Industry Insights Archives - Page 6 of 12

Southern California CRE Hiring Trends During COVID-19: What We Are Seeing

Leave a Comment / Blog, Building Careers, Industry Insights

As summer comes to an end and we head into the fourth quarter of possibly the strangest year in our present history, we want to share with you the CRE hiring trends during COVID-19 we’ve seen in Southern California’s commercial real estate market since March 2020.

In mid March we hit an almost total hiring pause coinciding with mandatory lockdowns and most businesses wondering how COVID-19 would impact their companies both long and short term. Since then, hiring has been stop and go with the following being some of the top trends in the market.

A need for management: Once companies started to pick hiring back up, many needed additional support on the property and asset management fronts.

Opportunities for entry-level analysts: Solid analysts are always in demand and we’ve placed a number of entry-level analysts right out of school during COVID-19. With firms looking at limiting overhead costs and now having more time to train individuals with only internship/school experience, CRE hiring trends during COVID-19 show it’s been a rewarding time helping students who graduated during the pandemic find their first jobs in real estate.

Jack-of-all-trades: Companies who may have previously segregated roles are now looking for people who can wear multiple hats. For example, a company who may have had previously hired a development AND construction manager, may be looking for one person who now does it all, from entitlements through construction close out.

Personality and culture: In recent years, many companies have started acknowledging the importance of hiring the right personality and culture fit in addition to skill. In the last few months we’ve seen almost every firm emphasize the need for employees whose ability to align with the company and team culture is just as or, in some cases, even more important than skill.

Less growth: Hiring trends have pointed to companies adding to their teams less for growth purposes and more for replacements, additional analytical support and very specific construction projects. Life science and industrial are two sectors however that are experiencing significant growth currently.

Less layoffs: We anticipated seeing wider sweeping layoffs than we have since March. We’re hopeful this is a sign that many firms have the right plans in place to weather the storm and continue to be successful.

While summer is historically a slow time for hiring with vacations and people in and out of the office, this year being no exception as we all try to have some normalcy, we are seeing things pick up as we head into the fall. Within the last month we have had a large number of candidates reaching out looking to relocate to San Diego from various cities across the country. Many are using this time as a chance to reset and make the move they’ve been weighing for a long time. If you know of anyone locally or outside of Southern California that is looking for their next opportunity, we are a free resource for all candidates and happy to connect.

Southern California CRE Hiring Trends During COVID-19: What We Are Seeing Read More »

Why You Should Choose Commercial Real Estate for your Career

Leave a Comment / Blog, Industry Insights, Job Search

Have you chosen real estate as a career and now you are confused whether you want to choose commercial real estate or residential real estate? There are pros and cons to working with both types of properties, but you have to choose the career that leads you towards success the best. Although it is easier to break into residential real estate, if you want to make more money during your lifetime, you need to choose commercial real estate.

Commercial real estate brings you the big deals because you are dealing with corporations instead of someone who wants to rent, sell, or buy a single house. Although you need to work harder in commercial real estate, hard work is necessary to be successful in every job, so why not get paid fairly for your hard work? Today we would like to tell you about the top 5 reasons why you should choose commercial real estate for your career over residential real estate.

1. More Commission

If you are dealing in commercial real estate, you will definitely make more money because the percentage of commission is more significant as compared to residential deals. The properties are more expensive as compared to a residential building, and the clients are willing to pay more because they need the property for putting their business on the ground. A commercial deal may take 9 to 10 months to be closed and fully funded, but it would definitely pay off commensurate with your hard work.

According to the National Association of Realtors, a commercial real estate agent makes $85,000 per year on average and a residential real estate agent makes $35,000 per year on average. You can see such a massive gap between the earnings and decide which one would suit you the most. If you can become a commercial realtor, you may even receive up to 100% of your commission.

2. Career Growth

A commercial real estate agent needs to have a proper degree to work in the market, which helps him or her to make full use of their knowledge in the field. On the other hand, residential real estate agents don’t need a degree. Regardless of college education, both types of agents are required by law to have a real estate license.

If you are working in the commercial market, you’ve got better chances to grow because you are in contact with different businesses outside of the market. The connections you make in the business community can lead you towards getting even bigger clients shortly.

A residential real estate agent is only in contact with small families most of the time, which cannot help them to take their career to the next level. Even if a small business needs to find a property, it would have to contact a commercial real estate agent, so you would be in contact with almost all the companies in your area looking for property to expand their operations.

