Deloitte Perspectives:
Commercial Real Estate Outlook 2017

Deloitte Reports:  The real estate industry is increasingly influenced by rapid technological advancements and significant demographic shifts, which include growing urbanization, longevity of Baby Boomers, and differentiated lifestyle patterns of Millennials. In addition, macroeconomic and regulatory developments continue to impact profitability. How can companies gain a competitive advantage and drive top- and bottom-line growth? Here are some trends to pay attention to in 2017.

Economic outlook: Growth tempered by higher interest rates?

Gross domestic product growth will likely increase 2.5 percent in 2017, according to Deloitte’s Q3 2016 US Economic Forecast. The modest economic improvement could temper the pace of commercial real estate (CRE) transaction activity.

Volatile global markets have led to continued low interest rates. The Deloitte economics team anticipates the Federal Reserve is likely to raise interest rates in the short-to-medium term. Higher interest rates are likely to increase mortgage costs and could deter real estate investments to some extent.

An improving employment scenario and rising labor participation are expected to result in an unemployment rate of less than 5 percent. The employment-to-population ratio is projected to peak in 2018, as retiring Baby Boomers may reduce the share of employed. The improving labor markets and household wealth will likely boost consumer confidence.

2017 Commercial Real Estate Outlook
Regulatory outlook: Greater compliance costs on the horizon

New accounting standards on lease accounting and revenue recognition will likely increase the compliance and administration costs for real estate investment trusts (REITs) and engineering and construction (E&C) companies.

While increased exemptions under the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) will increase foreign investments in CRE, risk retention rules will likely lower commercial mortgage-backed securities (CMBS) issuance and reduce capital availability in secondary and tertiary markets.

In addition, the Protecting Americans from Tax Hikes (PATH) Act of 2015 will not only ease REIT tax provisions and research and development (R&D) tax credits for E&C companies, it will also increase the flexibility to invest in startups for R&D experimentation. At the same time, corporate tax reforms will reduce flexibility for corporations to spin off real estate assets into REIT structures.

Disruptive trends: Shaking up the CRE marketplace

Collaborative economy. Startups based on the sharing or collaborative economy, like Airbnb or WeWork, are disrupting the way organizations lease and use CRE. Companies face challenges from new competitors that are providing dynamically configurable spaces and flexible leases. Owners need to rethink their approach toward space design, lease administration, and lease duration.

Disintermediation of brokerage and leasing. Technological advancements are making CRE data more ubiquitous and transparent. These changes are enabling online leasing in a cost-effective, real-time manner and threatening the traditional brokerage model. Traditional brokers should consider diversifying their core business focus to include consultative opportunities, invest in data and technology, and collaborate with startups to get ahead in the game.

Competition for talent. A shortage of candidates with strong skills in science, technology, engineering, and math (STEM); rising urbanization; and Millennials’ preference for an open and flexible work culture are changing the employment marketplace and will result in significant competition for talent. There is likely to be greater demand for mixed-use developments as consumers prefer to “live, work, and play” in proximity; office space usage will be redefined and even rationalized. Companies should choose locations in areas that have concentrations of STEM talent and revamp design and development teams to cater to changing consumer preferences.

Last mile. Online retailing, on-demand manufacturing, and innovations in speed and mode of delivery (such as same-day delivery and e-lockers) are disrupting the retail and industrial markets. Demand for large retail and industrial spaces will contract, and there will be a blurring of lines between these two property types. For example, retail properties could double as fulfillment centers. While retail owners can try different store formats and enhance end-customer experience, industrials should potentially focus on smaller and more flexible spaces within cities to enable faster delivery.

Future of mobility: Emergence of “pay-per-use” is beginning to challenge the model of personally owned vehicles. Along with this, the advent of self-driving vehicles will potentially transform the entire mobility ecosystem. This has the potential to change demand-supply dynamics, free up large parking spaces in prime areas that can be put to different uses, and shift tenant demography. Companies need to be more strategic in analyzing the impact of mobility patterns and options on their long-term revenue and profitability, exploring design changes to existing spaces, and revisiting tenant strategies.

