July 2023 Recap

Welcome to our monthly LinkedIn newsletter, bringing valuable CRE insights, market analysis, essential tools and tips for your business needs.?

Challenges in the office sector persisted in the first half of 2023 due to broader economic shifts. With higher interest rates, remote work and companies reevaluating their office space needs, the national U.S. office vacancy rate reached 17.1%, up 180 basis points year-over-year in June. As a result, rent growth remained slow, with even some of the priciest markets experiencing declines, such as Manhattan (down 2.8%) and the Bay Area (down 5.57%).???

While industrial properties continue to be one of the most sought-after asset types, economic challenges have slowed down investment in the sector. Through the first half of 2023, industrial sales totaled $21.2 billion across the U.S., significantly below the $55 billion recorded during the same period in 2022. Nonetheless, industrial fundamentals remained strong, with significant rent growth, especially in port markets, where tenants continued to pay hefty premiums for new leases.?

In July, we also explored how adaptive reuse trends shape commercial real estate. While office-to-apartment conversions experienced a 15% slowdown in 2022, adaptive reuse is trending upward, with 122,000 units underway. Offices are projected to comprise the largest portion (37%) of all adaptive reuse projects, closely followed by hotels at 23%.?

Our client spotlight features Colliers Philadelphia, sharing their success story leveraging CommercialEdge Commissions. By automating complex calculations and eliminating manual errors, they streamlined their monthly commission processes, resulting in greater efficiency and accuracy.?

“I would recommend CommercialEdge Commissions because it has automated what we were doing manually, which was prone to error. Commissions automates calculations that can be really complex”,

Susan Olinsky , Senior VP of Finance, Colliers Philadelphia

Looking to enhance the way you compensate your brokers? Our recent article explores how leveraging multiple split plans can help you recruit and retain top talent. We also shed light on the importance of fostering a culture of transparency when implementing complex split plan structures. ??

Brokers can quickly achieve complete transparency throughout the payment process through automated commission tracking, a key feature offered by the CommercialEdge CRE solution suite. But if you want to streamline your day-to-day workflow fully, you can discover these additional must-have features brokers love about CommercialEdge.

CommercialEdge Research now includes distressed properties and loan info that allows you to identify and track properties that are or may be at risk, helping you to make the right investment decisions. With higher borrowing costs, it's no secret that there is a high likelihood of a surge in delinquent commercial mortgages, but with the right tools, you can stay ahead of the curve.?

As we wrap up this edition, we invite you to explore our brochure for brokerages. Elevate your marketing, accelerate deal pipelines, and simplify commission payments with our all-in-one CRE solution.??

Thank you for being a part of the CommercialEdge community. We look forward to bringing you more valuable insights in our next newsletter. ?

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CommercialEdge Team?