A Statement On Ukraine from Kevin Maggiacomo, SVN President and CEO

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SVN Releases 2016 CRE Market Outlook Reports

New Updates on Trends in Top Markets

This week SVN released the 2016 Market Outlook Reports as a way to update the CRE industry on current trends. Teaming up with the Lakemont Group, Real Capital Analytics, and REIS, SVN put together reports detailing today’s economic conditions and how they impact commercial real estate. These reports also highlight top markets to watch across the U.S., citing cities such as Chicago and Atlanta that CRE professionals should keep an eye on. Broken up into four major asset classes – industrial, multifamily, office, and retail – these reports provide useful insights as we head into the second half of 2016.

Highlights from Each Report Include:

Industrial

Chicago Market Outlook Reports
Chicago, IL
  • Global pressures weigh on growth
  • Net absorption strong as vacancy falls
  • Fundamentals improve for all industrial sectors
  • Demand growth persists
  • Yield seeking investors discover industrial properties
  • Warehouse is the storefront of tomorrow

Multifamily

  • New supply meeting demand
  • Rent growth fuels supply expansion
  • Class ‘A’ leads in rent growth, ‘B/C’ in occupancy
  • Record households and jobs increase demand growth
  • Low cap rates engender price risk fears
  • Baby Boomers may form next rental wave
Atlanta Market Outlook Reports
Atlanta, GA

Office

  • Slow growth and steady gains
  • Record rents amidst still high vacancies
  • ‘B/C’ holds steady while ‘A’ gains
  • Domestic strength and global uncertainty
  • Wide spreads indicate low risk
  • Return of the private office is possible

Retail

  • Discovering a new normal
  • High vacancies restrict the need for new supply
  • Neighborhood centers make gains on power centers
  • Consumer segment continues to grow
  • Opportunities for mispriced assets exist
  • Housing reconstruction to spur retail demand

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

 

CRE Market Outlook

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SVN Restaurant Resource Group Gears Up for 2016

Focusing on Mixed-Use Property, SVN Restaurant Resource Group Starts the Year with New Goals in Mind

After a record-setting year of sales and leasing volume, the SVN Restaurant Resource Group is heading into 2016 with refined focus on mixed-use assets. The team has identified 25 ‘high-opportunity’ retail corridors in Chicago and nearby transportation oriented suburbs.

Why Mixed-Use?

SVN Restaurant Resource GroupMixed-use properties in Cook County offer a unique tax advantage over strictly commercial properties. A mixed-use property’s assessed value is based on 10% of market value while a commercial property’s assessed value is based on 25% market value. Based solely on classification, two properties with identical market values may have dramatically different real estate tax liability.

Better federal tax depreciation benefits are also available for mixed-use property owners. For instance, if residential rentals account for more than 80% of the asset’s overall income, the property improvements are depreciated over a 27.5 year period versus a typical 39 year period.

Investors of mixed-use buildings are often entrepreneurial, making it a “natural fit for our personalities and results-driven market strategies,” as described by SVN Advisor Marcus Sullivan.

High-Opportunity Neighborhoods

SVN Restaurant Resource GroupSVN Advisor Tim Rasmussen details the methodology in determining the 25 target corridors: “We recognized several common characteristics in neighborhoods where our team and clients were most successful: well-defined retail corridors, shifting demographics, high walkability scores, and close proximity to rapid transit.”

It is estimated that over 50% of neighborhood retail/commercial space is occupied by restaurant and other food related business. This trend is likely to continue as traditional brick-and-mortar retailers dwindle in the wake of e-commerce. However, the SVN Resource Group concedes the shifting dynamics present repositioning opportunities for savvy investors and restaurateurs.

Top Tier, Middle Market

The SVN Restaurant Resource Group emphasizes assets valued between $500K- $5.0M. According to SVN Advisor, Jim Martin, “These tend to be fairly easy to finance with local and regional banks, i.e., the MB’s and Bridgeview Banks of the world.”

Martin explains the strategy is consistent with the mid-market world where SVN typically contends. “We rarely compete with the likes of CBRE or JLL, yet we’re able to leverage a national platform, the most sophisticated commercial real estate tools in the industry, and ultimately win the business.”

New Blood

Christian Peppler has joined the SVN Restaurant Resources Group and will provide advisory services for mixed-use property owners throughout the Greater Chicagoland Area. Christian brings six years of commercial real estate experience and has overseen $10M in real estate transactions.

About The SVN Restaurant Resource Group

SVN Restaurant Resource GroupThe SVN Restaurant Resource Group provides first-in-class advisory to clients in the foodservice and hospitality industry. Landlords, restaurant and nightclub operators, bakeries, caterers, hotels, food processors and manufacturers rely on the experience, local market knowledge, industry relationships, and technology advantages possessed by this highly specialized team of commercial real estate professionals. SVN has over 200 offices throughout the US, Mexico and Canada.

To learn more, visit the SVN Restaurants website here.

[bctt tweet=”“We’re able to leverage a national platform, the most sophisticated commercial real estate tools in the industry, and ultimately win the business.””]

2016: Making a Difference in YOUR Business

It’s Almost 2016…

Which Means It’s Time to Start Planning!

If you were at SVN, you’d hear me present my tactical business planning call. And you’d hear our CEO, Kevin Maggiacomo, teach you how to do a strategic plan in 60 minutes.

I love business plans and I think they’re important. When I brokered, I created one, reviewed it at least once a week, stuck to it and measured results quarterly.

In fact, that’s the secret to having a business plan. It isn’t that you have it. It’s that you stick to it and measure your ability to stick to it. That’s hard to do. I know. You’re busy. Sometimes you get lost doing deals. And you might even forget about your business plan.

If this sounds like you, don’t worry. I’m going to make it easy on you. Go ahead and print this email out, because you’re going to fill in some blanks. Do it now. We’ll wait.

Welcome back! Now, please write what you need more of in 2016 here:  

  1. ________________________

Now, write what you need to do to get it: 

  1. ____________________________

For instance, you might have written “more closings” on line 1 and “more listings” on line 2.

Go back and add some numbers to what you wrote (or print this out again). For instance, you might want “8 more closings” and “11 more listings.”  Now put them together as follows:

To get the (1)_____________ I need, I will do/take (2)_______________.

For instance: To get the 8 more closings I need, I will take 11 more listings.

Now, run that one-sentence business plan by someone that you can count on – like a coach or your Managing Director. He or she can help you make sure that the goal is a reasonable one and that it can actually help you move your business forward.

Once you get it blessed, execute on it.

Here’s what I mean by “execute on it.” Every day, first thing in the morning, look at that goal and think about it. Then, do tasks that directly relate to that goal first and spend as much time as possible on those tasks – at least half of your day.  It’s that simple.

In a perfect world, you’d be at SVN and you’d create a big-picture strategic plan with Kevin. You’d also create a nuts-and-bolts tactical plan with me. And you’d create a one-sentence must-do goal. All three working in concert — with you at SVN — will give you the best results in 2016.

But, at a minimum, I know that you can do – and stick to – this super-simple one sentence business plan.

To your success in 2016!

See you in San Diego at the conference!