Autumn Buyers Guide
Do your property buying research without having to spend your whole weekend searching the web. This reference guide for home buyers and investors from ING Direct will quickly bring you up to speed on house and unit prices and suburb affordability across Australia.
Slides from the Q1 2017 US Economic and Housing Market Update webinar with Rick Sharga. Learn more about the key factors driving the US housing market in 2017 and beyond.
Slides from the July 2016 U.S. Housing Market Update webinar with Rick Sharga. These slides provide an overview on current US Housing Market data and trends.
Autumn Buyers Guide
Do your property buying research without having to spend your whole weekend searching the web. This reference guide for home buyers and investors from ING Direct will quickly bring you up to speed on house and unit prices and suburb affordability across Australia.
Slides from the Q1 2017 US Economic and Housing Market Update webinar with Rick Sharga. Learn more about the key factors driving the US housing market in 2017 and beyond.
Slides from the July 2016 U.S. Housing Market Update webinar with Rick Sharga. These slides provide an overview on current US Housing Market data and trends.
The Wright Report is perfect bathroom reading to help understand local real estate. Well, maybe for some. This is a very detailed report to unpack the housing market in Northern California as well as other national economic influences. What is making value move? And where have values been moving? Compiled by Real Estate Broker Joel Wright (and yours truly contributed a couple pages). Counties covered include: Sacramento, Placer, Yolo, El Dorado & San Joaquin.
Archive issues of The Brief produced by IPIN Global - a regular member-only newsletter with the latest commentary on the property investment markets.
To get the latest copies as they are produced - become a member at https://www.ipinglobal.com/join.aspx
International trends and statistics for Luxury Real Estate market. Review of 2017 sales and projections for future trends. Most desirable cities worldwide. What is Luxury by region. Emerging markets.
“Taking risks is meant to feel scary, but overcoming this fear is your only ticket to experiencing new and exciting things. We should all learn to embrace risk rather than fear it. It is one of our greatest learning tools.
“It is always a great day when I get to help inaugurate a new route, but this one is especially thrilling for those of us who love islands. As well as launching our new service from San Francisco to Honolulu, we’ll be adding flights to Maui on December 3rd too. Given Virgin America’s tech-savvy, hard-working travellers, it is no surprise these new routes are one of the most requested by our frequent flyers (and teammates!)”
– Sir Richard Charles Nicholas Branson, British business magnate, Investor, Philanthropist, Founder of The Virgin Group
The Wright Report is perfect bathroom reading to help understand local real estate. Well, maybe for some. This is a very detailed report to unpack the housing market in Northern California as well as other national economic influences. What is making value move? And where have values been moving? Compiled by Real Estate Broker Joel Wright (and yours truly contributed a couple pages). Counties covered include: Sacramento, Placer, Yolo, El Dorado & San Joaquin.
Archive issues of The Brief produced by IPIN Global - a regular member-only newsletter with the latest commentary on the property investment markets.
To get the latest copies as they are produced - become a member at https://www.ipinglobal.com/join.aspx
International trends and statistics for Luxury Real Estate market. Review of 2017 sales and projections for future trends. Most desirable cities worldwide. What is Luxury by region. Emerging markets.
“Taking risks is meant to feel scary, but overcoming this fear is your only ticket to experiencing new and exciting things. We should all learn to embrace risk rather than fear it. It is one of our greatest learning tools.
“It is always a great day when I get to help inaugurate a new route, but this one is especially thrilling for those of us who love islands. As well as launching our new service from San Francisco to Honolulu, we’ll be adding flights to Maui on December 3rd too. Given Virgin America’s tech-savvy, hard-working travellers, it is no surprise these new routes are one of the most requested by our frequent flyers (and teammates!)”
– Sir Richard Charles Nicholas Branson, British business magnate, Investor, Philanthropist, Founder of The Virgin Group
Big Data’s Potential for the Real Estate Industry: 2021PromptCloud
Many real estate firms have long made decisions based on a combination of intuition and traditional, retrospective data. Today, a host of new variables make it possible to paint more vivid pictures of a location’s future risks and opportunities.
