The Commercial Real Estate Outlook for 2020

Posted on January 22, 2020

Based on economic indicators at the end of December 2019, we see a bright future for commercial real estate investment in 2020. While stable interest rates and inflation will help to maintain transaction volume and access to capital, the rate of activity may slow slightly due to ongoing, global macroeconomic issues and news leading up to the U.S. presidential election in November. That being said, strong property fundamentals and location will continue to be the fuel that drives acquisitions going forward, regardless of property type. Moreover, we see great opportunities in value-add properties located in secondary markets where we can bring our deep relationships and expertise to improve tenant mix and rent growth for more desirable investor 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.

The State of Cross-Border CRE Investments

Posted on January 15, 2020

According to Real Capital Analytics, foreign investment in U.S. commercial real estate decreased more than 50 percent in 2019 from the prior year. One reason for the decline is a notable drop in capital investments coming from mainland China, which, researchers note, previously “represented an outsized presence in the U.S.” following a slew of high-profile acquisitions between 2014 and 2017. In fact, a June, $18.7 billion sale of U.S. property owned by Chinese investors helped to “turn cross-border investors to net sellers of U.S. commercial real estate for the first time since 2012.”

But not all countries are pulling back from U.S. markets. In 2019, Canada led the world in capital investments in U.S. commercial property, followed by Germany with South Korea, Japan and Singapore exceeding those from China.

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.

Low Interest Rates Continue to Drive CRE Investment

Posted on January 09, 2020

The Federal Reserve Bank’s decision to leave interest rates unchanged at the end of 2019, following a quarter-point rate cut in October, has caused many investors to abandon the safety of CDs and Treasury bonds in favor of steady cash flow and the promise of higher returns traditionally found in commercial real estate.

In today’s environment of near-record-low interest rates, even properties whose value has climbed over the past decade of economic expansion represent buying opportunities, especially when considering the tax deferral benefits of 1031 exchanges. Rather than paying taxes on capital gains from the sale of long-held, appreciated property, investors may instead reinvest those gains into a similar property and allow their original investment dollars to continue to grow tax-free.

To be sure, investments in commercial real estate do carry greater risks than bank CDs and money market accounts. However, investors can minimize these risks when they work with experienced real estate advisors who can verify property fundamentals and maintain tenant occupancy through its network of industry relationships.

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.

Don’t Wait on the Sidelines to Invest in CRE

Posted on November 05, 2019

The commercial real estate (CRE) market has enjoyed a significant period of property appreciation and record returns. Would-be investors who are sitting on the sidelines waiting for a market dip or slowdown to take their turn at-bat may very well find themselves out of the game. Instead, investors should recognize that there is still money to be made in CRE, and the sooner they become active players, the better their chances of success. In fact, commercial real estate has historically provided predictable cash flow and performance and enhanced yield in return-starved markets while also providing a hedge against inflation.

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.

Reap Real Estate Return Rewards without Getting Your Hands Dirty

Posted on October 30, 2019

Not every investor has the funds to purchase one or more commercial buildings on their own, nor do they have the time to manage all the responsibilities associated with buying, selling and managing commercial real estate (CRE). Thankfully, investors have options.

Professional real estate firms offer an array of services and private placement opportunities for interested investors, such as raising capital; structuring deals, including joint ventures; conducting due diligence, cost segregation studies and valuation analyses; managing and negotiating leases; overseeing build outs, renovations and construction; and managing all aspects of a commercial real estate project.

To ensure your hands-off, passive real estate investment yields the results that you require, take the time to find and work with dedicated professionals with proven experience in all facets of commercial 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.

Orion Real Estate Group Completes Active Third Quarter – 21 sales and acquisitions

Posted on October 22, 2019

MIAMI – Oct. 22, 2019 – Orion Real Estate Group completed 21 deals in the third quarter of 2019 while also searching for properties for its 2019 investment fund.

The company sold ten properties, mostly in the banking and restaurant spaces, for more than $13 million. In addition, it purchased 11 properties for more than $41 million. These acquisitions were located all around the country.

“It was another active quarter,” commented Orion President Kevin Sanz. “We are seeing continued opportunity in the absolute NNN commercial real estate area. We are traveling the United States to identify properties for our investment fund.”

The company holds property in more than 20 states and four Canadian provinces.

About Orion Real Estate Group

Orion Real Estate Group provides commercial real estate services to investment clients around the world. Since its founding in 1978, the firm has been involved in more than $3.5 billion in transactions and holds a portfolio exceeding $700 million.

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, visit www.orionmiami.com.

Private Capital to Multi-Tenant Shopping Center Continues to Increase

Posted on October 15, 2019

Net-lease multi-tenant retail properties are becoming the fastest-growing segment of private capital investment in commercial real estate. Some of the key factors driving this trend include strong property fundamentals, historically low interest rates, low supply and similarly low property management requirements. Not only do these properties help investors diversify their portfolios with the benefit of historically positive yields, but the size of these deals typically, below $20 million, offer an array of affordable buying opportunities with less competition from institutional investors and publicly traded REITs, which have to answer to their shareholders and lack the flexibility make deals happen.

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 Cash on Cash Return?

Posted on October 09, 2019

In real estate, the cash-on-cash return helps property owners measure cash-flow on a pre-tax/after-debt services basis relative to the owners’ invested equity. It can be used to gage investment performance and forecast projected earnings and expenses in the future.

While this metric assesses the potential cash distributions over the life of an investment, it focuses on return for specific periods, such as the current year or quarter. Therefore it is especially important for owners who plan, expect or need to live off the income from their investment property over a long period of time. When commercial real estate investments involve long-term debt-borrowing, the actual cash return will differ from the standard return on investment ROI. Calculations based on standard ROI take into account the total return on an investment. Cash-on-cash return, on the other hand, only measures the return on the actual cash invested, providing a more accurate analysis of the investment’s performance.

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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