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ANGMAR REALTY AND WINDMILLER PROPERTIES BREAK GROUND FOR THE STANDARD AT CHISENHALL

Pictured from Left to Right: Mica Puryear, Senior Advisor, AngMar Realty; Alex Phillips, Economic Development Manager, City of Burleson; Blake Fanning, President, Citizens National Bank; Tim Windmiller, President, Windmiller Properties; Ronnie Johnson, Councilmember Place 6, City of Burleson; Aaron Stalberger, VP of Operations/Broker, AngMar Realty; David Kirsch, Senior Architect, Windmiller Properties.

Pictured from Left to Right:
Mica Puryear, Senior Advisor, AngMar Realty; Alex Phillips, Economic Development Manager, City of Burleson; Blake Fanning, President, Citizens National Bank; Tim Windmiller, President, Windmiller Properties; Ronnie Johnson, Councilmember Place 6, City of Burleson; Aaron Stalberger, VP of Operations/Broker, AngMar Realty; David Kirsch, Senior Architect, Windmiller Properties.

BURLESON, Texas (August 12, 2016) ─ AngMar Realty and Windmiller Properties, along with City of Burleson officials, its business partners and other special guests, broke ground yesterday to mark the start of construction for “The Standard at Chisenhall,” located at 279 W. Hidden Creek Parkway, in Burleson, Texas. The new 7.5 acre, mixed use development will include 58,600-square feet of retail space and 15,400-square feet of office space and once completed, it will be a vibrant center for both the City of Burleson and the region.
Located approximately 17 miles south of downtown Fort Worth on I35W, the project is located minutes away from Burleson’s town center, Hidden Creek Golf Course, Chisenhall Baseball Fields and the City’s walking trails. The new development will feature state-of-the-art offices, retail spaces and restaurants. A walkway connecting the complex with a nearby pond and the City’s walking trails will provide a natural green space and convenient passage. The restaurants, including local favorites, will provide options for the nearby neighborhoods and apartments, and there will also be an outdoor bandstand and Pavilion for public and private events.
“We are extremely pleased to get started on this project,” said Tim Windmiller, President of Windmiller Properties. “Developments of this size which offer combined retail and restaurant establishments, alongside City amenities, are nonexistent within Burleson and the surrounding communities. By adding ‘The Standard at Chisenhall’ to our community, it will ‘set the Standard’ for the City of Burleson, providing Burleson residents and DFW Metroplex with an attractable and viable option for shopping, dining, and entertainment all in one place.”
Leading the design team in conjunction with Tim Windmiller is David Kirsch, senior architect for Windmiller Properties, along with Michael Constantino, Windmiller’s in-house artchitect. Anticipated completion date of Phase I is slated for first quarter 2017.
“This is a great day for AngMar Realty, Windmiller Properties and the City of Burleson,” said Burleson Councilmember Place 6 Ronnie Johnson. “Because of AngMar and Windmiller’s commitment to the community and foresight toward the growth of our City, we will soon have an incredible new multi-use development for retail, shopping and hosting of all types of events for businesses and citizens alike. We cannot wait to see the new ‘The Standard at Chisenhall’ at its official grand opening/ribbon cutting ceremony.”
For more information about “The Standard at Chisenhall” call 817-501-2246 or visit its Facebook page here or AngMarRealty.com.

Managing commercial properties

Commercial properties offer much more financial rewards in comparison to non-commercial properties. But did anyone also tell you that managing commercial properties is quite a bit riskier? There are so many issues like financing and identifying CRE prospects, just to name a few, that make commercial properties more difficult to manage.CRE

Financing a commercial property is difficult.

