Even with the pandemic and the grim economic landscape of 2020, the greater Kansas City metro area continues to plow ahead with growth and building as we head into 2021. The Kansas City Business Journal recently outlined several top projects in our area and gave us an update on progress. You can read more on these 10 projects and how they are impacting the construction landscape.
As our digital footprint expands, so does our innate desire to connect with and be apart of a community. Much community starts with our living environment and how we are able to connect with those in close proximity, along with the neighborhood for which we inhabit.
As mixed use multi-family continues is growth across all markets in the US, developers and planners are thinking less about privacy and isolation, and more about connecting those that will life, work and play in the space. Along with how they will interact with the retail, restaurants and other “neighbors” within their ecosphere.
The Science Behind Lifestyle Amenities and Community Building
A recent blog featured on multifamilybiz.com by author Kerry Kirby, highlights this burgeoning trend and how it looks to affect not only developers, but commercial brokers looking to lease space and place clients in these new mixed use multi-family complexes.
Kirby highlights a social psychology phenomenon called the “propinquity effect”. Social psychologists theorize and tested the concept that physical space is the key to friendship formation as opposed to original thinking that values, opinions and beliefs were the key factors in friendship formation. As the author dives further into this concept, it’s clear that trends in more communal living spaces within a multi-family complex such as digital meet-up areas, living rooms, shared workspaces and other community building spaces are changing the way we build relationships and build community.
Putting it to Work
A great example of this lifestyle forward amenity offering is going up right in our own backyard in Kansas City, MO. The Opus Group is developing a lifestyle amenity rich luxury apartment living experience to the vibrant historic Westport area. Along with that luxury living experience, comes the opportunity for mixed use retail space marketed by Colliers International. Restaurants, retail shops and other neighborhood oriented business are being attracted to the lower levels of this complex. A welcome addition to the urban landscape.
Adaptive reuse projects is the process of taking old buildings or sites, and reusing them for a purpose other than it was designed.
Analyzing the practicality of a property is crucial to determine the viability of all real estate investments. The feasibility process has to be more intensive for adaptive reuse because of the stand out difficulties of repurposing an existing property. Considerations like…
What we mean by this is to look back to learn from the past. Are there any unsolvable issues that were already faced. Are there boundary or easement challenges, historical preservation ordinances, or even legacy environmental issues?
Something to reminisce on for industrial properties… is there a free and clear use for construction and zoning approval? Industrial use challenges are more complex in regards to environmental remediation and these challenges affect both regional and national markets and local.
http://uesconsulting.com/wp-content/uploads/2017/08/UES-Logo-c-750web.jpg
0
0
admin
http://uesconsulting.com/wp-content/uploads/2017/08/UES-Logo-c-750web.jpg
admin2020-11-18 09:37:552020-11-18 18:39:58ULI Sets Forecast for a Potential 2021-2022 Rebound
https://uesconsulting.com/wp-content/uploads/2020/02/ED8808E6-180F-46FC-BEF3-8F5F342796E3.jpeg
953
1535
admin
http://uesconsulting.com/wp-content/uploads/2017/08/UES-Logo-c-750web.jpg
admin2020-02-11 22:22:132020-02-11 22:22:13MBA CREF 2020 Recap
https://uesconsulting.com/wp-content/uploads/2019/08/joey-banks-YLIS2_rN938-unsplash.jpg
3034
2427
Mollie Beck
http://uesconsulting.com/wp-content/uploads/2017/08/UES-Logo-c-750web.jpg
Mollie Beck2020-01-09 18:49:582020-02-09 18:51:00Advice on Avoiding Issues with the ADA
CREW KC and Creekmoor Golf Course have joined together for a great annual event. The course offers players a championship challenge while CREW KC allows its guests and members high quality networking. This combination gives each player an opportunity to form long lasting connections and improve their game on and off of the course.
UES is thankful to support CREW through this fantastic event and all proceeds go to CREW Network Foundation to positively affect the future of women in commercial real estate.
Golf attire is required! Collared shirts and no jeans. All participants must be at least 18 years of age.
8:00 AM – Registration
Registration & hitting area open
9:00 AM – Shotgun start
Four-player scramble format
Approximately 1:00 PM – Post-Golf Awards Lunch
Creekmoor Golf Course
1112 East 163rd St.
Raymore, MO 64083
And all of these factors below combined led to an eight percent increase in recorded Multifamily Lending compared to last year.
“First liens accounted for 96 percent of the total dollar volume closed. The reported dollar volume of commercial and multifamily mortgages closed last year was eight percent higher than the volume reported in 2017. Among repeat participants in the survey, the dollar volume of closed loans increased by four percent.”
Jamie Woodwell Vice President, Mortgage Bankers Association
With loan originations on the rise, the need for site assessments has never been more important. UES Consulting and our team of inspectors are well-versed in the demands of commercial and multi-family transactions and how thorough, time-sensitive Phase I Environmental Site Assessments and Property Condition Assessments can help the process run smoothly and close on time. If you are looking for a company to partner with on your Commercial Real Estate transactions of any kind, turn to our in-house engineers and environmental consultants to alleviate the burden of environmental issues and mitigate risks.
Information by MBA, Click here to purchase the complete report.
- Kansas City Development Landscape Still Booming!
