Think-Realty-Magazine-December-2018

1 DAY. 20+ SPEAKERS. 360 ° OF CRE EDUCATION.

Make Your Move in Commercial Real Estate. The most successful, well-known, and wealthiest real estate investors in California are going to change the way you think about commercial real estate at CRE 2019 on Tuesday, January 8th! Featuring Samuel K. Freshman! Freshman wrote Principles of Real Estate Syndication —the bible on the subject—and is Chairman Emeritus of Stanford Professionals in Real Estate. What can we expect in the coming year?

TOPIC #2: COMMERCIAL PRODUCT EVOLUTION

FACTOR 1: Multi-family property has been the num- ber-one choice for investors for some time. Concerns about the growth of online retail and other factors has caused movement away from acquiring retail, resulting in cap rates increasing in the retail sector and decreasing in the multifamily sector. Prediction: Retail property will continue to be successful if well located. There seems to be a trend away from power centers and malls with the focus more on locally oriented centers, as people still want to go to the market to see what they are buying. While there may be a small increase in home delivery of groceries, supermarkets will continue to be a traffic draw for local services. FACTOR 2: Fashion and specialty food products will continue their growth in online popularity. FACTOR 3: The gap between cap rates for multifamily properties and local shopping centers is already dramatic and should continue through 2019. Opportunities will be most easily found for investors looking locally. Developing Trend in the Conversation: The factors which affect returns and success will continue to be different in each product type. The most important, for example, in multifamily is generally the school system. Better schools bring higher prices and occupancy in multifamily. With retail, it is more a matter of traffic and population concentration. At Standard Management Company, the “acid test” for shopping centers is how many cars per day go by the center, whereas the school system is our number one factor in sorting out potential multifamily purchases.

Register today at CRE2019.com or by calling Heidi at 310.864.2402!

TOPIC #3: INTEREST RATES, INFLATION, AND REAL ESTATE VALUES

Specific topics include: • Bitcoin and CRE - What Will it Disrupt? • How A.I. Will Play an Increasing Role in CRE • Opportunity Zones, Affordable Housing, and Other Government Created Opportunities for High Returns Additional speakers include: • Huntington D. Lambert (Harvard) • Bryan Copley (CityBldr) • Aubrey Chernick (Security Token Academy) • Alan D. Levy (Tishman International Companies) • CRE Icons Brain Trust Panel • And more!

Samuel K. Freshman is the founder of Standard Management Company (SMC), chairman emeritus of the Stanford Professionals in Real Estate (SPIRE), and the author of Principles of Real Estate Syndication. SMC will host the CRE2019 conference, which is co- sponsored by Greystone & Co., SPIRE, Deutsche Bank Wealth Management, and Harvard University, on January 8, 2019, at the Waldorf Astoria Beverly Hills. Learn more about the conference at CRE2019.com or call 310-864-2402 for more information. FACTOR 1: It would appear that the government is dedicated to continuing gradual increases in interest rates – at least for now. FACTOR 2: Usually when interest rates rise, cap rates will rise as well. In this cycle, that has not been the case. In fact, the opposite has happened. FACTOR 3: We are in an inflationary economy, and the cost of everything going into construction will continue to increase over time. Developing Trend in the Conversation: The only thing we can say for certain is that in the long run, the value of real estate will increase. There will be various periods of recessions but after the recession the replacement value goes higher. •

Don’t miss this one-day opportunity to enhance your knowledge and CRE proficiency.

Thank you to our partners: www.CRE2019.com

32 | think realty magazine :: december 2018

thinkrealty . com | 33

Made with FlippingBook Online newsletter