Tag: commercial real estate

Carried Interest Unexpectedly Re-emerges for CRE

by Randybaconin Commercial Mortgage Lending, Real EstateLeave a Comment on Carried Interest Unexpectedly Re-emerges for CRE

WASHINGTON, DC—Congress has been trying to change carried interest’s tax characterization for years and in some instances, came rather close to suceeding. More recently, the issue died down — at least on the Hill — as the conversation shifted to comprehensive tax reform.

‘Carried interest’ is safe for now, has been the unspoken message.

Last week that message changed.

On Wednesday the Internal Revenue Service quietly proposed a rule that would effectively do what numerous proposed acts and measures could not: ban companies such as private equity firms from converting the management fees they receive from their investors — fees that would normally be taxed as ordinary income — into capital contributions invested in their funds. These are taxed at a much lower tax rate.

Read the entire article on GlobeSt.com  here.

Why Street Stores Still Matter in the Age of Online Shopping

by Randybaconin Real EstateLeave a Comment on Why Street Stores Still Matter in the Age of Online Shopping

Online shopping has increased in popularity with the advancement of technology, but a large number of shoppers prefer the traditional brick-and-mortar store because of the immediacy factor, according to Cushman & Wakefield’s Gene Spiegelman.

“Amazon has been challenged with how to get products to their consumers faster and at a better cost. That’s why they want to develop drones,” Mr. Spiegelman said at C&W’s mid-year Manhattan market overview breakfast on Tuesday. “The retail store is still the best point of distribution from the retailer to the consumer.”

Read entire article at Commercial Observer here.

Should Congress Trade in 1031 Exchanges?

by Randybaconin Real EstateLeave a Comment on Should Congress Trade in 1031 Exchanges?

The Real Estate Roundtable, campaigning to dissuade Congress from abolishing a stipulation under the U.S. tax code that’s critical to the real estate market, has some new ammunition in its arsenal. The organization has just come out in support of “The Economic Impact of Repealing or Limiting Section 1031 Like-Kind Exchanges in Real Estate,” a new study detailing the benefits of retaining the provision and the negative consequences of eliminating it.

To read the entire article at Commercial Property Executive click here.

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.

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