Education

Restaurant Performance is Consumer Sentiment

Millennials Don't Want to Live Where They Can Buy

The chart below could be titled, “The Less Attractive the City, the Cheaper the Housing.” I don't see many stories about Millennials flocking to Cleveland or Pittsburgh. I have never seenONE! When people aren't excited about living in a certain...

Home Sales Hit Historic Low

The Wall Street Journal (WSJ) recently published an article highlighting that US home sales hit a 30-year low. We all know the reasons: high interest rates, new construction cannot keep up with the demand, and...

Industrial, Multifamily, Self Storage Industries Stare Down Oversupply Issues

John Chang, with Marcus & Millichap, does a good job framing up the state of the self storage market. I'll summarize his main points, all of which I agree with:

The Triple Net Lease Market Has Finally Busted

Triple net leases have long been the most straightforward answer for high-net-worth buyers looking to park cash or execute a 1031 exchange.

Navigating the Risks of Preferred Equity in Commercial Real Estate

The WSJ released an article highlighting that troubled mezzanine loans were the canary in the coal mine for commercial real estate.

How can Extra Space (NYSE: EXR) Raise its Same-Store Revenue Projections when Web Self Storage Rental Rates Decline?

Extra Space just raised its same-store year-over-year revenue growth projection to +2.75%-3.5%, up from +2.5%-3.5%. Compare this to the year-over-year published web rates, down -13%. Therein lies the magic of self storage. Leases are all month-to-month,...

Analyzing Commercial Real Estate Lending Amidst Market Shifts

On October 31, 2023, the Wall Street Journal published an article titled “Commercial Real Estate Lending Slows Down”. Click here to read the online article re-titled “The Money Has Stopped Flowing in Commercial Real Estate."

Unique Times for Commercial Real Estate Banking

Soliciting feedback from our peers in commercial real estate private equity, we confirm our belief that very few transactions are occurring. The headwinds are strong.

Is Seller Financing Creating Buying Opportunities in Value-Add Self Storage?

Based on recent broker feedback, around 50% of all current value-add self storage acquisition opportunities offer the buyer some component of owner financing. This financing structure was unheard of just a couple of years ago when bank financing was...