Western Feature Archive Archives - REBusinessOnline

Real Estate Industry Displays ‘Uneven Performance’ Heading Into 2026, Says Valuation Firm IRR

John Nelson — Tue, 27 Jan 2026 12:42:00 +0000

DENVER — The U.S. commercial real estate industry is currently experiencing a mixed bag of demand generators and property-level performance, according to Integra Realty Resources (IRR), a commercial real estate valuation services firm based in Denver. IRR’s conclusions are expanded in Viewpoint 2026, the 33rd edition of the firm’s commercial real estate trends report. “As we enter 2026, we see that the economic environment is becoming more stable, but growth is slower and visibility remains limited,” says Nick Luettke, economist at Moody’s Analytics. “Inflation has eased from recent peaks and interest rates have started to trend lower, however, borrowing costs remain elevated relative to prior cycles. With labor markets softening and policy uncertainty still at play, economic conditions are supportive in some areas but restrictive in others, contributing to uneven performance across the U.S. commercial real estate market.” IRR partnered with Luettke for the macro-economic trends within the report and sought contributions from nearly 600 valuation advisors in the United States and Caribbean. The report delivers sector-specific insights along with three specialty property reports on healthcare and seniors housing, quick-service restaurants and self-storage. Some key findings and forecasts from the main report include: the sustained poor fundamentals within the highly fragmented…

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Forecast Survey: What’s Your Take on Commercial Real Estate in 2026?

John Nelson — Mon, 24 Nov 2025 12:55:00 +0000

The editors of REBusinessOnline.com are conducting a brief online survey to gauge market conditions in 2026, and we welcome your participation. The survey should only take a few minutes to complete. Questions range from property sectors that you are most bullish on heading into 2026 to trends in deal volume to your outlook for interest rates. The results of our 15th annual survey will be compiled and published in the January issues of our regional magazines. Conducting these surveys is part of our mission at France Media to provide readers with indispensable information, and we couldn’t do it without your help. To participate in our broker/agent survey, click here. To participate in our developer/owner/manager survey, click here. To participate in our lender/financial intermediary survey, click here. (Note: Please remember to click on “done” to properly submit the survey.)

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Subsidies Pose Property Tax Puzzle in Public-Private Partnerships

John Nelson — Tue, 12 Aug 2025 11:29:00 +0000

By Cris O’Neall, Esq. of Greenberg Traurig LLP With the number of public-private partnerships for constructing public facilities on the rise, communities across the country wrestle with the question of how to treat such arrangements for ad valorem property tax purposes. In most instances, private developers and taxing entities take opposing positions on the issue. Public-private joint ventures have become a popular strategy to achieve community objectives through collaboration with private developers. To construct a particular facility, a municipality or other government will typically provide subsidies or other financial incentives to encourage participation in the project by a private-industry partner or partners. These subsidies, which may come in the form of grants or tax credits, often lead to property tax contention. Some taxing authorities include the subsidies or tax benefits granted to the private developer in the taxable assessed value of the real property. In contrast, private developers view such subsidies or benefits as tax-exempt intangible property that should not be included in assessed values. Here are a few common incentives and their property tax implications: Low-Income Housing Subsidies The treatment of federal subsidies for operation and construction of low-income housing became an early battleground in the ongoing conflict over…

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Why Fannie Mae, Freddie Mac Believe the Wind Is at Their Back

John Nelson — Tue, 15 Jul 2025 11:45:00 +0000

Fannie Mae and Freddie Mac are adopting a more pro-business approach when it comes to closing multifamily loans in 2025 than in recent years, when sources say they were more selective. The two government-sponsored enterprises (GSEs) combined to produce 33 percent more multifamily loans in first-quarter 2025 compared with first-quarter 2024. “There is definitely a ‘volume on’ mindset at both shops,” says Landon Litty, director of agency sales at BWE. “This is a real positive for borrowers.” For Fannie Mae, the volume of multifamily loans totaled $11.8 billion in the first quarter of 2025, compared with $10.1 billion in the first quarter of 2024. Meanwhile, Freddie Mac produced approximately $15 billion in multifamily loans in the first quarter, financing around 144,000 rental units, well above the approximately $10 billion produced in first-quarter 2024. “The first quarter of 2025 has been dynamic, with real-time adjustments to meet market needs while maintaining a focus on soundness,” says a spokesperson at Freddie Mac Multifamily. Other sources attest that the GSEs are focusing on their sponsors more so than in previous years. T.J. Edwards, chief production officer for the multifamily finance division at Walker & Dunlop, says the agencies are proactively vetting first-time borrowers…

