“You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur “
Commercial News » Los Angeles Edition | By Michael Gerrity | March 30, 2017 9:04 AM ET
Multifamily is Most Attractive Property Investment Type
According to the latest research from CBRE Group, Inc., demand for U.S. commercial real estate assets from High Net Worth Individuals (HNWI) — those with more than $1 million in liquid assets — rose in 2016 to $10.3 billion. This marks the highest level since 2013.
Multifamily had the highest investment volumes from HNWI–in 2016 ($3.5 billion), overtaking retail ($3.2 billion), which was the most favored sector in 2015. In 2017, 37 percent of HNWI investors show a continued preference for multifamily, according to CBRE Research. This was followed closely by industrial (33 percent), with both retail and office at 12 percent.
“While the HNWI real estate activity only comprises approximately 2 percent of the total U.S. commercial real estate volume, their overall appetite for real estate product remains strong as they search for overall returns,” said Revathi Greenwood, Americas Head of Investment Research, CBRE.
Sixty-nine percent of HNWI investors intend to increase purchasing activity in 2017, according to CBRE’s research. Nearly half (46 percent) expect to keep allocations at the same level, while another 36 percent are expected to increase allocations. In terms of amounts, 86 percent plan to invest up to $500 million into U.S. CRE assets in 2017.
Seventy percent of HNWI investors cite overall returns–both capital appreciation and income returns–and yield relative to other asset classes as the main motivators for investing in commercial real estate. The risk tolerance of this group is also the same or lower than it was in 2016, with only 9 percent having higher risk tolerance.
Gateway markets such as Los Angeles and New York remain attractive metros for investment among HNWI; however, Atlanta was the top-ranked market, reflecting its strong multifamily market in the city.
“HNWI investors are a good leading indicator for smart investing. They are nimble and focused on relative value across markets. Investors like Atlanta’s projected population growth of 100,000 people per year and headroom for rental upside. Atlanta is also a jobs machine, with 70,000 new positions created last year. Atlanta’s airport, the busiest in the world, is also a huge advantage for attracting employers because of the number of direct domestic and international flights,” said Malcolm McComb, vice chairman, Institutional Properties, CBRE Capital Markets.
In terms of threats, 30 percent of HNWIs are concerned that property is overpriced and a bubble waiting to burst. Nearly a quarter (24 percent) worry about occupier demand being affected by global and local economic shocks, while another 17 percent cite overbuilding leading to excess supply as a threat. Rising interest rates are also an area of concern for 16 percent.
These themes continue at the asset level, with 60 percent of HNWI citing asset pricing as one of the biggest obstacles to investment. Competition from other investors (18 percent) and availability of assets (17 percent) were also obstacles.
SEE IT ALL: http://www.worldpropertyjournal.com/real-estate-news/united-states/los-angeles-real-estate-news/high-net-worth-property-investors-report-2017-cbre-group-uhnwi-property-investment-data-2017-multifamily-property-investors-list-10326.php
- Are you ready to sell or purchase your Land or Commercial Building in Phoenix, Scottsdale, Maricopa County and Pinal County, Arizona, please call me.http://walter-unger.com/are-you-ready-to-sell-or-purchase-your-land-or-commercial-building-in-phoenix-scottsdale-maricopa-county-and-pinal-county-arizona-please-call-me/
- FROM ME:
- Phoenix Commercial Real Estate and Investment Real Estate: Investors and Owner / Users need to really know the market today before making a move in owner user Commercial Properties, Investment Properties and land in Phoenix / Maricopa County, Pinal County / Arizona, as the market has a lot of moving parts today. What is going on socio-economically, what is going on demographically, what is going on with location, with competing businesses, with public policy in general — all of these things affect the quality of selling or purchasing your Commercial Properties, Commercial Investment Properties and Commercial and large tracts of Residential Land Therefore, you need a broker, a CCIM (Certified Commercial Investment Member) who is a recognized expert in the commercial and investment real estate industry and who understands Commercial Properties and Investment Properties. I am marketing my listings on Costar, Loop-net CCIM, Kasten Long Commercial Group. I also sold hundreds millions of dollars’ worth of Investment Properties / Owner User Properties in Retail, Office Industrial, Multi-family and Land in Arizona and therefore I am working with brokers, Investors and Developers. I am also a CCIM and through this origination ( www.ccim.com ) I have access to marketing not only in the United States, but also internationalClick here to find out what is a CCIM: https://en.wikipedia.org/wiki/CCIM
- WEEKLY APARTMENT CLOSING UPDATE / THROUGH March 31, 2017 / Phoenix Arizona Metro
- I am actively looking to build relationships with Real Estate Investors and Owner Users to broker your land or commercial buildings in Phoenix / Scottsdale /Maricopa County / Pinal County / Arizona.http://walter-unger.com/i-am-actively-looking-to-build-relationships-with-real-estate-investors-and-owner-users-to-broker-your-land-or-commercial-buildings-in-phoenix-scottsdale-maricopa-county-pinal-c/
- DEMOGRAPHIC FACTS ABOUT MARICOPA COUNTY:
- The average age of the population is 34 years old.
- The health cost index score in this area is 102.1. (100 = national average)
- Here are some of the distributions of commute times for the area: <15 min (22.7%), 15-29 min (36.8%), 30-44 min (25.1%), 45-59 min (8.6%), >60 min (6.8%).
Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Properties in Phoenix, Tucson, Arizona.
Kasten Long Commercial Group tracks all advertised apartment communities, including those advertised by other brokerages. The interactive map shows the location of each community (10+ units) and each location is color coded by the size (number of total units).
Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years. If you have any questions about Commercial / Investment Properties in Phoenix or Commercial / Investment Properties in Arizona, I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us.
Please reply by e-mail firstname.lastname@example.org or call me on my cell 520-975-5207
Walter Unger CCIM
Senior Associate Broker
Kasten Long Commercial Group
5110 N 40th Street, Suite 110
Phoenix , AZ 85018
Delivering the New Standard of Excellence in Commercial Real Estate
- Commercial Real Estate Scottsdale
- Commercial Real Estate Phoenix
- Commercial Real Estate Arizona
- Commercial Investment Properties Phoenix
- Commercial Investment Properties Scottsdale
- Commercial Investment Properties Arizona
- Land Specialist Arizona
- Arizona Land Specialist
- Land Specialist Phoenix
- Phoenix Land Specialist
- Land For Sale Phoenix
- Land for sale Arizona
- Commercial Properties For Sale Phoenix
- Commercial Real Estate Sales Phoenix
- Commercial Properties Phoenix
- Commercial Properties Arizona
- Commercial Land Specialist Phoenix
- Commercial Land Phoenix
- Multifamily land Phoenix
- Retail Land Phoenix
- Industrial Land Phoenix
- Land Commercial Phoenix
- Land Retail Phoenix
- Land Industrial Phoenix
- Land Multifamily Phoenix
- Industrial Land for sale Phoenix
- Land Industrial
- Investment Real Estate
Disclaimer of Liability
The information in this blog-newsletter is for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.