In this quickly technologizing industry, arming your team with the most robust data available and making important decisions based on the data is going to determine who wins and loses.Big data will become the key basis of competition and growth for individual firms, enhancing productivity and creating significant value for the world economy. In this white paper, we explore the real estate outlook for financial investment in 2021 and use cases demonstrating the power of data in transforming the real estate industry.
The investment climate entering 2017 has shifted from last year, most markedly following the election of President Trump in November.
This event set in motion a rapid rise in interest rates, and opened numerous questions about what investors should expect in
fi scal, tax, monetary, trade, immigration and regulatory policies. Nonetheless, expectations of steady economic and employment
growth offer investors a positive outlook, particularly for offi ce assets, which have enjoyed six years of steady performance gains.
The economic cycle is now well into its seventh year of growth. During this time, more than 15 million jobs have been created and in
excess of 460 million square feet of offi ce space was absorbed. Though many believe that the longevity of the cycle alone predicts a
slowdown, few signs of a pending downturn are evident. Hiring remains sound, with employers adding between 2.0 million and 2.5
million jobs to the economy each year, while the unemployment rate has held steady in the sub-5.0 percent range. These trends will
bolster new demand for offi ce space during a period of subdued offi ce construction and will converge to sustain the downward trend
in offi ce vacancy rates. Suburban properties, often overlooked amid the intense focus on urban cores of recent years, continue to
record solid performance gains and offer investors enticing investment options.
The investment climate will remain vibrant as a confl uence of buyers seeking the stable returns of offi ce assets make acquisitions from
property owners ready to monetize recent performance gains. Liquidity in secondary and tertiary markets remains positive, with many
metros yet to recover prior pricing peaks. The dynamics point to an engaging year of investment activity with a wide range of buyers
and sellers repositioning portfolios as they recalibrate their strategies ahead of the anticipated changes the new president will bring.
Many unknowns assuredly await investors in the coming year, with prospects of steady economic growth offsetting a rising interest
rate environment, a potentially more aggressive Federal Reserve and a wide range of unexpected decisions coming from Capitol Hill.
We hope this report provides useful insights that will help our clients navigate the changing landscape. As you recalibrate your strategies, our investment professionals look forward to assisting you in meeting your goals.
1. MARKET NEWS
FEATURED ARTICLE
NorthMarq Capital 500 NEWPORT CENTER SUITE 500 NEWPORT BEACH, CA 92660
Y O U R Q U A R T E R L Y C A P I T A L M A R K E T S U P D A T E F O R 1 Q | 2 0 1 6
Although we anticipate short-term interest rates to
experience an upward trend, most other market conditions
that influenced the real estate finance industry in 2015 are
likely to continue to be evident in 2016. Importantly, the
ongoing gradual increase in short-term interest rates infers
that members of the Federal Reserve Board Open Market
Committee are generally positive about current and future
economic conditions and job growth.
Many factors will influence the availability of real
estate finance capital and the condition of real estate
markets. For example, variations in the homeownership
rate affect rental housing demand. New single-family
construction in 2015 was at the highest level since 2007;
economists expect continued growth in new home sales
in 2016. However, growth in the homeownership rate
could be subdued, if not flat, over the next few years.
Conversely, ongoing demand for multifamily rental units
will be powered by strong demographic trends, including
household formation, full employment and wage growth. It
would not be surprising if the supply of new rental housing
units exceeds demand in certain markets. Moreover, it
is important to underscore the continuing shortage of
affordable rental housing. Solving the affordable housing
crisis is a complex challenge that requires the attention of
the real estate industry.
The vacancy rate for retail properties continues a multi-
year slow decline. Most retail markets across the United
States are experiencing gradual growth. Ongoing retail
market stability and growth will depend on consumer
confidence; after all, consumer spending continues to be
the most significant backer of GDP growth. Over a longer
THE 2016 REAL ESTATE MARKET IS GENERALLY POSITIVE;
REGULATORY ENVIRONMENT COULD TEMPER FINANCE INDUSTRY
By Rodrigo López, CMB, Executive Chairman, NorthMarq Capital Finance
Chairman-Elect, Mortgage Bankers Association
time horizon, significant growth in Internet retail sales is
apt to have a negative impact in demand for retail real
estate assets.
