Monthly Archives: January 2023

Trends Shaping Commercial Real Estate Investing

Trends Shaping Commercial Real Estate Investing

Let’s take a deep dive into the trends shaping commercial real estate investing as we head into 2023. As the commercial real estate market continues to see ongoing changes, investors, owners, and operators in the space are having to deal with new challenges. The ever-changing workplace, labor shortages, sustainability motives, and increased interest rates all play major factors in today’s market.

While there will always be challenges for investors to face, there will also be newfound opportunity for CRE investors in 2023. Let’s take a look at the top trends shaping and changing commercial real estate investing today.

Commercial Real Estate Outlook for 2023

Before we dive into the trends shaping commercial real estate, it can help to lay out the industry’s current standing. Here are a few figures from recent reports to put the market’s current state into perspective:

  • Federal Reserve has recently stated rate hikes will continue into mid-2023.
  • Rental price growth expected to increase from 5.8% (June 2022) to 8.4% (May 2023).
  • Reportedly, only 10% of CRE investors saw their portfolios decrease in 2022.
  • 64% of property teams in the office segment will increase investments in proptech during 2023.
  • 84% of property teams have tenants who’ve fully implemented the hybrid work model.

Multifamily Real Estate in 2023

So far in 2023, the demand for multifamily housing has remained strong. The high interest rates that first-time buyers are forced to deal with are leaving many investors thinking the demand for multifamily will hold pace throughout 2023.

Here are a few of the trends shaping the multifamily housing sector:

  • Increasing demand throughout major metro areas across the U.S.
  • Many undersupplied cities as far as total housing units is concerned
  • Increased rent prices
  • Increased construction costs and supply chain issues

Overall, the multifamily market is on the investors side right now. High demand paired with increases in rent prices make for attractive opportunity across the country, but it won’t come without difficulty. Many investors, builders, and developers are struggling to put together new projects as they face the same supply chain/construction issues that they’ve been dealing with since pre-Covid.

Sustainability for Commercial Real Estate

It should come as no surprise that sustainability will play a huge role in commercial real estate throughout 2023. Government – at both the federal and state level – is expected to pass both green building mandates and incentives towards sustainability that will directly impact the commercial real estate industry.

Here are a few numbers to help explain the sustainability impact on CRE:

  • 61% of CRE property teams are prioritizing energy efficiency in 2023.
  • 24% of CRE firms report being on the path toward net zero/carbon neutrality
  • 49% of CRE firms are prioritizing sustainability on the technology front

While more and more regulation can certainly be expected when it comes to sustainable practices in commercial real estate, there are still ways investors can use sustainability to their advantage. Most notably, solar continues to be a priority in 2023. Solar offers CRE investors and property owners the ability to boost cash flow by reducing utility expenses, increasing rents, increasing maintenance reimbursements, and capitalize on certain tax credits.

Work-From-Home/Office Revival

The debate around the future of the white collar workforce has been touched on again and again since the pandemic inspired a surge of people to work from home. While many people have already returned to the office, there is still an estimated 26% of U.S. employees working remotely.

The work-from-home movement has led many developers in the office space to rethink strategy and build more incentivizing and accommodating workspaces. Many tech and finance companies with already established offices have had to make similar changes.

Despite the opposition from office workers, the office sector hasn’t experienced as big of a hit as you might think. Reportedly, no region across the U.S. has seen vacancy rates plunge below pre-pandemic levels. In the end, the investors and developers that cater to the office-workers needs and expectations will likely come out on top – something that’s already being proven with Phoenix’s The Grove, a 181,494 square foot innovative Class A space.

A Variable Retail Sector

As it has always been the case, the state of the retail market will largely depend on location and retail category. Neighborhood shopping centers outfitted with grocery stores, pharmacies, coffee shops, and attractive restaurants will continue to do well so long as they are located in well-populated and active residential areas.

Investors have tried to revive Class B and C retail spaces – mainly strip malls – for decades. While there are sometimes tax advantages in doing so, more and more investors and developers are repurposing these spaces altogether. One trend we can expect to continue throughout 2023 and 2024 is the recycling of these once dingy strip malls into more lucrative establishments. So far, developers have turned these Class B and C retail spaces into multifamily housing, attractive shopping centers, movie theaters, and more.

Commercial Real Estate Investment | Phoenix, Arizona

The commercial real estate market in Phoenix has seen monumental growth in the last two years. Investors have found high demand, low supply, unfathomable rent growth, and lucrative opportunity across the board. The metro area has grown to accommodate the city’s 4.6 million total residents with incredible job growth, job opportunity, and consumer spending. Certain suburbs saw a growth of over 80% in the last decade – not to mention the bustling industrial space either.

