Current Real Estate Trends

Affordable housing references a spectrum of different housing types, from a subsidized social housing for those with special needs, to transitional housing and homeless shelters. There are strategies you can follow to achieve affordable housing:

Maintain older housing stock:

*An inexpensive method of gaining affordable housing. This is commonly used in situations where there is an abundant supply of deteriorating stock.

Housing Mandates:

*It's possible to create affordable housing without assistance from the government. But it should only be applied where housing demand is very strong.

Government-sponsored housing:

*This tends to be expensive, but it is meant to serve special needs. Unfortunately, government housing can't meet the demand for low priced housing.

Unjustified Restrictions:

*Unjustified Restrictions typically decreases the costs of housing production. Which gives markets the chance to respond to demands.

Affordability:

*Affordability should take total housing costs into account. Including maintenance, taxes, transportation costs and utilities. Consider both long-run and short-run impacts.

Strategies are useful, but it is important to consider the facts, too:

Housing shortage provides opportunities:

*A rarity in today's economy could be mid-priced single-family homes of which only a handful can afford. Although margins are good for those projects, developing more affordable housing would be helpful to the community.

Are fears of recession misplaced?:

*The U.S economy will inevitably need a correction. However, experts have stated that the future will be smooth as opposed to another recession.

Gen Z:

*Gen Z, the generation born starting from 1995 to 2009, has a potential for improving the post-college housing market, similarly to millennials.

2018 Markets to watch:

*Here are a few examples:

-Seattle

Overall rank: 1

Investment rank: 2

Development rank: 1

-Los Angeles

Overall rank: 7

Investment rank: 8

Development rank: 8

-Charlotte

Overall rank: 12

Investment rank: 12

Development rank: 16

-Portland

Overall rank: 13

Investment rank: 7

Development rank: 20

Urban Fringe Development:

*While this can provide cheap housing, it tends to have high future transportation costs and high infrastructure. Urban Fringe development is only affordable in a location with ideal transportation options.

In conclusion, take your time when it comes to finding affordable housing. There are many advantages and disadvantages you need to keep in mind. Taking the time to consider all factors of purchasing a home tends to set a wiser decision.

Real Estate Trends in 2017

The real estate market has been considerably unpredictable in the past year. But 2017 is proving to be quite promising when it comes to the trends that experts have predicted for the current year.  Take a look at the following trends that are expected to unfold in the coming months:

1. Property prices will rise.

For starters, homeowners will be pleased to know that experts predict a continuous rise in property prices. Given the decline that rampaged the market in the past couple of years, homeowners’ equity is expected to increase at a constant rate of around 5 to 6 percent over the next three years.

2. Mortgage prices will rise.

With the increase in interest rates comes an expected rise in mortgage rates. Although the rise in interest rates is indicative of a strong and growing economy, it can be burdensome to existing borrowers, especially those who are considering refinancing their property obligations. The latter should lock in their rates before the closing process lest they lose money due to skyrocketing interest payments.

3. Loan opportunities will increase.

With the expected property price hikes comes a trend worth looking forward to – the increase in available loans, both from banks and non-bank sources. Getting a mortgage will become easier in 2017 with more jumbo loans and low down payment loans expected to be offered by multiple financing institutions.

As interest rates rise, the borrowing rate will decline.  This would then push banks to make an active effort to pursue new borrowers throughout the year. With more non-bank financers entering the market, property investors will gain more opportunities to make purchases.  This will also further loosen the banks' credit box, given that more opportunities for borrowing will further reduce the number of potential bank borrowers.

4. Increase in construction.

As more sizable loans become available, people’s purchasing power will most likely rise. With more individuals able to finance property investments, the demand is seen to rise across both housing and commercial property markets. This will bring forth a potential increase in development projects that are open to both local and foreign patrons.

5. Rise of smaller, more affordable home options.

And as the property market continues to shift, the changing demand will bring forth a potential rise in the development of small to mid-scale homes across the world. The market that was once satisfied only by condominium and apartment units may now gain access to other property options.

