Posts

Wrapping up summer with UES sponsoring the RISE Rooftop Crawl

RISE ROOFTOP CRAWL

What is it?!

Kansas City’s fifth annual rooftop crawl is an exciting and exclusive night to explore private rooftops all with unique eccentric themed parties benefitting nonprofit Big Brothers Big Sisters. 

When is it?! Aug 24, 6:00 pm

Come to the Crossroads to celebrate an evening full of networking, food, drinks, live entertainment and interactive experiences all with a rooftop view. The fun night ends with a spectacular block party on Walnut Street in front of the BBBS building.
This years theme is All Around the World!

Find out more information on how to join UES and get involved at www.bbbsrise.org 

Need any help with Commercial Real Estate transactions of any kind? UES is fully equipped to handle any of your needs.

Want to be kept informed of exciting events like this and other industry related events? Sign up for our newsletter to stay in the know!

Wrapping up summer with UES sponsoring the RISE Rooftop Crawl

/
RISE ROOFTOP CRAWL What is it?! Kansas City's fifth annual…

UES to sponsor CREW KC's 16th Annual Golf Classic!

/
Join us at CREW Kansas City's 16th Annual Golf Classic for an…

UES Investing in the Next Generation

/
UES employees were excited to sponsor a local event that raises…

Wrapping up summer with UES sponsoring the RISE Rooftop Crawl

RISE ROOFTOP CRAWL

What is it?!

Kansas City’s fifth annual rooftop crawl is an exciting and exclusive night to explore private rooftops all with unique eccentric themed parties benefitting nonprofit Big Brothers Big Sisters. 

When is it?! Aug 24, 6:00 pm

Come to the Crossroads to celebrate an evening full of networking, food, drinks, live entertainment and interactive experiences all with a rooftop view. The fun night ends with a spectacular block party on Walnut Street in front of the BBBS building.
This years theme is All Around the World!

Find out more information on how to join UES and get involved at www.bbbsrise.org 

Need any help with Commercial Real Estate transactions of any kind? UES is fully equipped to handle any of your needs.

Want to be kept informed of exciting events like this and other industry related events? Sign up for our newsletter to stay in the know!

Wrapping up summer with UES sponsoring the RISE Rooftop Crawl

/
RISE ROOFTOP CRAWL What is it?! Kansas City's fifth annual…

UES to sponsor CREW KC's 16th Annual Golf Classic!

/
Join us at CREW Kansas City's 16th Annual Golf Classic for an…

UES Investing in the Next Generation

/
UES employees were excited to sponsor a local event that raises…

UES to sponsor CREW KC’s 16th Annual Golf Classic!

Join us at CREW Kansas City’s 16th Annual Golf Classic for an unforgettable day full of golf, networking, and supporting a wonderful organization!

WHEN: AUGUST 15, 2019

WHERE: CREEKMOOR GOLF COURSE

TIME: 8:00 AM REGISTRATION, 9:00 AM SHOTGUN START

MORE DETAILS

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.

SCHEDULE:

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

LOCATION: 

Creekmoor Golf Course

1112 East 163rd St.

Raymore, MO 64083

What’s Next with Commercial Real Estate?

Commercial Real Estate has never been in a better spot but you have to ask the question, what’s coming next?

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.UES Consulting Services, Phase 1 Environmental Site Assessments, Phase I Environmental Site Assessments, Phase 1 Environmental Site Assessments KC, Phase 1 Environmental Site Assessments Midwest, Phase 1 Environmental Site Assessments US, Phase I Environmental Site Assessments KC, Phase I Environmental Site Assessments Midwest, Phase I Environmental Site Assessments US, Phase I ESA, Phase I ESAs, Phase I ESAs KC, Phase I ESAs Midwest, Phase I ESAs US, Phase 1 ESAs, Phase 1 ESAs KC, Phase 1 ESAs Midwest, Phase 1 ESAs US, leader in environmental consulting and engineering services, engineering services Kansas City, environmental consulting Kansas City, Phase I Environmental Consulting, Phase 1 Environmental Consulting, Phase I Environmental Consulting Kansas City, Phase 1 Environmental Consulting Kansas City, Phase II Environmental Consulting, Phase 2 Environmental Consulting, Phase II Environmental Consulting Kansas City, Phase 2 Environmental Consulting Kansas City

So let’s get into the details…

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.”

