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How Covid-19 is changing face of commercial real estate market

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Workers are expected to return in full over the next several months as Covid-19 restrictions lift across Arizona and many employers configure how to bring everyone back to the office – or not.

One of Arizona’s leading real estate attorneys, Jay Kramer of Fennemore Craig, spoke to Chamber Business News about what to expect and gave employers advice on how to move forward.

The first challenge will be to motivate employees to return to the construction sites, said Kramer.

“People haven’t been in the office in a while, and you can commute back and forth in Phoenix for anywhere from 40 minutes to an hour,” said Kramer, a Phoenix-based partner at Fennemore. “If you go back to the office and just go to a cubicle or close the door to your office, it might not be a reason to come back. So we have to make it more pleasant, create a communal environment that is conducive to collaboration and socialization and offers people quiet spaces to work. “

After the Centers for Disease Control (CDC) lifted the restrictions, Kramer predicts that employees will be back to full capacity by the end of the year.

Kramer offered his predictions for the future and some advice:

Short and long term forecasts

In the short term, the commercial office market will continue to be bumpy, and Kramer advises staying flexible now.

“I think there will be an initial knee-jerk reaction, ‘How can we reduce the space?’ “he said.” Most companies will find themselves in a hybrid environment wondering why they need as much space as they have on any given day when only 50 percent of their employees are in the office. “

In the longer term, more office space may be needed as more collaboration spaces, social spaces, quiet spaces, and Zoom meeting conference rooms are needed, he said.

“With all of these experiential requirements, we may need as much or additional space as we need to get people back to work in the office.”

Large headquarters could become more obsolete

Expect large headquarters to disappear in favor of regional satellite offices nearby to provide greater travel convenience for employees, Kramer said. Many offices also need to be “rethought” to make them more attractive to keep staff busy for a few days a week or more.

“Instead of having a large corporate office downtown or on the 24th and Camelback, perhaps one approach would be to have two or three smaller offices in the Valley, closer to where your employees are so they have a place to go where they can be a sense of camaraderie, community and solidarity, ”said Kramer. “But at the same time limit commuting and exposure to large numbers of people.”

Time to think about flexible rental options for the future

In the past 14 months, many large corporations have been able to bear their 2020 mortgage and lease contracts because they have cut the other costs associated with running an office by up to 20 percent.

In the future, CFOs may need to consider reducing the cost of existing leases through vehicles such as subleasing. Now is a good time to think ahead about how leases can be renegotiated to allow flexibility for expansion and contraction.

“It is very difficult to change your rental agreement during the existing rental period, unless you have negotiated a shortening, expansion options or provisions for early termination or the like,” said Kramer. “So most of us will continue to have to live with our current office space.”

Subletting glut right now

With everyone trying to sublet right now, it can be difficult to find buyers. Businesses may find that they need to upgrade their offices to survive.

“The most important issues will be flexibility, and that means the possibility of contracting and expanding your space, of having options to extend your term, but also the possibility of contractually terminating your lease,” said Kramer.

With the knowledge that government orders or orders may limit the number of employees in the office, more emphasis is placed on acts of God and lease provisions and possibly convictions.

Tenants are currently in a “lever” position

Right now, the leverage is with tenants, which means landlords are more likely to work with flexible leases and other terms.

“So when you have an expiring lease you typically look at your lease 18 months before the expiration date, but you might want to look three years in advance now and see if there is anything you can do.”

The residential property boom will benefit the commercial market

In view of the burning housing market in the Valley, it can be assumed that the commercial real estate sector will also benefit from it.

“With more people, you assume that more companies, whether small or large, will either settle here or possibly relocate their headquarters or their regional headquarters to the region.”

As people move to the area, more “knowledge-based” businesses and higher salaries will follow.

“The next five years in the Valley will be good times for the real estate market. There will probably be some dropouts, but I think the trend will be very positive overall. “

Real Estate News

Dubai real estate sees a big boom behind the Dubai International Exposition

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New Delhi [India]June 13 (ANI / NewsVoir): The authorities’ handling of pandemics in Dubai has increased the immigration of people to Dubai in recent months.

