Commercial Mortgages: Lenders of some commercial real estate loans look for better times in 2021 | Business News

Like Led Zeppelin’s classic hit “Good Times Bad Times,” lenders and real estate owners experienced the ups and downs of 2020 in a variety of ways.

Along with owners of hotels and mall owners, conduit lenders were clearly on the bad times side of that riff.

Conduits make a business of originating loans, packaging them together and selling them as commercial mortgage-backed securities.

Like many industries, that business came to a screeching halt in March, but, unlike other real estate lenders, conduits never really rebounded for much of the year. In fact, volume for commercial mortgage-backed securities in 2020 was down some 43{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} from 2019.

The primary reason is commercial real estate didn’t change hands as rapidly in 2020 as in 2019. Investment sales of commercial real estate in the U.S. dropped 32{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} when compared to 2019, according to Real Capital Analytics, a New York-based commercial real estate data firm.

The other reason is hotel and retail properties are a tough sell for any lender. Loans backed by hotels make up 10.24{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} of all CMBS loans outstanding, while retail properties currently make up 14.46{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c}, according to analytics firm Trepp LLC.

Even though 2020 was a bad year for loan volume

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Covid-19 has led to a boom in the commercial lab real estate market

If you work at Twitter (TWTR), you might be able to work from home “forever.” You also have a pretty good chance of sitting in your home office permanently if you work for Facebook (FB) where CEO Mark Zuckerberg has said he expects half the social network’s staff to be remote within the next five to 10 years

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But, if you’re working in a lab developing a Covid vaccine, you’re still going into the office. 

“You can’t do life sciences from a remote location. You can’t do experimenting in your kitchen or your living room like many people can in the office world, “ Adam Sichol Managing Partner at Longfellow Real Estate Partners told Yahoo Finance.

While many tech companies have been right-sizing their real estate needs during the coronavirus pandemic — take Pinterest (PINS) which paid nearly $90 million to get out of a San Francisco lease — real estate firm CBRE reported last fall that total commercial laboratory space has grown by 12{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} in 2020 to 95 million square feet. Another 11 million square feet is currently under construction.

“We’ve seen a rise in demand for life science

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Silicon Valley commercial property market slumps

SAN JOSE — Office vacancies in Silicon Valley rose, while rents sagged at the end of 2020, according to a new report by Colliers International, an unsettling economic ailment ushered in by the coronavirus.

The vacancy rates in Silicon Valley for the October-through-December period of 2020 were the highest for the region since July-through-September of 2017, stated the report from Colliers, a commercial real estate firm.

The coronavirus terminated nine years of positive results for the Silicon Valley office market, according to the Colliers report.

The boom times for Silicon Valley, Colliers reported, produced a string of years during which more space was filled up than was vacated.

That’s come to an end, however.

“Pandemic disrupts Silicon Valley’s nine-year absorption streak,” stated the headline of the report, which was prepared by Lena Tutko, San Jose-based senior research manager for Colliers International.

In the October-through-December fourth quarter as well as for all of 2019, the Silicon Valley office market suffered a trend of more space being vacated than was filled up through leases or subleases.

During the fourth quarter, 222,000 more square feet of office space became vacant than was filled up. For all of 2020, 1.52 million more square feet

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Three Reasons Commercial Office Real Estate Can Transcend Economic Uncertainty

Swapnil Agarwal is the CEO of real estate firm Nitya Capital and Karya Property Management as well as the Founder of non-profit Karya Kares.

Mark Twain once said, “Buy land; they’re not making it anymore.” For years, many people thought of real estate as a haven for investments. However, during the 2008 financial crisis and now during the economic uncertainty associated with the Covid-19 pandemic, some people have questioned that belief. With a portion of the workforce staying home, the demand for commercial office space has decreased and properties have been devalued. But I believe that the pandemic’s effects on commercial office real estate will ultimately be short term in nature and that it can be a valuable investment if you take a long-term perspective.

As a professional real estate investor, I’ve compiled a list of three reasons commercial office properties can transcend economic uncertainty as a long-term investment.

1. It Can Pay In Dividends

Like any investment, commercial office real estate inherently has risks. But it has one major reward in the form of potentially considerable monthly cash flow. In addition to any capital gains you may receive when you sell the office property, you can regularly

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The Future Of Commercial Real Estate

Vice President of Commercial Lending and Loan Trading for Alliant Credit Union

There’s no denying that many trends rapidly accelerated in 2020. The skyrocketing adoption of technology has changed the way people work, shop and even see their doctors.

Now, as vaccine distribution ramps up, we’re hopefully on the verge of being able to return to pre-pandemic routines. It begs the question: Will people want to go back to the old normal in its entirety? It’s a logical time to consider what has really, truly changed for the long-term versus what has stayed the same.

When it comes to commercial real estate finance, the popular idea that we are in the midst of a paradigm shift may be overblown. Below, I explore what has changed, and likewise what I expect to remain the same.

What changed in 2020?

• Lenders and investors are exercising more patience. The pandemic-induced shutdowns of restaurants, shops, travel, offices and entertainment venues cast ripple effects throughout the economy. From multifamily landlords to shopping center owners, many borrowers struggled to make mortgage payments as their rental income dropped. Yet we have not yet seen a massive wave of distressed properties hit the market.

