M id A tlantic Real Estate Journal — May 2024 — 3A
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M id A tlantic R eal E state J ournal
Local CRE market growth driven by migration, office returns, and stable rates CORFAC members report steady transaction activity in First Half 2024 expanding medical groups,” explained one member. subsectors fueling the pipeline for member firms.
I n its first member sur- vey of 2024, CORFAC International heard from brokers of independently owned firms that deal vol- ume is steady and improving. The survey revealed 31% of respondents saying deals have remained the same, 31% saying volume has slightly increased, and 10% saying it has significantly increased. More than 51% of respon- dents reported in-bound refer- rals from existing clients or local allied service providers, highlighting CORFAC mem- ber firms’ strong reputation for service and local market expertise – even during times of market volatility. In ad- dition, nearly one-third of respondents reported transac- tion activity that originated as a referral from a fellow CORFAC member. “We’re pleased to hear from our members that deal volume is trending positively and that referrals continue to be an important source of new business,” said 2024 presi- dent David Boyd, CCIM, SIOR , principal o f Boyd Commercial/CORFAC In- ternational in Houston. “Our network is built around the valuable cross-market con- nections between members, their clients, and trusted local service providers.” Golden Eagle Grp.’s 3130 Fairview Park inks lease deal FALLS CHURCH, VA — Golden Eagle Group and Cushman & Wakefield an- nounced they have completed a 5,089 s/f lease at 3130 Fair- view Park Dr., Falls Church. The new lease is with Beyer Automotive and brings the building to over 85% occupancy. Tim Summers, Will Thom- as, and Chloe Eyring of Cushman & Wakefield oversee leasing efforts at 3130 Fair- view Park Dr. on behalf of the landlord, Golden Eagle Group. Norman Corkhill of PREP Real Estate represented Beyer Automotive. MAREJ 3130 Fairview Park Dr.
conclude, each project needs more time and effort on our side,” said one respondent. Another added, “Clients are waiting for ‘things to get better’ to make decisions.” These challenges underscore the importance of working with a collaborative and flexible net - work like CORFAC. With deals taking significant time and ef - fort to conclude and uncertainty around securing financing, deal participants need real estate ad- visors who can navigate the ins and outs of their local markets and bring buyers and sellers to a satisfying agreement. MAREJ
CORFAC members also shared the bright spots they’re seeing across their markets. The top three factors positively influencing local CRE market activity are population migra- tion to their markets (59%), return to office mandates (48%), and stabilizing inter- est rates (48%). The growth of healthcare real estate is a cause for optimism mentioned by multiple respondents. “We’ve had activity from doctors looking for owner- occupant space as well as
Pushing through Economic Concerns and Lagging Deals On the flip side, still-high interest rates and inflation are having the most negative effects on transaction activity, according to 83% of members. Even so, some players seem to have adjusted to this environ- ment: “Investors are stom- aching higher interest rates, and banks are thawing their lending practice.” Time to work through deals is wearying some brokers. “Transactions seem harder to
Sources of Deal Activity and Growth The industrial sector contin- ues to generate the greatest share of business activity for respondents, with 62% citing warehouse/distribution as a top driver and 58% citing in- dustrial/manufacturing. Office transactions, investment sales and retail deals rounded out the
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