James Murad

The value of distressed assets in the #CRE marketplace continued to grow in the U.S. into Q3'24. Still, the ramp up is not as rapid as that seen following the GFC as there are different forces at play in the current market. Read more about the source of distress and a chart on comparisons to the GFC by my colleague Alexis Maltin here: http://ms.spr.ly/6049WR4GN MSCI Real Assets

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Public incentives and private angst are combining to drive dozens of New York City office-to-residential conversions past the planning stages. Read the story: https://lnkd.in/eeE7ttra #RealEstate #CommercialRealEstate

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Public incentives and private angst are combining to drive dozens of New York City office-to-residential conversions past the planning stages. Read the story: https://lnkd.in/eeE7ttra #RealEstate #CommercialRealEstate

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Listed REITs returned +2.3% last week, outperforming the S&P by 54bp and the NASDAQ by 50bp. Real estate was the 4th best of the 11 S&P sectors. Every subsector was positive as data centers (+4.9%), lodging (+4.7%) and office (+3.7%) led while single family rental (+0.2%), malls (+0.7%) and manufactured housing (+1.0%) were relative laggards. Year-to-date returns now stand at +12.1% with valuations only -2.7% below their 2024 highs. Here's your pretty picture.

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“You can’t buy back all of your interest on any given day because where would you get the money to do that if it’s all sitting in illiquid real estate?” #NAV #REITS: Excellent quick read from Urban Land Institute, citing ADISA's L&R Co-Chair and President-Elect John Grady, clearing up misinformation regarding Non-Traded REITS. "NTRs...were never meant to be liquid. Unlike volatile funds that trade on exchanges, NTRs were designed to give investors stable, long-term returns and allow issuers the ability to wait out the market and sell assets only at peak prices. Commercial property assets are, after all, much different from stocks by being fundamentally illiquid." https://lnkd.in/ezMimHYR

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📰Trepp, Inc. Chief Product Officer, Lonnie Hendry was interviewed by Therese Fitzgerald (Commercial Property Executive) yesterday at the CRE Finance Council Annual Conference in New York, dissecting the current distress in the CRE market... "Trepp’s May 2024 Delinquency Report was actually favorable, with CMBS delinquencies inching down to 4.97%. Even office, which had peaked at 7.38% in April, was down to 6.94% in May", said Hendry. "The market is performing better than the headlines would suggest, but there is a lot of distress that just hasn’t made it through the system yet. The CMBS market has about $30 billion of office loans maturing throughout the remainder of 2024 and a lot of those loans have very low debt yields in place, very low DSCRs and low occupancies relative to stabilized norms." Read the full write up here: https://hubs.li/Q02BnZsw0 #Trepp #CREFCJune2024 #CREFinanceCouncil #CREFC #CRE #CommercialRealEstate #CMBS #Conference #CREEvent #CREConference #CommercialPropertyExecutive #Office

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Freddie Mac's latest midyear outlook forecasts muted growth for the multifamily sector in 2024, with high supply and slow rent growth posing challenges. Despite a healthy economy, the vacancy rate is set to rise, and rent growth is expected to be just 2.7%. This tempered performance is a result of record-high new unit supply and economic volatility. However, long-term prospects remain strong due to housing shortages, high for-sale housing costs, and favorable demographics. Secondary and tertiary markets, particularly in the Sun Belt and southern plains, are likely to see more robust growth. https://lnkd.in/dUYcUevi Website: https://londonmoeder.com/ Facebook: https://lnkd.in/d7-qmPKb LinkedIn: https://lnkd.in/dsKSa7am TikTok: https://lnkd.in/dMJuxejJ Youtube: https://lnkd.in/d2rGGnCy #commercialrealestate #commercialproperty #CommercialLand #commerciallandforsale #warehousespace #officespace #flexspace #industrialspace #sandiegocommercialrealestate #sandiegorealestate #realestate #cre #realtor #realestateagent #realestateinvesting #property #commercial #commercialproperty #realestateinvestor #business #investment #propertymanagement #investmentproperty #residentialrealestate #forsale #retail #entrepreneur #construction #officespace #realestatebrokerage #housingshortage #housing #housingelements #housingmarket #housingcrisis #orangecountyrealestate #orangecounty #orangecountyhomes #latimes #lahousing #losangeleshousing #housingresearch

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Stanger reaffirmed its overweight rating for BREIT, highlighting the $23 billion returned to shareholders and the strong performance of its diversified real estate portfolio. Read the full article on SQX Alts! #REIT #alternativeinvestments #finance