Here is an overview of the state of commercial real estate in Phoenix as of 2023:

  • Multifamily: High demand bringing in more developers and investors; growth rate peaked at an impressive 27% in 2022.
  • Industrial: Annual rent growth rate of 16.5%, nearly doubling the national average.
  • Retail: Steadily increasing rents – 7.1% year-over-year, compared to the national average of only 4.3%.
  • Office: Steady market despite troubling factors; 160 building transactions in 2022 with total investment sales volume of $2.2 billion.

More and more investors are turning to the Phoenix market for lucrative hedges against inflation and competitive overall opportunities. Looking to find out more about CRE opportunities in Phoenix? Feel free to reach out to us at ICRE Investing with any questions you might have!

 

How to Fix ‘ene sys’ Driver Error in Windows 10

We’ll show you how to do both of those things below. There are a few different things that can cause the “Bad system config info” error message in Windows 10. The most common reason is incorrect or corrupted system files. https://windll.com/dll/microsoft-corporation/wing68 This can happen for a variety of reasons, but typically it’s due to a recent Windows update that didn’t install correctly, or some sort of malware infection. Windows 10 is a great operating system, but like all software, it sometimes has issues. One common problem that users experience is an error message indicating that their system configuration information is incorrect. Error messages display stop code errors, although some Windows stop codes need a particular repair.

  • However, it’s not always easy to determine the source of the issue.
  • You can set your active hours –the time when you’ll be using your PC– to any time of your preference.
  • You’ll also be able to choose between reinstalling Windows using recovery data from your system, or downloading a fresh copy over the internet.

Consider moving to a newer version of the software, or if it’s stopped being developed, it may be time to look for alternatives. If a program isn’t working with Windows 10, try looking in the Windows Store for an update and, if that doesn’t work, delete and reinstall it. Each version of a new operating system comes with its own set of backwards compatibility issues and Windows 10 is no exception. Windows 10 is, in many ways, a truly internet-based operating system. Mostly, this is a bonus but there are times when it isn’t – and Microsoft’s attitude towards operating system updates is one such time. Unlike previous versions of Windows, the latest one is almost exclusively available online, which means that official Microsoft websites are the best bet for your purchase.

Printer connection issues

An expandable string value is just like the string value from above, except that they contain variables. When these types of registry values are called upon by Windows or other programs, their values are expanded out to what the variable defines. There are several types of registry values, each created with a different purpose in mind. Some use regular letters and numbers that are easy to read and understand, while others use binary or hexadecimal to express their values. However, before making changes to the Registry, you will have to open it first. To do that, we use a program called Registry Editor, which acts as an interface to the Registry.

The registry helps Windows manage and operate your computer, ensuring access to critical resources and helping important programs configure settings. A hierarchical database structure of keys and values makes up the registry. The Windows registry is one of the most intimidating parts of your computer — all user-friendliness disappears in a mess of seemingly incomprehensible character combinations. Thankfully, a little bit of know-how can help guide you. Keep reading to learn how to use the regedit tool to access the Windows registry, and how powerful cleanup software can keep your registry working optimally. Hunter Mode is an innovative feature that allows you to select in a more flexible way the program to uninstall or manage. When you activate Hunter Mode, Revo Uninstaller ‘s main window will disappear, and a new targeting icon will appear instead.

Core Elements For Dll Errors In The Usa

You can review each fix manually, but you can typically trust CCleaner to make the correct repair. In some documentation and online forums, the registry values may be abbreviated. For example, instead of saying “HKEY_LOCAL_MACHINE,” it is easier to say and write “HKLM.” For a listing of registry terms and shorthand, see our registry definition. Each backslash (“\”) in a registry path represents another folder in the registry, with the name of that folder following the backslash. You will see instructions on how to fix the registry issue on your PC in the software.

Users have reported that Game Mode causes conflicts with keyboards, making the Windows key unusable as a result. You can easily turn it off following our quick guide to verify whether or not it causes any problems. Yes to allow PowerShell to make changes on your device. Is an extremely powerful tool for making adjustments to your computer, as well as troubleshooting. It gives you the ability to execute commands and directly tell your PC what to do through a scripting language. PowerShell is an extremely powerful tool for making adjustments to your computer, as well as troubleshooting.

