Commercial Real Estate on the Road to Recovery says NAR

NEW ORLEANS (November 7, 2014) – While economic activity was mixed during the first half of the year, industry experts expressed confidence that the commercial real estate market is on the rise during the Commercial Economic Issues & Trends Forum at the 2014 REALTORS® Conference & Expo.

National Association of Realtors® Chief Economist Lawrence Yun joined leading investment experts during a panel discussion about recent trends in commercial real estate markets. The panelists agreed that the improvements seen in the economy as a whole will spur the commercial market forward.

“The commercial real estate market ordinarily recovers two years behind the economy but not this cycle,” said Yun. “It has taken four years and, fortunately, this year we turned a corner.”

In particular, increases in job creation will have a significant impact on commercial practitioners. “More jobs mean more demand for office space, warehouse space, retail spaces and other commercial spaces. With the economy expanding, commercial activity should be rising,” said Yun. “However, do not expect the recovery to occur over night. It will not be a big bang; it will be a steady and gradual increase in demand.”

Richard M. Gatto, executive vice president of The Alter Group, expressed a similar sentiment. “We are going to slowly work our way out of this,” said Gatto. “The need for office space is really just starting to become apparent, and multifamily units are still going strong.”

According to NAR data, commercial members receive a majority of their financing from regional and local banks, as well as credit unions. Fifty-five percent of Realtors® said they have had difficulty receiving credit from these institutions, mostly due to government regulation. “The number of members asserting financing difficulties is down from 2013,” said Yun. “So it would appear that banks are slowly adjusting their credit standards closer to normal.”

Multifamily units were also a popular topic of discussion among the panelists. With rent prices continuing to rise and vacancy rates continuing to decline, all of the panelists agreed that the market should continue to see growth well into 2015 and beyond.

“The general trend is decreased vacancy and increased rent growth,” said Yun. “For Realtors® specializing in commercial real estate this means that if this year was good, next year should be better.”

The trend is also seen in office buildings. “There is a tremendous amount of urbanization occurring. In many areas, suburbs are beginning to be folded into the city centers,” said Gatto. “This change is being driven by employers who are seeking millennial-aged employees and are following younger workers to urban centers and forgoing traditional suburban offices.”

Other panelists included Andrew H. Trotter, III, chief investment officer for Centennial Holding Company, and Donald E. Huffner, managing director for AIG Global Real Estate.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

ALS Ice Bucket Challenge - LKR Style!

SUNDAY, NOVEMBER 2, 2014

LKR ALS Ice Bucket Challenge

The ALS Ice Bucket Challenge is a fun way to fund raise and bring awareness to a very sad, destructive disease.  A challenger challenges, and the challenged may either dump a bucket of ice water on their heads, or contribute money to ALS.  There have been many funny, creative and meaningful challenges, but this is our version after being challenged by a local real estate company.  We recorded it on an iPhone and raised over $900 for ALS.  We didn’t let it stop there.  We sent the challenge on to another local real estate company.  As of October 3, 2014, ALS has raised over $115 Million

The BEST Real Estate Company

FRIDAY, SEPTEMBER 12, 2014

What is the BEST REAL ESTATE COMPANY, or the BEST REAL ESTATE AGENT? The truth is there isn’t one! Many companies and agents proclaim that they are the best, but sadly, no one is. The reality is that among the 395 agents and 55 offices that serve this area there are strengths and weakness for all candidates.
So, if we can dispense with hyperbole, let’s drill down a bit and see what qualities are admirable and desirable in a company or agent. Many will claim that the top position belongs to the top seller in terms of volume of sales and leases of real estate. There is some truth to this, as sales volume is a good measure of whom else has “voted” with their allegiance for this company or agent, but there is certainly more than sales volume to consider. Some say the average price per sale, or the average time on the market are good indicators of real estate prowess. An interesting concept, but again, not conclusive. Longevity in the industry is touted again as an accurate measure of quality, but it may just be an accurate measure of age!

I believe I can add some clarity. A real estate agent is going to guide you through something that has high monetary stakes and is intensely personal at the same time. If you pick the wrong home, investment, mortgage, or commercial location you don’t get an automatic “do over”. Clients need expert, intelligent help to make good decisions the first time. A good agent will listen to what you say and what you don’t say. A good agent will have experience to guide you around unseen pitfalls to the right decision for you. A good agent puts your interests above all others, including their own, and serves you to meet your goals. A good agent can say yes, or no. A good agent has integrity to tell you what they believe, even if you prefer not to hear it, and then do what you ask them to do. A good agent will often make the process look simple and easy, even when it is complicated and difficult. A good agent is worth having.

The Iowa City area is blessed with many, many good agents. Some markets are not, but we are fortunate in this regard. Look for a company, or an agent that someone else says is the best. Be a little wary when they say they themselves are the best!