Contact Carly Glova: CGlova@BuildingRECareers.com

Why You Should Choose Commercial Real Estate for your Career Read More »

CRE Survey Shows a Brighter Future

Leave a Comment / Blog, Industry Insights

If COVID-19 didn’t halt the plans of commercial real estate investors, it definitely fogged up their view. The latest Investor Sentiment Survey by Colliers International has brought some much-needed good news though. Take a look the investor outlook and what has changed the most since the “complete unknown” on display in the last CRE survey.

“Investors are more optimistic, as there is more information in the market and a better understanding of where capital allocations will go and how debt markets are operating,” said Amsterdam. “Investors expect to remain in a low interest rate environment in the near-term, and with the debt markets showing positive improvement, this should set a sound backdrop for a resumption of sales activity.”

Patience is Still Required

However, the CRE survey respondents expect a return to transaction volume normalcy next year, with nearly half saying by the halfway point and a quarter looking toward the end of 2021. A slower recovery is expected for asset pricing though, with nearly one-third of respondents predicting a return to previous peak pricing in 2021, 35 percent in 2022, 23 percent in 2023 and 10 percent in 2024.

“The sentiment on deal volume is a very positive sign for investor psyche,” said Jodka. “There is tremendous capital sitting idle on the sidelines with investors wanting to get back in. Safety is paramount today. The durability and credit of the income stream is a top priority.”

E-commerce

This strong and socially distant demand driver, continues to propel the industrial sector. Rent gains are expected by 36 percent of Colliers’ survey respondents, up nearly 10 percentage points from the first survey. Nearly six in 10 have not changed their expectations for industrial returns, and very few (8 percent or half the rate of the first survey) expect value declines of 10 percent or greater.

“Industrial investors are more bullish, the optimism and strong investor appetite with this asset type are apparent,” said Amsterdam. “Where multi-tenant office is harder to transact today, multi-tenant industrial is not seeing that same level of difficulty.”

Many have speculated on how the work-from-home trend will affect the office sector. Colliers found that investor attitudes are brightening, with office investors less bearish than in the first survey. Almost 54.7 percent expect flat to 10 percent declines in pricing, but nearly three in four respondents noted that they need a higher return target. More than 13 percent of respondents expect rent gains in 2020.

The Retail Investment Sector

This sector remains a pessimistic place, with those expecting a 20 to 30 percent decline in pricing jumping nearly 20 points to 53.3 percent. The expectations for rent declines have gotten worse, too — only 6.7 percent of respondents, down from nearly 20 percent, expect less than a 10 percent rent decline — something not seen in other sectors in the survey. More than 93 percent of investors require an increase in their return target.

Multifamily Investors

They’re more optimistic in general, with an increasing share (21.4 percent) expecting flat to 10 percent rent growth. On the valuation side, nearly nine out of 10 respondents expect no more than 10 percent pricing declines. “We have seen strong investor demand for middle market assets, while finding success with strategic targeted marketing of properties. This is yielding pricing that is in line with, if not ahead of pre-COVID-19 levels,” said Jodka.

Perseverance is still imperative for CRE investors, but as the Colliers survey shows they increasingly have a better idea of where they stand. And they’ll use that knowledge to adapt their plans.

CRE Survey Shows a Brighter Future Read More »

National Unemployment Rate vs. The CRE Rate

Leave a Comment / Building Careers, Industry Insights

RETS Associates principal Kent Elliott said the CRE unemployment rate has been — in some roles and sectors — even better than zero, much healthier than the national rate. While some roles and sectors in the commercial real estate industry are seeing furloughs and layoffs and some employees are finding that good job interviews are few and far between, the industry overall may be in much better shape than the national average.

Of course, good data is hard to find, but according to RETS Associates principal Kent Elliott, the CRE unemployment rate is much lower than the overall unemployment rate, even in the midst of a pandemic. In fact, Elliott told Multi-Housing News in a recent interview that the rate in CRE could be as low as a third of the national rate.

“Currently, overall unemployment has spiked to around 13% and the CRE unemployment rate stands at roughly 4%,” he told MHN at the start of July. “That figure is the same as what the broadest sector of the economy stood at when it was healthy.

“You can’t find this data with the Bureau of Labor Statistics or anything like that,” he told Bisnow. “It’s just the sense that we have, as recruiters, being focused just on real estate, on where we think things are at this point in time.”

He said RETS is working with about half as many placements as it was last year at this time.

