Watch What the Top Commercial Real Estate Firms Are Buying in 2022
Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.
So far, 2022 is shaping up to be the year of the geek. Hey, we’re saying this as a compliment. Geeks get the job done right. Letting your geek flag fly isn’t just about debates between Batman and Superman. (Hey, Superman might have powers, but Batman clearly has the better real estate portfolio.)
For us commercial real estate geeks, it’s about watching the markets, seeing acquisitions, and talking about it. Seeing trends in the marketplace and synthesizing the data into something useful is a skill that you should practice at every opportunity. The more you sharpen this skill, the better your deals get over time.
2022 is also the year of data, and commercial real estate firms are going big. Investors, brokers, tenants, and even speculators have plenty of good data to examine.
We love acquisitions, and we’ll do a nice roundup of all of the acquisitions so far, along with some takeaways to see how to benefit from what the big fish are doing.
Why Watch the Biggest Firms?
Standing on the shoulders of giants isn’t a concept unique to the world of commercial real estate. Most business models rely on people studying competitors, even if said competitors are in a much higher position to conduct business. The big fish have a lot of money, connections, and networks, making it very easy to study what they do.
After all, if the data is already out there, why not study it with a focus on applying the trends for your benefit?
Brokers looking to expand their expertise should understand how important it is to have new sources of information. Clients want to know that you have your thumb on not just the local market but trends across the country.
Multi-Family Spending Spree in New York?
An all-cash deal sounds great for most buyers until you start realizing that the biggest firms out there are going all-cash as well. AYA New York, a co-living company, went all in to grab a 25-unit building on the Upper East Side.
The sticker price for the grab? $14.9 million dollars. Happy buyers and we’re sure the brokers were quite pleased as well.
Here’s the scoop on the purchase of 240 East 90th Street: it’s a seven-story building with two studio apartments, a couple of one-bedrooms, nearly two dozen two-bedroom units, and two three-bedroom units.
The other interesting part here is that the building isn’t rent-controlled in any way, meaning that rent increases are almost certainly on the horizon.
Life Sciences Portfolio Going for $80 Million in North Carolina
So we swing away from the Big Apple and down to North Carolina, where Thor Equities Group sold a 72-acre life sciences zone for $80 million. The most interesting aspect of this sale is the fact that Thor Equities Group only held the property for a year after purchasing it for $20 million.
So if you’re a fan of short-term flips, it turns out that you’re in good company after all.
The buyer is Alexandria Real Estate Equities, who picked up this life sciences asset for its location within the Research Triangle Park. Life sciences is heating up in the post-pandemic era, with more and more space devoted to research and development.
Multiple companies are working on developing tools to fight the aftereffects of the pandemic, and it will be interesting to see how the demand for more R&D continues to drive this commercial real estate segment.
This is not an empty complex; AgBiome, a biotech company, is leasing the space for their own work. However, there are over a million square feet of space waiting for further development. Alexandria Real Estate Equities did not mention their full plans for the property.
Retail Isn’t Dead Yet in SoCal
What can you do with a 181-891 square foot shopping center? Well, if you’re Brixmor Property Group, you can buy it for $85.7 million dollars. The seller has been left undisclosed, but the buyer is a long-time player in the commercial real estate market. The focus is on grocery-anchored retail, and it will be interesting to see what Brixmoor plans to do.
This is one of those acquisitions where looking at the location data is very helpful. The Brea Gateway Center is located in Brea, CA, an area where the average annual household income is $91,069.
It’s an incredibly affluent area where established traffic and shopping patterns join forces to create an opportunity for new retail investments. The grocery anchoring the Gateway Center is Ralph’s, a hometown favorite.
We’re speculating since we do not know fully what Brixmoor plans to do, but the idea of vacant retail space is quite appealing. The grocery anchoring the Gateway Center is Ralph’s, a hometown favorite.
Turning Public Acquisitions Into Strategy
Some key takeaways spring to mind when we think about these developments. We’re thinking about how important it is to continue strengthening relationships within the commercial real estate industry.
In the Brea Gateway Center purchase, the seller used intermediaries to get that deal closed. This reminds us that it isn’t always just funding alone that gets a deal done: sometimes, it’s the connections that tie everything up neatly.
Next, we’re thinking about the acquisitions we’ve made in the past.
Finally, we’re thinking about how demand only continues to soar. Despite the changes brought in by the pandemic and now the post-pandemic era, we’re still very excited about commercial real estate and all of the opportunities.
Examine What Is Trending to Inform Your Own Strategy
Studying what’s working and what’s being acquired in an industry as diverse as commercial real estate is very important. By looking at what’s trending, you can build better plans for your own purposes.
For example, if you’re a tenant in a property right now, demand could mean that the owner would rather sell soon instead of simply holding onto the property. This could bring an opportunity to purchase part or total ownership.
If you’re looking to sell a property, knowing the types of properties being picked up right now is still great information.
No matter which way you slice it, paying attention to current industry news goes a very long way.
List & Browse Commercial Real Estate for Free on MyEListing.com!
Anyone can list and browse commercial real estate for free right here on MyEListing.com. Create a free account and receive access to accurate market intelligence, free demographic reports, customized property type alerts, and more.
Other recent articles
Article Search
Share
All Article Categories
