Blog Posts

Opportunity Zones Development Risk: Amazon HQ2 as a cautionary tale

Opportunity Zones Development Risk

Amazon’s announcement that it plans to pull the plug on HQ2 in New York is a cautionary tale for Opportunity Zone investors. Amazon justified its about-face by citing fierce opposition from what The New York Times described as “a group of activists and elected officials who objected to a suite of corporate sweeteners and tax breaks.”…

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Tech Office Tenants: New Powerhouse or Risky Revenue?

Tech Office Tenants

Should office investors be wary of tech office tenants adding sector risk to their rent rolls? The tech industry has become a powerful engine driving demand for office space in markets across the country from Silicon Valley to the emerging “Silicon Slopes” of Utah. Do tech office tenants have plenty of gas in the tank…

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Qualified Opportunity Funds: The Real Estate Industry Weighs In

Real Estate Industry Submits Opportunity Zone Comments to Treasury and IRS -

While the government shutdown is holding up the public hearing, we feel it may be instructive to continue to dig into the comment letters submitted on the proposed Qualified Opportunity Zone legislation. One early takeaway was that several real estate industry groups submitted letters, and we wanted to summarize the comments made by those groups…

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Densification: Retail Investors Double Down on Density

Densification - Retail Rebirth?

Retail is by no means out of the woods in its battle with Amazon and other online retailers. 2019 kicked off with more Sears stores closings in the wake of its Chapter 11 bankruptcy filing. Despite a last ditch buyout attempt, the retailer had already started shuttering its remaining 142 Sears and Kmart stores last…

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LIBOR Replacements in Real Estate: Introducing SOFR

LIBOR Replacements in Real Estate

U.S. banks lay the groundwork for the successor to LIBOR, replacements emerge for the real estate industry. Since the mid-1980s, the London Interbank Offered Rate, better known as LIBOR, has been the reference on which most floating-rate loans—an estimated $300 trillion in financial contracts globally—are based. However, the financial world was eventually forced to confront…

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Opportunity Zone Comment Letters

Opportunity Zone Funds Proposed Legislation Comment Letters

Opportunity Zone comment letters are hitting the desks of Treasury Department and IRS officials now that the comment period for proposed regulations is over. The next public hearing will be held at a date to be announced after the resolution of the government shutdown. There are currently (as of Feb 12th) a total of 175…

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Future-Proof Office Building Development

Future-Proofing Office Building Development

Hindsight is always 20/20, and office building developments need to be designed today so they have staying power to meet the needs of office tenants in the decades to come. There are plenty of disruptive technologies already on the doorstep that are changing how and where work is conducted, not to mention the amount and…

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Co-Working Landlords: Ready to Battle WeWork?

Co-Working Landlords

Co-working has experienced explosive growth both in the U.S. and globally over the past several years. That expansion has pushed some landlords and real estate service firms to say – “If you can’t beat them, you might as well join them.” Notably, what started as a movement driven by startups and entrepreneurs looking to move…

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Real Estate Replacement Costs May Have Far-Reaching Effects

Real Estate Replacement Costs - Far Reaching Effects

Soaring real estate replacement costs have been a hot topic over the past year, and short of a recession that would recalibrate the balance between supply and demand, there doesn’t appear to be much relief in sight. Rising prices on materials and labor are shouldering much of the blame for the higher construction costs. And…

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How will UltraFICO Affect Real Estate Investment & Development?

UltraFICO - Effect on Real Estate Investors & Developers

FICO scores are about to change in a big way. Meet UltraFICO. Fair Isaac Corp, creator of the widely used FICO credit score, has developed a new version of the ubiquitous lending-qualification metric, dubbed the UltraFICO. This updated version, one of the biggest shifts in credit reporting we’ve seen in a long time, promises to…

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