October marks the time for the most significant commercial real estate (CRE) learning event of the year at the South Texas Certified Commercial Institute (CCIM) annual symposium. Assessment Technologies continues to support the CRE community through active membership and corporate sponsorship as a 2019 sponsor. This year showcased real estate information sessions in retail, office, multifamily, industrial, and the financial sector. The theme this year was “Right Time, Right Place.”
Hundreds of CRE professionals attended the all-day event on the University of Texas at San Antonio (UTSA) campus to analyze and discuss the critical data points in real estate. UTSA hosts the annual event to support the career path into CRE by the studens in the Embrey Real Estate Finanance and Development Program.
Many of those in attendance are Brokers, Leasing professionals, Investors, Asset Managers, Appraisers, Property Managers, Developers, Commercial Lenders, Attorneys, Bankers, of course UTSA students, and other allied professionals to leverage industry insights into profit.
Industry leaders forecast another year of growth in the CRE industry. Continued cap rate compression in CRE is expected to continue for the foreseeable future due to the constant influx of capital from Europe and Asia seeking returns in a relatively safe political environment. Because of declining yields in primary markets, investor capital is now flowing into both secondary and tertiary markets in search of return (ROI). Texas cities that will continue to reap the benefits are Austin (tops the list), San Antonio, and other parts of South & Central Texas.
The event kicked off with keynote speaker Will McIntosh, Ph.D., CRE Global Head of Research, USAA Real Estate presenting, ” What Does the Future Hold for the Real Estate Market?” The symposium hosted many leading expert presentations from: Yesenia Marili, Transwestern, Vice President, Marketing & ResearchTranswestern, Vice President, Marketing & Research; Chad Knibbe, CCIM President Foresite Commercial Real Estate; Michael J. Lynd, Jr Chief; Executive Office Kairoi Residential; Lange W. Allen Director U.S. Industrial/Logistics USAA Real Estate; and David Adelman Founder and Principal AREA Real Estate, LLC. Our team gathered some of the most compelling insights impacting our clients.
Industrial & Multifamily assets remain the jewels of a robust investment portfolio. It has become increasingly important to manage the expectations of institutional investors (primarily pension funds) as equity returns continue to slip down the yield curve. Particularly in multifamily, where unrealized rental assumptions combined with the increase in operating expenses (primarily property taxes) means that anticipated proforma returns (IRRs) are not meeting investor expectations. Controlling expenses through active property tax management programs are essential to success in this sector.
Our firm has 2 CCIM designees, John A Pelayo and Pat Howard. They have thousands of hours of continued education in trends and issues facing owners and operators of commercial real estate properties. Our property tax experts have decades of sophisticated, multi-state property tax expertise and have built relationships with over 1500 tax assessor oﬃces across the nation. We dig deep into your business to understand the uniqueness of your commercial property to match our ad valorem expertise. We partner with every client to build enduring relationships that last for decades.