Investing 101

California Lodging & Investment Conference | Takeaways Key Highlights RevPAR grew 4% to 5% YOY Operating expenses grew 7% to 9% YOY due to labor costs and property insurance premiums   Overview The sentiment is that without federal intervention to enact a policy to halt property insurance premiums, the cost of operating a hotel in […]

REIT Earnings Report Q4 2023 Earnings Recap & Forward Momentum: Q4 2023 to 2024 The open-air shopping center REITs recently wrapped up their earnings calls for Q4 2023 and issued guidance and expectations for 2024. Leasing demand and property operations remained strong as tenant demand to lease space and open stores has not waned. Brixmor […]

Key Inflation Metrics for Consideration Inflation is the topic of discussion as a historic series of rate hikes by the Federal Reserve Open Market Committee (FOMC) have produced economic stagnation. Commercial real estate is heavily dependent on leverage and is negatively impacted during stagnant economic periods — property values decrease, and debt becomes increasingly expensive. […]

Increase in Real Estate Lending in 2024 The CRE sector is grappling with elevated interest rates, an economic slowdown, and stringent credit criteria. The impact of high-interest rates is evident in the performance of loans, posing challenges for refinancing, especially amid valuation difficulties. On the bright side, while the challenges from 2023 may persist to […]

Deep Dive Into Cost Segregation Cost segregation, also known as the 179 Deduction, serves as a strategic planning tool for evaluating the real property assets of an entity. It involves identifying a portion of the costs associated with these assets that can be categorized as personal property. Through this process, an owner can reallocate expenses […]

Reimagining REITs: Can Real Estate Tokenization Spark A Revolution In The Private REIT Industry? The traditional REIT model has long been a cornerstone of real estate investment, offering diversification, liquidity, and professional management. However, the emergence of real estate tokenization (R.E.T.) throws down an intriguing challenge: is it the future of REITs, or can we […]

Decoding the Digits: Reflecting on a Year of Commercial Real Estate Shifts Matthews™ measured investor insight and their predictions for 2024. A soft-landing recession is widely expected, with 67% of investors predicting its occurrence. Furthermore, the market downturn is anticipated to persist for a significant duration, with 37% believing it will extend beyond a year. […]

Decoding the Surge in Commercial Real Estate Insurance Costs Commercial property owners find themselves in uncharted waters as insurance premiums reach historic highs. Factors such as natural disasters, inflation, and a contracting reinsurance market contribute to this alarming trend. Since 2017, commercial real estate insurance costs have surged by an average of 7.6% annually, according […]

Investor’s Guide to the Current Market Navigating the intricacies of today’s real estate market requires a comprehensive understanding of the forces shaping it. From the recent banking crises to the ripple effects of interest rate hikes and the transformative power of artificial intelligence (AI), investors are facing both challenges and opportunities. This guide aims to […]