The city is seeing a surge in investors from India and is keen to come to the city to start a business or buy a property of their choice.

The Dubai-based multi-billion dollar conglomerate Donau Group is in a very good position for Expo 2020 in Dubai.

Low interest and mortgage rates, a highly effective COVID-19 vaccination campaign and new investor visa requirements introduced by the UAE authorities are of great benefit to those who are passionate about living, working and trading in Dubai. The scenario is displayed.

For those going to Dubai to invest or buy real estate in Dubai, Donau Group offers a great opportunity to choose from a number of options that it offers. According to the Danube Group, many foreigners in Europe and China as well as investors from India are trying to buy real estate in Dubai.

Dubai will continue to be a city trusted by investors around the world. The Emirates have proven resilient in the face of several challenges that have plagued the global economy many times. In addition, the way the emirate has dealt with the COVID-19 crisis sends a strong message to the world that Dubai continues to be a hub for business prosperity.

“Expo 2020 will herald a big boom for Dubai,” said Lizwan Sajan, CEO and founder of the Donau Group. House prices have risen in the last few months. You can see it rising which means developers are working hard to build new apartments and villas, especially all government invented like golden visas and 100% property laws. When we look at the guidelines we are lucky enough to make the expatriates feel right at home. All of these guidelines create the confidence of investors looking to start a business here. It definitely helps. “He also considered the best time to invest in real estate in the emirate. “We can say that there will be a major real estate boom in the near future. We keep telling people it’s time to buy real estate. You won’t get the same prices that you currently see in the market. The current interest rates are very low as the real estate prices are very cheap, and mortgage rates are also very attractive. “” We saw this trend of rising prices. In the building materials segment increased by more than 50% – what. It’s been a year. Expo2020 Due to the great demand in Dubai, we are doing our best to source the materials. We have a lot of projects to complete before the event starts. But when it comes to the construction industry, I think that’s not a problem in Dubai. “A lot of companies that have laid off employees are considering hiring new staff so that business can get back to normal and I think the supply of new units will be balanced in the short term,” he said.

While property prices have increased 30-35% in the past six months, real estate in Dubai is still cheap compared to many other major international hubs like Hong Kong and London. Villa prices are rising and will continue to rise in the coming months, but house prices are still low, making them an attractive investment. Dubai’s luxury real estate market has already started to recover and will be followed by an affordable real estate market. The demand comes from consumption in the US and Europe.

The Donau Group, founded in 1993, was founded and maintained under the leadership of Lizwan Sajan, known as the founder and chairwoman of the group. The company, which began as a small trading company, has grown steadily, expanded its position in the region and established itself under its large roof as the No. 1 building materials company among other industries.

The company had sales of $ 1.3 billion in 2019 and has grown steadily since then. Additionally, Forbes Middle East’s Lizwan Sajan was ranked 12th on the UAE’s Top 100 Indian Leaders. As one of the largest providers in the region, the business of the Donau Group is dominated by two large segments: Building materials FZCO and Donau Home (home interior / decoration solutions). Showrooms scattered throughout the MENA area.

This story is provided by NewsVoir. ANI is not responsible for the content of this article. (ANI / NewsVoir)

Quellenlink Real estate in Dubai is experiencing a huge boom behind the Dubai International Exposition

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Real Estate News

Inman Announces 14 Real Estate Sponsors for Inman Connect June | News

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TALLAHASSEE, Florida., June 12, 2021 / PRNewswire-PRWeb / – Inman Group announced 14 real estate companies will sponsor and exhibit at Inman Connect, a three-day virtual event 15th June – 17. 2021.

The event will welcome thousands of brokers, brokers and real estate professionals to a virtual event specially designed to forge the next chapter in the industry. The line-up of speakers, panels and tracks at this event includes heavyweights, thought leaders, industry insiders and exciting disruptors.

The range of property sponsors and exhibitors offers training, products, solutions and services that can help participating top real estate agents stay competitive, grow their business and prepare for the future.