With this economic situation, each commercial property type has a unique story to tell…

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.

In conclusion…

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?

Wrapping up summer with UES sponsoring the RISE Rooftop Crawl

/
RISE ROOFTOP CRAWL What is it?! Kansas City's fifth annual…

UES to sponsor CREW KC's 16th Annual Golf Classic!

/
Join us at CREW Kansas City's 16th Annual Golf Classic for an…

Commercial and Multifamily Originations Set a Record by Rising to New Levels

/
Commercial and Multifamily Originations rose to new levels in 2018 with a record amount of loans resulting in $573.9 billion loans. Learn how this happened, what factors such as growing property values, low interest rates, solid fundamentals, and strong appetites from lenders and borrowers led to this record. We break down the numbers and find out Commercial Bank portfolios led the capital source then GSEs, Government Sponsored Enterprises, Freddie Mac and Fannie Mae then Life Insurance Companies and pension funds, Commercial Mortgage-Backed Securities issuers, investment funds, REITs and mortgage REITS. Multifamily properties had the highest mortgage bankers' origination volume followed by retail properties, industrial, health care, office buildings, and hotel/motel

The What, Why, and How of a Phase 1 Environmental Site Assessment

So, what is a Phase 1 Environmental Site Assessment?

A Phase 1 Environmental Site Assessment, commonly called an ESA, or Phase 1 ESA, is an assessment done to research the historical and current uses of a property as part of a Commercial Real Estate transaction.

Why do Commercial Real Estate transactions require a Phase 1 Environmental Site Assessment?

Phase 1 ESA is needed to assess if historical or current property uses have impacted the soil or groundwater beneath the property. If so, this could pose a threat to human health and a major issue for the environment. If these problems exist, then a potential liability is present for the owner and/or lender. This also affects the value of the property.

If a Phase 1 Environmental Site Assessment is finished pre-closure of a real estate transaction, it can be used to fulfill the requirements of CERCLA’s (Comprehensive Environmental Response, Compensation and Liability Act) innocent land owner defense under All Appropriate Inquiries (AAI).

Finally, how are Phase 1 Environmental Site Assessments completed?

First, it’s important to note that Phase 1 ESA’s can be done on all types of properties; industrial, multi-family residential, commercial, vacant land, and agricultural. But all Phase I ESA’s must comply with ASTM E1527-13. (exception being properties comprised of large primarily undeveloped land, which can be researched under ASTM E2247-16).

Below are the steps commonly followed for Phase I ESA’s.
1. Completing a site visit to observe uses of the property and adjacent properties along with past and current conditions of the property.
2. Reviewing federal, state, tribal, and local regulatory databases including, but not limited to, aboveground storage tanks (ASTs), underground storage tanks (USTs), known or suspected release cases, institutional and engineering controls, and the storage of hazardous substances and disposal of hazardous wastes including petroleum products.
3. Reviewing historical records, i.e. historical aerial photographs, fire insurance maps (Sanborn maps), historical topographic maps, and historical city directories.
4. Reviewing local and state agency records including, but not limited to, state environmental agencies, Fire Departments, Health Departments, and Building Departments.
5. Interviewing past and current property owners, occupants, operators, or others well known with the property.
6. Interviewing the Report User for judicial or title records for environmental liens and activity and use limitations (AULs); specialized experience or knowledge, actual knowledge; commonly known or reasonably ascertainable information; the reason for a significantly lower purchase price; and the reason for the preparation of the Phase I ESA. It’s the User responsibility to provide this information to qualify for the innocent landowner defense.
7. Finally, the Environmental Professional (EP) evaluates all of this information to identify potential environmental risks to the property. EPs highest concerns are with properties including, but not limited to, gas stations, dry cleaners, printing operations, manufacturing, and auto/vehicle repair.
8. Once the Phase I ESA is complete, the EP will summarize what issues were identified on the property and make recommended steps to address these concerns.