“The first quarter [of 2020] was rock-solid,” Elliott said. “The second quarter was not as good. The sense is we’re at about 50% of where we were last year at this point.” Across the RETS team of 15 recruiters, “nobody is at full capacity compared to last year,” he said.

But this period of flagging activity follows a national unemployment rate of just 3.6% as of January 2020, at which point Elliott estimates the rate for CRE, was again much better: somewhere between 2% and, in some sectors and geographies, as low as negative 2% — meaning more jobs were available than there were skilled candidates to place.

Starting from such a strong position, even with the ravaging economic repercussions of the coronavirus, the industry would have a long way to fall.

CRE recruiters outside of RETS are divided on the 4% theory. Some think the estimate is too low given the extent of the downsizing they have witnessed. Others say it seems about right, based on the work piling up on their and their colleagues’ desks. It varies by job function (high-paying, high-risk positions are being cut more readily and hired more hesitantly now) as well as by city.

For example, the May unemployment rate in Las Vegas hovered around 30%, whereas in the D.C. metropolitan area it was more like 9% and in Lincoln, Nebraska, just 5%.

When it comes to pinning down the sprawling industry of commercial real estate, there is no clear data, as residential real estate is often lumped in, skewing the picture. According to data from the BLS, the real estate industry at large in the U.S. showed real estate at 3.3% unemployment in March, spiking as high as 8.9% by May, and then dropping to 7.4%. However, CRE measures up against the national unemployment rate, searches happening at a 50% capacity are a shared experience.

CRE-focused recruiter Carly Glova, resident and executive recruiter of Southern California-based firm Building Careers, said 2019 was the firm’s best year to date, both in terms of revenue and number of placements, and in Q1, it was on track to surpass that in 2020. But over the past several months, the open roles it is managing have also seen a decline of about half.

“You compound COVID with the fact that now we’re in July,” Elliott said. “July and December are the two slowest hiring periods, so now you’ve got a double whammy. Half of [the slowdown] is COVID and half of it, it could be just normalcy.”

Of course, what may have been normal in July of last year is far from normal now. The Real Estate Roundtable 2020 Q2 Economic Sentiment Index registered a score of 38, confirming a dive in the industry’s read of market conditions.

“Although our Q2 survey results show there is hope for improved conditions within the next year, there are significant concerns that other sectors of the industry could be dragged down if jobs don’t rebound and government assistance tapers off,” Real Estate Roundtable President and CEO Jeffrey DeBoer told GlobeSt.

Elliott said hiring interest is like a spigot, and as the world tries to regain its footing amid chaos, the flow remains in flux.

“I can feel all these things happening, almost from week to week,” he said. “This week, Wednesday morning, I had four calls with four new clients, discussing four new search opportunities. I had my recruiter from Phoenix on one of those calls, Charlotte on one, Denver on another and Newport on another. That’s a good sign.” Read More: https://www.bisnow.com/national/news/employer/cre-unemployment-rate-vs-national-unemployment-rate-coronavirus-105152?utm_source=CopyShare&utm_medium=Browser

National Unemployment Rate vs. The CRE Rate Read More »

Post COVID CRE Hiring: Good, Bad, or Ugly?

Leave a Comment / Blog, Employers, Industry Insights, Job Search

There’s no denying that the past few months have been hard on commercial real estate. But where do we stand now? What will post COVID CRE hiring look like in the months ahead, as we rebuild and move on? Are we getting back to business as usual? Is it a total loss? Or can we expect a little of both?

According to many experts in commercial real estate, the COVID-19 crisis created a mixed bag of both challenges and opportunities. There’s plenty of bad news, but also a lot of good.

If you make a living in the CRE field, you may be wondering what hiring will look like now that everything has changed. Let’s open up that mixed bag, and see what the future may hold for the industry.

CRE Hiring Post COVID: The Mixed Bag

The hiring freeze that occurred this spring was unprecedented. Employers laid off millions of workers, and the US unemployment rate hit 20% in April. According to data from Indeed, job postings are lower this year by nearly 34%. The biggest hit sectors were tourism and hospitality, which were devastated by the lockdowns. Retail is hurting, too. Many believe the US is falling into a deep recession at this very moment, and that the rest of the year will be rather bleak.

But in the commercial real estate sector, it’s not all bad news.

While most companies have reduced new hires, others are looking for new talent to help them navigate a difficult market. This is the time for talented professionals and innovative leaders to thrive.

