Features

From Expanding Operations to Leveraging Technology, Lee & Associates Evolves in the Face of Change

by Sarah Daniels January 11, 2021

The situation is a familiar one from the past year: 2020 changed a banner year full of promise into a difficult scenario full of fear and challenges. Jeffrey Rinkov, CEO and chairman of the board at Lee & Associates reflects on how his company took an emphasis on technology and communications infrastructure and used the past year as a time for reflection and a period to promote growth and client engagement. He also discussed trends he’s seeing for the future, the lessons he’s learned from a most unusual year and why he’s feeling optimistic for 2021. Focusing on Clients from the Start It’s hard to believe that less than one year ago, Rinkov’s team was experiencing an industry-wide high of momentum with massive pipelines and robust capital. What happened when the unthinkable came to pass? Rinkov explains that the executive leadership team at Lee & Associates took a moment in the early chaos to pause and evaluate what was critical, “Employee and agent safety, client connectivity and how we could deploy resources throughout our platform in a completely different way to support our agents and their client pursuits and interactions.” Tech savvy, hours of leadership phone calls and ingrained communication …

January 11, 2021

Features Walker & Dunlop

Exit from Pandemic Will Mirror a Butterfly’s Flight Path, Says Economist Peter Linneman

by Kristin Harlow January 8, 2021

The U.S. economy’s exit from the COVID-19 pandemic will mirror the flight path of a butterfly, according to economist Dr. Peter Linneman. In other words, it will move forward but also up, down and sideways — quite erratic and not terribly fast. Linneman’s comments came during a “Walker Webcast” hosted by Walker & Dunlop CEO Willy Walker on Wednesday, Jan. 6. The butterfly stage will continue until enough people get vaccinated where Americans feel safe resuming pre-pandemic activities, argued Linneman. Once that occurs, we’ll enter the flight path of a more steady “migratory bird.” Linneman’s best guess for that timeline is June or July of this year. In order to gauge the economy’s progress, it’s best to monitor GDP growth and employment, not corporate profits or the stock market, said Linneman. In Linneman’s view, 15 percent of businesses and citizens are “really struggling” and will need continued relief and roughly six more months to get their footing. A stimulus focused on that 15 percent segment — including hotel, airline and restaurant workers — is needed, according to Linneman. “It’s not about spending; it’s about targeting,” he said. If the U.S. government can effectively target that 15 percent with stimulus relief, …

January 8, 2021

Features Heartland Feature Archive Multifamily

Pandemic Puts Outdoor Amenities, Middle Markets into Multifamily Spotlight

by Kristin Harlow January 5, 2021

The impact of COVID-19 on the multifamily sector may not have been as severe as its effect on the retail or office asset classes, but there are still many ways that those professionals active in the multifamily space adapted to pandemic-driven changes. Some of these adjustments, such as virtual apartment tours, are likely permanent. Here are four pandemic-related trends expected to influence the multifamily sector in 2021, according to a roundup of Midwest-based real estate experts. Incorporating biophilic design With the COVID-19 pandemic encouraging Americans to stay outdoors for gatherings in effort to reduce transmission of the virus, there is a greater emphasis on the outdoors and nature. Expect multifamily developers to focus more on bringing the outdoors in via building designs, floor plans and amenities. Large outdoor terraces and rooftop amenity areas are becoming increasingly prevalent in new projects, particularly those in urban environments. At Optima Lakeview, a Chicago-area multifamily project currently under construction, developer Optima Inc. incorporated a landscaped interior atrium that will run through the building’s core and bring in natural light. “Green spaces not only improve the air quality for our residents but also those living near our buildings because vertical gardens filter pollutants and carbon …

