Author: Randybacon

The Oil Impact on Commercial Real Estate

by Randybaconin Real EstateLeave a Comment on The Oil Impact on Commercial Real Estate

Perhaps more so than any other industry, oil and its pricing volatility impacts all elements of the U.S. economy, both positively and negatively. Looking at it from a macroeconomic level, higher oil prices are good for some industries, and yet bad for others—and the same goes for lower prices. So overall, how does oil and energy affect the commercial real estate profession? Well, almost in the exact same way, if you break it down.

According to recent statistics from the U.S. Energy Information Administration., U.S. oil production will grow to 9.31 million barrels daily by 2016, so the industry is still healthy production-wise. But for the past few years, prices have remained low and are expected to remain steady or even decline for the foreseeable future. Where this has the greatest impact for commercial real estate is in the retail sector. It’s a simple equation: Reduced gas prices cause a boost in discretionary income and the end result is additional spending for the country. Money that would be typically earmarked towards filling car and home gas tanks now remains in the wallets of U.S. consumers and retailers are the clear beneficiaries.

To read entire article published at National Real Estate Investor click here.

Big Ideas About Small Spaces Could Transform Housing

by Randybaconin Real EstateLeave a Comment on Big Ideas About Small Spaces Could Transform Housing

Small living space
We’re nearing the end of National Homeownership Month and from where things currently stand, the good and bad news for the housing industry is, unfortunately, the same news.

To make housing more affordable for millennials who eventually would like to form their own households, the housing industry must be more creative in the housing it creates, and local housing policies must be more flexible about the types of housing that can be built in communities, especially in desirable urban neighborhoods.

Read the entire article here.

New Legislation Could Hinder EB-5 Financing Options

by Randybaconin Real EstateLeave a Comment on New Legislation Could Hinder EB-5 Financing Options

Proposed new legislation could mean big changes for EB-5 money, a small, but growing segment of the commercial real estate financing market.

In early June, bipartisan legislation was introduced in the U.S. Senate that would both reauthorize and reform the 20-year old Immigrant Investor Program known as “EB-5” that is set to expire on Sept. 30, 2015. The EB-5 program provides visas for foreign nationals who meet criteria for investing a minimum amount of capital in the U.S. economy and create a set number of jobs.

EB-5 has seen tremendous growth in recent years. From 2010 to 2014 there has been a 504 percent increase in the use of EB-5 financing, with nearly $9 billion in capital invested in the U.S. from fiscal year 2005 to 2014.

Read the rest of the article here

Michael Kors, Ralph Lauren, and Coach are making the same mistake — and it’s undermining business

by Randybaconin Real EstateLeave a Comment on Michael Kors, Ralph Lauren, and Coach are making the same mistake — and it’s undermining business

Many aspirational retail brands are in crisis.michael-kors-32

Companies like Ralph Lauren, Coach, and Michael Kors have reported disappointing earnings recently. Shares for all three companies have declined in the past year.

Many of the companies’ struggles can be traced back to one mistake: opening too many outlet stores.

Outlet stores sell the labels’ clothing for cheaper than department stores, giving the brands a wider audience.

What the Water Crisis Means for CRE Owners

by Randybaconin Commercial Mortgage Lending, Real Estate

Drought pictureBecause of the ongoing California drought and the statewide water restrictions, commercial real estate owners need to ensure water installations and irrigation systems use recycled water, and prevent water run-off and waste, according to a JLL report.

California’s water crisis and what it means for CRE owners reviews the regulations that were put into place on March 27 and the possible implications as well as water management solutions for commercial real estate owners.

It says that for landlords, incentives can help mitigate the costs associated with replacing lawns, improving irrigation systems and upgrading metering systems to monitor water flow more accurately.

According to the EPA, landscape water use for commercial properties can be as high as 22 percent for office buildings.

Bank of America expects to save 5 million gallons of water by transitioning from traditional landscaping to xeriscaping at six of its banking centers in Southern California.

San Diego Gas & Electric expects its new water-wise landscaping project at Century Park, its Kearny Mesa headquarters, to save the utility more than 4 million gallons of water a year, a 40 percent campus reduction.

Four Keys to Streamlining Energy Disclosure Compliance

by Randybaconin Green financing, Real Estate

So far only two states and around ten major cities have passed laws requiring commercial real estate owners to benchmark and disclose energy efficiency of their buildings.  A number of other cities are looking to implement this practice as well so some REIT’s and other commercial real estate owners are considering proactively implementing these strategies with their properties.

A very good article detailing these guidelines including a map of the impacted areas was prepared by Karla Zens and published in the National Real Estate Investor and is available to read here.