Investors Looking for Stable Income should Consider Convenience Stores

Posted on October 18, 2018

According to the National Association of Convenience Stores (NACS), nearly 80 percent of stores that sell gasoline reported an increase in in-store sales during the first six months of 2018, compared to the same period last year. How? For one, many gas station/convenience stores have expanded their product offerings and stocked their shelves with healthy snacks, beverages and freshly prepared foods that on-the-go, health-conscious consumers demand.

C-stores have long been an attractive and stable tenant for commercial real estate investments, especially when they are located in high-traffic areas. They typically involve long-term leases and rent increases tied to inflation. Not only do these factors guarantee investors a minimum of 10 years of rental income, they also help investors to boost rental income and increase the value of the underlying property,

While c-store gross sales lag behind other retail categories, they have demonstrated their ability to adapt, survive and sustain growth over the long-term, which, in turn makes them a great tenants for commercial property investors.

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.

 

Investments in Grocery-Anchored Shopping Centers Inch Higher

Posted on October 10, 2018

Amazon’s 2017 purchase of Whole Foods represents a larger trend in the grocery business: approximately 90 percent of all grocery sales continue to take place in brick-and-mortar stores.

While there was an increase in boutique grocery store openings in 2017, the larger, traditional chains opened fewer stores last year. Instead, many, including Publix, invested in online-ordering and grocery-delivery services to improve the in-store shopping experience and get ahead of consumers’ evolving demands. At the same time, Amazon and other ecommerce retailers recognized how commercial real estate could enhance their brands, and subsequently set to out to expand their physical footprint of brick-and-mortar stores.

As grocery sales continue to climb, physical stores in prime locations will continue to draw foot traffic and provide commercial real estate investors with an appreciating asset yielding positive long-term returns.

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.

 

Commercial Real Estate Helps Investors Diversify Portfolios, Hedge against Market Volatility

Posted on October 04, 2018

As the U.S. economy continues to chug along on its second longest expansion in history, investors in the equity markets are facing chopping waters as they look for signs of when the party may end. After all, equity markets can change direction quickly and wipe out hundreds-of-thousands of investors’ hard-earned savings. To minimize this risk while also improving cash flow and tax efficiency over the long-term, investors should consider diversifying their portfolios with commercial real estate.

While the value of a commercial property will fluctuate over time, it will not subject investors to the same heart-stopping swings of the stock market. Depending on when an investor buys a commercial property, where it is located and its mix of tenants, the prospect that the property will increase in value over time is rather strong. While this does not mean that speculative property appreciation is risk-free, it does mean that investors working with experienced advisors have more control over the performance of their investments. For example, investors can increase cash flow and improve commercial property value over the long-term by making capital improvements, raising rents, selling assets or purchasing assets that they lease back to tenants.

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.

Retail Sales Thrive during Typical Summer Slump

Posted on September 26, 2018

U.S. retail sales survived the summer doldrums, increasing 6.6 percent in August from the same period in 2017, which is more than double the rate of inflation! While e-commerce remains strong, sales in brick-and-mortar stores continued at a steady pace, especially at some of the larger retailers, including Target and Walmart, which reported the highest increase in in-store traffic and same-store sales in at least a decade and beat earnings expectations for the third quarter.

Fueling consumer spending is low unemployment, higher wages and the new tax cuts that are leaving workers with more money in their take-home pay. In addition, retailers are adapting to changing consumer behaviors and leveraging technology with their physical footprints to improve the customer experience and boost sales – both online and in their brick-and-mortar stores. This recent news coupled with a favorable outlook for year-end holiday sales bodes well for investors in retail properties.

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.

Drugstores Adapt in the Internet Age, Remain Strong Retail Anchor

Posted on September 19, 2018

Amazon’s plans to enter the $560 prescription drug market with the purchase of PillPack has not caused significant concern for brick-and-mortar drugstores. Even with the rise of e-commerce and introduction of online pharmacies over the past several years, the corner drugstore continues to fill 90 percent of all consumers’ prescription medications and remains a sustainable anchor for retail shopping centers.

Chains such as CVS and Walgreens have already implemented strategies to continue drawing foot traffic into their retail stores and maintain their leadership positioning. These established brands have revamped their physical stores into health centers offering a broad range of ancillary medical services, expanded their offerings of convenience products and enhanced their health and beauty departments all in an effort to remain relevant and improve the customer experience. They have also introduced overnight prescription delivery services and entered into partnerships with health insurers and pharmacy benefit managers to maintain their share of customers’ business.

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.

Future-Proofing Commercial Real Estate

Posted on September 11, 2018

Despite doomsday forecasts, brick-and-mortar retail is not going away anytime soon. Ninety percent of retail sales continue to take place in a physical store, and, according to research advisory firm IHL Group, in-store sales increased more than $100 billion in 2017, when retailers opened 4,000 more stores than they closed. However, this is not to say that retail is not in the midst of a change; it is. Perceptive retailers and commercial real estate investors must recognize this disruption and prepare now not only to survive, but also to thrive in the future.

Future-proofing retail requires consideration of a broad range of factors, including the rapid evolution of technology and tech-enabled buildings, the emergence of driverless cars, the rise in demand for delivery services, the need for larger storage/warehouse space and new supply chain technology. In addition, commercial real estate investors must consider how these disruptions will ultimately affect their ability to better market and sell a property in an uncertain future. By collaborating with experienced real estate professionals who manage all aspects of commercial property development, build out and sales, investors will be better prepared to navigate successfully through changing market environments.

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.

What is the Best Structure for Holding Commercial Real Estate?

Posted on September 07, 2018

There is not one-size-fits-all recommendation for what type of legal structure investors should use to hold their ownership interest in commercial real estate. Rather, the selected structure will depend on an individual investor’s unique situation, including his or her ultimate goals, tolerance for risk, and time horizon. In addition, when investors consider whether to hold property in their own names, in a trust, in a partnership, a corporation or another legal entity, they should recognize that each structure comes with different levels of tax reporting obligations and exposure to income and estate tax

Determining the best legal structure for investment in U.S. commercial real estate investment is something best decided with the benefit of legal advisors and experienced commercial real estate professionals.

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.

Foreign Investors Get Local Assistance from Orion’s European Office

Posted on August 30, 2018

Despite escalating trade tensions across the globe, foreign investment in U.S. commercial real estate continues to grow. However, commercial real estate can be challenging for foreign buyers to go it alone without a strong partner with boots on the ground to guide them through the ins and outs of the U.S.’s local markets, the different types of investment properties and the complexities of the country’s ever-changing tax laws.

Orion Real Estate Group has offered European and Middle Eastern investors local, on-the-ground support out of its Geneva office for more than 40 years. Fluent in five languages, the Geneva staff works as an extension of the company’s Miami office to help investors navigate through the risks and rewards of investment in U.S. commercial properties, providing a full range of real estate services, including sourcing capital, managing real estate assets and cash flow, and structuring deals for tax compliance and efficiency in multiple jurisdictions.

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.

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