Green Street Advisors provide analytics and data to real estate investors and developers looking for accurate and timely information regarding markets in order to make the most strategic investment decision before obtaining their Texas commercial loans. Their 2017 Real Estate Analytics sector outlook provided the following information.

The office sector is changing, in part, due to the growing population known as The Millennials. This generation now outnumbers baby boomers in the workforce and has made a shift among office developments. This group looks for collaborative work environments that include open seating and amenities within walking distance. These trends require more space per employee as well as shared spaces such as kitchens and health-conscious choices such as fitness centers, putting pressure on landlord’s budgets. Green Street also noted that momentum for this sector slowed in 2016 and that this is expected to continue into 2021, in part, due to changes in the gateway markets.

Multifamily units saw a shortage in some areas and an oversupply in others throughout 2016. Due to a slowdown in high-wage job growth, rent acceleration seemed to decline as well, at least in some of the gateway markets. On the other hand, areas such as Manhattan showed the highest apartment sales in two years. Sales were up 13 percent from the third quarter of last year in part due to sellers lowering their prices by 1.3 percent. At the top end of the market, prices for new development plunged by 23 percent compared to last year. In most instances, multifamily units are still outperforming other property sectors and still show some of the lowest vacancy rates of all the property types. Rental rates experienced an average increase of 3.9 percent in 2016, but that appears to be softening. According to Apartment List National Rent Report, August to September showed a national rent index decrease of 0.1 percent which denotes the first time that rent has fallen since January. Rent had been on the rise this year by a steady 3.1 percent. This slight decrease in rent was seen in 49 of the Nation’s largest cities including New York and Washington, DC. On the other end of the spectrum, Reno proved to be the spot for the fastest rent growth with an increase of 9.7 percent from last year.

The mall sector had been particularly hard hit following the recession and with the newer generations leaning toward the relative ease of online shopping. REITs now control the majority of malls—approximately 80 percent. Malls that appear to be flourishing are those that have adapted to changing times and are obtaining chef-driven restaurant concepts as their anchors as well as entertainment and other service-industry vendors. Non-traditional tenants are on the rise with some mixed-use concepts even including residential dwellings within the framework of a mall.

Choosing a Sector for Investment Strategies

Choosing the area of real estate to invest in requires more than big data and market analysis. If this is your first rodeo, take a look at your capabilities and talent as well as your teams expertise levels. In addition, put a thorough plan and budget together and crunch those numbers before making an offer and obtaining your Texas commercial loans. If you have not done so yet, working with a mentor before striking out on your own can save you a ton of heartache, not to mention money.

At Level 4 Funding, we offer private hard money Texas commercial loans that can help get you on the right tract to success and start building your real estate investment portfolio.

We offer a Texas commercial loan value up to 90 percent with no prepayment penalties. Just show us your budget, plan and exit strategy, and we may very well be able to find you the investor that you need to make your present dream into a definite reality.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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