The sponsors include:

Adfenix

adfenix.com/inman-connect

Real estate agents generally spend too much time assisting brokers with online marketing, have difficulty differentiating and are unable to properly map impact on their marketing (ROI). Adfenix helps marketing teams solve these key challenges by automating bespoke marketing programs for their agents and their brand.

Back to you

backatyou.com

Back At You is the leading provider of back office, operating and marketing software for real estate. Back At You’s Financial BAY back office is currently used by some of the largest brokerage firms in the country, featuring hundreds of interactive reports, managing every commission structure, accounting integration, and more. Back At You’s Financial BAY, Connection BAY and Marketing BAY offer brokers a seamless end-to-end solution for any or all of their real estate needs.

BoomTown

boomtownroi.om

BoomTown has all the tools, technology, and teams that real estate professionals need to be successful. It’s the only solution that generates and manages leads, with 300+ experts assisting agents. Your lead generation, consumer websites, CRM, lead qualification services, and more come in flexible packages that scale with success.

FIVE

cincpro.com

CINC (Commissions Inc) is the leading provider of web-based real estate marketing and CRM software to elite agents and teams across the world North America. The CINC solution includes: a consumer website that integrates local MLS data; a complete CRM platform that enables real estate agents to service clients and monitor their business; and access to three mobile apps.

eXp Realty

join exprealty.com

eXp Realty, The Real Estate Cloud Brokerage, is one of the fastest growing global residential real estate companies with more than 38,000 brokers in The United States, Canada, the United Kingdom, Australia and South Africa. As a subsidiary of a publicly traded company, eXp Realty uniquely offers real estate professionals within its ranks the opportunity to acquire shares in eXp World Holdings for production and contributions to overall business growth.

Finance of America Commercial

foacommercial.com

As part of the Finance of America family of companies, Finance of America Commercial provides residential real estate investors across the country with rental loans and fix-and-flip lines of credit to help borrowers overcome traditional funding hurdles and build long-term real estate investment.

IXACT contact

ixactcontact.com

IXACT Contact is a next generation real estate CRM that gives real estate professionals all the tools they need to manage contact information, keep in touch, do active business and maintain an online presence. All in a single, easy-to-use solution.

Lucidpress

lucidpress.com

Lucidpress offers real estate agents an incredibly easy way to customize and distribute their own marketing materials without ever leaving the brand. Lockable templates protect the brand values ​​and enable agents to carry out small design optimizations themselves in order to relieve the central team. With Lucidpress, the branding template platform trusted by over 8 million users worldwide, brokerage firms can keep their agents happy and say goodbye to rogue branding forever.

Moxtra

moxtra.com

In today’s world, businesses need a digital office where real estate professionals can provide first class service to their clients. This means providing a digital destination where customers can call whenever they want and get a one-stop service experience. Moxtra supports OneStop Customer Portal – a continuous collaboration digital office that helps real estate professionals retain and grow customers, manage distributed organizations, and reduce business costs. Moxtra’s Customer Collaboration Platform can support a branded OneStop customer portal as a fluid extension of an existing website, web or mobile app or as a stand-alone web and mobile app.

RE / MAX

remax.com

As one of the world’s leading real estate franchisors, RE / MAX was founded with an innovative, entrepreneurial culture that offers its agents and franchisees the flexibility to run their businesses with great independence. With nearly 140,000 brokers in more than 110 countries and territories, no one in the world sells more real estate than RE / MAX when measured on the transaction side of residential real estate.

Broker solutions for the residential property council

crs.com

With more than 28,000 members, the Residential Real Estate Council is a home for BROKERS who want a head start and more from their careers. RRC offers a variety of educational opportunities, business services, and benefits to help real estate professionals stand out and sell more homes. RRC awards the CRS designation to seasoned REALTORS® who have completed advanced professional training and have demonstrated excellence in residential real estate, and also offers a variety of certificate programs to help real estate professionals further improve their skills. Through tailored training, advisory services and resources, RRC broker solutions help agents meet and exceed the daily demands of their business to take brokerage firms or teams to new heights.