This is not to be underestimated. It is not all that difficult to get financing for purchasing residential rental properties, as there are a large number of lenders available who will offer loan for a period of 15 to 30 years. Usually, the residential real estate isn’t that expensive anyway and is something that can even be paid off using rent money. In the case of commercial properties, the loan amount will be amortized for less than 30 years and will mostly follow a balloon payment mode. This means that the entire balance of the loan will be due after a certain amount of time — let’s say after five or 10 years. The investor is supposed to pay off the loan when the balloon payment is due. This is not always convenient for the investor. Many investors look forward to getting refinanced when the balloon payment comes due, but if the market changes, refinancing the loan is difficult.
Add to that the fact that commercial property is usually more expensive to purchase, and things get even more difficult. It’s true that larger properties can yield a more steady income, but to get that kind of money from a bank, you’ll need experience to go with it.

Finding tenants takes longer with commercial properties.

Though commercial properties can enjoy long-term leases of three or even 10 years, once vacant, it usually takes much longer to find suitable tenants for these properties. Since these properties are rented out for business purposes, finding a suitable match between the location of the property, the type of the property and the business requirements of relevant companies usually takes a longer time. That has a pretty big effect on the cash flow. The owner is also expected to cover all the costs during this period. This can be a huge burden on the owner, as taxes can be a lot higher compared to residential real estate.

Trends you can use to identify CRE prospects:

Dramatic shifts in occupancy levels.
When a property has a meaningful shift in its occupancy for the better or for the worse, it frequently leads to a sale. When buildings fill up, many owners try to monetize their good fortune and sell the building at its new, higher value. On the other hand, buildings that empty out force owner that cannot afford the diminished cash flow to put them up for sale.
New planned construction.
New competing buildings coming to a market generate a healthy reason for owners to sell before their tenants move out. To fully capitalize on this information, you will need to be well ahead of the actual commencement of construction. After all, buyers may be wary of taking on existing buildings once new construction is underway.
Recent sales in the area.
When a building in a given area sells, there are two reasons that other owners may be more willing to put properties on the market. If the existing sale is at a particularly good price, it may motivate them to take advantage of a hot market. The other motivation comes from the fact that there may be buyers that are interested in the area but did not win the opportunity to buy the other building. When offers circulate, sellers tend to listen.

Our goal at Angmar Realty is provide you with in-depth knowledge on how commercial properties are bought, sold, and leased in your markets and vice versa. Partnering with Angmar Realty sets you apart and allows you the flexibility to position yourself as a full service agent or agency that will exceed expectation when it comes to managing your residential and commercial listings.

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Effective CRE Marketing Avenues

As the CRE market continues to grow in 2016 and demand for commercial real estate strengthens, here are some tips to help you stay ahead of the curve.
Marketing Package
The key to building a great marketing package is tell each listing’s story and engage qualified buyers to find out more. This means you should think about what sets your property apart and highlight the features that make it distinctive. The quality of the print collateral you send to your clients, says a lot about you as a company. If it’s been some time since you last updated this or you still don’t have professional graphic design for your marketing materials, consider investing in new collateral.
Property Website
The fastest way to make your listing details accessible is to build out a listing page online. This reason it’s beneficial to use your own real estate website is that it gives you a dedicated place to refer to on all of the other online channels, such as LoopNet or your email campaigns. Your website is the foundation for all of your digital marketing efforts. A joint study by Google and Loopnet has shown that almost 80% of tenants and investors search for commercial real estate online. This means your website is critical to gaining brand visibility, acquiring prospects, and helping drive sales and lease-up efforts for your company.
Online Listing Websites
By far the most popular listing website for commercial property is LoopNet, but there are also several other niche listing services such as CCIM, CityFeet, TotalCommercial, and many more. The residential MLS also includes a commercial real estate section, which shouldn’t be discounted.

When faced with an abundance of different marketing practices, it can be all too easy to fall into the trap of spreading your game plan thin and lose focus on those core goals. By keeping yourself organized with a detailed plan of attack, you’ll set yourself apart from other brokers and stand out in the eyes of your prospects and clients.

