CRE Capital Markets: making money work for you

The capital markets function within commercial real estate (CRE) is such a huge part of the property industry these days but is still quite poorly understood by those on the outside. Yes, there is a certain magic to bringing all the right elements together to support a smart capital market deal, but that doesn’t mean it’s a mystery or unknowable. Conquering capital markets is a matter of strategy and value. You just need the right partners to guide you.

Course 101

Let’s get back to basics: If you are talking about capital markets as a general term (not necessarily within real estate), then you are describing a place for buying and selling stock, bonds, and debt instruments. A stock exchange, like the NASDAQ, is a type of capital market.

Zoom back into CRE

Within CRE then, you can see how capital markets are places for brokering financial deals specifically in property. When a brokerage, like ourselves, offers capital markets as a service this means we are providers of capital solutions relating to property. This can mean solutions for investors and for occupiers and may include advising on investments, recapitalizing, or debt placement – what’s on offer really depends on the brokerage and its own expertise in-house.

NAI Global’s capital market services include:

  • Investment sales
  • Note sales
  • Live and sealed bid auctions
  • Debt placement
  • Acquisition advisory

The right capital market partners

A capital markets service provider needs two overarching things for success: A depth of knowledge (expertise in the financial specifics and deal types), and a breadth of network (access to the right people and right primary and secondary markets).

Emerging trends

From crowdfunding to app-based finance, capital market professionals are also facing a wave of innovation and change, largely driven by factors like digitization and the fourth industrial revolution.

“Evolving technology means the barriers to entry are coming down, but expertise and experience continue to be what sets capital market service providers and consultants apart,” explains Jay Olshonsky, President & CEO of NAI Global. “That’s what you want on your side when you’re looking for the capital solution you need.”

3 Ways to Embrace Green Building

In contemporary developments, environmental building has gone from being a ‘nice touch’ to a nearly mandatory consideration. Today’s consumer culture is passionate about choosing brands and companies that make eco-conscious choices, which have put the pressure on professionals to take tangible (and marketable) steps towards going green.

Resultantly, this has fueled a major trend in the world of commercial real estate. As their clientele demand all things green, our tenants and investors are hitting the commercial markets with green building in mind.

With success on the line, CRE pros need to start incorporating the green building module into their strategies. Fortunately, there are tons of different ways this can be accomplished – many of which won’t break the bank.


Let’s take a deeper look at green building and review some tips that will help CRE embrace this lasting trend.

Green Building Defined

Green buildings place strong importance on sustainability, waste reduction, and lessening a property’s carbon footprint. Successful green buildings are given the official stamp of approval by the Leadership in Energy and Environmental Design (LEED). There are more than 200,000 LEED-certified buildings globally and the trend is only growing.

It’s safe to say that nearly every commercial sector is taking steps to become more environmentally-friendly. Retail, multifamily, office, hospitality, and even industrial are all being pushed towards a greener outlook. This development is having a big impact on the physical spaces they inhabit.

The commercial industry is shifting its focus towards an eco-conscious building module. Data analysts anticipate that commercial property owners around the world will be spending $960 billion in eco-conscious investments by 2023.

However, that’s not to say that all green upgrades will rack up a big price tag. Here are a few great tips to help you achieve a building that’s good for both the planet and your bank accounts.

Keep Your Eyes on These 3 Trends

Apply these 3 environmentally-friendly tips to your commercial portfolio to seamlessly transition your buildings into a greener future. 

Include Green-Thinking In Daily Habits

Sometimes, it’s the little things that matter most.

It doesn’t always take a huge effort to cultivate a greener building. Instead, property owners can add a few easy-to-do daily habits to your regular maintenance routine. Get serious about recycling efforts, install a bike rack for tenants, and educate building users about cutting back on wasted water.

Green Leasing

Have you heard of the green leasing trend? If not, you’re missing out on an eco-friendly practice that’s not only helpful but also nearly cost-free. When writing the lease document, draft up energy-efficient reports, create recommended-use directions to reduce waste, and add in green requirements.

Energy-Efficient Everything

Whether it’s appliances, tools, or lighting; green buildings employ eco-efficient products as much as possible. A great way to get started at a low cost is by replacing the building’s older lights with LED lighting. LED lighting lets off more light and less heat, meaning less energy is being wasted.

Wasting less means spending less. Watch utility bills reduce after applying energy-saving tools throughout the commercial property.

Stay tuned for more CRE tips and news.

Where are Self-Driving Cars Today?

In 2019, there was so much discussion surrounding the topic of automated vehicles. Electric trucks, self-driving cars, and autonomous delivery trucks were all the rage within CRE conversations… So what’s happened since?

Let’s take a look at how things have changed over the last year regarding self-driving cars, paying special focus to how these developments are set to impact commercial real estate.

Where 2019 Left Off

In 2019, the self-driving car topic was blazing across the industry.

However, without a tangible product or service model to look at, many of the self-driving predictions were without a strong foundation. The idea was here, but the autonomous vehicle trend was still too far off to make any certain claims.

What CRE did know was that there would be a need for change. Commercial spaces would need to adapt in many ways before they were ready to host these kinds of cars.