Acceleration of GDP growth, which is anticipated to be
positive in 2016, should bode well for the industrial real
estate sector in the United States. Unlike the retail real
estate market, demand for distribution space should grow
with increasing online purchasing volumes. Given the
current economic conditions, industrial real estate should
enjoy strong performance in 2016.
The U.S. office property market has experienced a
gradually declining vacancy trend during the past five to six
years. The anticipated outcome of stable economic growth
is a sustainable demand for office space. Ongoing positive
net absorption and positive rent growth in the office
market will depend on continuing job growth.
Consistent with the positive trends in the real estate
markets, there are ample and diverse capital sources.
Although the price of capital is likely to increase in 2016,
we can anticipate readily available lending sources for real
estate assets.
All of these positive trends will be moderated in a
significant way by the dramatic increase in regulations
controlling the real estate finance industry. The list of
regulatory schemes is long: risk retention, “Regulation
AB,” Basel capital requirements, margin requirements,
multifamily loan reserves, HMDA disclosures, and housing
finance reform, to name a few. We must utilize a single,
loud voice to influence regulatory outcomes in a positive
way. v
2. northmarq.comLos Angeles Office 500 NEWPORT CENTER DRIVE SUITE 500 NEWPORT BEACH, CA 92660
$67,000,000
University Park
SIZE: 256,000 SF
CITY: LAS VEGAS, NV
LENDER: CONSTRUCTION/PERM
$17,000,000
Five Property Portfolio
SIZE: 3,228 UNITS
CITY: VARIOUS (ARIZONA)
LENDER: LIFE COMPANY
$8,400,000
Garfield Garden Grove
SIZE: 125,773 SF
CITY: GARDEN GROVE, CA
LENDER: LIFE COMPANY
$6,075,000
24 Hour Fitness
SIZE: 13,760 SF
CITY: HUNTINGTON BEACH, CA
LENDER: BRIDGE
OTHER TRANSACTIONS
TRANSACTION TYPES
FEATURED TRANSACTIONS
OUR TEAM
MARKET NEWS
David Blum
P 949.717.5215
dblum@northmarq.com
Mark Dodson
P 949.717.5205
mdodson@northmarq.com
FIXED RATE AND VARIABLE-RATE
MORTGAGES
JOINT VENTURE STRUCTURES
EQUITY STRUCTURES
MEZZANINE DEBT
BRIDGE LOANS
CREDIT TENANT LEASE
TRANSACTIONS
CONSTRUCTION LOANS
FORWARD COMMITMENTS
CREDIT ENHANCED BOND
TRANSACTIONS
PROPERTY NAME AMOUNT TYPE SIZE LOCATION
Northridge Business Park $8,500,000 Life Company 150,972 sf Chatsworth, CA
Inland Empire Distribution Center $6,600,000 Life Company 177,744 sf Rancho Cucamonga, CA
Redhill Office $5,150,000 Bridge Lender 44,513 sf Tustin, CA
Hancock Office $4,050,000 Bridge Lender 40,852 sf Anaheim, CA
College Corner $3,600,000 Bank 95 units Los Angeles, CA
Petsmart at Milestone Center $1,900,000 Life Company 26,137 sf Germantown, MD
Hamilton Center $1,800,000 Credit Union 6,800 sf Huntington Beach, CA
Michael Elmore
P 949.717.5213
melmore@northmarq.com
Joe Giordani
P 949.717.5208
jgiordani@northmarq.com
Robert Hervey
P 949.717.5210
rhervey@northmarq.com
Daniel McCarthy
P 949.717.5209
dmccarthy@northmarq.com
Blake Melstrom
P 949.717.5200
bmelstrom@northmarq.com
Ory Schwartz
P 949.717.5218
oschwartz@northmarq.com
1Q | 2016