Error Code

When the remote device isn’t configured to share files or printers, you’ll never get a connection. Verify that file and printer sharing is active on the remote computer, or if necessary, turn this feature on. The error code discussed above is connected to your network path. Hence, by using any of the solutions we have suggested in this article, you should be able to successfully restore your network path. It is common to encounter this error if the sharing property isn’t enabled. This is because for computers to be able to send and receive files and data, you need to make sure your device can share its folders.

  • For example, at development time, you want to build in debugging information, but you would not normally want to build the version you ship this way.
  • Under Windows Vista, sfc.exe can be used to check specific folder paths, including the Windows folder and the boot folder.
  • Slight modification to how commands are interpreted.

But rebuilding your device can be highly impactful, so we’ll attempt to provide some pointers on which registry keys might be causing the issues. Keep in mind that editing your registry can be dangerous, leading to instability and forcing you to rebuild the device. It is likely that some of your projects will depend upon other projects, but if they all live in their own solutions, you will have no way of representing this formally.

Root Aspects Of Dll Around The Usa

Yeah, this used to work for 2 years on my machine, but since one of the latest Windows updates, it does not work anymore. Every night the WiFi Ricoh dll error repair tool reconnects, the hotspot is deactivated too. This Powershell script activates it again, even on machines where netsh wlan start hostednetwork does not work due to the Wifi adapter’s driver model – and it does not even need admin rights. You should see the mobile hotspot connection , in addition to you internet wi-fi/ethernet connection. Instead of network adapter, you need to change settings of the hotspot virtual adapter. At this point if desired it would be relatively simple to add this folder to a Windows installer such as Inno Setup, WiX, etc. For private deployment and testing with the help of the MSIX installer, you need to give your application a digital signature in the form of a .pfx certificate.

I am going to try one of your suggestions, with my nephews help, lol, because although my laptop is a dinosaur by any standard, it more than meets my needs and i see absolutely no reason to purchase a new one. To be honest, i am fairly tech savvy with everything EXCEPT computers, i just don’t have the patience for them! It is just far too easy to jump on my phone or tablet to do what i need to. This information may be useful to your readers especially Tom Wales above.

Rapid Secrets For Dll Described

Message flows between two devices (A-B) at the four layers of the TCP/IP model in the presence of a router . Red flows are effective communication paths, black paths are across the actual network links. Any particular piece of equipment will frequently contain multiple building blocks and so may perform multiple functions. Cellular networks use several radio communications technologies. The systems divide the region covered into multiple geographic areas. It carries pulses of light that represent data via lasers and optical amplifiers.

A Look at Phoenix Commercial Office Construction Trends

Phoenix Commercial Office Construction

Let’s take a look at Phoenix commercial office construction trends.  Since the start of the pandemic, Phoenix has seen varying levels of new construction across building types. The office space has seen especially notable projects come to light, headlined by The Grove – a 181,494 square foot space located in the Camelback Corridor of Phoenix.

Arizona as a whole has seen construction job gains, new projects, and improvements in both class A and B office buildings. Such improvements have brought both lucrative opportunities and interesting forecasts for the future.

When it comes to the current state of commercial office construction in Phoenix, there is a lot to cover, so let’s dive right in.

Phoenix Commercial Office Construction

Contractors in commercial office space construction navigated a slew of roadblocks with the supply chain issues and scarcity of labor problems. In recent times, however, the construction industry has ramped up efforts to replenish the workforce. Here is a look at some recent numbers for the Arizona construction industry specifically:

  • 800 new construction jobs added in November
  • 2022 workforce expansion totaled over 9,000 people (5% increase year-over-year)
  • 186,000 total construction workers in the state

The improvement in the workforce has been attributed to the influx of out-of-staters, alongside high school and college graduates looking to pivot careers into construction. Many are pivoting into a construction career in the expectation of an upcoming recession. The construction industry is booming in the greater Phoenix area and many workers are seeing this new career as a stable source of income moving forward.

Current State of Phoenix Commercial Office Construction

The commercial office market has seen its ups and downs in recent years. Currently, Phoenix has an impressive number of Class A office buildings under construction. Total office space under construction totals nearly 870,000 square feet, highlighted by the following projects:

  • The Beam on Farmer: 183,526 square feet
  • The Grove: 181,494 square feet
  • Rio Yards: 150,000 square feet
  • 700 Novus Place: 149,000 square feet

There is also some concern around the demand for office space. As of December, 2022, only 26% of the new office construction in Phoenix is pre-leased – all of which is at The Grove. Many experts are also concerned about the total amount of construction underway in Phoenix. They are claiming that the current 870,000 square feet under construction is nothing compared to the 2 million square feet required for a healthy office market in Phoenix.

