Trump Tariffs Hurt Real Estate and Cost 146,000 Jobs

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Trump Tariffs Hurt Real Estate and Cost 146,000 Jobs

Trump's imposition of steep tariffs on steel and aluminum imports has sparked dire warnings from architects, contractors, REITs and real estate associations, who say the tariffs will put more pressure on already rising building costs -- causing developers and investors to postpone or cancel new developments.  Despite a carve-out for North American trading partners Canada and Mexico, Trump’s signed proclamations formalize 25% and 10% tariffs on imported steel and aluminum that will take effect ... Read more

Feds See Warning Signs of Correction Reminiscent of 2007

New data and commentary from federal financial regulators are pointing to signs of increased risks in CRE lending. Notably, the amount of delinquent multifamily and owner-occupied property loans on the books of U.S. banks increased in the 4th quarter of 2017, according to statistics released this week by the Federal Deposit Insurance Corp. The FDIC data follows the Federal Reserve's latest Monetary Policy Report that noted growing vulnerability in the commercial real estate sector. “By ... Read more

Cap Rate Survey for 2nd Half of 2017

In CBRE’s Second Half 2017 Cap Rate Survey, key U.S. takeaways include: Commercial real estate pricing was broadly unchanged, with the exception of some retail segments. Industrial cap rates fell by 13 basis points to 6.52%. Multifamily infill cap rates fell to 5.23% on average from 5.27%. Stabilized suburban assets also declined to 5.59% from 5.66%. Office and hotel sector cap rates were generally stable. Retail cap rates increased, with power centers moving to ... Read more

Bitcoin Payments For Real Estate

Bitcoin payments for real estate have become increasingly accepted in cities across the US, as well as in the United Arab Emirates, Indonesia, Ireland, and other parts of the world.  Acceptance of this new channel reflects a willingness by many real estate owners and developers to respond to the market.  Of course, Bitcoin payment has its challenges due to the current volatility in the crypto markets (with Bitcoin’s price going from $20,000 to $7,000 ... Read more

New Tax Law Impacts on Real Estate Owners & Investors

1031 Exchanges for real estate remain the same. Capital Gains Rates remain the same (ordinary income rates changed). Mortgage Interest Deduction for a primary residence or a second home is now limited to interest on debt of up to $750,000 (rather than $1 million). Interest on home equity loans will not be deductible unless the proceeds are used to substantially improve the residence. Exclusion of $250,000 Gain ($500,000 for married couple) Upon Sale ... Read more

GOP Tax Plan Favors Rental Housing

The increased standard deduction, $10,000 cap on the property tax deduction, and change in the mortgage interest deduction included the GOP tax plans for 2018 will minimize tax incentives of home ownership and increase the demand for apartments, particularly in states with high home prices and tax rates, like California. Read more

Reverse and Construction Exchanges

Most exchanges are conducted as “deferred exchanges,” where the relinquished property is sold to one party and the replacement property is subsequently purchased from another party.  However, in a reverse exchange, the taxpayer, through an intermediary and an Exchange Accommodation Titleholder (“EAT”), acquires the replacement property BEFORE selling the relinquished property.  Therefore, the taxpayer must have the financial resources available to fund the purchase of the replacement property prior to the sale of the relinquished ... Read more

Regal Properties Closes $14,900,000 Retail Acquisition

Regal Properties' Senior Vice President, Maha Odeh,  represented the buyers in the purchase of the 138,639 square foot Sahuarita Plaza shopping center in Sahuarita, Arizona for $14,900,000.  Escrow closed on October 31, 2017. National creditworthy tenants in the center include Jo-Ann Fabrics, Ross, Big Lots, Petco, Ace Hardware, and Dollar Tree. Read more

4 Impacts of Autonomous Vehicles on Real Estate

Four impacts on real estate we can expect with the arrival of autonomous vehicles (“AV”): The cost of construction will be substantially reduced (20%-25% by some estimates) if structural parking is eliminated -- greatly improving feasibility. Because AV can travel faster and closer together, and substantially reduce the need for street parking, the vehicle, bicycle and pedestrian carrying capacity of existing streets will increase. AV will change public transportation, causing rendering light rail systems ... Read more

Regal Properties Voted “San Diego’s Best” Real Estate Company

In the 2017 "San Diego’s Best" Union Tribune Readers Poll, readers nominated and voted for their favorites in various business categories, selecting Regal Properties as the Best in the Commercial Real Estate Section. We are honored and appreciative to receive this recognition -- this time by our clients -- as a leader in the real estate industry. Regal Properties proudly “Invests in People and Property” by donating 10% of all fees and commissions to ... Read more
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