January 5, 2021

Features Multifamily Seniors Housing

Seniors Housing Struggles Will Continue Through Mid-2021, Say InterFace Panelists

by Jeff Shaw January 4, 2021

With two approved vaccines to combat COVID-19, the end of the pandemic is visible on the horizon. However, some seniors housing experts say it may be the third quarter of 2021 before the sector starts to see the turnaround take hold. “We have a much clearer picture of what the post-COVID world will look like,” said Adam Heavenrich, managing director of Heavenrich & Company. “The COVID world of 2020 will hopefully look drastically different from the post-COVID world of 2021.” The comments came during a panel titled “Investment Update: Should Today’s Investor Buy, Sell or Hold?” during France Media’s InterFace Seniors Housing Investment, Development & Operations conference, held virtually in early December. Heavenrich moderated the panel, which included Kevin Carden, senior vice president of acquisitions, REDICO/American House; Joe Weisenburger, senior vice president and relationship manager, Welltower; Isaac Dole, founder and CEO, Birchwood Health Care Partners; and Curtis King, senior vice president, HJ Sims. King noted that, while the vaccine is certainly good news, turnaround properties and new construction can expect occupancy woes to continue for the near future. “We’re saying 2021 is still going to be a very tough year,” said King. “Pre-vaccination news, we were out there lending, looking …

January 4, 2021

Features Office

OfficeSpace Survey: 71 Percent of Employed Americans Eager to Return to the Office

by Katie Sloan December 21, 2020

ATLANTA — The trend of working remotely swept the nation as a result of the COVID-19 pandemic this year. While some are relishing the opportunity to test drive their home offices, a large number of Americans are ready to return to the workplace. According to a recent survey of employed Americans commissioned by OfficeSpace Software, 71 percent of respondents currently working from home are eager to move back to the office once it is safe to do so. Over 70 percent indicated that they feel more engaged and more productive in the office, and 80 percent indicated that they miss in-person collaboration with their coworkers. The novelty of virtual meeting programs like Zoom — a boon for keeping colleagues connected during the pandemic — has also worn thin, with 57 percent of respondents indicating that they are tired of meeting through video. The survey, which was conducted online by The Harris Poll in early December, canvassed 1,206 employed U.S. adults above the age of 18. Fewer than half of the respondents indicated that they are going into the workplace each day, with 17 percent having returned to their offices on a staggered schedule. Safety First While many are ready to …

December 21, 2020

Affordable Housing Conference Coverage Features Multifamily Southeast Southeast Feature Archive

Southeast Enjoys Outsized Multifamily Demand Due to Stellar Job Growth, InterFace Panelists Concur

by John Nelson December 18, 2020

The pace at which global corporations are expanding in the Sun Belt is extraordinary. To name just a few companies generating headlines, Amazon is making a sizable investment at its HQ2 in Northern Virginia and new office tower at Nashville, a number of life sciences and pharmaceutical firms are opening in Raleigh-Durham, Microsoft recently executed a full-building lease and commitment of 1,500 jobs in Atlanta and Oracle and Tesla are relocating to Austin, Texas. Researchers believe this corporate migration is a direct contributor to the region’s multifamily demand. Adam Couch, market analyst of asset optimization at RealPage Inc., said that after experiencing a decade of job creation wiped out in March and April, the region is now leading the charge in the economic recovery, which directly benefits the apartment sector. “For the Southeast, after suffering big losses, we’re in recovery mode now,” said Couch. “Local markets are best performing in places like Salt Lake City, Texas, Denver and Atlanta, where [job growth] is only 2 to 3 percent below February levels. The comeback in [multifamily] leasing was concentrated in some of these Sun Belt areas.” Dallas-Fort Worth, Atlanta and Houston led the nation in terms of apartment demand in the …

