“The RE/MAX Commercial Practitioner Development Program offers specialized commercial real estate education for beginning, intermediate and experienced professionals. Training covers commercial operations, business planning, sales, leasing, teams, client representation and more. Special pricing is available for courses and programs.”
The December jobs report is in, and the outlook is good. Unseasonably warm weather apparently boosted hiring last month, sending nonfarm payrolls up by 292,000. Unemployment has maintained steady at an over seven-year low of five percent. Meanwhile, the job count has been revised for the past two months, showing an even stronger job count than was previously thought. In total, it is clear at this point that 2015 has been the strongest year for job growth since 1999. This is showing healthy confidence in the job market, and serving to allay concerns about the economy.
Generally, such news is bad for the real estate market. A jobs report this robust has historically sent mortgage rates skyrocketing. However, immediately following the release of the report, rates were actually easing downward. For the second month in a row, rates have defied expectations in light of a positive jobs report. Much of this could be attributed to economic concerns abroad, as well as a lack of growth in wages. Investors are still inclined to move away from risky stocks and into bonds, keeping rates at current lows.
Insight and Outlook
Freddie Mac recently released its December Insight and Outlook, focusing on the current state of marketplace lending and the projected impact that the Federal Reserve’s decision to raise short-term interest rates will have on the commercial real estate market in the new year. Here are some of the highlights of what the mortgage giant is expecting out of 2016:
The rate for a thirty-year, fixed-rate mortgage will average below 4.5 percent annually. The recent upward trend of mortgage rates will continue, gradually pushing them higher. However, a strengthening labor market and pent-up demand will likely keep the market healthy, despite lowered affordability. Continue reading
Of a while, the world’s tallest towers have been found largely in Asia and the Middle East. It is here that towers of over 1,000 feet in height have become the hallmark of major metropolitan areas. At present, the closest that Seattle comes to this level is the 933-foot Columbia Center tower, which represents the tallest building in the Pacific Northwest. However, the Emerald City may soon join the supertower club.
Crescent Heights, a Miami-based developer, has filed plans with Seattle to construct a condo building that will reach a whopping 1,111 feet above the ground. When completed, it would be the tallest skyscraper on the West Coast.
According to Ron Klemencic, CEO of Magnusson Klemencic Associates, “Everybody seems to need a 1,000-foot tower these days. It seems like a fundamental shift. I don’t think it’s a fad.” Indeed, with home prices in Seattle climbing higher and higher, it only seems logical that commercial real estate should follow suit.
At present, there are eleven other supertowers going up throughout the United States. Eight of these are in New York City, while the other three are being built in Philadelphia, San Francisco, and Los Angeles.
RE/MAX Commercial real estate brokers have been very productive in the past years, and the world has been taking note. Back in September, for the fifth year in a row, RE/MAX claimed a spot on the National Real Estate Investor (NREI) list of Top Brokers. This list, released annually, represents one of the industry’s most prestigious honors.
This year, RE/MAX was ranked as number fifteen on the list, a full two ranks higher than the previous year. We can attribute these gains to robust global sales throughout 2014, growth of 12.1% over 2013, and a lease volume of about $9.78 billion. The company soundly outstripped the performance of its bigger competitors, including Sperry Van Ness International, Keller Williams Commercial, and Coldwell Banker Commercial.
The news of RE/MAX’s success followed the 2015 World Commercial Symposium at the RE/MAX World Headquarters in Denver, Colorado. It was here that commercial real estate experts from around the world gathered to share their best business tips on relationship brokerage, real estate decision-making, and more. This annual, three-day event is a premier networking and informational opportunity for professionals in the field of commercial real estate.
Read more detail from Above Mag.
“Commercial space is heavily concentrated in large buildings, but large buildings are a relatively small number of the overall stock of commercial buildings. Based on Energy Information Administration data approximately 72 percent of commercial buildings are less than 10,000 square feet in size.1 An additional eight percent of commercial buildings are less than 17,000 square feet in size. In short, the commercial real estate market is bifurcated, with the majority of buildings (81 percent) relatively small (SCRE), but with the bulk of commercial space (71 percent) in the larger buildings (LCRE).
Commercial sales transactions span the price spectrum, but tend to be measured and reported based on size. CRE deals at the higher end—$2.5 million and above—comprise a large share of investment sales, and generally receive most of the press coverage. Smaller commercial transactions tend to be obscured given their size. Continue reading