052. Commercial Real Estate News and Trends: CREI Weekly Update July 19th, 2021

Commercial Real Estate News and Trends: CREI Weekly Update July 19th, 2021

The Commercial Real Estate Investor Weekly Update (or the CREI Weekly Update if you’re not up for a mouthful) is the first commercial real estate news show bringing you the biggest news stories and market trends from around the country. Each week, we cover the Nashville market, which markets should be on your watchlist, office / retail / industrial / and multifamily updates, and a wildcard on a topic or trend we feel is worth sharing.

Tune in Mondays at 5:30pm CST to ask your questions live!

Commercial Real Estate News and Trends: CREI Weekly Update July 19th, 2021
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Articles Mentioned:

MARKET WATCH

https://www.bizjournals.com/nashville/news/2021/06/29/guerrier-development-announces-storyville-gardens.html

https://www.bizjournals.com/nashville/news/2021/07/09/silo-studios-sold-to-southeast-venture.html

https://www.bizjournals.com/nashville/news/2021/06/30/nashville-apartment-rates-on-the-rise.html

FUTURE OF CRE

https://www.wsj.com/articles/supersize-apartments-are-back-in-demand-11624964401

https://www.bisnow.com/national/news/data-center/a-steel-shortage-is-creating-headaches-for-data-center-builders-109543

https://webcache.googleusercontent.com/search?q=cache:https://www.bloomberg.com/news/articles/2021-07-14/lumber-futures-have-plunged-here-s-why-it-s-not-getting-cheaper-for-you

PE DEAL DIVE

https://therealdeal.com/2021/07/15/blackstone-buys-5-1b-in-affordable-housing-from-aig/

PROPTECH

https://webcache.googleusercontent.com/search?q=cache:https://www.globest.com/2021/07/01/the-business-case-for-cre-tokenization-bigger-markets-more-money/

READING REITS

https://seekingalpha.com/article/4438913-industrial-reits-who-doesnt-love-logistics

Featured
402. Your Loan Matures in 18 Months. Now What?
402. Your Loan Matures in 18 Months. Now What?

Your commercial real estate loan matures in 18 months. Now what?

Unlike a residential mortgage, most commercial loans don’t give me 30 years to pay them off. I’m typically working with a five-year term, which means at some point I have to refinance, sell, recapitalize, or figure out another way to handle that remaining balance.

And I’m actually going through this process on one of my own deals right now.

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401. How to Buy Your First Trailer Park
401. How to Buy Your First Trailer Park

Everybody in commercial real estate is fighting over the same apartment buildings at 5 caps. Frank Rolfe went the other direction and built one of the largest mobile home park portfolios in the country out of the one asset class most investors won't touch.

Everybody in commercial real estate is fighting over the same apartment buildings at 5 caps. Frank Rolfe went the other direction and built one of the largest mobile home park portfolios in the country out of the one asset class most investors won't touch. The mechanics are nothing like apartments. You own the land, the tenant owns the home, and moving that home costs more than the home is worth, so almost nobody leaves. Average tenancy in a park is 14 years. That one detail is why investors love this asset class, and it's exactly what critics point at. We get into both sides, including the Waffle House quote that landed Frank on John Oliver.

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400. The Seller’s Numbers Are Lying to You
400. The Seller’s Numbers Are Lying to You

The seller’s numbers are only the starting point. In this Office Hours, I'll break down how to pressure-test a commercial real estate deal, spot missing expenses, and uncover what a property is actually worth.

We’ll cover management, reserves, vacancy, and the underwriting mistakes that can make an average deal look like a great one. Three missing line items can change the price by six figures. If you’re buying or underwriting commercial real estate, this is one you don’t want to miss.

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399. The Retail Apocalypse Is A Lie
399. The Retail Apocalypse Is A Lie

Retail vacancy just hit 4.4% (almost as low as industrial) and nobody's built meaningful supply since 2008.

So why does everyone still believe Amazon killed retail? James Cook, who runs retail research for the Americas at JLL, brings the actual data: the barbell economy hollowing out the middle, the tenants that should scare you on a rent roll (and the ones that should make you pay more), Chick-fil-A's site-selection playbook, and the one number that tells us in 12 months who was right.

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398. What $250,000 Actually Buys in Commercial Real Estate (2026)
398. What $250,000 Actually Buys in Commercial Real Estate (2026)

Six months ago my team started testing a piece of software inside the Accelerator Mastermind to kill the spreadsheet for good. This week I turned the cameras on and ran it live, on air, to find and underwrite a real commercial deal for under $250,000.

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397. 13 Years of Commercial Real Estate in One Livestream
397. 13 Years of Commercial Real Estate in One Livestream

Thirteen years ago I was leasing space for a landlord who paid me almost nothing.

This week there are a hundred thousand of you in here. So instead of another deal breakdown, I'm compressing everything those thirteen years taught me into five lessons, one from each hat I've worn: broker, property manager, investor and developer. Real deals behind every lesson.

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396. Analyzing Commercial Deals Isn't As Hard As You Think
396. Analyzing Commercial Deals Isn't As Hard As You Think

For decades, if you wanted to analyze a commercial real estate deal, you needed Excel. Hours of formulas.

Tabs on top of tabs.

A model you probably didn't even build yourself and definitely don't fully trust.

That era is over.

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395. That 8% Cap Rate Is A Trap
395. That 8% Cap Rate Is A Trap

Everyone wants the highest cap rate. But what if that 8% cap rate is actually a warning sign? In this live session, we break down why experienced commercial real estate investors don't simply chase yield. Instead, they focus on understanding the risk behind the return and that's where most buyers get it wrong.

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394. The Deal Doesn't Make You Money. The Financing Does.
394. The Deal Doesn't Make You Money. The Financing Does.

Your bank charges you 7%. Your equity investors are costing you 20%. Here's why that's not a mistake. If that math surprised you, this session will change how you finance every deal you do from here on out. This is the full recording of Capital Stack 101, one session from our most recent CRE Central Mastermind weekend in Nashville.

I break down the four layers of financing in every commercial deal, why the "cheapest" money isn't always the smartest money, and why the order you stack it in decides your returns as much as the deal itself.

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393. Chick-Fil-A Already Did Your Real Estate Research
393. Chick-Fil-A Already Did Your Real Estate Research

Chick-fil-A spends millions researching a single street corner before they commit analyzing traffic counts, daytime population, growth trajectory, co-tenancy, and then they publish the answer for free. It's the restaurant.

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