Respondents to the Spring 2020 NAIOP CRE Sentiment Index provided a slightly negative outlook on a handful of CRE fundamentals, except for employment within their own firms, which they expected to remain consistent.

Also, there is now more opportunity for contract and remote-work positions than before. Self-starters and entrepreneurial talent will have more value in the coming workplace. Post COVID CRE Hiring will be much more flexible. Of course, relationships and networking will remain the currency of the realm.

In a recent BisNow interview, real estate consultant, Bernie Ocampo, predicted there will be greater demand for some CRE markets like distressed investments, asset management, accounting, and property management. CRE professionals in these areas can expect a competitive hiring field. Ocampo pointed out that, while assets may change hands, there will always be a need for management of those assets.

What CRE Hiring May Look Like Long Term

So some sectors are definitely hurting, while others will be in greater demand than before. But will hiring overall rise or fall in the months and years ahead? In the BisNow article, Jana Turner a principal for RETS Associates, reported her hiring has continued strong. And she believes the long-term projections for Post COVID CRE hiring will rise after a brief pause, stating:

In the last recession, hiring was slow. Here, companies have not canceled searches. Many are just on hold…Retail will definitely be getting hurt but there are a lot of deals out there.

Indeed, there are deals to be made in the new CRE landscape. The future of CRE hiring is to be found in the rising demand for multi-family housing, high-value real property. There will likely be higher vacancy rates and some stalled construction, but some markets may actually experience higher levels of construction and demand. Jobs will be created especially in lease negotiations, legal services, special servicing, and appraisals.

In spite of all the doom and gloom in the news, there is reason to believe the outlook for post COVID CRE hiring is not crashing, but merely changing.

Post COVID CRE Hiring: Good, Bad, or Ugly? Read More »

What Commercial Real Estate Listings Platform is Best for You?

Leave a Comment / Blog, Industry Insights

With so many different Commercial Real Estate (CRE) listing platforms on the market, it’s difficult to decipher which are right for you. Everyone has different needs and we know that. That is why we are here to help!

We want to make sure to consider what works best for your specific needs. For example, accounting for the ease-of-use, cost, and data offered on each platform. To help aid in your search, a list has been compiled of the best, most-used commercial, residential, and land listings websites on the internet today! Check it out below.

Learn More: https://www.reonomy.com/blog/post/guide-to-the-best-commercial-real-estate-listings-platforms

What Commercial Real Estate Listings Platform is Best for You? Read More »

Diversity vs. Inclusion: There’s a Difference!

Leave a Comment / Ask An Expert, Blog, Employers, Industry Insights

CRE Insight Journal does a great job explaining the difference between diversity and inclusion. They invite Patti Digh, founder of the School of Inclusion + Activism, to talk about this topic and she wants to make one thing clear: diversity and inclusion are not the same things. While the two concepts work hand-in-hand and should both be pursued, there is a clear distinction between the two. In order for companies to both diversify their staff and create a culture of inclusion, they must know what they are trying to achieve. Digh helps explain the differences and gives reasons why both concepts should be on a leader’s radar.

Learn More: http://leader.creinsightjournal.com/the-difference-between-diversity-and-inclusion-patti-digh/

Diversity vs. Inclusion: There’s a Difference! Read More »

2020 CRE Outlook and What It Means for Hiring

Leave a Comment / Ask An Expert, Blog, Industry Insights, Job Search

With a new decade upon us, many are concerned about the 2020 CRE outlook and how the new year will play out for hiring. Certainly, numerous factors will influence the commercial real estate market this year – from new local regulations to global trade wars to the national economic cycle. But will things be drastically worse, much better, or more of the same?

The research and reports division of CBRE – a prominent commercial real estate investment and data firm – recently released their outlook for 2020. Overall, the outlook appears positive. But there are a few bumps along the road as well as subtle winds and turns to prepare for. Let’s break down the primary sectors and determine what the 2020 CRE outlook is for the various market sectors and hiring.

The Economy

The US is currently enjoying the longest economic boom in recent memory, but it’s certain not to last forever. However, 2020 will likely not see an outright recession. Though growth will likely slow to near 2%, facing a trade war with China and waning fiscal stimulus, the slowdown will be barely noticeable. The commercial property markets should prove resilient, thanks in part to preventive interest rate cuts and other stimulating policy moves. Property market fundamentals should remain strong.