- ULI Sets Forecast for a Potential 2021-2022 Rebound
- Long-Term Housing Shortages and Affordability Issues Keep Capital Flooding into Multifamily
- Medical Office Buildings a Safe Haven Asset During Uncertain Times; Physician Practices Still Struggle
- COVID-19 Response: UES Continues Business Operations as Normal
MBA Vice President of Commercial Real Estate Research Jamie Woodwell expressed his opinion for the sector at the MBA Commercial/Multifamily Servicing & Technology Conference.
“We’re currently in the longest economic expansion ever,” Woodwell said. “There have been a couple negative quarters here and there, but not two in a row, which is the definition of a recession. So there’s been an incredibly long run of economic expansion.“
Woodwell quoted multiple record-setting metrics: Commercial property cap rates are at record lows; MBA accounted a record $574 billion in multifamily and commercial mortgage bankers originations last year; plus loan delinquency rates are at or near record lows.
“So, there are a lot of phenomena going on, putting us in a place we’ve never seen before,” Woodwell said. “Thus, the question becomes what’s next?“
That answer is dependent on your outlook on life.
People on the optimistic spectrum may say they don’t see anything likely to change the current thriving situation. While others may say, “it’s been a great run, so I’m going to get ready for what comes next,” Woodwell said.
Woodwell used the first quarter’s 3.2% real GDP growth rate to back the current strength of the U.S. economy. Unemployment rate dropped to its lowest point in 50 years and job growth has averaged above 200,000 per month thus far in 2019. “That’s boosted wages, which economists had expected would happen well before now,” said Woodwell.
On the other end, our economies great performance could guide some inflation pressure. “But that has not yet materialized,” Woodwell said. “Some think trade tariffs could start to bring more inflation on.”
Multifamily sector: Moving fast in terms of both supply and demand for apartments. The younger generation is filling the shoes of their parents, which supports high demand for multifamily properties. The main surge is in Millennials since they’re beginning to demand apartments and form households; mainly high-quality urban newly developed apartments.
Office sector: Shows a long steady run of positive job growth, but on the flip side, companies are using a smaller space per employee; which leads to the recent fairly stable market. Nevertheless, wage pressure increases while employers struggle to keep their top employees in the middle of an extended strong job market.
“One tool employers could use would be to reverse the recent trend of shrinking office space and increase the room given to employees in an effort to compete for talent,” he said.
Retail sector: Definitely has witnessed the largest changes, mostly due to E-commerce, which has taken over almost 10% of all retail sales and persists to grow 3 basis points each quarter.
“But consumer consumption is strong enough that both E-commerce and brick-and-mortar stores can grow–as long as consumer spending continues, Woodwell said. “But if consumer spending should slip, which will lose more?,” he asked.
Industrial Sector: Has experienced positive evolving changes that have rarely been seen in the past such as new warehouse properties with a second or third story. With manufacturing shipments and E-commerce growing at record highs, the industrial sector continues to thrive–and evolve.
“When I think about what’s likely to happen, I come back to the idea of a plateau,” Woodwell said. “Coming off a record year of originations, I don’t see much pulling those numbers down, and I also don’t see much pushing those numbers much higher, so we generally see a plateau for originations for the next few years. If we continue to run at this level, that still means growth in mortgage debt outstanding because of maturities, and that means there will likely be more need for servicers like you to service these loans.”
Need help with any Commercial Real Estate transactions?
http://uesconsulting.com/wp-content/uploads/2017/08/UES-Logo-c-750web.jpg
0
0
admin
http://uesconsulting.com/wp-content/uploads/2017/08/UES-Logo-c-750web.jpg
admin2021-01-18 20:34:112021-01-18 20:34:11Kansas City Development Landscape Still Booming!
http://uesconsulting.com/wp-content/uploads/2017/08/UES-Logo-c-750web.jpg
0
0
admin
http://uesconsulting.com/wp-content/uploads/2017/08/UES-Logo-c-750web.jpg
admin2020-11-10 18:29:142020-11-18 18:34:12Medical Office Buildings a Safe Haven Asset During Uncertain Times; Physician Practices Still Struggle
https://uesconsulting.com/wp-content/uploads/2020/02/ED8808E6-180F-46FC-BEF3-8F5F342796E3.jpeg
953
1535
admin
http://uesconsulting.com/wp-content/uploads/2017/08/UES-Logo-c-750web.jpg
admin2020-02-11 22:22:132020-02-11 22:22:13MBA CREF 2020 RecapIn Freddie Mac’s Multifamily research, they found that “performance in the multifamily market remained healthy during 2018, despite high levels of new supply entering the market. We expect this trend to continue into 2019, but with more modest growth in comparison to recent years.”
2018 ended up with solid rent growth and only modest increases in vacancy rates despite an elevated level of new supply. There are some weakness’s in individual markets and submarkets.
“New supply will remain elevated through 2019 and into 2020 but rents and vacancies will continue outperforming historical averages due to robust demand related to the rising cost of homeownership, changing demographics and consumer preferences.”
Cap rates have slightly fallen over the past couple quarters but they expect cap rates to rise in 2019 if Treasury rates increase.
“Multifamily origination volume is projected to grow to $317 billion in 2019 driven by solid market fundamentals and strong investor demand for multifamily properties.” This figure exceeds 2018’s statistic by 3.9 percent.
In conclusion, “we expect 2019 to be another strong year for the multifamily industry. Homeownership affordability constraints and consumer trends will continue to drive demand, while strong rent growth will support property price growth.”
For full analysis click here.