We long for

studeohq.com

In today’s extremely competitive and fast-paced real estate market, real estate agents need a digital presence that instantly demonstrates their unique value within seconds. Studeo’s award-winning interactive storytelling strategy for real estate helps real estate agents advance their online marketing by quickly and easily presenting offers, neighborhoods and presentations as interactive digital stories. It’s an easy-to-use platform that enables agents to engage with the market in an immersive way, highlight the community’s lifestyle and tell their unique brand story.

Zillow

zillow.com

Zillow Group, Inc. is reinventing real estate to make it easier to move into the next chapter in life. As the most visited real estate website in the US, Zillow and its affiliates provide customers with an on-demand sale, purchase, rental, or finance experience with transparency and near-seamless end-to-end service.

Zoodealio

zoodealio.com

Zoodealio heralds a new era in iBuying and lead generation software. Their “Interactive Multi-Offer Dashboard” provides consumers with an offer management system and agent interaction tool that has never been seen in the real estate market. Zoodealio’s trusted lead generation cash offer website gives agents the ability to compete with iBuyers for seller leads and gain an edge over other agents in their market.

Inman Connect takes place online 15.-17. June 2021. The best and brightest in real estate and technology are expected. For information on obtaining a press card, please contact rachel@inman.com.

About Inman | Inman News is the premier news source for real estate agents, brokers, brokers, real estate managers and real estate technology leaders who need the latest real estate news, insights and analysis to grow their business and stay ahead of the competition. Visit inman.com for more information.

Media contact

Rachel Mastandrea, Inman News, +1 (510) 658-9252 ext: 124, rachel@inman.com

SOURCE Inman News

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Tight housing market causing skyrocketing prices in Manatee, Sarasota

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Just over four years ago, the average retail price for a single family home in Sarasota County was just over $ 250,000. But given the ongoing real estate boom, buyers today might be happy to find more than a few properties in the market at this price point.

The average sales price for Sarasota County has surged to more than $ 380,000 as the number of homes in the market plummets into a dangerous area for buyers and real estate agents.

Manatee County saw an almost identical increase in the average home sales price amid a shrinking inventory of homes for sale.

The reasons for the increase are diverse, according to residential real estate experts: builders burned by the last economic crisis have drastically reduced speculative housing construction, the COVID-19 pandemic has created a reinterpretation of office work where Zoom calls have enabled employees Living far from the office and an unprecedented shortage of inventory has created an environment where homes stay in the market for days rather than months.

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Jessica Rodriguez came across this buzz saw of factors while searching for her first home. The 27-year-old works in manufacturing at Dentsply Sirona Products in North Sarasota. Over the past three years, Rodriguez has saved nearly $ 10,000 to use as a down payment to move out of her parents’ house.

She began looking for a home for less than $ 300,000 in January.

Your options are not promising.

In all counties of Sarasota and Manatee, there are fewer than 140 properties for sale for less than $ 300,000, according to the Multiple Listing Service. Many of the properties in their price range will not meet the requirements for a Federal Housing Administration (FHA) loan that they are trying to use to finance their purchase. And with a plethora of cash buyers poised to rush, sellers are unlikely to overcome the regulatory hurdles that come with government-subsidized credit.

“It was pretty frustrating,” she said. “If I want to make an offer, it’s already under contract.

“I hope for a miracle.”

Meanwhile, the luxury market has more options. According to data from the MLS, Sarasota has 158 properties at or above $ 1 million and Manatee County has 97 listings in that area.

Challenges for brokers too

Rodriguez was hoping to buy a three bedroom, two bath house near her work. As of Friday, there were only seven properties in Sarasota that met their requirements.

While bidding wars and soaring residential property prices may sound like a gold mine to realtors in the area, the reality of the shortage of supply is such that many will have a hard time selling bids.

The Sarasota and Manatee Brokerage Association has 7,758 members.

There are 1,392 active listings for all residential property types in Manatee and Sarasota Counties, according to data from the MLS on Friday morning. In 2016, Sarasota County had 2,941 active listings and Manatee County had 2,082 active listings, according to the year-end summary for that year compiled by RASM.

“If you toss a cracker and you have 700 pigeons, what happens?” Said Barbara Smith, a real estate agent with fine traits. “It’s tough out there and you better know what’s going on.”

