SVN Latus Commercial Realty Group

SVN Research's most recent economic update as we wrap up Q1. Take aways include: ? Consumer Confidence – U.S. consumer confidence dropped significantly in March, marking a fourth consecutive monthly decline. Short-term expectations for income and jobs hit a 12-year low, with recession concerns rising. ? Business Uncertainty – Sales revenue growth expectations have improved, but uncertainty remains high. Employment growth expectations are up, with most firms not anticipating major workforce changes. ? Fed Interest Rates – The Fed kept rates steady at 4.25-4.50% but expects to cut by 50 bps by year-end. Economic expansion continues, but inflation remains slightly elevated. ? FOMC Economic Projections – GDP growth forecasts for 2025-2027 were lowered, while inflation projections for 2025-2026 were raised. The unemployment rate is expected to rise slightly. ? Industrial Space Demand – 2024 saw the lowest industrial net absorption rate in 13 years due to high interest rates. A slow recovery is expected in 2025, with stronger absorption projected for 2026. ? Fastest-Growing Cities – Florida cities led U.S. metro population growth in 2024, with immigration playing a key role. Texas metros rebounded after pandemic-era declines. ? Co-Working Spaces – Co-working locations surged 25% year-over-year, filling demand gaps. The Southeast leads in total spaces, with suburban expansion driving growth. ? Homebuilder Confidence – Builder confidence dropped to a seven-month low in March, with sales conditions worsening due to labor shortages and material costs. Regulatory relief offers some optimism. ? Independent Landlord Rentals – On-time rental payments improved significantly in March but remain lower than a year ago. The West leads in payment reliability. ? Retail Sales – Retail sales rose 0.2% in February, rebounding from January’s decline but still below expectations. Non-store retailers and health stores saw the biggest gains. Read the full report below ????

Quarter 1 of 2025 is wrapping up, which means that the trends shaping this year are well-established. ?? Curious about what's happening in CRE? Here are the Top Trends Shaping Commercial Real Estate in 2025 ?? ?? AI & Data-Driven Decisions ?? From predictive analytics to smart property management, AI is optimizing everything from lease negotiations to space utilization. Investors and landlords are leveraging AI-driven insights to make data-backed decisions. ?? Flexible & Hybrid Workspaces ?????? The demand for adaptable office spaces continues, with tenants favoring flexible lease terms, coworking hubs, and hybrid-friendly designs. Offices are being reimagined as collaboration-focused environments rather than static workstations. ?? Sustainability & ESG-Driven Investments ?? Net-zero buildings, green financing, and carbon-neutral developments are no longer optional—they’re expected. Tenants and investors are prioritizing eco-friendly properties with energy-efficient designs and smart building technologies. ?? Resurgence of Retail – Experience is Key ??? Retail isn’t dying—it’s transforming. Brands are blending physical and digital experiences, using flagship stores, pop-ups, and immersive tech to create engaging customer journeys. Expect more "retailtainment" concepts in urban hubs. ?? Industrial & Logistics Boom Continues ?? E-commerce and supply chain reconfigurations are driving record demand for warehousing, distribution centers, and last-mile logistics solutions. Secondary markets and urban hubs are seeing major investments. ?? Multifamily & Mixed-Use Developments Thrive ??? With urban migration trends shifting, multifamily housing in walkable, mixed-use communities is in high demand. Developers are integrating retail, office, and residential spaces to create vibrant live-work-play ecosystems. ?? What trends do you see shaping CRE in 2025? Let’s discuss in the comments! ??

Laura Martin spent the week at the SVN? International Corp.'s Annual Conference, held this year in in San Antonio, TX! Laura was recognized as an Achiever in the region, and stood with other past winners of the Managing Director of the Year award to celebrate Lars Gruenefeld receiving his jacket for Managing Director of the Year for 2024! It was a great week of connecting with friends and colleagues across the nation, learning about AI and other trends across the industry, and celebrating the accomplishments of fellow SVNers. A big congratulations to all of the award winners, and here's to a great 2025! #SVN #SVNNetwork #SVNDifference #BetterTogether

Last week SVN? International Corp.'s research team released its latest Economic Update, providing updates on significant economic indicators such as inflation, business optimism metrics, jobs reports, property prices, construction planning and more! Here are a couple of key takeaways to pay attention to: ?? Inflation: CPI rose 0.2% in February and 2.8% year-over-year, with eggs surging 58.8% annually. Core CPI hit 3.1%, driven by shelter costs. ?? Business Optimism: The NFIB Index hit its lowest since October 2024, with rising uncertainty. ?? Real Estate & Logistics: Logistics growth continued, while warehouse costs rose. Commercial property prices increased slightly, led by Retail and Industrial sectors. ?? Jobs: The U.S. added 151k jobs in February, below expectations. Wages rose 0.3% monthly and 4% annually. ?? CRE Distress: Distress rates fell for the first time in five months; office distress remained high at 19.3%. ?? Construction Planning: Growth was flat, with data centers driving commercial gains. ?? Utilities: Renters pay $220/month on average, with single-family rentals highest at $327/month. ?? Credit Access: Urban West Coast areas saw better credit access, while rural regions struggled. We're keeping a close eye on these factors, and welcome your questions about what we're seeing in Commercial Real Estate, both here in Central PA and across the country! Feel free to comment below, or reach out to schedule a free consultation on what the current economic conditions mean for your real estate investment!

