Commercial Sales Fall in First Quarter

After a booming 2015, the pace of commercial transactions in the first quarter of this year dropped and failed to keep up, according to the National Association of Realtors®’ Commercial Real Estate Outlook: 2016.

Large commercial real estate deals plunged 20 percent year-over-year, totaling $111 billion in the first quarter, according to Real Capital Analytics.

Sales volume may have dropped but prices continued to rise, particularly driven by strong appreciation in prices of retail and apartment properties. Retail properties saw an 11.8 percent price increase while apartment properties posted an 11.2 percent increase. Prices for office properties in central business districts rose 10.5 percent.

Apartment transactions made up the largest share of the first quarter volume, totaling $38.6 billion in sales. Office properties followed at $31.2 billion, and then retail and industrial sales at $17.9 billion and $12.6 billion, respectively.

?????????????

Small commercial real estate transactions – such as grocery-anchored shopping centers, local warehouses, small offices and supermarkets – rose 8.5 percent year-over-year in the first quarter of this year. The average sale transaction price totaled $1.1 million during the quarter, according to NAR’s data.

“With inventory shortage continuing as a main concern, prices in small commercial real estate markets rose a more moderate 5.1 percent year-over-year during the period,” according to NAR’s report. “Average capitalization rates declined to an average 7.2 percent across all property types, a 60 basis point compression on a yearly basis. Apartments posted the lowest cap rate, at 6.9 percent, followed by hotel properties with average cap rates at 7.1 percent.  Office and retail spaces tied with cap rates of 7.3 percent. Industrial transactions reported the highest comparative cap rates – 7.4 percent.”

If you are considering investing in real estate, we at Landmark Group are ready to assist you. We can assist you with any real estate need – buying, selling or renting residential, retail, office, wholesale or industrial property. We can also help you maintain, renovate or manage your property. Just give us a call.

Posted in Business, Business for Sale Omaha, Financing, Nebraska Real Estate, Omaha Commercial Real Estate, Omaha Economy, Real Estate, Real Estate - Cash financing, Real Estate Asset Management Omaha, Real Estate Consulting Omaha, Real Estate Investing Omaha, Real Estate Omaha | Leave a comment

Community Meetings Help With Tenant-Landlord Communication

Corporate Culture Landlord Representation Property Management Omaha Real Estate Rental properties Tenant

We have made an effort to hold regular community meetings to get to know our tenants better and to give them another means of communicating with us about their needs and concerns.  We have found that such meetings increase tenant trust and impact the length of time tenants stay in their apartments.

 

Saturday May 21, 2016 we met with tenants at our apartment community on 702 N. 44th St. in Omaha to field questions and discuss ways they could help maintain the quality of the buildings and grounds there.  We are hopeful that much good will come out of the meeting and that we will see fewer problems and improve the quality of life for the population there.

IMG_20160521_101040  IMG_20160521_101108

We spent a good amount of time fielding requests from tenants for repairs to various items in their apartments.  However we also discussed best tools for communication with the apartment maintenance staff, how to respond to people on the grounds that shouldn’t be there, what to do in emergency situations such as a fire along with other such topics.IMG_20160521_101052

A significant percentage of the population at this location are refugees from other countries so we used what is termed in interpretation circles as “consecutive interpretation” where a short amount of information is spoken first in the main language and then time is allowed for an interpreter to interpret that amount of content before moving on.  Thankfully a couple of the residents there skilled in that department assisted us.

 

 

IMG_20160521_103116

We will be looking to schedule more of these meetings at our other apartment communities in the near future.   We believe it’s a win-win idea with nothing but benefits for all involved.

Posted in Corporate Culture, Landlord Representation Omaha, Property Management Omaha, Real Estate Omaha, Rental properties, Tenant Representation Omaha | Leave a comment

Addressing Transgender Restroom Issues

North Carolina’s so-called “bathroom law,” which requires individuals to use restrooms corresponding to the sex they were assigned at birth rather than their gender identity, has prompted questions over what responsibilities businesses and employers have to accommodate the preferences of transgender people. The legal war over the issue – North Carolina and the U.S. government have deployed dueling lawsuits over whether the state’s law violates civil rights protections – is far from being settled. Courts have rarely addressed the matter, but the legal landscape surrounding the issue is sure to change in the future.

 

So if you’re a property manager, what do you need to know about bathroom policy to ensure you’re not infringing on anyone’s rights? “There’s very little guidance on this issue right now, which makes it hard for you to decide what to do,” said Beth Wanless, senior director of government affairs at the Institute of Real Estate Management (IREM).

Attitudes Discrimination in housing public accommodations buildings Restrooms toilets

 

At least 200 cities and counties in the U.S. have banned discrimination based on gender identity in various aspects, including employment, housing and public accommodations. But few of these laws specifically address the use of bathrooms. IREM has written a white paper on the topic of restroom policy, offering what guidance it can to property managers.