Real estate agent Barbara Smith says the majority of her sales recently have been to outside of state buyers, which puts restrictions on people who might want to buy a new home in their own market.

Smith has sold two properties in the past 30 days. What she sees in the market is an onslaught of out-of-state buyers, often putting cash on the table.

All but one of their deals this year involved out-of-state buyers. She believes that a healthy residential real estate market should be driven by local buyers.

A local buyer looking to upgrade from a starter home to a slightly nicer home would take some pressure off inventory as people were selling homes in the community and moving to other neighborhoods.

Currently, many potential sellers who want to stay in the market are hesitant to sell their homes fearing that it would be difficult to find a new one at a reasonable price, she said.

Chris Gremley, broker owner at Banyan Tree Realty LLC, describes his residential real estate operation as a one-man band as he completes all marketing and show activities.

“The first question I ask people is, where are you going?” He said.

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If the answer is somewhere in the same market, he warns them of the challenges.

When a buyer comes in and rents at a reasonable price in the market, his advice is even more meaningful.

“I’m telling them to renew their lease,” he said.

He also said many buyers are moving from another state where they have just sold a previous home. Such buyers have significant advantages over those trying to finance a property.

When a buyer needs a bank mortgage, the property needs to be valued. If this appraisal report remains below the offer, the bank demands a higher deposit or the seller has to reduce the price to the appraised value.

“Appraisers are gods,” said Gremley. “It’s all ‘yes sir, no sir’ from me with them. You definitely don’t argue. ”

He listed a 1,000-square-foot, two-bedroom, one-bathroom house in Bradenton from 1947 for $ 250,000. The property has a long-term tenant and he is marketing it as an investment property.

Gremley says he could have sold the property more easily at that price if it weren’t for an investment property.

“I’ve had several people contact me about the occupation of this property,” he said.

A bubble market
but not like last time

Chris Jones, president of Florida Economic Advisors, holds a PhD in economics from the University of South Florida. He is also a full-time faculty member at USF in the economics department.

Jones described the housing market as a bubble, but not one that will burst anytime soon. In fact, he doesn’t expect it to pop at all. Instead, he expects deflation to slow as supply catches up with demand.

Many will hear the words housing bubble and fear the end of 2007 and the beginning of 2008. Jones said the market slump in the early 2000s was driven by demand artificially fueled by access to easy lending.

“Anyone who basically had a pulse could go way beyond their means and buy a house,” he said.

“Today’s bubble is not driven by the demand economy,” he said. “It’s supply-side driven.”

The economic downturn at the end of 2007 prompted many builders to limit the number of speculative housing projects. For those they do, the number of units is only a fraction of what they would have tried before the property crash.

In addition, the pandemic has squeezed the supply chains for many of the goods involved in new construction, such as plywood and lumber, which is driving up costs.

A third factor is the more flexible choice of location for working people. The pandemic forced many companies to allow their employees to work remotely.

Although the prices that Manatee and Sarasota are experiencing are not outside of what he expects from the current economy, he said the rate of growth is unsustainable.

“People’s incomes are not growing at this rate,” he said. “These price increases can only last so long. You won’t have enough people who can afford it. ”

He anticipates builders will come and build new homes at more affordable prices as supply chains correct and material costs decrease, which will lower the prices of existing homes.

However, this won’t be a quick process.

“I think you will see real estate markets keep rising for 12 to 18 months,” he said. “But more supply always leads to lower prices.”

Narrow inventory

detached house

Location: Total number of entries: Less than $ 300,000: More than or equal to $ 1 million:

Sarasota County: 495: 79: 158

Manati County: 418: 57: 97

Condominium

Sarasota County: 221: 54: 81

Manati County: 114: 61: 4

Townhouses

Sarasota Ward: 30-0-1

Manati County: 18-3-0

Mobile accommodations

Sarasota County: 32: 11: 0

Manati County: 37: 36: 0

Prefabricated houses:

Sarasota County: 13: 11: 0

Manati County: 14-13-0

SOURCE: Data from the Multiple Listing Service (as of Friday morning).

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