expected to continue to perform through 2025. The industry is experiencing low vacancy and high rent spreads that are contributing to positive outcomes.
Whether they are recapitalization events, acquisitions/preservations, or new construction deals, it is all hands-on deck to ensure affordable housing is not left behind. Despite the challenges, there is optimism that there are viable ways to address the funding gaps, allowing affordable housing and eco-friendly development to continue progressing. The industry’s ability to innovate and remain flexible will be key to overcoming these difficulties and achieving long-term success.
In 2025 and beyond, not only must CRE owners and investors deal with physical climate risks like wildfires and hurricanes, but they also need to manage the transition risks that come with the shift toward a low-carbon economy. Transition Risks are business-related risks due to government regulations and disclosure rules around how properties impact the environment.
Valuation professionals look to the REIT markets and their reflection of bid-ask spread to anticipate next year’s transaction volumes. Despite the uncertain economic outlook for 2025, one metric shows signs of improvement: transaction volumes. After two years of decline, indicators point to increased transaction volume over the coming year.
Many national retailers use the NNN sale-leaseback model to expand geographic presence while reducing debt and avoiding the risks of real estate ownership the risk to be successful in a sale-leaseback investment. By engaging a consultant expert in CRE as well as the engineering and construction of commercial buildings, sale-leaseback investors can protect their cash flow and capital while enjoying the hands-off ownership experience.
In this Globe St. article, Jason Coray discusses building stability and how to assess the seismic risk and building stability for your commercial real estate (CRE) property or portfolio.
Fannie Mae and Freddie Mac (the GSEs) recently released updated Multifamily Guides, and the Federal Housing Finance Authority (FHFA), has increased agency lending caps as market conditions are expected to modestly improve in 2025.
When property performance doesn’t meet proforma, investors lose. Gathering the correct data during due diligence goes a long way towards keeping investment properties on track. In this article, Partner Principal Jason Lind, who’s worked on both sides of the acquisitions/asset management divide, offers a strategy to bridge the gap for more accurate projections and better returns.
What drives developers and investors to engage in affordable housing preservation and development? In 2025 and beyond, new developments will need to focus on implementing emerging technology and design approaches, allowing for efficiency and scale, while also mitigating climate risks.