 

First, research state and local laws to understand whether legal requirements exist in your jurisdiction around public restroom policy. Where no law exists, IREM suggests the following ideas to proactively address the issue in your buildings.

 

 The safest and least controversial option may be to add a third gender-neutral bathroom option alongside male and female restrooms. These gender-neutral bathrooms are typically single occupancy facilities available for anyone to use. However, it’s not always cost-effective because it could require building new bathrooms or retrofitting existing ones.

 

Another option is to modify the signage of existing bathrooms to include language welcoming transgender individuals. IREM points to signage some commercial properties are starting to use that reads: “Male, transgender people welcome” and “Female, transgender people welcome.”

 

For smaller commercial properties, like restaurants or bars that already have single-use bathrooms, a simple option is to replace male and female signage with a generic “restroom” sign that has no gender identification.

 

If you are considering investing in real estate, we at Landmark Group are ready to assist you. We can assist you with any real estate need – buying, selling or renting residential, retail, office, wholesale or industrial property. We can also help you maintain, renovate or manage your property. Just give us a call.

 

Posted in Attitudes, Discrimination in housing, Discrimination in public accommodations, Public buildings--Restrooms, Public toilets | Leave a comment

Kudos to Mercedes Benz of Omaha

 

We have had our company Sprinter to a number of dealerships and repair places in Omaha to fix an ongoing leak issue around the roof-mounted air conditioning unit on the vehicle.  Water was entering the inner compartment and getting on passengers.  No one seemed to be able to figure out how to stop the leak until we took it to the Mercedes Benz dealership here in Omaha on 14335 Hillsdale Ave Omaha, NE 68137

.Sprinter Auto repair Omaha Business Landmark Group Mercedes dealerships

 

The folks at Mercedes quickly determined the seals inside the air conditioning unit needed replaced even though the air conditioner itself wasn’t causing the leak.  They applied the fix and several heavy rains later, our Sprinter is staying dry inside and we are quite pleased with the results.  Be sure to consider this dealership for your next repairs.   The team there is very helpful and friendly.

http://www.omahamercedes.com/

Sales: 855-420-1841  Service: 855-902-3727  Parts: 855-902-373

Posted in Auto repair - Omaha, Business, Landmark Group, Mercedes dealerships - Omaha, Mercedes Sprinter - vehicle | Leave a comment

Cash Is King

All-cash buyers of single-family homes and condos, on average, paid 23 percent less per square foot than other home buyers, shows RealtyTrac’s first quarter 2016 U.S. Cash & Institutional Investor Housing Market Report.

 

All-cash buyers of single-family homes and condos nationwide paid a median of $91 per square foot in the first quarter, according to the study.

Financing Multifamily Investing Omaha Nebraska Real Estate Cash financing Taxes

 

“While large institutional investors and other cash buyers continue to shrink as a share of U.S. home sales, these buyers still typically beat out traditional buyers using financing — in some cases even when they submit a lower offer for a home,” says Daren Blomquist, senior vice president at RealtyTrac.

 

“Additionally”, Blomquist said, “cash buyers are often willing to take on properties in poor condition that may not readily qualify for standard financing, another reason why cash purchases normally sell at a lower price per square foot.”

 

If you are considering investing in real estate, we at Landmark Group are ready to assist you. We can assist you with any real estate need – buying, selling or renting residential, retail, office, wholesale or industrial property. We can also help you maintain, renovate or manage your property. Just give us a call.

 

Posted in Financing, Multifamily Investing Omaha, Nebraska Real Estate, Real Estate, Real Estate - Cash financing, Real Estate Investing Omaha, Taxes | Leave a comment

Background Checks on Renters Raise Questions

Landlords who deny an apartment applicant a lease due to a failed background check may be breaking the law and face housing discriminating allegations, according to new guidance issued from the U.S. Department of Housing and Urban Development.

 

“A policy or practice that denies housing to anyone with a prior arrest or any kind of criminal conviction cannot be justified,” says the HUD guidance, which was issued April 4.

 

The new guidance marks a change. In the early 1990s, HUD once guided public housing authorities not to rent its subsidized apartments to residents who failed criminal background checks.

Apartments Omaha Discrimination housing Background checks Criminal history Property  Real Estate  Rental properties Department of Housing and Urban Development  Guidelines

 

HUD says it was forced to reconsider now that nearly one-third of the U.S. population — or up to 100 million people — have some kind of criminal record, according to the U.S. Department of Justice. Also, third-party background checkers often just provide a “pass” or “fail” result, which applicants are then unable to contest for errors or inaccuracies.