6. Foreign property investments will continue albeit a smaller role for foreign investors.

Foreign investors are always present whenever properties are available for rent or sale.  The influx of these market participants will continue to prevail all throughout 2017. But experts say that the role of foreign investors in terms of profit generation will be rather limited this time around as more investments become courtesy of local investors.

7. Ease of purchase for first-time homebuyers.

With the construction of smaller and more affordable homes comes the potential influx of first-time homebuyers who have sadly not been accommodated by previous years’ property markets. With significant attention being shifted to this new market, it is expected that the process of property investing will also be eased to entice the new market, consisting mostly of millennials, to consider purchasing or renting residential properties.

The Advantages of Building a House Instead of Buying

Having your house built from the ground up has its advantages compared to buying an already-built one. Here are some reasons why you should at least consider getting your dream home via this route.

1. It costs less - When you compute everything, you will be surprised that building your home actually costs less than buying one. Most ready-made homes are priced that way because other factors such as the location and the markup from both the contractor and the dealer have been added to the sticker price. If you have your home built from scratch, all you have to pay for are the materials, manpower, and processing of paperwork.

2. It allows you to personalize your home - The biggest advantage of building your home is you can customize the design according to how you want it. You can adjust all aspects of the design - from the number of floors and rooms to the type of tiling used in the bedroom and bathroom. By going this route, you can literally create your own home from scratch.

3. Everything is up-to-date - One advantage of building a house is that it is bound to be constructed using modern materials. At the same time, the overall design of your home will contain the latest technologies developed in construction over the years. Among the advantages of homes constructed with modern materials and design include better durability, improved energy efficiency, and less polluting agents.

4. Furnish it the way you want - Aside from the construction, designing your own home gives you the freedom to select the type of furniture and appliances you want to use. When you buy a house, you have to consider factors such as space or fit before purchasing appliances. That is not the case when you build a house. In fact, you can customize the design of your house to have specific features before construction.

5. There’s a different feel to it - There is a different feel to it when you have your home built from scratch. There is a different kind of satisfaction knowing that it is you and your family who are responsible for the design of your house. Once the construction is complete, and you enter the house, you’ll know right away that this is your home.

Building your house from scratch can prove very advantageous for you. Of course, it takes vision, proper planning, and working with the right contractor to turn your dream

A Redevelopment Success Story - Discovery Business campus

A dilapidated, vacant semiconductor campus in Arizona did not seem like a good redevelopment project. Most developers would not even consider this property. However, one developer saw potential and after a lot of hard work, turned the property into an amazing business campus. What was once a dated semi conductor campus, is now Discovery business campus, a mixed-use business park.

The buildings and infrastructure were significantly outdated. The redevelopment began by modernizing the buildings and completely redesigning much of the infrastructure. They created large open floor plans with skylights and plenty of natural light. They included individual and collaborative workspaces. They built a large retail space that included five restaurants. Every aspect of this redevelopment was intended to appeal to the modern business.

Landscaping is another area where much focus was placed. They added many trees to the property and outdoor meeting areas. They hired a well-known sculptor to create artwork to display around the campus. They created large archways and some new roads. The developers worked with nearby neighborhoods and businesses to ensure the park would have a positive impact on the community.

The Discovery business campus is now fully operational and leased. The developer took a significant chance on this property, and it paid off. They looked at the size and ideal location of the property, rather than the current condition of the buildings. This notable redevelopment project is a success story that many people thought was impossible.

CCIM Tech Platform Advancements

"CCIM" refers to a Certified Commercial Investment Member. This Is a notable and recognized expert in the field of commercial and investment real estate. The title is given to an individual by the CCIM Institute. A CCIM is considered a resource for the commercial real estate owner, investor, and user. CCIMs are required to be proficient in investment analysis, market analysis, user decision analysis and financial analysis for commercial real estate. CCIM members can access a variety of online technology tools through the CCIM website. They can also post properties for sale or lease properties through this platform.  