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Foundation Has Been Laid for Seniors Housing Investment Sales to Flourish in 2025, Says InterFace Panel

John Nelson — Tue, 08 Apr 2025 11:35:00 +0000

LOS ANGELES — Dan Baker, director of capital markets for JLL, says the seniors housing and care industry doesn’t need to speculate on whether the market rebound is real or perceived because the numbers tell the story. “I think last year saw the most announced seniors housing transactions ever in a calendar year, not necessarily the most dollar volume,” said Baker during a recent investment panel discussion at InterFace Seniors Housing West in Los Angeles. Baker cited the lack of larger portfolios trading hands as the reason for the modest dollar volume in transaction activity in 2024. Editor’s note: InterFace Conference Group, a division of France Media Inc., produces networking and educational conferences for commercial real estate executives. To sign up for email announcements about specific events, visit www.interfaceconferencegroup.com/subscribe. According to research firm MSCI, property and portfolio sales in the seniors housing and care space totaled $13.2 billion in 2024 compared with $10.9 billion in 2023, a year-over-year increase of 21 percent. That’s still far below the $20.7 billion in deal volume notched in 2021. The data is based on independent reports of sales $2.5 million and above. One compelling trend noted by Baker is the tremendous growth in net operating…

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Forecast Survey: What’s Your Take on Commercial Real Estate in 2025?

John Nelson — Fri, 15 Nov 2024 12:45:00 +0000

The editors of REBusinessOnline.com are conducting a brief online survey to gauge market conditions in 2025, and we welcome your participation. The survey should only take a few minutes to complete. Questions range from property sectors that you are most bullish on heading into 2025 to trends in deal volume to your outlook for interest rates. The results of our 14th annual survey will be compiled and published in the January issues of our regional magazines. Conducting these surveys is part of our mission at France Media to provide readers with indispensable information, and we couldn’t do it without your help. To participate in our broker/agent survey, click here. To participate in our developer/owner/manager survey, click here. To participate in our lender/financial intermediary survey, click here. (Note: Please remember to click on “done” to properly submit the survey.)

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Emerging Trends Report Predicts Rebound in Transaction Volume in 2025 as Capital Markets Are ‘Poised for Recovery’

John Nelson — Tue, 29 Oct 2024 11:30:00 +0000

LAS VEGAS — At the September meeting of the Federal Open Market Committee (FOMC), the Federal Reserve lowered the federal funds rate by 50 basis points, which is the first easing of monetary policy in four years. This move lowered the short-term interest rate to a target range of 4.75 to 5 percent. Elevated borrowing costs have stifled commercial real estate transaction volumes the past couple years as buyers and sellers found that values were a moving target. Now with a reduction in interest rates, many real estate professionals expect transaction volume to rebound at least moderately. “In 2025, we expect lower interest rates will reduce borrowing costs, aid in price discovery and ultimately encourage an uptick in [commercial real estate] transactions,” said Angela Cain, global CEO of the Urban Land Institute (ULI). Cain’s comments came in a prepared statement to summarize the findings of Emerging Trends in Real Estate 2025, an annual report jointly produced by PwC US and ULI. The report was published in conjunction with ULI’s Fall Meeting, which is taking place this week at Resort World Las Vegas. Cain said that the real estate professionals surveyed for the report relayed that sentiment is improving, though many remain cautious.…

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Cannabis Dispensary Development Requires Specialized Site Selection, Design for Success

John Nelson — Tue, 30 Apr 2024 12:04:00 +0000

By Virginia Maggiore of RDC Although the roadmap to opening a dispensary presents unique challenges inherent to the cannabis industry, the process shares many parallels with traditional retail projects. From selecting the optimal site, designing the brand and interior and implementing the build-out plan, the similarities are evident. However, a pivotal differentiator lies in the need to assemble a team that has experience with cannabis laws, sites, operations and build-outs. The collective expertise comprised by seasoned architects, designers and general contractors is instrumental in navigating the complexities of the cannabis industry, avoiding unnecessary expenses and delays, while ensuring a successful store opening. Selecting the Optimal Site The first step in the process to opening a dispensary involves choosing the optimal property for the storefront. While some entrepreneurs opt for ground-up construction, the majority leverage existing vacant spaces, repurposing them into cannabis dispensaries. Operators that are refurbishing an existing property for retail will want to select a site that boasts a vanilla shell or blank canvas for the new store to build upon. Choosing properties that already contain many of the costly elements like utilities and bathrooms can greatly minimize construction expenses. This allows operators to save their budget for a…