 

“Research shows that people who come out of prison and can’t find housing often become homeless, have high rates of recidivism and often end up back in prison,” says Elayne Weiss, policy analyst for the National Low Income Housing Coalition. “Their not having housing doesn’t help anyone.”

 

HUD’s guidance directs landlords and property managers to more closely consider the details of a person’s criminal history before refusing to rent to him or her. They should carefully consider “the nature and severity of an individual’s conviction” and “the amount of time that has passed,” according to HUD. But they need to be careful not to discriminate.

 

“Ensuring resident safety and protecting property are often considered to be among the fundamental responsibilities of a housing provider,” the guidance reads. “The Act does not prohibit housing providers from appropriately considering criminal history information when making housing decisions.”

 

If you are considering investing in real estate, we at Landmark Group are ready to assist you. We can assist you with any real estate need – buying, selling or renting residential, retail, office, wholesale or industrial property. We can also help you maintain, renovate or manage your property. Just give us a call.

 

Posted in Apartments in Omaha, Attitudes, Discrimination in housing, Housing - Background checks, Housing - Criminal history, Property Management Omaha, Real Estate, Real Estate Omaha, Rental properties, U.S. Department of Housing and Urban Development - Guidelines | Leave a comment

Trends to Watch

Perhaps the most discussed trend in commercial real estate in recent years has been the Millennials, the age cohort who are changing work and living arrangements across the nation.

A relatively less covered demographic trend of greater size and perhaps importance is the aging population. According to data from the U.S. Census Bureau and analyses by the Lakemont Group, the overall population in the United States is forecast to grow by 11.55% in the next 15 years while the population above the age of 75 is forecast to grow 69.21%. In fact, those over 75 years old will represent almost 10% of the population by 2030, while those above 65 will be over 20%.Apartments Omaha Business Commercial Property Management Landmark Group Market conditions Nebraska Real Estate Property Management Rental properties Senior market

Many real estate market participants correctly use these statistics to justify the need for more senior housing. But there are actually many other real estate  opportunities to service this growing segment of the population.

Market rate apartments with features and locations this demographic wants, can use, and can afford, is one such example. Properties to house medical services and activity retail is another.Apartments Omaha Business Commercial Property Management Landmark Group Market 1conditions Nebraska Real Estate Property Management Rental properties Senior market

Investors would be wise to think long-term when making acquisition, disposition and asset management decisions. This is one long-term trend that could shape demand for many property types for decades into the future.

 

If you are considering investing in real estate, we at Landmark Group are ready to assist you. We can assist you with any real estate need – buying, selling or renting residential, retail, office, wholesale or industrial property. We can also help you maintain, renovate or manage your property. Just give us a call.

Posted in Apartments in Omaha, Business, Commercial Property Management Omaha, Landmark Group, Market conditions, Nebraska Real Estate, Property Management Omaha, Real Estate, Real Estate Omaha, Rental properties, Senior market | Leave a comment

Commercial Real Estate Execs Bullish on Economy

Top real estate executives remain optimistic about the performance potential of the U.S. market, according to the findings of the 2016 Real Confidence survey.

?????????????

Altus Group, in partnership with the National Association of Real Estate Investment Trusts and the National Council of Real Estate Investment Fiduciaries, polled executives in charge of over $700 billion combined real estate assets under management.

Survey participants continue to believe in the security of the U.S. economy. Investors’ sentiment reflects the conventional wisdom that inflation is tame, interest rate increases might already have been figured into forecasts and the nation’s gross domestic product is poised to continue growing modestly.

Investors are less confident in the prospects for the jobs market than most economic forecasters, who expect employment to continue to grow at an accelerated rate in 2016. Job growth is being balanced by  upward pressure on wages, which led respondents to forecast that wage increases will outpace inflation this year. The nation’s unemployment rate is approaching the full-employment mark and the job market is tilting slightly in favor of higher labor costs.

Commercial Property Management Omaha Financing Market conditions Nebraska Real Estate Economy Real Estate Investing

Many executives believe that good investment opportunities in real estate still exist this year. Demand for core investments in primary markets remains strong, supply is still catching up to demand in a few key sectors, and interest is trending upward in secondary markets, as some buyers who are priced out of the core markets seek alternatives. Respondents rated the state of the real estate industry as healthy.

Survey respondents showed relatively strong confidence that rents will continue to increase. They were also confident that occupancies will rise further in 2016.

A market with strong fundamentals, an economy with slow and steady growth and a steady pipeline of capital and development are giving investors hope, even as the economy settles into a lumbering recovery pace.

If you are considering investing in real estate, we at Landmark Group are ready to assist you. We can assist you with any real estate need – buying, selling or renting residential, retail, office, wholesale or industrial property. We can also help you maintain, renovate or manage your property. Just give us a call.