For more information on Commercial Real Estate tips, listings and news follow us on Facebook or Twitter.

Residential Agents: Do You Know Your Strength & Weaknesses?

As real estate agents in the Fort Worth area we know how difficult it can be to manage client expectations. We want to be all things to everyone and sometimes that’s just not the case. We can better serve our clients by providing them with the most knowledgeable and best staff capable to meet their needs. Partnering with Angmar Realty sets you apart and allows you the flexibility to position yourself as a full service agent or agency that will exceed expectation when it comes to managing your residential and commercial listings.

Most residential agents focus on only residential and can often fall short on knowing all the facets of the commercial real estate business, thus hurting their clients in the long run. The same goes for commercial agents who are trying to pursue residential properties. As a solution to these common problems, Angmar Realty has recently introduced new Residential Lunch & Learn Events where we will discuss the strengths and weaknesses that we have as both residential and commercial real estate agents. Our goal is provide you with in-depth knowledge on how commercial properties are bought, sold, and leased in your markets and vice versa.

During these events we will discuss topics such as:

  • Helping you & your clients to have a better understanding of Commercial Markets.
  • How to become a full service Real Estate agent knowing your commercial clients can & will be taken care of properly.
  • What tools and tactics it takes to become and serve as a Commercial Real Estate Agent.
  • Better understanding of how to qualify a commercial listing and referral
  • Competitive Referral Schedules and how they work
  • Your Most pressing Commercial Real Estate Questions Answered

Working as a team will show our clients that we all have the complete knowledge of the real estate industry and are willing to go above and beyond for our clients. By partnering with Angmar Realty and attending our upcoming residential lunch and learn events you can rest easy knowing that your clients will be served in the quickest and most professional manner possible, making you leaders of your industry. We hope you’ll join us at our next event on February 24th at Southern Oaks Golf Club and we look forward to meeting you!

For more information on Commercial Real Estate tips, listings and news follow us on Facebook or Twitter.

Click here to view our next event flyer.

Is Investing In Commercial Real Estate In Texas Right For You?

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Two of the main things that keep potential Texas Commercial Real Estate Investors out of the game are time and money. Most people who would otherwise be inclined to invest in Commercial Real Estate in Texas don’t do so because they are afraid they either don’t have the money or credit to start or will take up too much of their time. The good news is, both of these two things can be avoided.

Money

Let’s talk numbers first and financing Commercial Real Estate in Texas. When people first think of getting into Commercial Real Estate they think that they have to already have huge sums of money just to enter the game.

This isn’t true.

In today’s Texas Commercial Real Estate environment, there are plenty of people who would be willing to back you IF the deal is good enough and if they see themselves making a tidy profit from the deal. Also, banks have been more open to making Commercial Real Estate deals in the past few years due to the rebound of the economy.

So, as far as money goes, you have some options. If you are willing to do your research and find a property that really makes sense money will follow. Remember, if the deal is good enough, people will want in on it.

Time

People who are afraid that investing in Texas Commercial Real Estate more often than not envisions themselves cold calling property leads on the phone for long hours. They think that investing in Texas Commercial Real Estate basically means a huge time commitment with no real payoff. This will lead to them spinning their wheels, getting frustrated and eventually deciding that investing in Commercial Real Estate just isn’t for them.

Work smarter, not harder

Don’t be fooled, investing in Commercial Real Estate does take some time, but it isn’t as much as you would think. Start small, start calling a few property leads a day, start sending out direct mailers, start a website. Whatever you do, just start small. What this will allow for is small wins. When you start experiencing small wins you will work harder and harder and start experiencing bigger and bigger wins thus launching your Commercial Real Estate Investing goals through the roof.