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EQT Exeter Expands Footprint in Suburban Boston. A California-based real estate investment firm with a national portfolio of light industrial real estate, sold a pair of distribution centers in Taunton, Massachusetts, to EQT Exeter, the industrial real estate firm formed two years ago through the acquisition of Exeter Property Group by Swedish investment manager EQT AB. The two buildings traded for $37.35 million, or approximately $202.45 per square foot. The assets involved in the sale are located in the Myles Standish Industrial Park and were reported to be fully leased at the time of closing. They include 385 Myles Standish Blvd., 141,990-square-foot manufacturing facility that was recently leased by WorldPac, a wholesale distributor of automotive parts. It sold for an allocated $30.46 million. The other building at 295 Constitution Dr., is listed as a 42,500-square-foot warehouse and sold for an aggregated $6.89 million. https://lnkd.in/g_zRm8b7 #industrialreaalestate #propertyinvestment #realestateinvestment #realestatefirm #warehouse #milliondollarlisting #industrialbuilding

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With limited new and trophy office product remaining on the market and/or delivering in the coming years, we continue to see competition for the best availabilities. Competition for space and approaching lease expirations are often the drivers for execution of transactions that have been delayed by indecision. There is still value to be found for tenants that are looking outside of the trophy market, however, as absorption in the high-end space continues, there will be a trickledown effect on other asset classes, older buildings without amenities and those further from transportation hubs. https://lnkd.in/gKfVPsyj

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Takeaways from an interview yesterday with SL Green Chief Financial Officer Matt DiLiberto. His perspective on the dynamics of the New York City office leasing market we're definitely interesting and food for thought.Watch this and let me know your thoughts. Savills Savills North America SL Green Realty Corp. Matthew DiLiberto #nycrealestate #officeleasing

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The #multifamily sector is experiencing several headwinds, including rising construction and operating expenses, a surge in new supply, rising borrowing costs and, in some cases, falling rental rates – but the outlook for 2024 may not be as black-and-white as it appears. Read more: https://lnkd.in/gSBWaxYA #CommercialRealEstate #CRE #RealEstateTrends

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Rates Rise • REITweek Updates • Hotel M&A REIT Daily Recap: https://lnkd.in/ewH-aJ5e One of several REITs to publish a business update ahead of the REITweek industry conference in the week ahead, Equity Residential (EQR) slipped 2% today despite providing an encouraging business update ahead of its REITweek presentation next week showing a continued rebound in multifamily fundamentals in early 2024. $EQR notched blended rent growth of 2.9% in May - up from 1.6% in Q1 and 0.8% in Q4 - comprised of buoyant mid-single digit renewal rent growth (+5.0%) and marginally positive new lease rates (0.4%). In the updated deck, EQR noted that expects to deliver full-year FFO and NOI that are "towards the higher end" of its existing guidance ranges, citing sustained high demand, pricing power in East Coast markets, and lower-than-anticipated expense growth. Apartment REITs were among the Winners of REIT Earnings Season, as five of the eleven REITs that provide full-year FFO guidance raised their outlook - led by coastal-focused REITs - while the remaining six maintained their prior outlook.

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Listed REITs returned -2.9% week-over-week, underperforming the S&P by -155bp and the NASDAQ by -140bp. The culprit was once again rising real rates that increased by +10bp to 2.05%, the highest level since early July. Healthcare (+0.5%) and shopping centers (+0.2%) eked out positive returns while single family rentals (-7.3%), apartments (-5.2%) and cell towers (-4.6%) were laggards. Listed REITs stand at +8.9% year-to-date and +31.9% year-over-year. Here's your pretty picture.

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"Flight to quality" has been an ongoing theme within Manhattan commercial real estate for the last several years. While the trend is still in tact, it's interesting to watch the definition of "quality" change. As 550 Madison Avenue, One Vanderbilt Avenue, One Madison Avenue, 9 West 57th Street and the like get leased, demand increases at the next set of "quality" buildings. These buildings are then able to push pricing as they become better positioned to capitalize on the flight to quality trend. #commercialrealestate #realestate #officespace #brokerage

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Discover key insights from PRISM 2024! Manus Clancy outlines five reasons for optimism in the commercial real estate market. Learn more: https://lnkd.in/eN5P-6cP #LightBoxRE #PRISMPerspectives #PRISM24 #CRE #CommercialRealEstate

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The grocery-anchored retail sector remains a resilient asset class in commercial real estate, as highlighted by Blackstone’s recent $4 billion acquisition of Retail Opportunity Investments Corp. (ROIC). https://lnkd.in/d9z_qQ-r These centers serve essential community needs and are less affected by e-commerce trends, making them a stable, high-potential investment option. At Buligo Capital, we recognize the strength of this asset class and are actively pursuing opportunities within it to deliver steady, long-term value for our investors. Our strategic focus on grocery-anchored properties aligns with our commitment to secure, resilient returns in a dynamic market. #RealEstateInvestment #GroceryAnchored #CommercialRealEstate #BuligoCapital #LongTermGrowth

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