investment property Archives - SVN® International

NEWS RELEASE: SVN ADDS SVN | RIVERSTONE COMMERCIAL REAL ESTATE TO EXPAND PRESENCE IN TEXAS

Posted on August 13, 2019 by SVN

SVN International Corporation (SVNIC), a full-service commercial real estate franchisor of the SVN® brand, announces that it has added College Station, Texas-based Riverstone Commercial Real Estate to its franchise roster. Going forward, the new venture will operate as SVN|RIVERSTONE COMMERCIAL REAL ESTATE.

Founded in 2017, SVN | RIVERSTONE COMMERCIAL REAL ESTATE is led by Founding Partners and Managing Directors Jim Jones and Jess Buenger. The rapidly expanding firm offers brokerage and advisory services to buyers, sellers, landlords, and tenants across the central Texas markets. SVN | RIVERSTONE COMMERCIAL REAL ESTATE also provides consultancy services on investments and development projects. More information about the firm is available at svnriverstone.com

“SVN | RIVERSTONE’s top priority is getting the most value for our clients. With SVN, we gain expanded visibility and marketing dexterity to deliver the best value possible no matter the geography or asset class,” said Managing Director Jim Jones. “Now, we not only reach a business owner across town, but an investor across the globe.”

“Even prior to our official announcement of our partnership with SVN, we have collaborated on deals sourced through SVN offices in Las Vegas, Chicago, Florida, Austin, and the Northeast,” added Managing Director Jess Buenger. “This partnership has expanded our reach tremendously.”

“In SVN | RIVERSTONE, we have found a firm with a natural fit to our SVN culture that puts clients first, said Marc Seinfeld, SVN’s Vice President of National Franchise Sales and Development. “We are delighted to work with SVN | RIVERSTONE and increase our presence in Texas.”

About SVN International Corp.

The SVN organization is a globally recognized commercial real estate entity united by a shared vision of creating value for clients, colleagues and communities. Currently, SVN comprises over 1,600 advisors and staff working in more than 200 offices across the globe. SVN’s brand pillars represent the transparency, innovation and inclusivity that enable all our advisors to collaborate effectively with the entire real estate industry on behalf of our clients. SVN’s unique Shared Value Network^® is just one of the many ways that SVN Advisors create outsize value for all stakeholders. For more information, visit www.svn.com.

The Abundance Economy is Coming. Is the #CRE Industry Ready?

Posted on August 12, 2019 by SVN

The following is an excerpt from an article written by Diane Danielson, COO of SVN International Corp., as featured in NREI’s 2019 MidYear Outlook.

Stephen Covey defines the abundance mentality in The 7 Habits of Highly Effective People as:

“[T]he paradigm that there is plenty out there and enough to spare for everybody. It results in sharing of prestige, of recognition, of profits, of decision making. It opens possibilities, options, alternatives, and creativity.”

Covey was speaking to the individual mindset. But what happens when abundance invades an industry? For taxis, abundance came in the form of Uber. For hotels, it was AirBnB. The music industry was hit with subscription models. And Amazon has created a platform disruptive of multiple industries. In all cases, technology was used to decimate scarcity.

In scarcity economies, supply is limited. If you control supply, you control pricing. In abundant economies, pricing is driven not only by supply but also by demand because presumably there is adequate supply to meet all demands. Economist Barbara Gray of Brady Capital Research, Inc. describes it as “The Long Tail meets The Blue Ocean.” If you want it, you can find it.

Artificial scarcity occurs when stakeholders place limitations on supply. In CRE, artificial scarcity exists through legacy systems of data/client hoarding, pocket listings, zoning and geographic licensing limitations. All are systems designed to keep competition out. However, abundance is still coming to CRE. How will this play out? CLICK HERE to read Diane Danielson’s full Midyear Outlook in NREIonline.com.

Commercial Real Estate and the Economy Are Holding Steady in 2017

Posted on June 1, 2017 by SVN

FOUR MAJOR COMMERCIAL REAL ESTATE SECTORS EXPERIENCED POSITIVE RENT GROWTH

Now that all the 1Q17 real estate and economic data has been posted and analyzed, it appears as though 2017 year to date is holding steady. All four major sectors experienced positive rent growth in the first quarter according to Reis, Inc. as apartments were up 0.2%, office was up 0.4%, industrial was up 0.6%, and retail was up 0.4%. These growth rates are slower than similar first quarters in recent years, but they still represent growing market demand levels. According to data from the National Council of Real Estate Investment Fiduciaries Pricing, growth and appreciation slowed and the index was up 1.5% in 1Q17. CoStar, who’s equally-weighted national price index grew 4.8%. In regards to overall pricing performance smaller properties are dominating larger ones. The CoStar value-weighted index, which is dominated by larger properties, fell -2.8% over the same time period. This trend has been growing since the start of the year.

NEW SUPPLY REMAINS WELL BELOW RATES

Many of those who are reviewing the slowing pricing data and overall rate of effective rent growth are asking “is this a top?”. The best is answer is to wait to draw any conclusions. New supply of nearly all property types remains well below rates and some are even close to having an oversupply. As a result, sustained declines in real estate pricing or net operating incomes are highly unlikely at this point. The employment market, which historically drives demand for commercial real estate, is as healthy as it has ever looked. The Bureau of Labor Statistics reports an official unemployment rate of 4.4% which matches pre-2008 recession lows. Further, the “underemployment rate” (known as U-6, which includes marginally attached workers and part-time workers seeking full-time employment) has fallen to 8.6%, which is also close to pre-recession lows. Optimism by business leaders has resulted in increased hiring which, according to the Conference Board, grew to the highest level since 2004 as measured by its CEO Confidence score which reached 68 in the first quarter. This score is up from 65 which was the score at the end of the year. (Any reading above 50 indicates optimism.) The survey results of CEOs reveal there is a continued desire to hire in 2017, but finding qualified workers may be a challenge.

ECONOMY POISED FOR GROWTH

The first quarter, which objectively was slower than 2016 readings, may not be indicative of the rest of 2017 and beyond. Arguably, the election result and corresponding rise in stock prices and interest rates was not forecast in 2016. As a result, it is possible that investment activity and price growth of commercial real estate slowed in 1Q17 for no better reason than buyers paused to assess what would happen to the capital markets given the changing landscape. While the new administration has yet to offer clear policy guidance, the overall assessment of the economy is that it is still poised and positioned for growth as of May 2017. In fact, many economists who predicted first quarter GDP would be slow, (the first reading was 0.7% growth according to the Bureau of Economic Analysis), have also predicted a late surge that could bring annual GDP growth to 2.5% or higher. This is why stock prices, and especially REIT prices, have remained relatively steady for most of 2017. The overall market is still optimistic and there is no reason change that view for commercial real estate.