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Repurposing Historic Buildings Can Create Meaningful, Revitalizing Retail Destinations

Jeff Shaw — Tue, 20 Feb 2024 12:45:00 +0000

— By Elise Kunihiro and Maura Schafer — Historic building adaptive reuse creates a bridge between the past and the future, resulting in places that can become the hearts and souls of their communities. The reuse of these buildings offers community benefits, such as sustainability, new public spaces and character. Reactivate local economies Beyond revitalizing older buildings, adaptive reuse projects can also support small local business owners. A 1922 brick office building in the East Village Arts District of downtown Long Beach, Calif., for example, now hosts Partake Collective. The 25,000-square-foot cloud concept and food hall incubator allows visitors to support local restauranteurs while dining in a communal food hall or sidewalk dining area. Studio One Eleven served as the project’s architect, while RDC did interiors and procurement. The goal of this redevelopment model was to create a benchmark for future development that celebrates food diversity and enhances community building. It doesn’t hurt that Partake Collective remains an active and engaged member of the Long Beach community by working with local educational institutions to support pathways to private enterprise, business ownership and job opportunities for the most underrepresented communities. Partake Collective has already partnered with culinary programs at Browning High…

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Adaptive Reuse is an Urban Repair Strategy That’s Here to Stay

Jeff Shaw — Fri, 05 Jan 2024 12:45:00 +0000

— By Carina Mills and Maura Schafer — In 2017, partner design firms RDC and Studio One Eleven (RDC-S111) relocated from a high-rise office to a former 25,000-square-foot Nordstrom Rack at 245 E. Third Street in downtown Long Beach, Calif. The store was located in a 1980s-era shopping center that had fallen into serious decline. On the plus side, the location was consistent with Studio One Eleven’s mission of urban repair, allowing for a pedestrian-level interaction with the neighborhood, while strengthening the city fabric. Soon enough, the retail space was converted into a modern creative office that added 130 design professionals to the neighborhood’s daytime population. This higher-use conversion occurred alongside other public and private investments that brought restaurants into the area. These included Ammatoli (a Los Angeles Times Top 100 restaurant), Beachwood Brewery, Rainbow Juices and Michael’s Pizzeria, among others. The adjacent Harvey Milk Park garnered grants for a reinvigoration by Studio One Eleven, and developers started working on housing development around the immediate neighborhood. This move and project was not only a chance for RDC and Studio One Eleven to create urban impact, but to design an environment for staff that instills creativity, collaboration and wellness. The office achieved…

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Replacement Cost is Central Acquisitions Metric in a Volatile Market

Jeff Shaw — Mon, 20 Nov 2023 12:30:00 +0000

— By Brett Silverstein — With uncertainty looming large and terms like risk, crash and recession swirling around the industry, it comes as no surprise that some investors are clinging to their cash reserves. But savvy investors go back to the fundamentals of the real estate cycle. While the economic conditions that influence the cycle are often different, such as the Dot-Com bubble, the Global Financial Crisis and, most recently, COVID, the predictability of the real estate cycle is consistent. In my opinion, a sound acquisitions strategy today is one grounded in acquiring high-quality assets below replacement cost in Intermountain West markets that exhibit strong fundamentals, such as outsized rent growth, continued strong household formation patterns and limited future supply growth. Distress leads to discounts Amidst the prevailing market turbulence, the acquisition of existing assets at a discount to the cost of building new ones becomes an even more compelling proposition. Replacement cost alone may not suffice as an investment metric, but the combination of discounted prices and robust market fundamentals creates the secret sauce of sound investment decisions. Housing is an essential good that is always in demand and has historically inflated over time. The foundational concept of “heads…

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Converting Office to Life Sciences Offers Lucrative Alternative to Residential Reuse Projects

Jeff Shaw — Fri, 17 Nov 2023 12:31:00 +0000

— By Julian Freeman, Dave Wensley and Gabe Pitassi — With steep vacancy rates impacting traditional office markets due to the headwinds of higher interest rates, short-term economic uncertainty and long-term remote/hybrid work uncertainties, underutilized traditional office buildings may become liabilities before the end of their anticipated economic life. Owners of these properties may consider a conversion — an adaptive reuse or repurposing — to access higher rents and occupancy rates. In view of nationwide housing shortages, especially in California, converting office to multifamily has received much attention as a logical move. However, such a conversion is not always viable from a financial, structural, legal or location perspective. An alternative option may be to repurpose an office building for life sciences use. Such a conversion, while posing its own unique challenges, may provide more realistic options than a conversion to residential use for many owners and properties. Challenges in converting to residential Converting an office building to residential use presents challenges on multiple fronts. Zoning laws vary based on property location and usage, and the property may need to be rezoned to a different classification to allow multifamily uses. Rezoning requires local government approval and public hearings, which can take months…

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Forecast Survey: What’s Your Take on Commercial Real Estate in 2024?

