The Best Ever Newsletter - Best of November 2023
Best Ever CRE
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👋 Hi Best Ever Community!
Here, you'll find the best of the best from our weekly newsletters in November, including news, tools, articles, and podcasts.
Enjoy!
⭐️ Top Story ⭐️
💸 A 'once-in-a-lifetime' opportunity on the horizon?
🏢 While the current state of the office real estate market might raise some eyebrows, it's not all doom and gloom. Despite a significant decrease in tenant demand that’s put older office properties in a tough spot, leading to distressed sales, this situation might just be setting the stage for an exciting opportunity — investing in Class A office space.
While older properties from the 1960s to the 1990s are facing reduced demand, it's a different story for office spaces built in the last two decades that are better equipped to thrive in the current landscape. In addition, suburban office spaces, especially in walkable suburbs, are witnessing a surge in demand. This trend is making Class A office space an increasingly attractive investment option, and there are several reasons for this shift.
🕊 Flight to Quality: During challenging times in the office real estate market, there is a "flight to quality" occurring. This means that businesses and tenants are seeking high-quality Class A office spaces as they provide better amenities, modern infrastructure, and a more attractive environment.
📉 Discounted Prices: The market is currently offering Class A office properties at a discount. Investors may be able to acquire Class A properties at a 30%–40% discount compared to their pre-pandemic values.
💪 Historical Resilience: Class A office properties, especially those built since 2005, have historically been more resilient and have better performance during market fluctuations than older properties.
💵 Stability and Lease Rates: Some Class A office properties are achieving stable lease rates, even in the face of market challenges.
Considering all these factors, it's crucial to keep in mind that the opportunity to invest in Class A office space isn't a one-size-fits-all deal. The scenario can vary significantly depending on the location and the specific property you're eyeing. Furthermore, the entire office market is still grappling with some uncertainties.
So, if you're thinking about taking the plunge, take your time to thoroughly evaluate each investment opportunity. As always, it’s imperative to factor in your long-term goals and personal comfort with risk before making any investment decisions.
🎙️ From the Best Ever Podcast
🏦 What's behind CRE's private credit surge? with Nelson Chu >> Listen here
Recommended by LinkedIn
💸 The misunderstood REI tool you should be using with Charlie Hardage >> Listen here
💰 J Scott sorts through the economic muck with J Scott >> Listen here
📝 From the Best Ever Blog
Property Management Fee Calculation: Guide For Investors
So, you made the call to hire a property management company to free up your schedule, but sifting through the various fees has proven to be just as time-consuming. How can you quickly and accurately calculate your anticipated costs?
This article explores the typical fee structures that property management companies use. Understanding these fee models can help you negotiate the best rates for your property. From Nichole Stohler .
📁 Free Document Download
⏳ Should You Sell Your Apartment Community Early?
One of your ongoing asset management duties is to frequently analyze the market to estimate the current as-is value of your property based on the market cap rate and your current net operating income. This document will help you determine if it makes sense to sell your apartment deal before your initially projected sales date.
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Have a Best Ever December!
- The Best Ever Team