Don’t Wait on the Sidelines to Invest in CRE

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

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

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

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?

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.

Etailers Get Physical, Change the Leasing Landscape

Purely digital, online businesses once praised (and condemned) for disrupting the traditional way consumers buy and use goods and services are increasingly going old school, opening physical brick and mortar stores in shopping centers across the country. The reasons for this shift go back to basic sales 101 strategies, including increasing brand awareness, building stronger connections with customers and providing inherent value by allowing customers to physically touch and evaluate products at the point of sale, which can help reduce the returns.

While established brands will continue to seek out long-term leases, shopping center owners looking to fill vacant property should be flexible when working with digital native tenants that often prefer leasing space for five years or less. Even with these shorter term leases, property owners can realize long-term benefits, such as attracting traffic to their properties and creating a buzz that will keep consumers and other tenants coming back again and again.

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 are Retail Properties and What Benefits Do They Provide to Investors?

Retail properties include a broad range of large and small malls, power centers with big box anchor tenants, strip shopping centers, individual stores and pop-up shops that market and sell a broad range of goods and services to consumers. Retail tenants can include clothing and accessory stores, grocery chains, pharmacies, convenience stores, gas stations, restaurants and even banks, emergency medical care providers and locations where consumers can pick up or return online purchases. In the current environment, a retailer’s flexibility and adaption to change are keys to their success. However, for investors, retail properties continue to deliver the same three benefits they have for many years, including the following:

• Steady income stream with high yields. Retail properties provide investors with a reliable income steam, in the form of monthly tenant lease payments, rather than capital gain growth, which relies on the property increasing in value over time.
• Long leases. Lease terms of 10 years with annual rent increases are common in the retail space, providing investors with the security that they will continue to receive monthly rental payments and not be faced with frequent vacancies.
• Low maintenance. Retail leases are commonly net leases that require tenants, rather than landlords, to cover the costs of property repairs, maintenance, utilities, insurance and taxes.

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.

Assessing Gross Income vs. Net Income in CRE

Commercial real estate brokers and sellers often promote the gross income that an owner can reasonably expect to receive from an investment in a particular property. However, different sellers use equally diverse methods for calculating this figure with varying degrees of detail. Not only do investors need to dig deeper to get a full picture of expected returns, they should also take into consideration the actual and projected expenses required for managing that property. For example, are investors responsible for property taxes, insurance and utilities, or are those expenses the responsibility of the tenants? Does the property need improvements now or in the future? The best way for investors to get answers to these questions is to work with experienced 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.