Meet Orion Executive at ICSC’s Florida Deal Making Conference this August

Posted on August 14, 2019

The Orion Real Estate team will be exhibiting at Booth 2924 at the ICSC’s Florida Conference and Deal Making, August 25 through 27, at the Orange County Convention Center in Orlando, Fla. More than 4,500 commercial retail, restaurant and shopping center professionals are expected to attend the annual event, which features expert-led sessions on current industry issues and countless opportunities for attendees to network, generate new business and make deals.

Stop by Booth 2924 to learn about Orion and meet with our executive team, including Chairman Joe Sanz, President Kevin Sanz, Executive Vice President Chris Sans and Senior Vice President Norman Buhrmaster.

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.

Understanding the Risks of REITs

Posted on August 06, 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, including pooling funds with other investors to purchase a debt or equity stake in a particular property or properties or buying shares in real estate investment trusts (REIT) that borrow money to make investments in multiple properties specific to a particular sector, such as retail, industrial, office or multi-family residential apartments.

Although (REITs) have been capturing the news headlines over the past few years, they are not without risks. Here are seven REIT risks that investors should consider.

  1. REITs that are publicity traded on the equity markets are subject to not only real estate portfolio risks but also a broad range of global and domestic economic events, changes in interest rates and other evolving conditions that result in market swings.
  2. Non-traded REITs are not required to registered with the SEC and are therefore not bound by the same compliance standards, disclosure requirements and investor protections of their publicly traded counterparts.
  3. Portfolio diversification within a particular REIT typically is limited to a specific asset class and geographic area. Moreover, because the full portfolio of a REIT’s properties may be unspecified, investors may not have full knowledge of all of their investment risks.
  4. Investors do not have a say in or control over the properties in which the REITs choose to invest or the way in which those properties are managed.
  5. There are no guarantees that the securities offered by a REIT will have an established trading market, adequate trading volumes or sufficient liquidity.
  6. Because REITs borrow money to fund their operations, they are subject to leverage risks and a potential lack of sufficient cash flow and access to additional financing.
  7. REITs do not provide investors with opportunities to defer or eliminate capital gains tax on the sale of assets nor do they pass tax losses onto their individual investors to be used to offset taxable gains.

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.

 

 

CRE Continues to Shine

Posted on July 31, 2019

According to Real Capital Analytics’ (RCA) U.S. National All Property Index, pricing continues to increase across all sectors of the commercial real estate sector and have been matched by rising net operating income.

These factors, combined with cap rate compression, are a great sign for investors who are looking to sell their current properties and diversify their portfolios with different assets classes. While some properties are performing better than others, occupancy and rent growth remain strong across the board, and the speculation of an interest rate cut by the Fed supports further pricing growth into the remainder of the year. Property owners and investors should work with experienced CRE professionals to assess the risks and rewards associated with buying or selling properties during market swings.

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.

According to Real Capital Analytics’ (RCA) U.S. National All Property Index, pricing continues to increase across all sectors of the commercial real estate sector and have been matched by rising net operating

Investors Continue to Play it Safe with Opportunity Zones

Posted on July 23, 2019

Despite all of the hype surrounding the tax benefits of Opportunity Zones (OZs), many taxpayers are still sitting in the sidelines awaiting further guidance from the IRS before putting their money and their trust into these new investment vehicles in unproven markets. Instead, cautious investors are playing it safe and continuing to pursue 1031 like-kind exchanges to provide them with an opportunity to yield tax-deferral benefits by investing in higher-quality assets, with strong fundamentals and proven income consistency.

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 Rise of the Outparcel

Posted on July 17, 2019

Online shopping, mobile ordering and grocery-delivery platforms have created a demand for restaurants, retailers, grocers and other shopping-center tenants to add drive-up windows, drive-through lanes and dedicated pick-up parking spots. However, these conveniences require a broad range of operational changes, additional expenses and a narrow focus on specific types of real estate, including outparcels and end units. As brands look to evolve with consumer wants and needs, they should work with experienced real estate advisors who have a keen understanding of suburban markets and the flexibility available in certain outparcels.

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.

Are Gyms and Health Clinics the New Anchor Tenants?

Posted on July 09, 2019

Consumer interest in wellness is fueling a new crop of shopping center clusters centered around gyms and health clinics. In both urban and suburban areas across the U.S., health and wellness focused-retailers and restaurant chains are looking to open locations within walking distance of fitness centers that are increasingly becoming a part of consumers’ daily routines.

The global wellness economy accounted for $4.2 trillion in 2018, up 12.8 percent from two years before, according to the Global Wellness Institute. The number of fitness and wellness-focused tenants at shopping centers has more than doubled over the past decade, from 6,218 in 2008 to more than 14,000 in 2018. Adding to this trend, CVS recently announced its two-year plan to open more than 1,500 HealthHUBs featuring expanded health clinics, labs for health screenings, on-staff dieticians and wellness rooms for yoga and health-centric seminars. According to the ICSC, gyms and wellness centers are functioning in the same way as former shopping center anchors: driving traffic.

Whereas big-box retailers formerly competed against each other in the same shopping centers, health-related businesses, including gyms, juice bars, quick-serve restaurants and even health clinics and weight management centers, are working together, co-marketing their services and goods to boost traffic and keep consumers and keep them there beyond their daily workouts. Despite the potential growth opportunities in these fitness-focused retail centers, property investors and tenants must also consider a long list of factors that can make or break the success of their ventures, including a property’s location, proximity to homes, offices and public transportation, and its existing demographic mix.

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.

 

Fast-Casual Gets Faster, More Convenient

Posted on July 01, 2019

The boundaries that traditionally separate fast-casual eateries from quick-serve restaurants are blurring as a growing number of the nation’s most popular dine-in brands are adding drive-through service to boost sales. This trend provides fast-casual chains, such as Chipotle and Panera, with a new opportunity to meet the modern consumers’ shifting demands for improved convenience and freedom of choice. What better way is there to get in front of and accommodate today’s busy, digital-savvy and health-conscious customer than allowing them to place a mobile order and literally grab a nutritious meal on-the-go.

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.

Florida Legislature Votes to Further Reduce Sales Tax on Commercial Leases in 2020

Posted on June 26, 2019

Owners of commercial property located in Florida recently received some good news to help them market vacant retail, office and warehouse space. As the only state in the nation to levy sales tax on commercial property leases, including tenants’ base rent and other payments they make as a condition of their lease agreements, Florida has been at a competitive disadvantage when it comes to attracting out-of-state businesses. However, over the past few years, the state legislature has been making efforts to reduce the commercial rent tax rate and, therefore, decrease tenants’ occupancy costs. For 2020, Florida’s tax on commercial leases will be reduced to 5.5 percent, down from 5.7 percent in 2019, 5.8 percent in 2018 and 6 percent in 2017.

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.