• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Limon Net Lease Group

Limon Net Lease Group

  • Listings
    • National Listings
    • NYC Metro Listings
  • Who We Are
  • 1031 Exchange
  • Research
  • Financing
  • Services
    • Advisory
    • Capital Markets
    • Marketing
    • Research
    • Technology
  • Contact

Archives for August 2022

Capital Migration: Primary or Tertiary Markets

August 29, 2022 by Marcus & Millichap Research Services

Smaller Metros Increase their Share of CRE Sales Activity

CRE Sales Activity Shifting Across Market Types

  • Transaction activity was previously concentrated in primary markets
  • The share of transactions in primary markets fell from 60% in the early 2000’s, to 34% by 2022
  • Tertiary markets now house most transactions, accounting for almost half of deals

What is Driving Activity in Tertiary Markets?

  • Properties often trade for a lower price and provide higher average yields
  • Population growth rate has been faster in smaller metros

Will Sales Activity Remain Elevated in Tertiary Markets?

  • Current demographic trends favor tertiary markets
  • Primary markets would benefit from a return to the office
  • Sales activity has increased across all property types

*Through 1Q
Trailing 12-month average; includes apartment, retail, office and industrial sales $1 million and greater
Sources: Marcus & Millichap Research Services, Real Capital Analytics, CoStar Group, Inc.

Watch the Video Below

 

Filed Under: Research Brief

How CRE Insvestors Can Create Value

August 22, 2022 by Marcus & Millichap Research Services

Three Ways CRE Investors Can Create Value

Repositioning an Existing Property

  • Renovations and capital improvements can help make a building more appealing
  • Repurpose one property type into another; More intensive, but may greatly alter value

Altering Building Management

  • Make operational adjustments or leverage a professional management team
  • Restructuring and re-tenanting a building can help bolster occupancy

Utilizing Knowledge to Exploit Opportunities

  • Understand the market, economic, demographic and policy trends that influence property outlook
  • Find unique areas of growth not already baked into an asset’s price
  • Align property to capitalize on long-term trends

Watch the Video Below

 

Filed Under: Research Brief

What the Inflation Move Means for Interest Rates

August 15, 2022 by Marcus & Millichap Research Services

Is Inflation Pressure Starting to Subside?

Inflation Shows Signs of Easing

  • CPI Inflation rose by 8.5% in July over last year, down from 41-year high in June
  • Reflects recent drop in oil and gas prices
  • Supply chains appear to be improving, should further help lower prices for goods

Will the Fed Change Course?

  • Fed likely to raise rates by 50-75 bps on September 21
  • Also expected to double monthly balance sheet reduction to $95B/month (Quantitative Tightening)

Considerations for CRE Investors

  • Inflation resistant properties remain in favor
  • Underlying demand drivers sustaining strong fundamentals for most property types
  • Investors recalibrating strategies to higher interest rate climate; CRE market remains liquid

*Through July; 10-Year Treasury through August 10
Sources: Marcus & Millichap Research Services, BLS, Federal Reserve

Watch the Video Below

 

Filed Under: Research Brief

What Capital Migration Trends Mean for CRE

August 8, 2022 by Marcus & Millichap Research Services

Interstate CRE Investment on The Rise

Capital Movement Between States On the Rise

  • Increased out-of-state buyer activity
  • Secondary and tertiary markets claiming larger share of total CRE sales volume

Advantages of Out-of-State Investing

  • Geographic diversification may mitigate risk
  • Wider range of assets and yields available
  • Unique market forces may create opportunities

Considerations for CRE Investors

  • Influx of out-of-state capital has contributed to yield compressions across market types
  • Out-of-state buyers may have different decision drivers and objectives, could pay premium
  • Marcus & Millichap provides:
    • Buyers with access to nationwide inventory
    • Sellers with a national pool of buyers

*As of trailing 12 months through 2Q 2022
Sources: Marcus & Millichap Research Services, MNet

Watch the Video Below

 

Filed Under: Research Brief

What the GDP Numbers and Rate Increase Mean for CRE

August 1, 2022 by Marcus & Millichap Research Services

What the Fed Hike and GDP Decline Mean for CRE Investors

GDP Contracts for Second Quarter in a Row

  • GDP growth negative in 2Q; Not necessarily a recession
  • Labor market, consumption and manufacturing performed well in 1H 2022
  • Each markets will experience varying headwinds

Fed Implements Another Aggressive Rate Hike

  • Fed raised overnight rates 75 bps on July 27
  • Aggressive action a response to high inflation
  • Puts overnight rate in 2.25%-2.50% range, on par with July 2019

Considerations for CRE Investors

  • Fundamentals remain strong for most properties
  • Core economic drivers in place to support property space demand
  • Investors recalibrating strategies to adapt to more fluid investment climate

*Through 2Q
Sources: Marcus & Millichap Research Services, BEA

Watch the Video Below

 

Filed Under: Research Brief

Primary Sidebar

Recent Posts

  • Interest Rates on the Rise
  • Understanding Today’s CRE Distress Landscape
  • Can the Office Market Regain its Footing in 2025
  • Retail CRE Positioned to Withstand Potential Headwinds
  • Multifamily Well Positioned to Face Economic Headwinds

Archives

  • May 2025
  • April 2025
  • March 2025
  • February 2025
  • January 2025
  • December 2024
  • November 2024
  • October 2024
  • September 2024
  • August 2024
  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • March 2020

Categories

  • Agent Opinion
  • Apartments
  • Client Webcast
  • Employment
  • Eviction Moratorium
  • Fox Business
  • GDP
  • Investor Sentiment Survey
  • M&M In the Media
  • Market Report
  • Multifamily
  • Multifamily
  • NYC Metro
  • Outlook Report
  • Research Brief
  • Retail
  • Self-Storage
  • Special Report

Footer

© 2025 Limon Net Leased Group

  • Listings
    • National Listings
    • NYC Metro Listings
  • Who We Are
  • 1031 Exchange
  • Research
  • Financing
  • Services
    • Advisory
    • Capital Markets
    • Marketing
    • Research
    • Technology
  • Contact

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2020 Marcus & Millichap and Limon Net Lease Group

Privacy Policy

We use cookies to offer you a better experience and analyze site traffic. By continuing to use this website, you consent to the use of cookies in accordance with our Privacy Policy.AcceptDon't Accept