Hello, Commercial Real Estate Pros! 🏢

Commercial real estate is on the brink of transformation, and today’s insights could be the edge you need.

From debt deadlines looming large to strategies for making high-impact moves as a newcomer, we’re exploring what it takes to stand out—and thrive—in a market facing seismic shifts. If you’re ready to think ahead and seize the moment, this is your playbook.

Dive in and discover the moves that could redefine your next big win!

📰 Upcoming in this issue

• Commercial Real Estate on the Brink: Key Moves for Property Owners 🏢

• Commercial Property’s “Moment of Truth” — Is the Market on the Edge? 🏢

• Mastering the Commercial Real Estate Game from Day One 🏢

Commercial Real Estate on the Brink: Key Moves for Property Owners 🏢 read the full 676-word article here

Article published: October 23, 2024

Deniz Kahramaner’s recent Inc. article takes a hard look at the shifting sands of commercial real estate. With 2024 seeing a surge in loan maturities, rising interest rates, and a historic 61% drop in investment volume, the market is flashing clear warning signs for property owners. If you’re holding onto commercial assets, this is a moment to pause and rethink.

The big question for property owners? Should you hold onto your assets and wait out the downturn, or attempt a sale in what’s shaping up to be an increasingly volatile market? Kahramaner suggests that while conditions are challenging, those who can weather the current storm might benefit from an eventual rebound—especially with construction projects down 70% from last year, hinting at a future supply gap.

Key Takeaways:

• 📉 Investment Volume Nosedive: Investment in commercial real estate has dropped 61% in 2023, showing a significant pullback by major investors.

• 📅 Loan Maturities Rising: With $929 billion in commercial real estate loans maturing in 2024, many owners may be forced to refinance at higher rates—or sell at a loss.

• 💸 Rising Debt Costs: Interest rates on new commercial loans have nearly doubled, increasing debt servicing costs and deterring potential buyers.

• 🔮 Limited New Supply: New construction is down 70%, suggesting a potential supply crunch in the coming years for owners who can hold out.

Commercial Property’s “Moment of Truth” — Is the Market on the Edge? 🏢 read the full 856-word article here

Article published: October 24, 2024

The commercial real estate sector is facing its most critical crossroads since the 2008 financial crisis, according to Financial Times. As interest rates peak and asset prices stabilize, the question is whether the market is finally rebounding—or whether it’s bracing for a deeper slump. With landmark buildings like London’s Citypoint up for sale, investors are watching closely to see if real values can meet expectations or if cracks in the market will widen.

After a 20% drop in property values and a 45% plunge in global transaction volumes since 2022, many investors are reluctant to mark down portfolios, holding out for recovery instead. But with billions in loans maturing soon and many properties held at potentially inflated values, a wave of distressed sales may be on the horizon.

Key Takeaways:

• 📉 Property Valuation Mismatch: Many assets are still overvalued by 10-15%, with some owners using “phantom valuations” to avoid write-downs.

• ⏳ Debt Deadlines Loom: Billions in loans are maturing in 2024-2025, with properties like Citypoint testing whether they can sell above debt levels.

• ⚠️ “Extend and Pretend” Strategy: Many owners are stalling on write-downs, hoping to avoid forced sales; but experts warn time is running out.

• 💸 Selling to Survive: With debt and investor pressures mounting, many funds are preparing to sell even if it means revealing losses across portfolios.

Mastering the Commercial Real Estate Game from Day One 🏢
watch the full 23-min video here

Video published: October 29, 2024

In this power-packed video, Henry Eisenstein breaks down the exact steps to succeed as a commercial real estate agent, even if you're just starting out with zero experience. His approach? Focus on building a rock-solid daily routine, master cold calling, and use persistence to create your own opportunities.

Henry's method isn’t just about showing up—it's about drilling down on the most effective daily tasks, like spending hours on lead generation and using every conversation to sharpen your skills. The goal: become an unstoppable force in commercial real estate by putting in the reps and learning directly from real-world interactions.

Key Takeaways:

• 🗓️ Structure Your Day: Start with a CEO-style morning meeting to outline priorities, then dive into focused lead generation.

• 📞 Cold Calling is King: Treat prospecting like going to the gym—it’s the most essential "workout" for success in this field.

• 🧐 Quality over Quantity with Buyers: Build a VIP buyer list of committed clients; a handful of solid relationships can be more profitable than a massive network.

• 🏗️ Practice with Small Deals First: Begin with smaller properties to build confidence and expertise before taking on the bigger fish in the commercial real estate pond.

Why It Matters

Commercial real estate is teetering at the edge, and only those with the right insights will navigate it successfully. As market dynamics change rapidly, timing and strategy are everything. Those who adapt won’t just stay afloat—they’ll capitalize on the shifting tides.

So, are you ready to be among the few who turn these uncertainties into unmatched opportunities?

Let’s make it happen!

Anne Morgan
Editor-in-Chief
Commercial Real Estate Weekly