Editor's note: Every day we're bombarded with a lot of information, but not much context. The Illinois Policy Institute is launching Our Viewpoint to share our perspective on the topics of the day and help you better understand them. Chicago's commercial real estate market has yet to recover from the pandemic, even as many cities, such as New York, have recovered. From the Chicago Tribune: “Demand for Chicago office space continues to fall into 2023, signaling that a true recovery for Downtown could take years. While demand has nearly returned to 2019 levels in some fast-growing cities like New York…
Author: Private Lending Agent
Downward angle icon Downward angle icon. Investment in U.S. commercial real estate fell 52% last year, according to CBRE. Gary Hershorn/Getty Images Investment in U.S. commercial real estate fell 52% last year, to the lowest level since 2012. New York led the way with $33 billion, followed by Los Angeles with $30 billion. Offices saw the biggest declines as they continue to struggle with COVID-era remote work trends. The U.S. commercial real estate market saw a sharp decline in investment last year, with capital inflows into the market falling by more than 50% to the lowest level since 2012. Commercial…
Recent global events have raised fears of a commercial real estate crisis in Europe, following in the footsteps of Japan and the U.S. In particular, Deutsche Pfandbriefbank is facing a significant downturn due to the weakness of the real estate market. advertisementLast week saw share prices for several banks around the world fall sharply, particularly those with significant exposure to commercial real estate loans. Mirroring worrying developments in Japan and the United States, Europe now faces the possibility of an emerging commercial real estate crisis.America's Prologue: Warning SignsIn the US, things have developed in a worrying direction, with New York…
Teachers ranked 4th in the world EL PASO, Texas (February 8, 2024) – The University of Texas at El Paso is home to some of the top real estate researchers whose work has been recognized globally in the latest Real Estate Academic Leadership (REAL) rankings. Zifeng Feng is one of many faculty members at UTEP who have contributed significant real estate research, helping UTEP earn a top 10 ranking on the REAL Estate Rankings list, placing sixth in institutional research and fourth in faculty research. UTEP tied for sixth place out of 528 institutions for real estate research, moving up…
The graceful Art Deco building that dominates Chicago's main business district has a low occupancy rate of just 17 percent.A gleaming collection of Denver office towers once filled with tenants and worth $176 million in 2013 is now mostly vacant and last valued at just $82 million, according to data from Trepp, a research firm that tracks real estate loans. Even Los Angeles' famous buildings are trading for about half their pre-pandemic value.From San Francisco to Washington, D.C., the story is the same: Office buildings remain mired in a slow-burning crisis. Employees ordered to work from home at the start…
Opening a business bank account for your LLC doesn't just streamline your bookkeeping and operations (though of course it helps with that too): A bank account dedicated to your LLC is an essential step in maintaining the legal distinction between the business and its owners, and is necessary to preserve your limited liability protections. Even a one-member LLC should open an account. To open an LLC account, follow these steps: 1. Form an LLCThis may be your first step if you haven't legally formed your LLC and obtained an Employer Identification Number (EIN). An EIN allows you to open an…
Courtesy of Crystal and Dedric Pollitt We're increasingly seeing homebuying conversations surface in Black communities. Some lucky people are moving beyond talk to action. Dedrick and Crystal Pollitt, a married couple, parents, TV personalities, and real estate investors, are a great example of this. The couple stars in the A&E/Hulu series “50/50 Flip,” renovating homes for under $50,000 in under 50 days in Crystal's hometown of Burlington, North Carolina. More importantly, they're doing it in a neighborhood that's battling gentrification, which has made them local heroes. The second season of the series, which debuted in 2022, will premiere on Feb.…
Few would expect private real estate to thrive on institutional investor scorecards after a year like 2023, which began with continued rapid interest rate hikes by most central banks and ended with some stabilization but no signs of rate cuts in sight. Meanwhile, property values plummeted in most global markets, the failure of several regional banks in the U.S. forced lenders to raise capital, and transaction volumes plummeted as buyers and sellers fled for safety. This backdrop has thrust institutional confidence in private real estate into the spotlight: open-ended investment vehicles were shut down as investor redemption requests surged, new…
Michaela Lehr/Reuters The headquarters of Deutsche Pfandbriefbank in Unterschleißheim, Germany, in 2010 CNN, London — Deutsche Pfandbriefbank (PBB), a German lender specializing in real estate, has increased its funds for resolving bad loans as it braces for the worst decline in commercial property values in 15 years. PBB said in a statement on Wednesday it increased its provisions for loan losses for the fourth quarter of 2023, raising its total provisions for the year to 215 million euros ($231.7 million), citing “persistent weakness in the real estate market.” “Despite these expenses, PBB continues to make profits thanks to its financial…
Net income: $0.30 per diluted share for the fourth quarter and $0.29 for the full year 2023.Distributable earnings: $0.36 per share for the fourth quarter, $1.09 per share for the year, and adjustments totaling $1.69 per share.Realized Losses and Realized Gains: Realized losses on investments are offset by gains from extinguishment of debt.Dividend Strategy: ARI aims to match dividends to net taxable income, reflecting its commitment to returning profits to shareholders.New Loan Issuance: Two new loan issuance transactions were committed in the fourth quarter of 2023.Asset Management: Proactive approach in managing loan portfolio and optimizing balance sheet.On February 6, 2024,…