In summary, Phase 1 Environmental Site Assessments identify existing or potential environmental contamination liabilities. They are done to satisfy Commercial and Residential Real Estate transactions and ensure environmentally and human safety. They are completed on all varieties of properties but all comply with ASTM E1527-13. UES Consulting Services is ready and happy to help with any and all of your Phase I and Phase II ESA needs.

 

UES Consulting and our team of inspectors would be glad to help you with your Phase 1 Environmental Site Assessment.

Important Details to Note for Phase I Environmental Site Assessments…

While not part of ASTM requirements, Phase I ESA reports typically include a discussion of observed suspect asbestos containing materials (ACM), potential lead-based paint (LBP), and mold growth; as well as the potential for lead in drinking water and radon.  Sampling for these non-ASTM concerns is beyond the scope of a standard Phase I ESA, but can be included upon request.
ASTM E1527-13 provides the guidelines for a Phase I ESA report to meet industry standard, but there are other factors to consider when ordering a report.  Projects associated with Fannie MaeFreddie MacU.S. Department of Housing and Urban Development (HUD), and the Small Business Association (SBA) each have their own report requirements.  This is also true of other lending institutions.
A recognized environmental condition (REC) indicates known contamination or the potential for the subsurface to have been impacted by contamination (either from the subject property or possibly from an offsite source).  A controlled recognized environmental condition (CREC) identifies that the property has been impacted by contamination which has been investigated and remediated; however, contamination remains and would require additional work if redeveloped.  A historical recognized environmental condition (HREC) identifies a release impacted the subject property which has been investigated and remediated meeting unrestricted use criteria.

CRE Investors! Here are 3 ways to quicken decisions in uncertain markets.

Over the last few months, news channels have been filled with stories about movements that are directly affecting the U.S. economy and real estate investments.

-Dan Dokovic Managing Partner, Co-Founder at Bamboo Equity Partners, a leading CRE investment firm.

What are the reasons for these movements?

The first is the news of rising interest rates, trade wars dominating the airways, government shutdown all leading towards business uncertainty. Second is the quick pace of advancing technology which affecting commercial real estate space. Lastly, as seen nationwide popular retailers are quickly closing down and declaring bankruptcy forcing shopping centers to clear out or shut down at rapid rates.

“The real estate industry has become the poster child for uncertainty and anxiety.”

How to overcome this as a CRE investor?

Get ahead of the curve with 3 practical applications below that will help you stay relevant and pivot quickly in response to the shifting industry movements.

1. Fill the space.

Real estate investment companies should reconsider their existing tenant mix. Long gone are the days of 10 to 15 year leases. With any uncertainty in the business market, corporations are often looking for a short-term lease.

Therefore, re-evaluate your long-term leases & business model.

While short-term leases may alter financial forecasting and real estate valuation, immediate increases in net operating income will outweigh the risk of carrying the vacant space.

A major trend is to start diversifying the tenant mixes for overall appeal of your property. An example is mall owners are lending their empty space to startup restaurants, co-working companies, or incubators in hopes it will lure more tenants into the property. These tenants don’t pay rent or nearly as much but will increase foot traffic, visibility, and popularity.

Practical First Step: Initiate partnerships with co-working companies, entice new-age tenants by enhancing your digital strategy, and enlarge your leasing capabilities.

2. Build Relationships

In uncertain times it’s important to focus on growth capital and support from partners and peers. For future stability and success it’s vital to build relationships.

While the industry is in the growth cycle, capital is bountiful. However, as soon as the cycle turns, having capital is the difference between muddling through and controlling destiny.”


Understanding and growing capital relationships comes in two forms: existing capital sources and new prospects with unrelated capital allocations.”

For existing capital relationships, constant communication is crucial. Banking relationships vary with the economic cycles change. Investment executives need to keep in step with bank’s directions and anticipate said direction would have on business.

