Commercial Real Estate: What’s Trending Now?

Commercial Real Estate: What’s Trending Now?

Jan. 8, 2019

Opportunity Zone Activity, Medical Office and Multifamily are hot for 2019

As 2019 kicks into full swing, commercial real estate experts are out in force with activity and predictions. From a surge in Opportunity Zone activity to the sale of a major medical office portfolio and a new apartment building for Chicago’s West Loop neighborhood, here’s the latest CRE news:

Curbed.com reports that Opportunity Zones, created by the new federal tax overhaul, are starting to get a lot of attention from developers and investors looking to get tax benefits to invest in blighted neighborhoods. Check out this story for a look at how investors are getting in on Opportunity Zone opportunities.

Medical office portfolios remain a big draw for investors, as shown by Welltower’s $1.25 billion purchase of CNL Healthcare Properties’ 55 MOB portfolio. According to Bisnow, the deal is one of the largest for medical office buildings in recent years. The buildings total 3.3 msf in 16 states, including this Atlanta property, pictured. This strong outlook for medical office was also shown in this Avison Young Medical Office Report.

 

Changes for Net Lease Market

The net lease market is changing, according to a new report from The Boulder Group, featured in GlobeSt. Find out more on why the spread between asking and closed cap rates on fully leased buildings is growing. And, what does it mean for net leased properties moving forward?

The GlobeSt. story notes that there remain bargains, for those buyers willing to assume a certain amount of risk. This means taking on shorter lease terms or assets without investment grade tenants. According to The Boulder Group, sellers are adding more non-core assets to the market — one reason why cap rates should continue to rise. Interest rates are another factor.

 

More Chicago Multifamily Development

Another Chicago multi-family project has been approved in the West Loop, according to The Real Deal Chicago. How will this 166-unit, 10-story LG Development building at 1220 W. Jackson Blvd fit into the mix of multifamily developments? And, will affordable housing portion meet the needs of area residents?

REJournals 2019 Forecast Event is Jan. 8, 2019 in downtown Chicago. Look for discussion on Opportunity Zone activity, as well as office, retail, and industrial activity.

Forecast 2019 is Here

Chicago’s commercial real estate forecast remains positive for 2019, according to panelists from Illinois Real Estate Journal’s Commercial Real Estate Forecast Conference— the longest running event of its kind. The event attracts more than 900 commercial real estate and related professionals.

Check out the preview story– and check back for post-conference coverage.

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