Kyle Henrickson

#2minmorningworkout adjust and assisted by a growing use and benefit to all of #AI I read an article on CoStar Group called Big Dollar Deals Pulled Lower By Interest Cost The primary outcomes from the commercial real estate data for March 2024 are: 1. **Divergence in Property Prices**: There is a distinct divergence in the commercial real estate market, with large, high-value transactions (represented by the value-weighted index) showing significant declines due to higher interest rates, while smaller, often cash-based transactions (reflected by the equal-weighted index) posted gains. 2. **Sector-Specific Variations**: Different sectors of the real estate market reacted uniquely to economic conditions. Office property prices, particularly in large markets, fell sharply, whereas retail and hospitality sectors showed signs of growth in smaller transactions. 3. **Interest Rate Impact**: The volatility in interest rates over the past six months has had a pronounced effect on property prices, particularly impacting larger-dollar transactions that typically involve financing, while smaller-dollar, cash-based deals were less affected. **Summary**: In March 2024, the commercial real estate market displayed significant variability influenced by interest rate changes, with large, financed properties suffering price declines while smaller, cash-based deals generally gained in value. Sector-specific responses further underscored the complexity of the market dynamics, highlighting the divergent paths of different types of properties and markets. Super impressed and using this to help gather and process thoughts! Trinity Commercial Group ⚽️ Mark Bole Cindy Schooler, CCIM,CAM Matthew Fredrickson Doug Olson

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Appraisers in the U.S. need better tools that allow them to use more judgement in valuing assets. My colleague Willem Vlaming has been developing work showing that in parts of the world with low market liquidity and few comparable sales, that appraisal teams have been better able to capture the decline in asset values. http://ms.spr.ly/6040Yw5ts MSCI Real Assets #CRE

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I recently dug into the Austin, TX market to see which submarkets have experienced the most growth. Unsurprisingly, the downtown submarket is lagging the broader MSA (this is the case in most markets). However, to my surprise, the fastest growing submarket in Austin isn't even in Austin. It's a collection of cities that many institutional investors avoid precisely because it's not in Austin proper. You can see the analysis in my latest post for Calvera Partners. https://lnkd.in/g3yXSzbQ

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