Here are some examples…

  • Banks that focus on real estate lending might concentrate on commercial and industrial loans after a merger which, in turn, might diminish the negotiating power of borrowers in a downturn.
  • In addition to current capital providers, real estate managers should focus on acquiring alternative sources of equity and debt.
  • A multitenant office owner might want to seek a partnership with a single, long-term tenant equity provider in order to mitigate the risk of short-term leases.
  • Alternatively, office asset managers might want to connect with industrial capital sources in order to diversify high-cost risks, like retenanting office buildings.”

3. Diversify your assets.

According to past data, these changes in real estate are not hitting all markets. An example is the highs and lows of employment rates may affect the office market but the industrial market could flourish due to the increased shift towards e-commerce.

During the last cycle, manufactured housing and self-storage sectors performed better than other property types.

According to Trepp Bank Research’s April 2017 report of historical CRE losses, self-storage had the lowest average loan loss severity of all property sectors at 1.52%, while manufacturing housing loss was at 3.53%. Comparatively, in a different sector, retail had an average loss rate of 6.17% and office at 6.13%. While taking into consideration these examples, property sectors (per research completed by Nareit in December 2018) and manufactured homes provided total returns of 24.93% and 11.43% for the years 2017 and 2018, respectively.

Gaining property sector diversity can lessen risk across your business. But be cautious in your decisions. “While diversification can provide a footing to weather storms, businesses must be prudent as diversification efforts have their own risks.

What crucial questions do you ask before making final decisions in this ages industry?

What oversights can be pulled from current practices?

Who are the allies in this diversification process?

To stay relevant, future real estate leaders need to continue on the path of innovation. While transformation is tough, the only way to continue growing is to advance with the times. As it was in previous cycles, great things come to those who are able to pivot during the hardest times.

Take Action after Big Events & Conferences

After a major networking event or conference, it is important to take action as soon as possible to maintain the great connections you made.

Below is a 6 step guide to follow for all your Spring 2019 events.

1. Categorize and take action accordingly. 

Organize your contacts into 3 categories.

  1. Valuable leads: Contacts you believe to be an ideal client and/or that showed a high level of interest in working with you. 
  2. Qualify leads: Contacts who need to be qualified. They may be seriously interested or they might not, and even if they are you’re not sure they are qualified.
  3. Connections: Prospects you can build a relationship with. You may work together in the future, refer business to one another, or merely get together for a happy hour on the occasion.

“It’s important to follow up with “valuable leads” as soon as possible and schedule a time to meet. Show an effort to follow up with “connections” soon after — in my experience, they are the most valuable people you meet at networking events.” 

— Ryan Meghdies of Tastic Marketing

2. Follow up on Twitter.

I’ve stopped giving (and taking) cards at networking events. Instead, I  follow entrepreneurs (or their businesses) on Twitter. I prefer this approach because it allows me to see their profile and actually remember who they are. I return from networking events with new followers instead of cards. As soon as I return, I follow up with them by sending a quick DM via Twitter. I also browse through their most recent tweets and retweet or like anything that I relate to in my industry. This allows me to connect with them, understand their brand and create a more immediate connection.”

 – Uchechi Kalu Jacobson of Linking Arts Web Design & Development

3. Add them to a CRM then connect on LinkedIn.

  1. Input all the contacts into my CRM and tag appropriately. Now I can send tailored communications to them in the future.
  2. Send connection requests to every connection on LinkedIn.
  3. When connecting, include a personalized message, to remind them of how you met and try to include a memorable section of your conversation.

When messaging and connecting on LinkedIn, another tip is to ask them how you can be of help. This could mean connecting them to someone, answering a question they mentioned, sending a resource, etc. You have to give to get.

 – Zack Hanebrink of HookLead

4. Send a gratitude email.

After entering the new contacts into your CRM, email a reintroduction to the contact thanking them for their time. If the prospect shows interest, then provide them with more information as requested.

5. Make notes immediately.

While at a networking event immediately (after the conversation has ended) write on the back of their card a few notes about the conversation. 

6. Check them out & connect on social media.

Check them out on social media to learn more about who they are. What kind of content do they post? Which platforms are important to them?”

– Stephanie Cartin, Socialfly

Summarized from Forbes Article

UES Consulting Services offers and our team of 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. 

Commercial Real Estate Industry Booming