REBusinessOnline

Last-Mile Access to Customers Drives Distribution Center Conversions

E-commerce has been driving demand for industrial real estate for several years, but steadily increasing online sales coupled with growing consumer expectations for speedier delivery continues to put pressure on merchants to bridge the last mile to their customers. Considering that these projects are located in densely populated areas where land and available product are typically scarce, developers are increasingly converting obsolete warehouse and other properties into fulfillment …

Hospitality Lending: Whose Market?

As the economy continues its upward trajectory, hotels are enjoying the benefits of strong demand from both personal and business travel. Despite these solid operating fundamentals, many lenders are apprehensive about the record length of the current economic expansion and the impact that a future downturn may have on room rates and occupancy levels. In response to these growing fears, many capital sources have either tightened their lending criteria or decided to cease hospitality lending all …

The Stability of Self-Storage

Through economic ebbs and flows, the self-storage sector continues to prove its strength. Although real estate industry players are wary about labeling any sector as recession-proof, the self-storage sector tends to be a stable asset class during economic booms and downturns, according to Paul Letourneau, manager of commercial real estate lending with Chicago-based Alliant Credit Union. And over the last decade, self-storage facilities have become more flexible spaces, which is driving …

RED Capital Group: The Northwest Enters 2019 with Strong Momentum, Rising Risks

For decades, the Pacific Coast has defined the American avant garde. From the Beats and Hippies of the Fifties and Sixties to today’s coders, gamers, software engineers and social network titans, the West Coast has set the standard for contemporary cutting edge social and life-style evolution. Lately, the region has emerged as a global economic leader as well. The rise of Big Tech operations in the five Pacific Northwest metro areas we cover — the East Bay, Portland, San Francisco, San …

E-Commerce Logistics Impact Industrial Property Loans

The evolution of retail logistics is cultivating a new industrial landscape. “With the explosion in popularity of e-commerce, logistics models have shifted from hub-and-spoke organization to a product-to-consumer model,” says Casey Martin, commercial real estate commercial loan underwriter with Chicago-based Alliant Credit Union. The traditional hub-and-spoke distribution model features a central warehouse supporting a few large distribution centers, allowing product to move within a …

RED: Texas Multifamily Performance Moderates in 2018, While Economy Booms

With a preference for low taxes and business-friendly regulation, Texas is America’s proving ground for free market economic theories — a crucible in which the benefits of economic liberty are tested. While the long-term impact of the Lone Star State’s experiment remains an open question, it is hard to gainsay its impressive accomplishments to date. [caption id="attachment_215024" align="alignright" width="100"] Daniel HoganDirector of Research,RED Capital Group[/caption] Texas …

Relationship Advice from a Commercial Real Estate Lender

To underwrite and successfully close a loan, a lender must have an intimate understanding of the principals involved, the collateral and the marketplace specific to the property. Principals play a key role in ensuring an efficient vetting process by providing accurate and in-depth information during the initial financial request — before the due diligence research delves into further detail. Providing lenders with a clear and concise case for a financial package is an easy first step to …

RED: Florida 2018 Multifamily Performance Shines, Despite Rising Supply

[caption id="attachment_215024" align="alignright" width="100"] Daniel HoganDirector of Research,RED Capital Group[/caption] Florida markets typically perform well during flush economic times and the current cycle isn’t an exception. Blessed with the fastest growing population east of the Rockies and a business-friendly tax and operating cost environment, Florida is one of the first alternatives multifamily developers and investors look to when the primary markets begin to feel …

RED: Mid-Atlantic Region 2018 Multifamily Performance Update

[caption id="attachment_215024" align="alignright" width="100"] Daniel HoganDirector of Research,RED Capital Group[/caption] As the real estate cycle enters the late innings, multifamily investors increasingly are seeking alternatives to high-cost coastal metros but remain unwilling to sacrifice the property market liquidity found in the primary markets. Many are finding the right balance of opportunity and liquidity in the Mid-Atlantic States, where cap rates are often higher than in the …

A Peek Behind the Industrial Lending Curtain

Mastering the puzzle of a successful commercial real estate loan requires more than due diligence on the borrower. To execute a solid loan transaction, shrewd originators make sure all of the existing pieces fit together — and consider how future pieces might fit into the equation. Beyond the Borrower While the history and financial health of a borrower are top concern for originators, there are many more factors at play. “Having a strong borrower is important, but it’s also critical to …

Conferences