Current demand can also explain the negative net absorption in Phoenix of more than 1 million square feet. Experts are also commenting on how pre-covid levels of net absorption were at a positive 3 million square feet per year – a number that has many concerned. Simply put, the Valley’s growing sublease space needs to be absorbed and taken off the market for net absorption to at least level out.

While we may not yet be seeing pre-pandemic levels, money is still pouring into Phoenix. A great example is with the semi-conductor industry, headlined by the Taiwanese Semiconductor Manufacturing Company who’s invested over $40 billion into the Valley. Phoenix is one of the few western cities still in a period of corporate growth. Whether or not office construction grows with it is a matter of rising inflation, a questionable workforce, and overall increase in office building costs.

How does class B office construction look in Phoenix?

Class B office space makes up the largest piece of rentable square footage in the Phoenix metro area at more than 55 million square feet. It also has the highest vacancy rate (25.1%) and largest negative net absorption (2.3 million square feet) in the office market.

The lack of demand in class B office space can largely be attributed to pandemic-related issues, same as Class A. The work-from-home sentiment also plays a big role in the negative net absorption for Class B buildings. It’s an issue that’s pushing many developers to invest in commercial office renovation alongside new construction. Employees are expecting and demanding better working conditions if they are to come back to the office.

The sublease market in Class B office spaces has gone through an especially interesting period recently. Larger and larger spaces are being added to the sublease market, almost on a daily basis. To combat this, many developers are chopping larger spaces into smaller, sub-10,000-square-foot-spaces. Such buildings are beginning to sell really well in the current office market in Phoenix.

Phoenix Commercial Office Construction Forecast

The current state of the market has brought many questions to the forefront concerning the outlook of commercial office space in Phoenix.

The Class A space is seeing the effect of multiple complex variables clash together. As we enter a period of economic uncertainty, many businesses are too fearful to make a large sublease commitment. In addition to chopping up larger sublease spaces, some developers are combatting this issue by offering shorter-term lease obligations – around 3-5 years.

As the current market comes to terms with inflation and rising construction costs, we can expect to find a sweet spot for “true demand” in the office space sometime in the near future. Some experts estimate we will find clarity in the marketplace sometime in 2023 or early 2024.

Phoenix Commercial Office Space Opportunities in 2023

While certain aspects of the office market can seem bleak, there is still always opportunity if you know where to look. Within Phoenix, the West Valley and Deer Valley submarkets are especially hot. Prospects are currently taking interest in spaces between 1,000 and 30,000 square feet.

Experts expect new deals to go down in areas of Tempe, Scottsdale, and the Camelback Corridor throughout 2023. These locations are set to provide a desirable atmosphere for new companies and their new employees in the upcoming years.

Overall, the influx of talent that Phoenix is seeing will eventually back the struggling office market. As the work-from-homers return to the office and more talent and big companies pour in, Phoenix is poised to have a strong office market sooner rather than later.

More about the Phoenix Commercial Office Space

As we are already seeing, developers and investors are currently finding lucrative opportunities within the complex office space in Phoenix. This is especially true in the smaller, more intimate 10,000 square foot spaces in specific submarkets.

If you are looking to find out more about commercial office space opportunities in the Phoenix market, feel free to reach out to us at ICRE Investing. We are especially well-versed with the commercial opportunities in the Phoenix area, but also support a network of connections across the globe.

2023 Forecasted GDP and Economic Outlook

2023 Forecasted GDP

As we begin a new year in 2023, many are curious as to how the state of our economy will fair. We’ve seen growth in GDP quarter over quarter, but many capital markets have struggled to keep up.

Overall, the economic forecast is positive in 2023 – but at a sluggish 1.6% growth worldwide. While the U.S. economy isn’t expected to fall into major economic turmoil any time soon, economists are predicting an official recession before the end of 2024. Much of this is due to the catch-up game that first-world economies are playing after COVID-19.

There is much to cover in terms of an economic outlook for 2023, so let’s dive right in.

GDP (Gross Domestic Product) by Industry

A look at GDP growth as a whole in the posted third quarter shows an increase of 3.2% – a noticeable improvement from the 0.6% decrease we saw in the second quarter. It should be noted that we also experienced a negative quarter in Q1 of 2022. The two consecutive negative-growth quarters would normally mark the beginning of a recession. However, a positive third quarter has left some analysts thinking the recession may be a bit farther down the line.