Recently, there have been some technological advancements added to the CCIM exchange. Ten-X is one of the many tech tools available to CCIM members. CCIM practitioners have complete access to a large library of tech tools to help them conduct business. STDB, a key industry source for data is now included in the list of tools. This includes:  

• ESRI’s Business Analyst Online (BAO) and ArcGIS, offering demographic and psychographic analysis. This helps to determine demand for particular space in any given property type. Additionally, it incorporates mapping, traffic counts, crime rates and business locations.
• Access to an aerial photography tool called Pictometry.
• Business Lists-This allows members to locate names, addresses and contact information for local businesses. It helps in creating marketing campaigns, and can assist in analysis of supply for site selection.
• REI Wise is an advanced spreadsheet analysis software. It is used to perform lease-versus-lease and investment analyses for commercial real estate decisions.
• Flood Maps are available to help members identify flood zones during site selection.

These improvements to the CCIM platform are making headlines. Those who are not members should take note and make use of these tools on their own. Technology is a growing part of the real estate industry. In order to stay on top of your game, it is crucial to remain informed and up-to-date on the latest tech advancements.   

5 Great Cities for Families to Live

People often choose where to reside based on their stage of life. Getting a new job, getting married, having children, and retiring are among the life stages that affect where a person selects to live. The location chosen to raise a family is likely the most important because parents will typically live in the area for a long period of time. A number of factors are considered when choosing the best location for families. The quality of schools, crime rate, number of parks and libraries, and the overall economy are just a few elements people examine. Here. Here,we will look at five of the best places to raise a child in 2016.

• Palo Alto, California - This community has a high rate of high school graduates, numerous parks, and is friendly to pedestrians.
• Bowling Green, Ohio - Affordability and accessibility make this a top choice. It also has an inordinate zoo and imagination station.
• Homewood, Alabama - As a suburb of Birmingham, the location is great for commuters. It also have excellent schools and a number of beautiful parks.
• St. George, Utah - This city focuses on nature conservation. It is perfect for families who enjoy the outdoors.
• Oak Park, Illinois - This Chicago suburb is a prime location for commuters and is known for its accessibility. Children can easily and safely walk to school and activities.
• Chula Vista, California - Its location on the San Diego Bay makes this a beautiful scenic place to live. The excellent school system provides great opportunities for families.

Every family has different needs and priorities when it comes to selecting the best location. All parents want their children to attend good schools and live in safe neighborhoods. If you are considering a move, thoroughly research the region to determine the best option for your family. Above are just five cities known to be family friendly and one of them may be good for yours as well.

What is Driving Growth in the Industrial Sector?

The industrial sector is experiencing tremendous growth in 2016. This has many experts asking, “why?” Numerous elements impact the industrial market. Here, we will examine the primary factors driving the current growth in this sector.

Supply and Demand

This is basic economics. The demand for industrial space is higher than the available supply. Vacancy rates are extremely low and industrial spaces are difficult to find. As one would expect, this is also driving prices up.

Data Centers

Technology and connectivity are crucial to today’s businesses. Many companies need large data centers to house data storage and connectivity equipment. Industrial spaces are ideal for these data centers.

E commerce

The growth of e-commerce pushes companies to focus on their Internet business. This creates a need to store and ship products, rather than maintain large retail spaces.This has created a significant need for more industrial spaces. Companies are seeking warehouses to support their e-commerce.

Flex R and D

A number of companies are looking to combine office and industrial spaces. These specialized accommodations are very much in demand and extremely difficult to find. Developers have yet to catch up to this trend.

The industrial sector is expected to see continued growth in coming years. Economic shifts and advances in technology proceed to push businesses toward industrial spaces.