Wrap Up

To succeed in Commercial Real Estate investing in Texas you must have 3 things:

  1. Willingness to learn
  2. Ability to bounce back from mistakes
  3. People oriented

Let’s face it, not every Texas Commercial Real Estate deal you do is going to be a grand slam of a deal. People make mistakes, we’re all human. What successful Commercial Real Estate investors do though that separates them from the pack is that they learn from their mistakes and come back even stronger on the next deal. Successful investors don’t let the small things get them down. They keep a positive but realistic attitude and know how to find good deals over and over again through their experience of past wins and even more importantly, their past mistakes.

Don’t let money or time get in the way of you investing in Commercial Real Estate in texas. Always remember, if there is a will, there’s a way. Work hard, learn and find ways to make deals happen……do these and you will be successful!

If you enjoyed this post, follow AngMar Realty on Facebook and Twitter for daily articles concerning Commercial Real Estate in the DFW and North Texas area.

Angmar Realty Joins CREW for a Cinco De Mayo Golf Tournament!

Angmar Realty Advisors join CREW Fort Worth for “Crew De Mayo”!

This “Nacho Average Golf Tournament” will be held on May 5th, 2015 at the Southern Oaks Golf Club in Burleson, TX.

Registration starts at 10:30am and Tee Off will be at 12:00pm

Tournament activities will include lunch, happy hour and dinner. All proceeds will benefit CREW Fort Worth’s Leadership and Professional Development initiatives including the Carla Higgins Memorial Scholarship.

For sponsorship opportunities, please contact
Chris Brooks at (817) 712-2690 or Monica Luera at (817) 810-5304.

Tickets:

  • $700.00 Team of 4 Tickets
  • $175.00 Individual/Single Player Ticket
  • $35.00 Dinner Ticket
  • $15.00 Lunch Ticket

CLICK HERE TO GET MORE INFORMATION OR TO REGISTER YOUR TEAM!

Top 5 Reasons to Become a Commercial Real Estate Agent

Ask yourself 3 questions:

  1. Do you enjoy working with people?
  2. Do you feel stuck in a 9-5 job with no potential?
  3. Do you like to be your own boss and not stuck in a cubicle?

If you answered yes to any or all 3 of these questions, being a Commercial Real Estate Agent might be the perfect career choice for you. Being in the Commercial Real Estate business is tough work, it is definitely not for the faint of heart, but the potential rewards are well worth it.

Here are the top 5 reasons why you should become a Real Estate Agent:

1. Flexible hours

Probably the most well known advantage of being a Commercial Realtor is that you are essentially self-employed. Many agents choose to work as independent contractors. You are essentially your own boss, ideal for an entrepreneurial spirit. You set your own hours and can work them as flexibly as you like. As an agent, you will likely have unlimited earning potential.

This does mean, however that you may not be able to go on vacation at a moment’s notice. Though the field is time-sensitive and clients like constant updates, you can enjoy more wiggle room in your schedule than other professionals.

2. You can work with a lot of different people

If you are a “People Person”, then you will need to seriously consider a career in Commercial Real Estate. Commercial Real Estate agents deal with a lot of different people every single day. They are always on the phone and meeting with new clients, title companies, loan officers and other agents.

One of the keys to a successful career in Real Estate is the ability to make connections. If you are an interesting, likable person that can carry on a conversation with everyone, your connections will grow and so will your referrals. This business is built on referrals, and the more people like you, the more they will refer you  to their friends and family.

3.  It’s a natural fit for people with an entrepreneurial spirit

If the thought of working for yourself is what really drives you, you’d be in good company in the Commercial Real Estate business. Most Commercial Realtors work for themselves. While they might work for a broker or company, most Commercial Realtors work on commission. This means that to make it in the Commercial Real Estate business you must have the entrepreneurial drive to go out there and get business. While this is great for people who are naturally aligned for this, it is scary to some. To have a successful career in the Commercial Real Estate business, you must be open to some risk in exchange for possible huge earnings.