Capital Markets

The CBRE report predicts commercial real estate investment volume will remain high – on par with that of 2019. The cost of capital will remain low. This, combined with increased foreign investment, domestic investment into CRE, and lower interest rates, will mean most capital markets remain strong.

However, some sectors like multifamily may see some cooling off. And investment overall is expected to decrease at least 5%. This late in the economic cycle, it is understandable to see decreased risk tolerance in investors. Yet the search for yield combined with the significantly low cost of capital will likely bolster investment in some asset types such as alternative use real estate.

Office Space

While office-related hiring growth will slow down, the US is still likely to experience about .3% growth. This means office property completions will slow down, and downtown vacancies will increase. The primary demand for office space should continue to come from the technology sector – especially in markets such as Austin and San Francisco. Flexible office space inventory should grow by about 13% in 2020.

Industrial & Logistics

The 2020 CRE outlook includes a downturn in demand for industrial space. It is possible that supply will outpace demand by approximately 30 billion square feet. Outsourcing and industrial shifts are reducing demand for industrial real estate, yet vacancies should remain very low. Third-party logistics providers will likely fill this vacuum to some extent in the coming decade but not soon enough to impact 2020. Rent growth should remain around 5%

Retail

Consumer spending will remain strong slowing slightly to around 2%. Spending at this level will continue to support job growth and modest investment gains. However, with uncertainty in the world economy – especially in regards to the trade war with China – consumers may be more cautious, and retail demand will probably slow in many areas.

However, this year marks the beginning of a new trend for retail. Generation Z is increasingly turning to shopping malls and retail outlets in search of experience-based consumption. According to a recent study, over 80% of Gen Z prefer in-store shopping, which should drive traffic back to retail centers and malls.

Multifamily

2020 is expected to hold a slight downturn for multifamily properties. Vacancy levels should rise to about 4.5%, and demand should drop about 20%. Developers will still remain active, but the focus is on shifting to the suburbs. Rent regulations are also impacting some areas like California, New York, and elsewhere. San Francisco and Los Angeles both experienced slowing in multifamily after California enacted rent controls in 2018, and this year may see a further slowing for the same reason.

The 2020 CRE Outlook for Hiring

In light of these developments and trends, the 2020 CRE outlook for hiring is shaping up to be much like 2019. Hiring overall will remain high, but the field will require more talented and experienced professionals. As the economy begins to slow down, more unqualified applicants will cloud the talent pool. Now more than ever, an effective and strategic hiring process is vital in the CRE field.

On the job applicant side, prospective employees can expect a more stringent review process. Employers will likely be more selective as they brace for the coming slowdown. They will place more emphasis on cultural fit and experience.

The 2020 CRE outlook involves some minor shifts, but overall, it should be a great year. Smart companies and professionals who are paying attention will spot some new opportunities and continue to leverage old ones. Rate of growth will slow, but it will still be a growth year overall.

2020 CRE Outlook and What It Means for Hiring Read More »

What Commercial Real Estate Trends to Watch in 2020

Leave a Comment / Blog, Building Careers, Industry Insights

he United States is currently experiencing its longest expansion in history, leading many in the real estate industry believe we’ll continue on the path of slow and steady growth as we head into 2020. The Urban Land Institute and PwC recently released the Emerging Trends in Real Estate 2020® report, which reflects the views of 750 individuals and 1,500 survey respondents from the real estate industry on where they see the market going in the coming year.

Industry players expect sustainable but slower growth for the U.S. economy and real estate market in 2020.
Baby boomers and millennials will have significant impacts on housing, office and other property sectors.
Austin topped the list of the markets to watch due to its strong population growth and investor demand.

What Commercial Real Estate Trends to Watch in 2020 Read More »

2020 U.S. Real Estate Market Outlook

Leave a Comment / Blog, Industry Insights

2020 could be a pivotal year for the U.S. commercial real estate industry, with geopolitical, economic and local regulatory issues in keen focus. Despite transformational changes to our business, CBRE’s 2020 U.S. Outlook predicts a very good year for commercial real estate.

Resilient economic activity, strong property fundamentals, low interest rates and the relative attractiveness of real estate as an asset class are the primary factors supporting our outlook. Barring any unforeseen risks, we assess that a recession will be avoided, thanks in large part to the stimulatory effects of the Fed’s rate cuts in 2019.

Learn More at: https://www.cbre.us/research-and-reports/US-Real-Estate-Market-Outlook-2020

2020 U.S. Real Estate Market Outlook Read More »