Alpharetta Update

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Evolving Retail Market Boosts Need for Industrial Spaces

Retail continues to make up a significant portion of the US GDP. However, the way in which consumers shop is transforming the market. The number of people purchasing products online is increasing tremendously. This shift has retailers rethinking their business plans. Less money is being spent on brick and mortar spaces, and more effort is being put into websites and housing products.

With the considerable increase in online shopping, retailers are seeking more efficient ways to conduct business. One of the current trends, known as “I-tailing” is sweeping the nation. This concept refers to retailers maintaining a small, inexpensive storefront, while keeping the majority of products stored in warehouses. These warehouses are designed to quickly and easily ship products to customers. Overhead cost for a warehouse and website is much less expensive than maintaining large retail spaces. These warehouses are often located in big cities, close to major shipping hubs. Partnerships with shipping companies like UPS and FedEx are an important part of this transformation. The overall cost savings of I–tailing is also encouraging retailers to bring business back to the United States. This could have a positive impact on the US economy as a whole, along with the real estate industry.

Savvy real estate investors and developers are beginning to recognize the potential in the I-tailing sector. They are putting more time, money, and effort into industrial spaces to support this new trend. With the continual growth of the Internet and online shopping, this sector is expected to see continuous growth for many years to come.

 

Facebook Plans to Build Apartments in Silicon Valley

Silicon Valley in California is experiencing a serious housing crisis. With the expansion of large tech companies like Google and Facebook, housing prices have been pushed up and locals are being forced out of the area. Facebook has plans to expand their business property with the addition of two new buildings and a hotel. This project has many people concerned about the impact on the local housing market.

In order to help offset some of the negative effects of expansion, Facebook has decided to build apartments. They have agreed to build 1,500 units, making 15% of these available to low and middle-income tenants. The units are not specifically for employees. They are open to the public to rent. This seems to be a step in the right direction. However, it will not solve the problem entirely. Local governments are considering an extra tax for tech companies to help with the housing crisis and homeless population. This tax could possibly be avoided if more companies did their part to assist in providing a solution to the problem they created.

It will be interesting to see how tech giants and local governments tackle the housing issues in Silicon Valley. For whatever reason, this area is the headquarters of most large Internet companies. Their employees tend to have high incomes, and the demand for housing is overwhelming. It is important for businesses to take part in the community and lessen their negative impact on the natives.

The Rise of Co-working Office Spaces

Co-working office spaces are thriving. This trend has developers looking closely at the movement. Co-working spaces generally refer to community office spaces where a variety of individuals share membership and come together to work. Members typically include freelancers, self-employed people, and even small groups of corporate employees.

Co-working is more than just a shared office space. There are specific ideals behind the movement. There is an emphasis on community, openness, collaboration, accessibility, and sustainability. Members often sign a manifesto agreeing to uphold these qualities within the workspace.

There are numerous reasons for the popularity of co-working environments. First, workers report a greater feeling of authenticity. Because there is no competition and typical office politics, people feel they can be more at ease and authentic. Most co-working spaces are accessible 24/7. This means people can work at any time, giving them immense flexibility. However, having an actual office gives them much needed structure. Many freelancers and self-employed individuals find it difficult to create necessary structure in their work schedules while working from home. The strong sense of community is another benefit coworkers find helpful.

Additionally, large corporations are investing in the use of these co-working spaces. It is not uncommon for a company to send certain individuals or groups to these spaces. It seems to help spark creativity and gets employees out of the mundane environment of the corporate office.

Real estate developers are watching this trend and beginning to realize the potential. This is a new sector that could prove to be profitable as more people work remotely and freelancing becomes the norm. Traditional office spaces may be a dying breed over the coming decades.

Why This May Be a Great Time to Invest in Real Estate

Cliff Davis, experienced real estate developer and investor, knows the importance of evaluating a variety of factors to determine the best time for investing. As economic conditions improve in the United States, circumstances arise to make real estate investing profitable. A number of factors are in place at the present moment which make the real estate market look good for potential investors.