Here is look at GDP growth by industry:

  • Private Services: Posted an increase of 4.9%, with leading contributors being industries of information, professional, scientific, technical services, and most notably, real estate, rental, and leasing.
  • Government: Posted an increase of 0.6%, mostly due the increase in GDP at the state and local level.
  • Private Goods: Posted a decrease of 1.3%, mostly led by a weak construction industry.

Overall, 16 of the 22 industry groups posted positive numbers in Q3 of 2022. Industries of information, scientific, technical, mining, and real estate led the way. On the other hand, construction, utilities, and finance struggled to keep up.

Current Inflation Forecast

We’ve all noticed the cost of consumer goods fluctuating throughout 2023. Volatility in the cost of living has led many to question the current and future state of our economy. Even as the price of consumer goods climbed a staggering 4.3%, personal spending kept pace at a 2.3% increase. Primarily, this higher spending was due to a rise in healthcare costs.

Considering that inflation is running at a 40-year high, personal spending is still expected to continue increasing in 2023. With massive inflation and interest rates curbing the demand for residential and commercial properties throughout the country, most economist aren’t ready to call off recession predictions.

Accounting for current factors, many consulting firms are calling for a “mild recession in the U.S. in 2023.” Current forecasts show GDP declining around 1% in 2023, with unemployment rising from 3.7% to 4.7%.

Oxford economists recently commented on the economic outlook for 2023, noting that severe recessions – such as the Great Recession – are normally “associated with balance sheet shocks.” The same economists admitted that, “household balance sheets in aggregate are in great shape (currently), nonfinancial corporate balance sheets are also healthy, and state and local governments are flush with cash.”

Questions surrounding Jobless Claims

Jobless claims for unemployment insurance bring in another level of doubt surrounding the current economic state of the country. COVID-19 seemed to inspire a new sentiment in the workplace. Able-bodied citizens are now becoming more selective about where they work and how they work. Many are demanding greater accommodations, better compensation, and of course, the ability to work from home.

In the week that ended on Dec. 17, 216,000 people put in claims for unemployment insurance – a 2,000 person increase from the week before. Jobless claims have hovered around the weekly number of 220,000, with unemployment remaining near 50-year lows of 3.7%.

Present-day job demand varies across industries. Currently, technology and media are experiencing sizeable layoffs, while construction and retail industries still struggle to fill positions. Some of the more prominent growth seen in construction jobs was experienced in Houston, Dallas, Seattle, and Phoenix. More on Phoenix’s construction and real estate industry growth can be found here.

Decline in Mortgage Rates

Mortgage rates have long been used to create accurate forecasting models in the real estate industry. In the final weeks of 2022, mortgage rates hovered around the 6.3% mark – well above the 3.05% weekly average in 2021. Similarly, fifteen-year, fixed-rate loans finished the year at an average of 5.6% – double the previous year’s rate of 2.3%.

While rates are still significantly higher than last year’s, over the past six weeks, rates have declined significantly. Such a decline may prove to be helpful for potential homebuyers in 2023.

Freddie Mac Chief Economist, Sam Khater, recently commented on the hesitancy many homeowners are having when it comes to listing their homes on the market. “ Many of those homeowners are carefully weighing their options as more than two-thirds of current homeowners have a fixed mortgage rate of below 4%.”

Volatility in the Stock Market

2022 saw extreme volatility across the stock market, with the S&P 500 falling 19.4% throughout the year to a close at 3,839.5. This contrasts starkly to the 2021 close at 4,766.18. 2022 marks the S&P’s first annual decline since 2018. What’s most startling is that the magnitude of this year-over-year slide hasn’t been seen since the Great Recession of 2008.

As far as the future of the stock market is concerned, we can expect fundamentals of inflation, unemployment, and corporate sentiment to play key roles. Most analysts predict the S&P 500 to re-test lows in the first half of 2023. Rising levels of unemployment and hopeful disinflation should be enough for the Fed to tighten-up weak fundamentals and push the S&P to 4,200 by the end of 2023.

Looking for more information on Commercial Real Estate in 2023?

While there is undoubtedly certain pressures facing our economy as a whole, real estate markets remain strong. The growth in construction and jobs have led Phoenix to be one of the more notable destinations when it comes to opportunity in property – both residential and commercial.

Our team at ICRE investing has a diversified reach on the real estate market in Phoenix – not to mention a lengthy network across the world. If you are looking for more information on potential commercial real estate investments in 2023, feel free to reach out to us anytime!