4. You can raise your family and still have a career

A lot of Commercial Realtors are the main providers for their families. the good thing about being a Commercial Realtor is that you can have a career and a family and not have to sacrifice one for the other. Does your son or daughter have a soccer game in the afternoon? Great! You would be able to go and watch it with a career in Commercial Real Estate.

5. Unlimited income potential

Since World War II,  some of the wealthiest people in the world have made their money in Commercial Real Estate. To have a successful Commercial Real Estate career you need to be business savvy, hard-working, willing to take risks and fortunate. Remember, there are others who would also like to become wealthy in real estate and will be submitting offers and finding buyers for properties just like you will. It is important to think carefully of how you will succeed in this ultra competitive  business through better wits, a superior management system or by finding your specific niche market.

If a career in Commercial Real Estate interests you, We Are Hiring! We are  looking for qualified sales‬ agents with 3 or more years of experience in commercial real estate leasing and selling! Please submit your resumes to aaron@angmarcompanies.com

For the latest CRE news, tips, listings, advise and more follow Angmar Realty on Facebook or Twitter.

 

Could you be more efficient?

Three Questions That Will Make You More Efficient

I would like to introduce you to a simple mental exercise that I have been using for years. Before I leave the house, the office, or anywhere to go to my next destination, I ask myself three things:

1. What is my goal?
2. What do I need?
3. Am I forgetting anything?

What is my goal? This first question sets the stage for the next two. For example, before I leave to show a property I will always visualize the interaction in my mind. I very quickly imagine myself calling the client on the way, being on time, opening the property, making an introduction by handing the client a business card, looking up details of the property on my iPad, presenting a flyer on the property, taking notes, and delivering any other information necessary. This only takes a few seconds in my mind, but it sets the stage for the next question.

What do I need? The first mental exercise answers this question. I will need directions to the property, my phone, keys or code to the property, business cards, iPad, flyers, pen, and a notepad. Obviously, I do a quick inventory to be sure that I have all of these things with me.

Am I forgetting anything? For some reason, this re-evaluation of the first two questions works well. I find that it usually forces me to switch to the creative side of my brain or explore other opportunities. Maybe I remember to bring information on other properties or a card from an associate as a referral. Whatever the situation is, it helps me prepare for other circumstances.

To have maximum impact, I will pause briefly at the exit to perform this assessment. It only takes a few seconds. It is also a good mental exercise to estimate time requirements and plan accordingly to be sure that you are keeping to your schedule. These simple questions have saved me many times in the past, and will certainly prove useful in the future. I hope they will work for you as well.

AngMar Commercial Real Estate is looking for expert brokers/agents in submarkets around the Dallas/Fort Worth area. If you are interested in discussing opportunities, please call Aaron Stalberger at 817-469-6737.

For the latest CRE news, tips, listings, advise and more follow Angmar Realty on Facebook or Twitter.

 

Why Haven’t You Responded? Effective Communication in CRE

In today’s business environment, we have many ways to communicate. However, it still seems that we often fall short of the expectations of others. How many times have you reached out to someone through either a phone call, an email, or a text message and failed to receive a timely response; or failed to receive any response at all?

Regardless of what business you are in, effective communication is a key component for success. I know that this is especially true in commercial real estate. Many times, I have reached out to other professionals and had my expectations dashed. Unfortunately, I have occasionally been guilty of this myself.

My personal position is that it depends on the situation. There may be times that a response is required in as short as a few minutes, or as long as several days. In general, 24 to 48 hours is what I consider a reasonable response time. I consider no response at all unreasonable.

This is where I am asking for your help. Please leave a comment and let me know your opinion on what constitutes a timely response. Feel free to distinguish between different situations, email, text, or phone. If you prefer, call Aaron Stalberger at 817-469-6737 to discuss. If I do not answer immediately, I promise to respond promptly.

For the latest CRE news, tips, listings, advise and more follow Angmar Realty on Facebook or Twitter.

© 2014 AngMar Realty, an AngMar Company.