May 2018 – Randy Benderson

What Are The Different Classifications Of Commercial Real Estate Properties?

Commercial real estate is classified under several forms of aesthetics. Generally, commercial properties are divided into three classes: Class A, Class B, and Class C.

commercial-building — Image source: blacktiderea.com

Class A commercial real estate developments are considered the best buildings in terms of aesthetics, age, quality, and built-in infrastructure, as well as location. This can be your five-star hotel, a mall, or an office building that’s regarded as the best in its category. These properties are also highly expensive in terms of sale or rental.

Class B commercial real estate buildings are not as competitive price-wise compared to Class A establishments. These are older buildings that investors may want to renovate or restore. These could be previously Class A commercial real estate properties that have lost some of their value over time due to aging infrastructure, design, and amenities. Their location is also not as exquisite as Class A but still remain reputable.

Class C commercial real estate properties are usually the oldest, with some older than 20 years. These properties are also not in prime locations and are in need of major renovations or constant maintenance. Others dub Class C commercial real estate as everything else that is not Class A or B.

Apart from these classifications, commercial real estate can also be divided by their use. In this category, we have office properties, industrial properties, retail, multifamily, hotel, and land-based properties.

New-York-Skyline-New-York-City-New-York-Skyline-2940111-Connect-Media-820x510.jpg — Image source: connect.media

Randy Benderson is the president of Benderson Development, a venture his father, Nathan Benderson, established in New York over 60 years ago. Randy is passionate about pursuing all the opportunities before him. For more insights on commercial real estate, follow this Twitter account.

More Economic Trends Making An Impact On Commercial Real Estate In 2018

The advent of new technologies coupled with economic developments like new tax laws are greatly affecting the commercial real estate industry in the U.S. this year. As in previous ones, rapid introduction of disruptive tech like the internet of things (IoT) and augmented reality are changing how new malls, stores, and the like are being built or renovated, aimed at drawing in customers and reshaping shopping convenience and quality-of-life.

An important trend is the increased housing demand, mainly due to a better economy and dip in unemployment. With housing having been underproduced in Q4 of 2017, U.S. Census statistics show that the adjusted annual rate has gone up by 9.7 percent in January 2018 alone. More and more millennials are buying single-family homes, while boomers are trading in theirs for apartments in urban hubs. In fact, U.S. homeownership, in general, has risen from 62.9 to 64.2 percent just two months into the year.

Improved and more favorable GDP growth predictions are also driving commercial real estate. The U.S. has increased allocations to the area to $1 trillion, and the GDP is expected to grow by 2.6 percent in 2018, a big jump from the previous estimate of 1.6 percent. Again, the stymied growth of late last year was due mainly to the housing shortage, which has thankfully now rebounded.

Lastly, interest rates are going up. This is enticing many Americans to buy homes now. The rate of 30-year, fixed-rate mortgage has risen to 4.38 percent in late February, and there’s fear that it would go up even higher as the year progresses. Higher interest is leading to more expensive loans for both developing or refinancing new properties.

Based in Sarasota, Florida,Randy Benderson is the president of Benderson Development, a commercial real estate company with over 500 properties in 38 states. The business is a venture his father Nathan Benderson established in New York over 60 years ago. For similar reads, click here.

The Importance Of a Landscape Architect In Real Estate Development

Real estate development is a massive undertaking. There are dozens, if not hundreds, of things to carefully consider. Each step in the process is as important as the last. And when a project is successful, everyone involved deserves credit.

In creating an overall aesthetic that future customers, clients, investors, patrons, and guests will find appealing, the role of a landscape architect cannot be overlooked. Think about it. The first thing people see when they come across a property for sale or rent is its exterior. A landscape architect makes sure the exterior is inviting at the very least.

But that’s an oversimplification. Landscape architects also make sure that the property is environment-friendly. Green planning is a staple of their jobs. They even work hand-in-hand and consult experts in the environment and other related industries when creating a sustainable landscape, especially with huge projects such as parks, neighborhoods, and shopping centers.

Landscape architects also put a lot of planning into making sure the drainage system of the property is in order and leads away from the structures. This takes a lot of planning especially when designing for entire communities and large compounds such as schools and government offices.

The best creative work of landscape architects though can be seen in theme parks and playgrounds. Some of them even venture into designing golf courses.

Saying that landscape architects are indispensable parts of real estate development, maybe a bit of an understatement.

Randy Benderson is the President of Benderson Development, a venture his father, Nathan Benderson, established in New York over 60 years ago. For similar reads, check out this page.

Is 2018 Going Be a Great Year For Commercial Real Estate?

Industry experts expect the new year to be one of slow and steady growth for commercial real estate, and the main advice is to start diversifying your real estate portfolio. Below are more specific developments in various sectors to keep in mind in 2018.

Due largely to the strengthening global economy and likely tax cuts from Washington, the U.S. economy is gaining a new lease on life. Expansion in the property sector has been going on for over 100 months, and by mid-2018, it will be the second longest in U.S. history.

As far as the multifamily sector is concerned, the market will see more construction of apartments that might put downward pressure on occupancy rates and rents. Colliers International Chief Economist Andrew Nelson Colliers reports that economists embracing the new tax law will lead to more demand in the multifamily market: this is because the new system reduced some of the benefits of homeownership, making it less attractive and renting more likely.

Meanwhile, though slightly down from its 2015 peak, job growth for office markets remains robust. Employers added 175,000 jobs on average per month in 2017, compared to 2015’s 250,000. Still, the sector will try to find a fine balance as new supply levels converge with occupancy rates and asking rents.

Lastly, industrial real estate should retain its upward momentum this year with the sector’s record-breaking occupancy and rents. Construction is booming as operators continue to push toward online delivery and get products to consumers more quickly as modern multilevel distribution hubs open in densely populated markets.

Randy Benderson is the president of Benderson Development, a venture his father Nathan Benderson established in New York over 60 years ago. Now carrying the torch of his late father’s legacy, Randy continues to oversee over 8,000 employees and committed to an excellent work ethic and passion for growth. More on the company here.