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From the Rooftop, March 3, 2015 Edition

Blog

From the Rooftop, March 3, 2015 Edition

By: Steve Sadler, CEO, Allegiancy

March 03, 2015

U.S. Office Investment Hits 7-Year High at $119 Billion

SOURCE: World Property Journal

Summary: According to CBRE Research, increased demand for U.S. office space, the strongest labor market since 1999, and continued strong interest from investors combined to drive the largest full-year office investment total since 2007.

Total investment volume in U.S. office properties totaled $119 billion in 2014, a 15 percent climb over the prior year. The year closed with a very active quarter for office property investment, in terms of sales volume. In Q4 2014, U.S. office sales volume reached $35.6 billion–13 percent higher than Q3 2014. Despite the steady climb in office property acquisitions over the last several years, the 2014 figure was 44 percent below the prior peak of 2007.

Relative to other property types, foreign capital was particularly focused on the office sector, acquiring $17 billion of U.S. office assets in 2014–representing 45 percent of foreign investment in U.S. commercial real estate. Within the office sector, foreign capital leaned toward central business district (CBD) properties, with 80 percent of it going to such assets. Canada, Norway and Hong Kong were the largest sources of international investment capital in 2014, with New York and Boston the leading markets for foreign office investment.

 

Tips to Your Success in Investing in Commercial Real Estate

SOURCE: Realty Biz News

Summary: Most people start their real estate career investing in residential properties. Eventually, they look to commercial investing because it is much more profitable. Before you jump into commercial real estate there is very different information you need and a different approach compared to residential investing. Read the full article for more tips.

 

Commercial Real Estate: A Foundation for Solid Returns in 2015

SOURCE: Seeking Alpha

Summary: Last year, investors in commercial real estate – be it debt or equity – enjoyed stellar returns. In particular, U.S.-listed real estate investment trusts (REITs) had a very strong year, handily outperforming the broader equity indices. For investors in private commercial real estate, or the vast majority of real estate in the United States, performance as measured by the National Council of Real Estate Investment Fiduciaries (NCREIF) Property Index also came in at double digits. We expect that positive momentum will continue in 2015. In fact, we think that commercial real estate is at an important crossroads, where strong fundamental demand for space will be buffeted by the shifting winds of monetary policy.

Clearly, commercial real estate has been a beneficiary of the Federal Reserve’s (Fed) remarkably accommodative monetary policy, which has helped all risk assets. However, 2015 is shaping up to be the transitional year characterized by improving U.S. economic activity in an otherwise growth-challenged global economy. The world appears to be increasingly dependent on the United States shouldering the bulk of global growth once again. However, we believe the U.S. economy is poised to deliver its strongest year of growth since the end of the global financial crisis, with the labor market at its healthiest level and corporate capital expenditures finally accelerating….

 

Crowdfunding

6 Biggest Challenges of Real Estate Crowdfunding

SOURCE: Inman

Summary: When it comes to real estate investing, the Web has had a profound effect on the industry. However, although some see surfing the Internet as a means of locating and researching potential investment properties, the Web has also unleashed the power of crowdfunding, allowing ordinary people to invest in large properties that were once the domain of multimillionaires, large companies and big corporations.

What is real estate crowd funding?

Crowdfunding is a relatively recent phenomenon. Although it is based on the old principle of collecting money from lots of small investors, the new spin makes all types of projects a reality. From producing useful products, games, and even financing movies and television series, crowdfunding has been used for myriad different projects….

Challenges of Real Estate Crowdfunding.

There are numerous challenges to crowdfunding typical of any new endeavor in which the full potential has yet to be reached. While crowdfunding has been used successfully when it comes to investing in all types of projects, there are still some obstacles when it comes to the real estate field:…

 

Regulation A+

Mary Jo White: “This year, we will be focused on implementing the final two major mandates of the JOBS Act.”

SOURCE: Crowdfund Insider

Summary: SEC Chair Mary Jo White addressed the Practicing Law Institute in DC this morning and it appears that most of the big shots at the SEC are sharing their wisdom as well today.

Following opening remarks by Andrew Ceresny, the Director of SEC Enforcement and Keith Higgins, the Director of CorpFin, Chair White delivered a pretty standard securities stump speech covering what has been and what will be in 2015.  As always the Chair can be counted on referencing the gift that just keeps on giving in the form of Dodd-Frank and the never ending conflagration of convoluted rules. She also references the much discussed JOBS Act and two remaining portions that impact capital formation for smaller enterprises: Title III and Title IV stating;

“This year, we will be focused on implementing the final two major mandates of the JOBS Act – Regulation A+ and crowdfunding [Title III] — both very important and complex rule makings.”

 

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