First off, the commercial industry would need to bolster its tech capacities to keep these vehicles connected. Second, parking lots would need to be adjusted to house these driverless cars. Pick-up and drop-off areas were being loosely planned, too.

Despite this industry-wide understanding that change was coming, CRE still needed clarity.

Big Brands are Boasting Self-Driving Vehicles

After a long period of silence, it looks like there are many car brands that are ramping up their efforts to develop a self-driving vehicle. Talk of upcoming self-driving car releases is beginning to regain momentum. Right now, we’re closer to a self-driving revolution than ever before.

All across the country, car brands are launching self-driving car services, sales, and programs. Many of these projects are already in the works and are anticipated to be released in the coming year.

With more and more brands promoting these products, self-driving cars are bound to become increasingly prevalent within the commercial scene at large. Naturally, owners of self-driving vehicles will require the infrastructure at home, work, and even in shops and restaurants.

Commercial real estate of the future will likely be considering self-driving cars in their designs to ensure that proper measures are established for safety, ease, and accessibility.

Looking Ahead

As with any new technology, self-driving cars will be making key impacts on the way that people live, work, and operate. Commercial spaces will need to make sure that they are offering the proper infrastructures to support these new realities.

Beyond the basic necessities like specialized parking spaces, commercial real estate will need to make room for assets specifically designed for self-driving car services.

Self-driving ride services or automated delivery companies are robust business models that are expected to make ground on the commercial scene in 2021 and beyond. These developments will require office space for team members, warehouse spaces, expanded parking lots, and client meeting areas.

This dynamic property model will be heavily relying on the commercial arena as the self-driving vehicle goes from rare to regular.

Stay up to speed with the self-driving car trend to make sure your CRE assets are ready for the upcoming changes.

DIVING INTO CRE – Episode 22: Thriving vs. Surviving in the New Normal Economy, podcast featuring Alec Pacella, President of NAI Pleasant Valley and NAI Global EVP Cliff Moskowitz.

EPISODE NOTES

Episode 22: Thriving vs. Surviving in the New Normal Economy features Alec Pacella, President of NAI Pleasant Valley in conversation with NAI Global EVP Cliff Moskowitz about what the new normal is for CRE and how you can be prepared for it. 

Episode 22: Thriving vs. Surviving in the New Normal Economy

If you have any questions, you can reach NAI Global at info@naiglobal.com. 

Learn more about Alec Pacella and NAI Pleasant Valley at naipvc.com.

5 Considerations to Make When Approaching Your Landlord for a Lease Restructure

2020’s lease restructuring period isn’t anything like the industry’s used to. This year is filled with previously unforeseen obstacles, including pandemic disruptions, an economic downturn, and flood waves of new policies that implicate the commercial space.

If you’re struggling with these circumstances, don’t let the opportunity to restructure your lease idly pass you by. This gives tenants the chance to establish new leasing agreements that can potentially help them down the line. Reducing expenses, rewriting protocols, and other edits can be negotiated with your landlord. But, the window won’t last forever – so it’s time to start planning how you’re going to approach this process.

No matter what commercial real estate sector you’re working in, everyone might have a few questions about how to approach a lease restructure. Here’s are some helpful considerations to make:

Perform Due Diligence

Keeping up with the market is an imperative part of diving into lease restructuring. Especially right now, when CRE remains in a large cloud of uncertainty. Commercial tenants should do whatever they can to stay on top of their sector’s ebbs and flows. Explore comparable properties, talk to experienced professionals, and research your local area.

Don’t Wait Until the Last Minute

If you attempt to rush into a lease restructure, you could end up putting yourself in an even worse situation. A lease restructure is just as important as the original lease agreement. Whatever ultimately unfolds after the lease restructure will affect your bottom line of business for years to come, so it’s certainly nothing to take lightly.

Start preparing for your lease restructure in advance by researching the market and examining your tenant needs.

Consider Your Landlord’s Situation

It’s not just CRE’s tenants that are facing a tough external situation. Landlords have seen their fair share of challenges this year, too. Boost your negotiations by thinking like your landlord. Not only will this help you appeal to your property owner, but it can also create more realistic and well-rounded proposals.

Have a Plan

Never navigate a lease restructure blind.

Remember, lease restructuring doesn’t automatically work out in the tenant’s favor. Tenants who casually approach restructuring are opening the doors for potential issues, such as higher bills and less favorable agreements. Always have a general plan in place before you talk to your landlord. Know what you need, want, and can’t do. These safeguards can mitigate errors or wrong moves.

Work with a Professional

Consulting an experienced real estate agent or broker is a smart idea for any tenants who aren’t exactly sure how to navigate the details of their lease restructuring.

Tenants who decide to consult a commercial real estate professional will be backed by their knowledge, talent, and expertise in this market. Having a professional on your side also supports your negotiation skills, which is pivotal if you’re relatively new to the deal-making process.

Right now, it’s more important than ever for commercial tenants and their landlords to work together and collaborate on a restructured lease. Make sure you’re thinking about these important considerations when shaping your leasing strategy.

Contact one of our agents today to help with lease renewal negotiations
216 831 3310
http://www.naipvc.com