• Low interest rates - Interest rates are incredibly low right now. Lower rates mean lower payments, which allow investors to maximize profit.
• Banks are lending - After the collapse of the real estate market in 2008, banks were hesitant to lend. That has shifted, and banks are loosening their belt once again.
• Low prices - Real estate prices hit a significant low in 2011 and 2012. Prices have risen again but there are still incredible deals out there. You can find low prices if you are willing to put in some effort.
• Technology - Advancements in technology have made the real estate industry more efficient. Investors no longer have to drive around for hours searching for properties. It is much easier to locate and manage properties today. This includes everything from advertising, finding maintenance workers, and document management. The possibilities are endless.
• Free information - In today’s digital age, knowledge is free. Anyone can simply go online and gather needed information. This has opened the door for virtually anyone to participate in real estate investing.
• The future - There is no guarantee for the future. Any investment can drop. However, the overall outlook for real estate looks promising over the next decade.

These are just a few reasons, now may be a great time to invest in real estate. There is no “safe” investment and real estate is no exception to that rule. But, if you are considering placing your money into real estate, now may be a great time.

How Will Brexit Impact the US Real Estate Industry?

The UK has recently voted to leave the European Union. This referendum is being called “Brexit.” It has many economists in the United States wondering what the impact will be on the US economy. Those in the real estate industry are concerned about the possible effects it will have on the US real estate market, especially in the commercial arena. Of course, no one knows for sure how things will play out. However, there are a few different theories on what could happen.

The UK comprises 20% of cumulative foreign investments in the US. Therefore, uncertainty in the market could negatively affect the US. Britain’s exit from the EU is a huge transition and will likely createa lot of confusion. The basic theory here is that Brexit could be very bad for all US investors, including the real estate market. If the cost of capital increases and foreign direct investments decrease, it would be a problem.

Others believe Brexit will have little impact on the US economy. The move will likely produce some issues for the UK and the EU. Some US sectors will be affected like export businesses, including agriculture and technology. Port related industrial properties and the financial industry may also be influenced. However, the real estate industry is not likely to feel a significant impact.

Only time will tell what sort of effects Brexit will have on the US and the global economy. There are several distinct opinions about the topic. The foremost thing to do as a real estate professional is to stay informed about the issue. This way, you can make educated decisions about what is best for you and your business.  

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Affordable House Staging Tips

Staging a home is a crucial part of selling a house. Potential buyers will examine every little detail of the home. It is your job to make the home appear as pleasant as possible, without being deceptive or hiding serious flaws. Here are a few affordable ways to improve the overall appearance and value of your home.

Bathrooms

There are a number of things you can do to spruce up a bathroom. First, it needs to be spotless. A dirty, grimy bathroom is a big red flag and could cost you a sale. Scrub the walls and shower door. It is not usually necessary to replace a shower door if you can give it a thorough scrub. The tile int he bathroom is also very important. If it is outdated, consider painting it to give it a more modern appearance. This is more affordable than replacing the tile. Replace old vanity style sinks with pedestal sinks. This opens the space and displays the square footage of the bathroom.

The master bedroom

This room should appeal to both men and women. Do not decorate in a way that is too gender specific. Paint the walls a neutral color and choose bedding that is appropriately matched.  

Kitchen

Consider staining kitchen cabinets rather than replacing them. Stainless steel appliances are very popular, so if replacing appliances it might be a good investment to choose stainless steel. New kitchen appliances typically bring high returns. Avoid making fresh hardware holes when possible. Place hardware in holes that already exist.

Refinish wood rather than replacing

If you have old hardwood floors, sand and refinish them rather than replacing them. It is much more affordable to refinish than replace. This is also true of outdoor decks. A nice deck can be a great asset to a home if it is in good condition. However, an old deck can be an eyesore. Refinish your deck to give it a fresh look.

If you are serious about selling a home, you should make staging a priority. This includes the interior and exterior of the home. Curb appeal is just as significant as the interior of the home.