Mixed-Use Properties Create Valuation Challenges for Texas Appraisal Districts

Written on February 21, 2018 at 02:48 PM

By Alex Pace, Managing Consultant, Dallas

Mixed-use properties continue to gain popularity in response to the growing desire for the convenience and walkability of urban living. Savvy real estate developers and owners understand that providing a vibrant mix of office and living space, restaurants and retail under one roof allows them to meet – and capitalize on – a variety of consumer needs. While implementing a “live-work-play” concept certainly adds value to a project, the relatively new and complex nature of a mixed-use property is creating valuation challenges for Appraisal Districts that could be costing you.

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Categories: Office, Real Property, Hospitality, Retail, Paradigm Info, Multi Family

Stay Committed: How to get the most out of your Texas property tax appeal

Written on February 13, 2018 at 12:33 PM

By Carlos Villatoro, Senior Managing Consultant, Dallas

It is no secret that significant commercial real estate investments continue to pour into the great state of Texas. However, if an owner isn’t lucky enough to receive major tax breaks from local jurisdictions as an incentive to invest here, they will have to accept some of the highest effective property tax rates in the country. The tradeoff is that Texans enjoy a relatively low sales tax rate and zero state income tax rate. Fortunately, the Texas Property Tax Code offers multiple appeal recourse avenues, which allow owners and tenants alike to review the property tax liability from a fair and competitive standpoint.

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Categories: Personal Property, Office, Industrial, Real Property, Hospitality, Retail, Paradigm Info, Multi Family, Texas

Bank Branches Closing at Fastest Pace on Record

Written on February 08, 2018 at 04:17 PM

The number of branches in the U.S. shrank by more than 1,700 in the 12 months ended in June 2017, the biggest decline on record, according to a Wall Street Journal analysis of federal data. Branch numbers fell again in the second half of 2017, as they leave less profitable regions and fewer customers use tellers for routine transactions. That would add to the thousands of locations closed following the financial crisis, and is the longest stretch of closures since the Great Depression.

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Categories: Banks, Real Property, Retail

Toys R Us Announces Plans to Shutter 180 Stores, But Are More Closures on the Horizon?

Written on January 25, 2018 at 12:47 PM
Toys R Us is planning to shutter  roughly 180 stores   across the country, or about one-fifth of its U.S. store fleet, in a bid to restructure the company and emerge from bankruptcy protection. But some industry experts are predicting this to be the first phase of a more robust real estate clean up effort. Closures are set to begin in early February and run through mid-April of this year,  and locations  range from cities in New York and New Jersey to California. Here's a map of where Toys R Us stores are going dark from CNBC.  Toys R Us is planning to co-brand some of its other stores to include both Toys R Us and Babies R Us, the company said, as it also invests in revamping the retailer's loyalty program and improving the online shopping experience.
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Categories: Big Box, Real Property, Retail

Amazon Reveals Top 20 Finalists for HQ2

Written on January 18, 2018 at 10:06 AM

Narrowing the field from more than 238 applicants, Amazon has announced their top 20 candidates for its second headquarters. When the unusual public contest was announced in September, city officials from across North America submitted proposals boasting potential tax breaks, local benefits and opportunities in an effort to win the $5 billion construction investment and 50,000 new jobs for their city.  The list of finalists leans toward locations in the Midwest and South and on the East Coast, and away from the tech-saturated hubs of the West Coast. Many of the finalists, including Dallas, Denver, Raleigh, N.C., and Washington, were considered shoo-ins. More unexpected was Amazon’s selection of Columbus, Ohio; Indianapolis; Nashville; and Miami. 

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Categories: Office, Retail

NREI: 4 Predictions for the Industrial Market in 2018

Written on January 15, 2018 at 03:28 PM
  1. Industrial activity will continue to thrive. There is no indication of a slowdown in this sector for 2018, says Peter Muoio, chief economist at Ten-X. During the latter part of 2017, new demand drivers, including e-retail warehouse distribution and fulfillment space, cloud computing and facilities for legalized cannabis, supported much of the demand in the segment. However, Muoio expects there to be an increased demand from traditional users of industrial space, such as industrial production companies. 
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Categories: Industrial, Industrial & Manufacturing, Retail, Warehouse

Which CRE Sectors Will Benefit the Most from Tax Reform in 2018?

Written on January 08, 2018 at 12:29 PM

The commercial real estate industry will benefit as a whole from the tax code overhaul signed into law Dec. 22. But some sectors will benefit more — and sooner — according to top economists polled in a Bisnow article. 

  • Retail: The retail sector will likely be the biggest beneficiary, Colliers Chief U.S. Economist Andrew Nelson said, because of the lowering of the corporate tax rate. The tax reform law reduces the corporate tax rate to 21% from 35%, but because of deductions, not all types of businesses had effectively paid that same higher rate. "Retailers traditionally pay a high corporate tax rate because they don't have the same kind of deductions as other sectors," Nelson said. "When you lower the corporate rate overall, retailers tend to benefit a lot." 
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Categories: Office, Hospitality, Retail, Multi Family

CRE Has Been In Ninth Inning For Two Years

Written on November 29, 2017 at 10:42 AM

Many are predicting a leveling out of the commercial real estate market in the coming year. Texas Market Leader James Sutton discussed 2018 commercial real estate trends and the implications of the leveling-out process in the Houston market in this EXCLUSIVE with GlobeSt.com.

GlobeSt.com: What are the commercial real estate trends you are seeing in Houston for 2018?

Sutton: Decrease in overall vacancy for industrial properties, as well as a decrease in overall vacancy, increase in rent growth and zero concessions for multifamily properties. In addition, there will be a reduction in office sublease space as a result of the storm (Harvey). This is a short-term correction as a result of the office sector’s issues stemming from the energy market decline.

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Categories: Office, Industrial, Real Property, Retail, Paradigm Info, Multi Family, Texas

REBNY Report: Manhattan Retail Asking Rents Decline in 13 of 17 Top Shopping Corridors

Written on November 27, 2017 at 12:25 PM

Despite owners offering short-term leases and generous concessions in an effort to maintain high rent levels of previous years, Manhattan's retail slump continues with average asking rents for available ground floor spaces declining in 13 of the top 17 shopping corridors, when compared with fall 2016. According to the Real Estate Board of New York’s (REBNY) Fall 2017 Manhattan Retail Report, the retail leasing market is still in a corrective period as average asking rents recede and deal-making favors parties willing to be flexible with lease structure, uses, and asking rents amid rising demand for side street locations and pop-up stores.

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Categories: Retail, New York

Emerging Trends Shaping Real Estate in 2018

Written on November 01, 2017 at 04:31 PM
The immediate future of real estate looks positive, according to t he Urban Land Institute and PwC’s annual look at the year ahead. The 2018 Emerging Trends in Real Estate report, which  compiles more than 800 individual interviews and 1,600 surveys of real estate experts, predicts a 'long glide path to a soft landing' as the economic cycle runs its course, but does not forsee a sudden drop in altitude. 
One of the emerging trends is investors' increasing appetite for secondary markets. The 2018 outlook for secondary markets increased nearly 12 percent compared with the 2013 survey. Over the same time period, the investment outlook for primary markets has decreased by 6 percent.  According to the survey, secondary markets have outpaced the primary cities because investors are better educated, secondary markets haven’t become as overbuilt as they were in previous cycles, foreign capital has grown and seeks a safe home, and the growth in many of these cities seems much more sustainable and long-lasting.
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Categories: Office, Washington, Real Property, Retail




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