Posted in Commercial Property Management Omaha, Financing, Market conditions, Nebraska Real Estate, Omaha Commercial Real Estate, Omaha Economy, Real Estate, Real Estate Investing Omaha, Real Estate Omaha | Leave a comment

What’s Up in Commercial Real Estate?

Commercial Property Management Omaha Financing Market conditions Multifamily Investing Real Estate

Two new data reports on the commercial real estate sector offer very different visions regarding the sector’s vibrancy. One details a healthy 2015. The other forecasts a bumpy future for the next several years.

 

Last year commercial and multifamily mortgage bankers closed $503.8 billion in loans, according to the 2015 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation published by the Mortgage Bankers Association (MBA). The 2015 level was 26 percent higher than 2014, while dollar volume of closed loans rose by 17 percent year-over-year.

 

Multifamily properties saw the highest origination volume, $201.7 billion, followed by office buildings, retail properties, lodging, industrial and health care. First liens accounted for 97 percent of the total dollar volume closed.

 

“Commercial real estate borrowing and lending in 2015 came within a whisker of the record high level of 2007,” said Jamie Woodwell, MBA Vice President of Commercial Real Estate Research. “Volume was driven by improving property fundamentals, strong property values and very low interest rates. Many of those positive factors remain in place.” Commercial Property Management Omaha Financing Market conditions Multifamily Investing Real Estate2

On the other hand, a new three-year economic forecast from the Urban Land Institute (ULI) Center for Capital Markets and Real Estate predicts commercial property transaction volume will decline over the next three years. The ULI anticipates $475 billion in transaction volume by 2018, while CMBS issuance is forecast to decline this year to $85 billion before rising to $100 billion in both 2017 and 2018. The ULI also forecasts a slow decline in commercial real estate prices over the next three years: 5 percent this year, 2.7 percent in 2017 and 3 percent in 2018.

 

“Compared to six months ago, real estate researchers are predicting slower economic growth, slipping real estate fundamentals and lower returns from both the public and private markets,” said William Maher, ULI leader and director of North American strategy for LaSalle Investment Management. “There is no imminent downturn on the horizon, although global economies and markets remain fragile and volatile.”

 

If you are considering investing in rental property, we at Landmark Group are ready to assist you. We can assist you with any real estate need – buying, selling or renting residential, retail, office, wholesale or industrial property. We can also help you maintain, renovate or manage your property. Just give us a call.

 

Posted in Commercial Property Management Omaha, Financing, Market conditions, Multifamily Investing Omaha, Real Estate | Leave a comment

Omaha Commercial Real Estate Trends

LoopNet.com’s most recent update provided these snapshots of Omaha’s commercial real estate markets. Here’s the status for Omaha’s multifamily, office, industrial and retail real estate properties as of Feb. 16, 2016.

 

Multifamily: Current Omaha market trends data indicates an increase of +43.6% in the median asking price per unit for multifamily properties compared to the prior three months, with an increase of +26.2% compared to last year’s prices. County-wide, asking prices for multifamily properties are 1.1% higher at $32,203 per unit compared to the current median price of $51,759 per unit for multifamily properties in Omaha.

 

 

Office: Current Omaha market trends data indicates a decrease of -1.5% in the median asking price per sq. ft. for office properties compared to the prior 3 months, with an increase of +0.9% compared to last year’s prices. County-wide, asking prices for office properties are -2.0% lower at $99 per sq. ft. compared to the current median price of $98 per sq ft for office properties in Omaha.

 

 

Industrial: Current Omaha market trends data indicates an increase of +4.0% in the median asking price per sq. ft. for Industrial properties compared to the prior three months, with an increase of +12.9% compared to last year’s prices. County-wide, asking prices for Industrial properties are 4.7% higher at $58 per sq. ft. compared to the current median price of $59 per sq. ft. for Industrial properties in Omaha.

 

Retail: Current Omaha market trends data indicates an increase of +6.4% in the median asking price per sq. ft. for retail commercial properties compared to the prior three months, with an increase of +18.3% compared to last year’s prices. County-wide, asking prices for retail commercial properties are 7.5% higher at $108 per sq. ft. compared to the current median price of $118 per sq ft for retail commercial properties in Omaha.

 

If you are considering investing in rental property, we at Landmark Group are ready to assist you. We can assist you with any real estate need – buying, selling or renting residential, retail, office, wholesale or industrial property. We can also help you maintain, renovate or manage your property. Just give us a call.

 

Posted in Apartments in Omaha, Commercial Property Management Omaha, Homes for Sale Omaha, Market conditions, Multifamily Investing Omaha, Nebraska Real Estate, Omaha Commercial Real Estate, Omaha Economy, Real Estate, Real Estate Investing Omaha, Real Estate Omaha, Rental properties | Leave a comment