It's been busy around the office, and we are excited to welcome Tomeka Sebeh to the SVN Latus team! ?? With previous real estate experience in residential resale and new home building markets combined with her expanding knowledge in commercial real estate, Tomeka brings a well-rounded perspective to her role as an advisor and agent here at SVN Latus. Tomeka loves to give back and has volunteered with organizations like Habitat for Humanity in York, Pennsylvania, and United Disabilities Services in Lancaster, Pennsylvania. Her dedication to service extends to her work, where she helps clients navigate complex real estate deals with confidence. Originally from Birmingham, Alabama, Tomeka is known for her strong work ethic, professionalism, and respect for others. She attended the Philadelphia School of Real Estate to further her understanding of the industry, continuously expanding her expertise in residential and commercial real estate. Welcome to the SVN Latus team, Tomeka! We are so glad to have you! ??

She has been around for a few weeks now, but we are excited to formally welcome Nikki Farrell to the SVN Latus team! ?? Nikki has always been passionate about connecting people with exceptional opportunities. With a background in social work and leadership in sales—where she achieved top ranks—she naturally transitioned into commercial sales. ?? Known for her problem-solving approach and ability to build strong relationships, Nikki is dedicated to helping clients navigate opportunities with confidence. She values integrity, persistence, and continuous learning, ensuring she brings the best insights to every interaction. ?? Beyond business, Nikki is committed to personal growth, mindset mastery, and fostering meaningful connections. She currently resides in Pennsylvania with her husband, balancing her career with a focus on wellness and lifelong learning. ?? Welcome to the SVN Latus team, Nikki! We are so glad to have you! ??

SVN? International Corp. Research team's latest Economic Update is out and there are some red flags to watch out for. ?? 1?? Proposals for Permanent Bonus Depreciation ?? -Discussions continue about extending 100% bonus depreciation for business assets. -Supporters argue it stimulates economic growth, but research shows mixed results. -Extending through 2025 could cut federal revenues by $3 billion over ten years. 2?? Consumer Confidence Decline ?? -Consumer confidence dropped in February at its fastest pace since August 2021. -Both present situation and expectations indices fell, with the latter hitting "potential recession" levels. -Inflation expectations surged amid economic uncertainty. 3?? Stalling Business Activity ?? -Manufacturing and service sector activity dropped to a 17-month low as uncertainty over tariffs and the federal budget boggs down what had been a post-election boost in business confidence. -Potentially related to both the drop in the PMI and January’s inflation uptick is consumer activity shifting away from services and back towards goods. The services sector drove much of the decline after contracting for the first time in two years. 4?? Household Emergency Expenses Survey ?? -44% of U.S. adults say they can cover emergency expenses, slightly up from last quarter but lower than last year. -Real outcomes suggest households are managing emergencies better than confidence levels indicate. 5?? Federal Open Market Committee (FOMC) January Meeting Minutes ?? -Policymakers remain cautious amid economic uncertainty. -Some officials favor keeping high interest rates if inflation persists, while others support rate cuts if economic growth slows. 6?? Declining Builder Sentiment ??? -Homebuilder confidence hit a five-month low due to rising uncertainty and potential tariffs. -26% of builders reduced home prices in February, down from 30% in January. 7?? Housing Starts Decline ?? -Housing starts fell 9.8% in January, with single-family homes down 8.4% and multifamily down 11%. -Severe snowstorms and freezing temperatures disrupted construction activity in much of the country, while rising costs of imports and mortgages impeded any potential rebound. 8?? Commercial Real Estate (CRE) Cap Rates Increase ?? -Office, retail, and industrial cap rates rose in Q4 2024. -Valuations are stabilizing as operating incomes increase in key sectors. 9?? Impact of Federal Workforce Cuts ??? -Layoffs in the federal workforce could hurt local economies, particularly in Washington, D.C. -The full impact on unemployment claims remains uncertain. ?? Independent Landlord Rental Performance ?? -On-time rental payments fell slightly in February, though overall collection rates improved. -Western states had the highest on-time payment rates. What questions are most pressing for your business during these economic shifts? #EconomicUpdate #SVNResearch #SVN #Economy #NationalEconomy

Today we are featuring Emily Kohl, Operations Manager with SVN Latus sharing which SVN? International Corp. Core Covenant resonates most with her. "Focus on the positive and the possible." There is always something negative that we could focus on, but we choose to intentionally focus on what is positive and the possibilities available to us. #CoreValues #Leadership #CompanyCulture #SVN #SVNDifference #SVNLatus #CentralPA

This week's episode of Beyond The Deal features Elon Gerberg, Director of ROI Group of SVN Commercial Partners! Elon shares his story of getting started in Commercial Real Estate and his insights into things after almost a decade in the industry. Elon breaks down the impact of co-brokering your listings in the greater marketplace, the financial incentives to hiring an agent to represent your property, and much more. This episode is full of insights you won't want to miss. As Elon says, commercial real estate is a "crock pot business" - relationships and trust take time! Catch the full episode here: ?? YouTube: https://lnkd.in/gmzFBMxR ?? Spotify: https://lnkd.in/gZcFfgrP We had a great time chatting, Elon! Thanks so much for being on as our guest and sharing some great insights. Keep crushing it in South Florida! #BeyondTheDeal #Podcast #CommercialRealEstate #Business #CRE #SouthFlorida #SVN #SVNNetwork #SVNDifference #ProfessionalBrokerage #BestPractices #CREAgentLife #Advisors #LongTermBusiness #CrockPotBusiness #Relationships #ClientsFirst

Today we are featuring Karen Neiderer, Senior Advisor with SVN Latus sharing which SVN? International Corp. Core Covenant resonates most with her. "Honor my commitments." Following through on what we have committed to do is a key value for us and how we do business. We believe that our word should hold weight and that we should always live up to who we say we are and what we say we will do. #CoreValues #Leadership #CompanyCulture #SVN #SVNDifference #SVNLatus #CentralPA