Leland Spelman

Commercial real estate seems to be turning a corner globally. There are still storm clouds out there, and holes in the capital stack that need to be patched for some assets. But the rapid decline in deal volume and pricing came to a halt in the second quarter of 2024. MSCI Real Assets #CRE

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#MarketReport - Our Year End numbers are in. In 2024, the Lake Tahoe real estate market demonstrated remarkable resilience and growth. Despite broader economic uncertainties, rising interest rates and market corrections seen in other regions, Tahoe saw median prices begin to stabilize near the peak levels reached during the pandemic surge. In fact, three micro-regions reached record high prices. See the details graphed, plus our complete analysis and predictions in our 2024 Lake Tahoe Real Estate Market Report. https://lnkd.in/gJgdXbfg

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The Mortgage Bankers Association recently published their Quarterly Commercial/Multifamily Mortgage Bankers Originations Index (https://lnkd.in/g5gH-JCu). While origination volumes remain below historical averages in 2Q24, it shows a rebound compared to the prior quarter. CMBS stands at its highest level since 1Q22 and Life Co rose to levels seen in a year ago.

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🧭 Navigating Through the Complexities of Commercial Real Estate With Worth Valuations   The commercial real estate market is rapidly changing due to economic shifts, evolving investor preferences, new development trends, and legislative updates. At Worth Valuations, we specialize in commercial real estate appraisal services in Los Angeles, offering expert insights and personalized advice to help you navigate this dynamic landscape. We want to be a resource to the commercial real estate industry. With 20+ lender presentations completed, we’re here to guide you through this ever-changing market. Please contact Pedro Chin ([email protected]) or George Koiso, MAI ([email protected]) if you would like us to speak with you or your team about the trends we are observing.   #CommercialRealEstate #MarketInsights #CRE

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Target Investment Strategy: At GBP, our investment strategy centers on acquiring undervalued real estate assets in thriving markets like Southern California. With a focus on ground-up workforce housing developments and value-add opportunities, we leverage our localized expertise to deliver attractive returns to our investors. #VerticalIntegration #RealEstateExperts

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Listed REITs returned -0.16%, underperforming the market value weighted S&P by -151bp and outperforming the equal weight S&P by +54bp. The sector put up a valiant fight over the first 4-days of the week, but a stronger than anticipated employment report on Friday sent the sector -0.90% lower day-over-day driven by a +13bp spike in real rates. Six out of 18 subsectors were positive as specialty (+2.9%), apartments (+2%) and regional malls (+1.5%) led while office (-2.7%), lodging (-2.2%), timber (-1.6%) and commercial mortgage (-1.6%) lagged. The sector stands -4.5% year-to-date, but it +6.3% above the YTD lows in mid-April and +19.5% above the trough in October '23. Here's your pretty picture.

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WS Communities returns the keys for 28 multifamily properties in Los Angeles, addressing over $1 billion in debt. This move impacts a substantial portion of the company’s portfolio in the region. The properties in question include both existing apartment buildings and development sites, reflecting the company's financial difficulties amid rising costs and market challenges​. This marks a major shift in WS Communities' strategy, as the company attempts to navigate a challenging economic landscape. The properties will revert to the lenders, who now face the task of managing and potentially offloading these assets in a volatile real estate market. This development highlights broader financial pressures facing real estate developers in Los Angeles and highlights the complexities of large-scale property management in an uncertain economic environment​. Do you think we will see a lot more properties go into foreclosure? https://lnkd.in/gBzXCH4W

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I had a great conversation with Michael Bull, CCIM about the retail property market last week. Check out the recording here: https://lnkd.in/grHfbEXV #CRE MSCI Real Assets

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The assessment of retail tenants by landlords encompasses various factors, from financial stability to industry dynamics. Here are three aspects of @Northmarq's Top 100: Tenant Expansion Trends Report: 1. Consumer preference for bargains amid economic pressures has led shoppers to seek value brands like Dollar General, Target and ALDI USA. 2. Convenience plays a pivotal role in today's retail landscape, exemplified by Wawa, Inc., and Chipotle Mexican Grill, which prioritize efficient service and accessibility through initiatives such as drive-throughs and mobile apps, aligning with evolving consumer preferences. 3. There's a growing emphasis on personal wellness among consumers, creating opportunities for retailers to offer health-centric products and services. Companies like Planet Fitness and Sprouts Farmers Market are strategically positioned to capitalize on this trend by expanding their presence and providing healthier alternatives, reflecting the evolving demands of health-conscious consumers. For additional insight, check out the breakdown on GlobeSt.com: https://lnkd.in/dPUdKj7D

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The apparent paradox between the downturn in #multifamily confidence and the optimistic trajectory of Apartment #REITS' guidance epitomizes the multifaceted nature of the real estate sector. Highlighted in two articles from GlobeSt.com, titled “Multifamily Confidence Slide" and “Apartment REITS Increase Guidance," these conflicting headlines serve as a poignant reflection of the industry's complexity. John Francis Rodiles, National Sales Manager at The Mogharebi Group, “If you see conflicting headlines, the answer is often in the details.” We are seeing rent growth help cover increases in operational expenses for many multifamily owners. Concurrently, imminent refinancing will continue to pressure equity positions and bank balance sheets.   Check out the articles:  https://lnkd.in/g7eiKUpC   https://lnkd.in/gwx5yWxg

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Listed REITs returned 0.9% week-over-week, outperforming the S&P by +132bp and the NASDAQ by 136bp. Real estate was the 3rd best of the eleven S&P sectors. Fourteen out of 16 subsectors were positive as residential mortgage (+3.4%), commercial mortgage (+3.0%) and malls (+2.3%) led while lodging (-0.9%), shopping centers (-0.1%) and single-family rental (-0.1%) lagged. The catalyst was continued stabilization in real rates that averaged 2.23% on the week. Here's your first pretty picture of the year.

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