How Real Estate Investors Can Benefit From Losses, Exclude Gains

Real estate investments often show taxable losses, even though they have positive cash flows. There are also many elections and actions that investors can take to drastically increase real estate losses and reduce taxes.By default, real estate losses are suspended and cannot be used until a property generates positive rental income or is sold. In addition, there is a 3.8 percent net investment income tax on real estate losses and gains if real estate is considered passive.For example, a …

Show Obsolescence to Help Achieve Successful Property Tax Appeals

By Angela Adolph, partner, Kean Miller LLP Judith Viorst, author of the children’s book Alexander and the Terrible, Horrible, No Good, Very Bad Day, had nothing on 2020. By virtually every metric, 2020 was a terrible, horrible, no good, very bad year. Taxpayers quickly learned that while most states have some sort of catastrophe exemption for property tax tying an abatement or reduction to a defined disaster event occurring that year, the provisions and requirements in these statutes are …

Six Factors to Consider During Due Diligence for Land Development or Redevelopment

Whether you are buying undeveloped land or assessing a property for potential redevelopment, thorough due diligence is critical to good decision-making. With the speed at which today’s commercial real estate market operates, you may face time constraints and you definitely want to limit expenditures related to due diligence — but you don’t want to cut corners.An incomplete understanding of the challenges at the site will limit your ability to scope out the project and could impact …

Rethinking Student Housing Design in Response to COVID-19

When the world shut down over a year ago, architects, designers and developers took a collective pause to assess what needed to change in the built environment. A particularly scrutinous eye was paid to off-campus student housing, a sector whose successful model was based on bringing students together, not keeping them a safe distance apart.Some sweeping changes were recommended at the onset — many operational in nature, based on the latest guidance from health officials. As courses moved …

Walker & Dunlop: U.S. Economy Displays Long-Term Signals for Recovery, Growth

Back to Normal? The U.S. economy has improved significantly since April 2020, the peak of the pandemic-induced recession. The national unemployment rate stood at 6.0 percent in March of this year, well below the peak of 14.8 percent in April 2020. Companies were effective in implementing work-from-home technology, keeping unemployment rates for office-based service sectors relatively low. For those with a bachelor’s degree or higher, unemployment rates were only 3.7 percent as of March …

InterFace Panel: Seniors Housing Developers Continue to Build Projects Through Pandemic

The seniors housing industry has had a rough ride through the COVID-19 pandemic. First-quarter occupancy clocked in at a record-low 78.8 percent, a drop of 870 basis points from the year prior, according to the National Investment Center for Seniors Housing & Care (NIC).But seniors housing is a needs-based product, and most industry professionals expect a strong rebound. As a result, new construction projects are starting to make a comeback in preparation for pent-up demand.That was the …

‘Astronomical’ Multifamily Investment Demand Drives Up Pricing, Says Marcus & Millichap’s IPA Panel

The U.S. multifamily sector remains an attractive option for real estate investors looking for a safe haven. Beyond the pool of traditional buyers who are actively acquiring apartment properties, the sector has become a landing spot for companies that aren’t legacy multifamily owners.Steven DeFrancis, CEO of Cortland, cited REITs like Blackstone Real Estate Investment Trust as newly establishing a presence in the multifamily sector. BREIT recently made a $240 million preferred equity …

Build-for-Rent Space May Outperform Conventional Multifamily on Occupancy, Rents

The past few years have seen a surge in interest in single-family rental (SFR) and build-for-rent (BFR) spaces in commercial real estate. Traditionally the domain of small- and medium-sized investors, the SFR/BFR space has begun to attract institutional investors. BFR, in particular, can often offer higher occupancy levels and rents while promising lower capital and operating costs than traditional multifamily housing.Keaton Merrell, managing director, Capital Markets, Walker & Dunlop, …

Medical Coworking Space Can Bolster Office Occupancy

By Sunny Somaiya, co-founder, WellnessSpaceAs we navigate what working life and office spaces will look like in a post-pandemic world, one thing is certain — it will not be the same as before.With many companies realizing during the pandemic that their employees can be just as or even more efficient working from home, demand for office space is expected to remain low for the foreseeable future. Remote work will continue to be a popular option.[caption id="attachment_289215" …

UBS Predicts 80,000 US Retail Stores to Shut Down by 2026

ZURICH, SWITZERLAND — According to UBS, a global finance and research firm based in Zurich, 80,000 retail stores in the United States are predicted to close their doors by 2026. This report assumes e-commerce sales will rise to represent 27 percent of total retail sales. The current share of e-commerce is 18 percent for all retail sales.There were 115,000 shopping centers at the end of 2020, which includes strip centers, outlet malls, shopping malls and other lifestyle retail centers. …

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‣ NAI Global
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