John Nelson — Tue, 14 Nov 2023 12:16:16 +0000

The editors of REBusinessOnline.com are conducting a brief online survey to gauge market conditions in 2024, and we welcome your participation. The survey should only take a few minutes to complete. Questions range from property sectors that you are most bullish on heading into 2024 to trends in deal volume to your outlook for interest rates. The results of our 13th annual survey will be compiled and published in the January issues of our regional magazines. Conducting these surveys is part of our mission at France Media to provide readers with indispensable information, and we couldn’t do it without your help. To participate in our broker/agent survey, click here. To participate in our developer/owner/manager survey, click here. To participate in our lender/financial intermediary survey, click here. (Note: Please remember to click on “done” to properly submit the survey.)

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Owners Need Creativity, Adaptation and Capital to Keep Malls Alive in 2023

John Nelson — Fri, 25 Aug 2023 11:45:00 +0000

By Dan Spiegel of Coldwell Banker Commercial As we enter an age where online shopping dominates the retail landscape, a recurring discussion in commercial real estate is what part malls play in this new world, if any part at all. More and more malls are “dying out,” which creates a difficult challenge for property owners as conventional indoor malls are no longer a commodity due to constantly evolving shopping trends. My team and I work with retail property owners and buyers at Coldwell Banker Commercial to address these difficulties and help build a new future for successful mall properties. Thankfully, there are a few key strategies property owners can implement to save their shopping centers from becoming obsolete. One of these strategies includes renovating a mall to create new stores and experiences, repositioning the space as a social destination for recreation. Another involves transforming shopping centers into mixed-use spaces, adding apartments and multifamily units to increase foot traffic and provide people with access to shopping, housing and other essential services. Older Properties, New Market The Reno Public Market in Reno, Nev., is a great case study that demonstrates one of the ways in which property owners can adapt to current…

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The Future of Urban Real Estate Is Mixed-Use, 24/7, Outdoors

Jeff Shaw — Fri, 04 Aug 2023 12:00:00 +0000

— By Bob Lisauskas, Principal, RDC in Long Beach, Calif. — Daily patterns of life have been turned upside down since 2020. Three years since the disruption of quarantine living, it’s becoming clear what was temporary and what has been permanently changed. The good news: our cities have the potential to come back healthier than ever. Cities are resilient places and are finding ways to adapt and transform. Building owners, municipalities, architects and other stakeholders are actively collaborating on ways to repair the city fabric. While some of these companies and individuals have fled to the suburbs, many are more committed than ever to preserve urban living. This is often because they love the city where they own their property, and are personally motivated to breathe life into the area. Another wrinkle driving urban transformation is the housing crisis. It’s an urgent reality that we need more housing at every price point in our urban centers. This is something that’s of paramount concern, particularly in California, as rents and property values rise. These, along with other trends and market disruptors, are pushing cities toward a primarily mixed-use future in which new developments serve the entire 24-hour cycle: living, working, shopping…

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Forecast Survey: What’s Your Take on Commercial Real Estate in 2023?

John Nelson — Mon, 21 Nov 2022 12:25:56 +0000

The editors of REBusinessOnline.com are conducting a brief online survey to gauge market conditions in 2023, and we welcome your participation. The survey should only take a few minutes to complete. Questions range from property sectors that you are most bullish on heading into 2023 to trends in deal volume to your outlook for interest rates. The results of our 12th annual survey will be collated and published in the January issues of our regional magazines. Conducting these surveys is part of our mission at France Media to provide readers with indispensable information, and we couldn’t do it without your help. To participate in our broker/agent survey, click here. To participate in our developer/owner/manager survey, click here. To participate in our lender/financial intermediary survey, click here. (Note: Please remember to click on “done” to properly submit the survey.)

