Articles
Mixed-Use History Mixed-use real estate has been a central theme in urban development since the reign of the Roman Empire, where apartment units were built over city marketplaces. Mixed-use is not a new planning or development option. Before industrialization, mixed-use property was common throughout the United States. Since walking was the primary means of transportation [...]
The Retreat at Lakeland is a 464-unit apartment community located in Lakeland, Florida. Covenant Capital Group is an expert at finding communities in need of attention and turning them into quality institutional assets. The experience at Retreat at Lakeland highlights both Covenant Capital Group’s expertise and the current market opportunities. The property was acquired in [...]
Single-Family Homes – Build to Rent The distinction between rented and owner-occupied residences has typically been that apartments are rented and single-family houses are owner-occupied. Despite this generalization, individuals and small private investors have rented single-family homes forever. Until recently, this has occurred at a small scale with individuals and private investment groups acting as [...]
Bergstrom Survey – From ’21 to ’22 Real estate performance should have carried a bigger headline during 2021 but there were a few distractions. With so much discussion about viruses, the CDC, global travel limitations, masks, and general anxiety, there was too little space to realize that the real estate market was performing extremely well. [...]
When the unexpected pandemic shocked the country in March 2020, strict quarantine mandates and shelter-in-place orders forced businesses to transition out of office space and restructure operations to a remote working platform. The office market and its users felt an immediate impact. The second quarter of 2020 marked the sharpest downturn in office market activity [...]
In the United States, the Treasury yield curve is the driver of all domestic interest rates — as all other domestic bond categories rise and fall with Treasuries. Equally as important as the current interest rates, investors everywhere pay close attention to predictions about where rates will go in the future. Virtually every investment calculation [...]
Academic Real Estate Research from the UF Warrington School of Business came out of a cannon to start 2021. Real Estate Economics, arguably the most prestigious academic real estate journal, presented four distinct articles in its first two issues that were co-authored by David Ling. Publishing four articles across two issues of a top academic [...]
It should come as no surprise that 2020 was a unique year in the construction industry. With strict lockdown mandates, remote working, and fear of virus infection, the country experienced a shock that rippled through the economy. News of the pandemic and realization of its potential impacts arrived at the end of the first quarter. [...]
The commercial real estate industry’s industrial sector has separated itself from the performance of all other sectors over recent years. As shown in Figure 1, warehouse total returns have outperformed total NCREIF Property Index (NPI) returns each year since 2011. Furthermore, since 2016, the industrial sector’s total returns dramatically exceeded that of all other sectors, [...]
Private Sector Real Estate Returns Over the previous four quarters, all investment markets attempted to adjust to the second quarter 2020 news that the global economy was closed in an attempt to control the spread of the virus. Many real estate factors responded to the shock: sales volume dropped, leasing stopped, and uncertainty spiked. Starting [...]
One year of results from the Bergstrom Center Survey have been recorded. The past year has been interesting and uncertain but our members of the real estate industry held a positive outlook throughout. The most challenging time was during fourth quarter 2020, our initial survey period. Economic restrictions such as restaurant closings and office “stay [...]
Don’t Panic – But Plan No accusations, no admonishment, no requests to reverse progress, no blame, no trend extrapolation. Instead, let’s look at measured historical results and form a plan to protect our assets. In recent years, there have been many discussions and predictions about the future state of Florida’s coastal property. Some boldly predict [...]
Our first thought about interest rates during 2020 might have been that a shocking increase in uncertainty (risk) due to the emerging pandemic would lead to a significant increase in risk premiums bringing about higher rates. Well, that did not happen. Rather, investors moved to low-risk assets driving down the 10-Year Treasury Bond yield allowing [...]
Article review of The Tax and Economic Impacts of Section 1031 Like-Kind Exchanges in Real Estate Section 1031 of the Internal Revenue Code has permitted taxpayers to defer the recognition of taxable gains on the disposition of business-use or investment assets since 1921. Although the legislation commonly known as the Tax Cuts and Jobs Act [...]
Each issue of Due Diligence offers a unique collection of Significant Digits which are charts with short descriptions. The goal is to highlight some interesting data from the market that can be understood at a glance. This issue reveals the 2020 pattern of residential sales in Florida and continued growth in state population. Residential Sales [...]