That’s because

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Why Commercial Real Estate? 11 Reasons to Invest

There are lots of ways to invest in real estate. You can flip houses; rent out properties; buy real estate-related stocks, real estate investment trusts (REITs), and ETFs; or even take part in crowdfunded deals.

Another great option worth eyeing? That’d be commercial real estate (CRE): a high-risk but also high-reward asset class, which encompasses a whole slew of property types you probably haven’t even considered investing in.

Are you interested in exploring commercial real estate investments? Here’s what you need to know.

What is commercial real estate?

First off, what exactly qualifies as commercial real estate? At its most basic, it’s any property designed to make money. It can include all the major categories you probably expect — retail stores, office buildings, industrial warehouses, restaurants, etc. — as well as more specialized property, like storage spaces, hotels, casinos, and even healthcare facilities.

Why invest in commercial real estate?

Whether you’re coming from a long career in residential property or you’ve never invested in real estate at all, CRE can be a smart place to put your money. But why commercial real estate? Here are 11 reasons you might want to consider it for your real estate portfolio.

1. High

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Endurance Advisory Partners Welcomes Steve Everbach as Managing Director for Commercial Real Estate Advisory

DALLAS, Feb. 1,  2021 /PRNewswire/ — Endurance Advisory Partners announced that Steve Everbach has joined the firm as Managing Director for Commercial Real Estate Advisory.

“Steve’s insights into the commercial real estate market will provide our clients with valuable advice at a critical time,” said Stephen Curry, CEO of Endurance Advisory Partners. “As we begin to emerge from the pandemic, banks need to have a good understanding of their CRE loan portfolio, strategic alternatives for struggling properties and guidance on repositioning for new growth.  Commercial real estate developers, investors and service companies will also benefit from his expertise. We look forward to Steve’s leadership as we expand our advisory services and operations in this key area.”

Prior to joining Endurance, Everbach served for half a decade as President, Central Region | USA of Colliers International Group Inc., where he oversaw strategic expansion initiatives. He is a member of the board of directors for the Dallas Regional Chamber, The Real Estate Council and Downtown Dallas.

Everbach has held senior leadership positions for several global commercial real estate companies. He has completed over 8 million square feet of real estate transactions, representing an aggregate value of more than

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Commercial real estate managers prepare for the post COVID-19 era with a.Lot Parking Solutions

Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Badly hit parking industry to recover by using smart, touchless and fully digital technologies by a.lot Parking.

SEATTLE, Feb. 01, 2021 (GLOBE NEWSWIRE) — Changing parking behavior due to COVID-19 left parking lots empty all across the country. A.lot Parking , a provider of comprehensive one-stop shop parking technology solutions, is solving these challenges to make sure commercial real estate and parking owners are ready to grow their asset value as soon as the pandemic eases.

It is becoming apparent that the office hours of commercial real estate tenants are not getting back to pre-COVID levels. Many employees already successfully adapted to shift work or a mix of home and on-site office hours. The post-pandemic parking will require more flexibility and potentially more complex management of parking access permissions. A.lot Parking offers a solution – the digital cloud-based system enables multiple ways to set dynamic pricing or to authorize and accommodate various parking needs of customers, employees, vendors and associates. The system provides high level of flexibility to the drivers as they can use a mobile app or a website

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IQHQ Expands Leadership Team to Support Rapid Growth of Life Sciences Commercial Real Estate Portfolio

Press release content from Business Wire. The AP news staff was not involved in its creation.

SAN DIEGO–(BUSINESS WIRE)–Feb 1, 2021–

IQHQ, Inc., a premier life sciences real estate development company, today announced that Fran Federman will join the company as Chief Financial Officer. Federman brings 20 years of experience in real estate investment and capital markets, which will help drive financial strategy and future growth at IQHQ.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210201005189/en/

Life Science REIT veteran Fran Federman joins IQHQ as Chief Financial Officer (Photo: Business Wire)

“We are thrilled to add someone of Fran’s caliber to our executive team,” said Steve Rosetta, CEO of IQHQ. “She has a proven track record in capital markets and life science real estate that will complement our team’s strengths and support our growth as we continue to develop high quality life science real estate opportunities in the leading global markets.”

Federman comes to IQHQ from Ventas, Inc., an S&P 500 REIT focused on life science, university-based research and innovation centers, medical office buildings, senior housing, and other healthcare properties. At Ventas, Federman served as Managing Director of the company’s Life Science

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Real estate sector seeks input tax credit on development of leased commercial properties

In its Budget recommendation for the 2021-22 fiscal year, industry body CII has demanded that Section 16 read with Section 17(5) of the CGST Act should be amended to enable the real estate players to avail ITC (input tax credit) on procurement of goods and services during the construction phase where the said immovable property is intended for commercial leasing or renting.

The denial of ITC, leads to blockage of funds for a real estate player, it said.

“In case of commercial leasing of properties and outlets at malls, the renting of such premises attracts 18{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} which is available as credit to the client. Disallowance of credit during the construction phase leads to the increased cost of construction, working capital loss, increased financing costs impacting the entire supply chain,” CII said.

Tata Realty & Infrastructure Ltd MD & CEO Sanjay Dutt mentioned that as per current GST provisions, input GST credit during the construction phase (for commercial properties) is not available for set-off against output GST liability from earning of rental income.

“In other words, the GST charged on input services (like procurement of cement, steel, works contract services, etc) is required to be capitalised to the cost of construction.

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