December 18, 2020

Affordable Housing Conference Coverage Features Multifamily

Supply, Demand of Affordable Housing in Texas Should Grow in Coming Months, Says Exclusive Webinar Panel

by Taylor Williams December 17, 2020

Strong job and population growth over the last decade have steadily elevated demand for affordable housing throughout Texas, and the incoming Biden administration is likely to enact policies that will help developers expand the supply needed to meet that demand, according to a panel of industry experts. The combination of no state income tax and a pro-business climate has driven scads of major companies to relocate to Texas, in many cases from California. At least before the COVID-19 pandemic, the arrival of these high-paying jobs — and the housing to support them — tended to fuel demand for retail, restaurant and hospitality development. It’s within the operations of these properties that many renters who qualify for affordable or workforce housing make their living. Immigrants from Mexico and Central America further add to demand in Texas. But from an economic standpoint, development of affordable housing is rarely feasible without some sort of aid from the state or federal government (or both). In terms of the latter, some professionals in Texas believe that the incoming Biden administration intends to prioritize affordable housing growth through a variety of mechanisms. Announcing: Texas Affordable Housing Business magazine. Click here for complimentary subscription. A panel of …

December 17, 2020

Features

A Vision for A Greener, More Resilient Urban Core

by Taylor Williams December 15, 2020

By John Goldwyn, senior vice president, director of planning and landscape, WATG Months into the COVID-19 pandemic, the real estate industry is one of many trying to navigate the “next normal,” especially in cities impacted by extended office closures, shuttered businesses and residential shifts to more spacious suburbs. Space — especially green, outdoor space — comes at a premium in these cities. Yet science tells us that being outdoors is the safest way to gather in this era of COVID-19. Access to nature is also a proven antidote to the anxiety we feel after months of quarantine. And in many cases, operating outdoors is the only way a business can stay afloat today. As such, cities like New York are faced with pressure to transform so that businesses and residents can once again thrive. As a multinational design firm, WATG has proposed Green Block Flatiron — a system in which New York City residents can enjoy both a green and urban lifestyle. Residents no longer need to sacrifice one for the other, nor flee for greener landscapes in the suburbs. This concept creates a system that can help us emerge from COVID-19 with a stronger foundation for the future. …

December 15, 2020

Conference Coverage Features Retail

Net-Lease Investors Prioritize Assets Occupied by Essential Retailers, Says InterFace Panel

by Taylor Williams December 9, 2020

By Taylor Williams Retail tenants with strong credit, sales and branding have long been the darlings of the net-lease investment market via their ability to unlock value in their underlying real estate. But as the COVID-19 pandemic has battered brick-and-mortar retailers in a plethora of categories, net-lease investors are placing added emphasis on the products and services that tenants offer when targeting new acquisitions. After nine months of the public health crisis, investors have a better sense of which tenants are flourishing in the net-lease space and which ones are languishing. This more targeted, stable approach to investing is joining forces with the unleashing of pent-up demand from the spring and summer months, when capital sources largely took to the sidelines. According to a third-quarter report from Avison Young, deal volume in the single-tenant net-lease (STNL) retail space rose by 13.8 percent from the second to third quarters of this year, though the period’s 329 trades fell well short of the first-quarter mark of 416 deals. As a result of elevated investment demand, cap rates in the market are starting to compress — again with a pronounced difference among retail assets based on their tenancy profiles. Avison Young’s report found …

December 9, 2020

Content Partner Features Industrial Lee & Associates Loans Office

Capital Markets Face Slowdown and Lender Scarcity

by Sarah Daniels December 8, 2020

The ability to find debt and equity financing for acquisitions and new development has been deeply affected by the coronavirus. Heading into 2020, there was plenty of inexpensive capital available to real estate investors and developers. The once wide field of potential lenders has shrunk significantly over the past nine months. And as for equity availability, it will be important in the coming months to be patient and diligent. REBusinessOnline recently spoke with Gary Sopko, senior vice president – structured finance/investment sales of Lee & Associates and principal at Baden Advisors (an affiliate of Lee & Associates) via video conference about his company’s approach to investment sales, debt financing and equity placement for commercial real estate clients in the midst of an unprecedented year. Sopko interprets what the lower loan volume across the board means for the commercial real estate industry, trends he’s seeing and his role in educating borrowers/clients on how to navigate this challenging time. Changing Lender Pools At the start of the pandemic, a variety of lenders were still ready, willing and able to lend; however, as the pandemic continued and shutdowns spread, the lender pool shrunk. Many private debt funds had to suspend lending for a …

December 8, 2020

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