Fed Holds Interest Rates Steady

Posted on April 18, 2019

At its March meeting, the Federal Reserve Bank announced that it will not increase interest rates in 2019 as previously planned. While this act of patience reflects signs of a slowing economy, the Fed is quick to point out that financial conditions remain strong with low unemployment, growing wages and stable consumer confidence. For investors in commercial real estate (CRE), the Fed’s announcement is good news. Borrowing costs remain low as property value continue to rise and capital continues to flow into the market. Historically, commercial real estate lags the general economy, meaning that if an economic downturn occurs, the CRE market will not feel the effects for another year or two. This gives investors the opportunity to assess their portfolios and diversify their holdings in preparation for a potential recession. Properties with strong fundamentals in prime locations that continue to innovate and adapt to consumers’ new normal will not suffer damaging effects from a downturn. It’s also beneficial for investors to work with experienced real estate professionals with strong tenant relationships who can quickly fill occupancies and/or repurpose a property for greater use.

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.

Orion Real Estate Group Closed $350 Million in Deals in 2018, Continues to Generate Return on Investment

Posted on April 10, 2019

Orion leveraged its deep experience and track record of returns to close $350 million in deals in 2018. Among the firm’s transactions last year was a $100 million fund deployed to purchase 68 triple-net-lease properties, including a portfolio of 56 Ruby Tuesday restaurants and another portfolio of 12 KFCs. In addition, to close out the fund, Orion provided a short-term hard-money loan of $8.75 million to a third-party real estate venture. By the end of the year, the firm had already sold more than 60 percent of the acquired properties and returned profits to 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.

 

Where are the Emerging Real Estate Markets for Investors 2019?

Posted on April 03, 2019

Cities in Texas, North Carolina and Florida are among the nation’s 10 best in terms of future growth potential and liquidity, according to the Urban Land Institute’s annual report on Emerging Trends in Real Estate.

Dallas/Fort Worth took the number one spot on the highly regarded list, which is based on insight and analysis gleaned from hundreds of surveys and interviews conducted with real estate professionals nationwide. Additional markets forecast for predictable growth include Raleigh-Durham, N.C. (No. 3), Orlando, Fla. (No. 4), Austin, Texas (No. 6), and Charlotte, N.C. (No. 8). The surprising dark horse on the list was Tampa, Fla., which cracked the top-10 for the first time in four decades.

On a broader economic level, 80 percent of those surveyed for the Urban Land Institute report foresee a good or excellent outlook for CRE in 2019.

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.

 

Quick Serve Restaurants Dive into Digital to Drive Sales

Posted on March 26, 2019

In an effort to gain a larger slice of consumers’ budgets, many quick-serve restaurant (QSR) chains are accelerating the use of technology to improve the consumer dining experience. Brands including Dunkin, Starbucks and Subway have long offered consumers time-saving order-ahead capabilities via their own mobile apps while others, including Panera Bread, are expanding into voice-activated mobile ordering through virtual assistance platforms with Google, Apple and Amazon.

As QSR brands continue to make their services faster and more convenient, they are not only improving consumers’ in-store dining experience, but they are also giving consumers more reasons to visit those chains more often.

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.

 

Early Signs Point to a Sunny Outlook for Florida Commercial Real Estate in 2019

Posted on March 19, 2019

With population trends as a primary driver of commercial real estate, it appears that Florida will continue to generate high-growth in 2019, thanks, in part, the new tax law.

U.S. migration to Florida has always been fueled, at least in part, by its lack of a state income tax. This benefit is amplified under the new federal law’s $10,000 cap on deductions for state and local taxes (SALT), including property taxes, as well as a $750,000 cap of the size of loans on borrowers could deduct mortgage interest. The loss of these deductions translates to higher tax liabilities for residents in high-tax states, such as New York, New Jersey and Connecticut. A high-net-worth family’s move to Florida’s sunny, business-friendly shores can mean significant tax savings, even in the current environment of rising interest rates and escalating home prices.

Population growth tends to come with increasing demand for housing, rental apartments, office space and restaurants and retail, which bodes well for Florida’s CRE outlook in 2019.

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.

 

Global Commercial Real Estate Value Rose in 2018

Posted on March 13, 2019

According to Real Capital Analytics (RCA), worldwide commercial real estate sales in 2018 increase by 15 percent year-over-year, reaching the second-highest level since the global financial crisis. Some of the biggest gains came from the U.S., the world’s largest market, which helped improve global acquisitions of income-producing property by 3 percent compared with 2017. At the same time, volume rose across all major commercial real estate sectors, including industrial, apartment and retail property.

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.

 

Equity Market Volatility Sends Investors to Commercial Real Estate

Posted on March 07, 2019

The wild ride of the equity markets during the second half of 2018 has many investors asking if the economy’s extended period of expansion is coming to an end. In response, many investors are pulling their money out of the public markets and putting it into the relative safety of commercial real estate. Following are four reasons why commercial real estate may be a better investment option, especially in the current environment:

Control over Specific Investments. Unlike investments in mutual funds, you can control which properties you actually buy and you have the ability to make improvements to a property in order to increase rental income and investment returns.

Control over Cash Flow. When the equity markets decline, you immediately loose the value of your investment and any profits on which you may be relying. Conversely, real estate investors who experience a down market will continue to have a steady flow of rental income from property tenants.

Minimize Tax Liabilities. Investments in commercial real estate provide individuals with a number of tax advantages, from depreciation deductions to deferred capital gains a property is sold through a 1031 exchanges. On the contrary, investors will have to pay capital gains tax on the sale of any stock or mutual fund that has appreciated in value.

Built-In Appreciation. Investments in a tangible asset such as real estate provides added appreciation benefits that individuals will not find in stock market investments.

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

 

The Government Shutdown’s Impact on Retail

Posted on February 26, 2019

Online and brick-and-mortar holiday retail sales fell 1.2 percent short of expectations in December after experiencing more than 5 percent year-over-year growth in October and November. Despite this dismal data, 2018 holiday sales actual grew 2.9 percent over the same period in 2017. What happened to hamper holiday sales?

Following on the heels of an interest rate hike on Dec. 19, 2018, the public equity markets were roiled by a government shutdown that has broken records as the longest in the nation’s history. Uncertainty over when the government would reopen and what lingering effect it would have on consumers combined with an already tenuous trade relations with China spooked consumer sentiment and put the squeeze on consumer spending.

According to the National Retail Foundation, the reopening of the government, a strong job market, wage growth and solid fundamentals will continue to fuel retail sales in 2019, which are expected to increase between 3.8 percent and 4.4 percent.

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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