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Want to Appeal to Multifamily Tenants? Go Green

Jeff Shaw — Thu, 01 Sep 2022 11:50:02 +0000

By Barry Manuel, CIO, MEB Management Services Did you know that 39 percent of energy-related carbon dioxide emissions are generated through manufactured buildings? We spend the majority of our lives using indoor spaces to gather, work, socialize and live, which means multifamily developers and managers need to consider environmentally friendly options that don’t contribute to the global climate crisis. It’s the right thing to do, and we’re not the only ones who know that. Residents are getting wise to the impact their buildings play in the climate crisis. Creating A Solution With this in mind, we recently created the MEB Sustainability Committee to address environmental issues and adapt sustainability practices for our multifamily properties throughout Arizona and New Mexico. Our goal is to have at least 75 percent of all MEB properties engaged in energy-saving initiatives. MEB is taking a two-pronged approach. We’re using ESG ratings to measure long-term environmental, social and governance risks while educating and sharing sustainable practices with our residents and management teams. Through a collaborative effort, we’re reducing emissions by making changes to both new and existing apartment buildings. Part of our strategy and collaboration involves partnering with one of the most sustainably conscious builders in Arizona…

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Office Space Is Back in Demand — With a Wellness Component

Jeff Shaw — Thu, 28 Jul 2022 11:45:10 +0000

By Michael Brumley, Project Executive, Kiewit Building Group AT The pandemic sent ripple effects throughout the construction industry. Along the way, it also heavily influenced and impacted the way employees in the workforce now operate and interact. With COVID prompting a shift in remote work, many are wondering if it’s beneficial to go back to the office full-time, adopt a hybrid approach or forgo investing in office space altogether. There are many justifications for investing in office space when you consider variables like productivity, industry-specific jobs or trades, and overall employee satisfaction and benefits. The distinction is you need to invest in spaces that are successful for employers and employees alike. It’s All About the Benefits The pandemic proved work can be done anywhere as long as Wi-Fi is available. So, how can companies entice employees to work at an office once the investments have been poured into developing the physical space? According to a survey from McKinsey on consumer interest and purchasing power, 79 percent of respondents said they believe wellness is important while 42 percent consider it a top priority. Consumers in each market studied reported a substantial increase in the prioritization of wellness over the past two to three…

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Universal Design Strategies Foster Intergenerational Living in Multifamily Communities

Jeff Shaw — Tue, 26 Jul 2022 11:50:38 +0000

By Carol Cole, director of interior design, DAHLIN Group Architecture AT Intergenerational households are growing at a faster pace than they were pre-pandemic. Generations United, a nonprofit dedicated to supporting intergenerational programs and policies, estimates that 66.7 million U.S. adults live in a multigenerational household, with nearly 57 percent of this statistic spurred by COVID. Even after the immediate impacts of the pandemic subside, intergenerational living will remain prevalent for a variety of reasons. These can range from the need for child and/or elder care to cultural expectations and economic-related factors, such as loss of a job, high educational expenses or housing availability. Considering this trend and recognizing that more than 16 million Americans are currently over the age of 65, the movement toward incorporating universal design strategies on residential projects is key for creating aesthetic living spaces that are usable by everyone to the greatest extent possible. Already a standard in the healthcare community, universal design is the design and composition of a space set up to meet the needs of all users, not as a special requirement to benefit only a small fraction of a population. The practice results in inclusive environments that support high-functioning, independent living for…

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Redfin: US Residential Median Asking Rents Up 14.1 Percent in June on Annual Basis

John Nelson — Tue, 12 Jul 2022 11:46:48 +0000

SEATTLE — Redfin, the residential real estate brokerage giant, has reported that the national median asking rent in June is $2,016 per month, a 14.1 percent increase year-over-year. The Seattle-based company analyzed data from 20,000 separate multifamily and single-family properties from its RentPath platform across the top 50 U.S. metro areas. The June figure is a slight increase from May at 0.7 percent, which represents the smallest month-over-month gain since the start of the year. The median asking rate is also the smallest annual increase since October 2021. Daryl Fairweather, Redfin’s chief economist, says while still elevated, the current slowdown in rent growth could be anticipatory on the part of landlords in reaction to overall inflation. (The Consumer Price Index saw its biggest annual gain since 1981 in May, according to the U.S. Bureau of Labor Statistics). “Rent growth is likely slowing because landlords are seeing demand start to ease as renters get pinched by inflation,” says Fairweather. “With the cost of gas, food and other products soaring, renters have less money to spend on housing.” “This slowdown in rent increases is likely to continue, however rents are still climbing at unprecedented rates in strong job markets like New York…

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