Real News from RealNex

Jeffrey D. Fisher Ph.D

The Evolution of a Year: Navigating Real Estate Changes

RealNex was pleased to host another quarterly Commercial Real Estate Market Update with Dr. Jeffrey Fisher. During the session Dr. Fisher presented his perspective based on year-end 2022 data as reported by members of the National Council of Commercial Real Estate Investment Fiduciaries (NCREIF) with additional analysis from a host of market experts. In addition to his perspective the audience provided real time market insights through a series of polls.

Q2 2022 Market Cycle Monitor Reports

All commercial real estate markets tracked by Glenn Mueller, Ph.D, were in expansion mode nationally at the end of Q2 2022. Dr. Mueller reported his findings during the October 6, 2022 RealNex Webinar Series Session, hosted by RealNex CEO Jeffrey Finn. Dr. Mueller’s Real Estate Market Cycle Monitor has been tracking each primary commercial real estate sector since 1990. It monitors the supply and demand fundamentals of each sector in the top 54 markets nationally. The study analyzes how supply and demand drives occupancy, rental growth and income growth and then plots each market along a continuum from Recovery, Expansion to Hyper Supply and Recession.

By Jeffrey D. Fisher, Ph.D.

In the RealNex Q2 2022 Commercial Real Estate Market Update, Dr. Jeffrey Fisher, RealNex Head of Data and Research, presented findings on the state of pricing and investment activity in light of high inflation and rising interest rates. Entitled “Back to Normal”, commercial real estate markets continued to perform above long-term trend although showing signs of an inflection point.

By Jeffrey D. Fisher, Ph.D.

The National Council of Real Estate Investment Fiduciaries (www.NCREIF.org) tracks the performance of over 10,000 investment-grade, income-producing properties with a market value of $897 billion. The properties are held in funds that are managed by investment management firms on behalf of their investors.  The market value breakdown by property type is about 28% office, 27% apartment, 15% retail, 30% industrial and less than 1% hotel properties.  The NPI includes property data covering over 100 CBSAs. The quarterly total return for the NPI was 5.33%% for the first quarter of 2022 and the rolling annual return for the past four quarters was 21.86% which is the highest since the first quarter of 1980 and the second highest in the 44-year history of the NPI.

“Never seen anything like this in the history of the Index,” commented Dr. Jeffrey Fisher during his RealNex Webinar Series presentation on CRE Market Trends. Discussing his findings based on Q3 2021 research, Dr. Fisher noted the staggering 11% quarterly returns for Industrial property. And, while that sector continues to be white-hot, Apartments at 6.5% quarterly would have normally been something to get excited about!

The RealNex Webinar Series hosted by CEO Jeffrey Finn continued on Thursday August 26 with the Mid-Year 2021 CRE Market Update featuring Dr. Jeffrey Fisher. Dr. Fisher highlighted the continued strength of the overall market lead by record performance in the industrial sector, and the white-hot residential sector fueled by the growing institutional appetite for single-family rentals. The industrial market achieved its highest quarterly returns ever and the overall market realized the best quarter in over a decade

RealNex, in conjunction with the Houston Blockchain Alliance, was pleased to host the FIBREE webinar on March 26, 2021 entitled “Real Estate Tokenization and Blockchain – The New Goldrush?” The session featured UK-based keynote speaker Megan Hanney, CBRE Regional Innovation Lead. Megan was joined by special guests FIBREE co-founder/Board member Jo Bronckers and CEO/co-founder of Blocksquare Denis Petrovic. FIBREE Houston Chapter co-chairs Mark Kingston, RealNex Executive Chairman and Sachin Kapoor, CBRE Director - Projects and Business Analytics co-hosted the session along with Mahesh Sashital founder of the Houston Blockchain Alliance.

The February 19, 2021 episode of the RealNex Webinar Series featured Dr. Jeffrey Fisher for his quarterly CRE Market Update. The session titled “V-shaped so far” focused on the impact of Coronavirus on commercial property market prices and returns. The findings highlighted the winners and losers among all the major asset classes based on his research with NCREIF (National Council of Real Estate Investment Fiduciaries) with supporting data and perspectives from a host of industry experts. The data, as of the end of 2020, paints a picture of the precipitous drop in market activity and the equally dramatic recovery by year-end.