-
Commercial real estate faces $13.5 billion in flood damage in 2022: Report
A satellite image shows TD Bank Ballpark submerged in flood, after Hurricane Ida swept through the Bridgewater Township in New Jersey, September 2, 2021. Maxar Technologies | Handout via Reuters The commercial real estate industry faces an intensifying threat from flooding, which is likely to lead to billions of dollars in increasing costs, a new study says. Approximately 730,000 retail, office and multi-unit residential properties face an annualized risk of flood damage in the United States. The structural damage from flooding is projected to cost $13.5 billion in 2022, increasing to over $16.9 billion by 2052, according to the First Street Foundation, a nonprofit research and technology group, and global…
-
COVID-19 aftereffects continue to drag on Chicago commercial real estate
“People are trying to be rational about what they’re doing, because the alternative is to be a hard-ass and take a loss,” Fink says. Still, the long-term outlook for retail is anything but bright. For many housebound consumers, the pandemic merely reinforced the convenience of online shopping, which had been taking big bites out of the brick-and-mortar retail sector for years. Though shoppers are returning to stores, e-commerce will remain a growing threat to shopping malls and other properties, one reason to expect more distress in the future. The future is uncertain for the office market, too. The CMBS delinquency rate for local office properties has edged up but is…
-
Investors Bet on Commercial Real Estate, Undeterred by Empty Offices and Hotel Rooms
More than a year into the pandemic, high-rise office buildings are largely empty. About one of every two hotel rooms is unoccupied. Malls are struggling to attract shoppers. And yet by most measures, the U.S. commercial real-estate market is in remarkably solid shape. Prices fell far less than after the 2008 financial crisis and are already rising again. The number of foreclosures barely increased. Pension funds and private-equity firms are once again spending record sums on buildings. The market’s resilience shows how the federal government’s aggressive efforts to support the economy kept landlords from suffering steep losses. Banks have also offered delinquent property owners some slack, rather than foreclosing aggressively.…
-
There’s a new Black-owned commercial real estate firm in town. Here’s why that’s important.
At Greenwood, “we’re all former corporate services guys that have worked with the big firms, and we’re bringing that sort of structure and ethos to the way we’re going to approach clients,” said James Pitts, head of the Atlanta office of Greenwood, which has 17 affiliates around the country. “Everyone will still do what they do in their local market, with sort of a Greenwood boost.” That “boost” includes national and international business connections derived from the office heads’ decades of experience with large corporations, Pitts said. Talley’s office is in the New Center area in the Boulevard West Building. It’s just him running the show locally right now, but…
-
Fed sounds alarm on commercial real estate, business bankruptcy
In part encouraged by government and Fed programs, businesses have taken on more debt over the past year as they’ve struggled to deal with the economic and financial fall-out from Covid-19, including in some cases forced shutdowns. The Fed report, which provides lawmakers with an update on economic and financial developments and monetary policy, was published on the central bank’s website ahead of Chair Jerome Powell’s testimony before the Senate Banking Committee on Tuesday and the House Financial Services panel a day later. In the report, the Fed voiced hopes of an end to the pandemic later this year though it cautioned that pitfalls remained. In particular, it said that…
-
The Pipeline: Commercial real estate for 2.19.21
Top Three Sales No. 1: Castlewood Holdings purchased 19,000 square feet at 1100, 1102 Welborne Ave. in Henrico for $1.83 million from Biegler Family Investments. John Jay Schwartz of Have Site Will Travel represented the seller. No. 2: VIADA Inc. purchased 12,648 square feet at 1525 Huguenot Road in Chesterfield for $1.125 million from R-Square. Patrick Sanderson of Neumann & Dunn Real Estate represented the seller. No. 3: RVA ADT Properties LLC purchased 8,580 square feet at 105 E. Broad St. in Richmond for $1.1 million. Justin Sledd and Andrea Levine of One South Commercial represented the seller. Top Three Leases No. 1: Locke Supply Co. leased 35,000 square feet at 3107 Boulevard in Colonial Heights. David Crawford and Reilly Marchant of Cushman & Wakefield | Thalhimer represented the landlord. Harrison McVey and Matt Anderson with Colliers International represented the tenant. No. 2: Speedys Towing & Auto leased 32,484 square feet at 5300 Midlothian Turnpike in Richmond. Byron Holmes of Porter Realty Co. represented the landlord. No. 3: Surplus Freight leased 24,766 square feet at 9790 Midlothian Turnpike in…
