The Karlin Law Firm LLP

Providing quality legal services to statewide and national clients in ADA defense, Personal Injury, business and real estate for more than 35 years

Email Us
Practice Areas

Mortgage Bankers Association predicts reduced CRE returns in 2018

Commercial real estate investors in California and around the country should not expect returns in 2018 to be as robust as they have been in recent years according to a report from the Mortgage Bankers Association released on June 12. The trade group believes that the combined effects of a multi-year building boom, slowing economic growth and rising interest rates will likely impact returns for the next five years. The MBA says that commercial property returns in recent years were boosted by supply shortages that have now been addressed.

However, the MBA report did contain some positive news for commercial real estate investors and developers. The organization says that many investors will enjoy significantly higher after-tax yields under the provisions of the 2017 Tax Cuts and Jobs Act. The report also suggests that commercial property market fundamentals such as vacancy rates and rent growth will remain strong in the years ahead despite more sluggish economic growth.

The retail sector remains an area of particular concern for the MBA. Retail property values inched up by just 2.3 percent in 2017 according to the trade group. The prices of all types of commercial real estate in the United States rose by 7.6 percent during the same period. The MBA blames this partly on negative perceptions about the future of brick-and-mortar retailing, which, the group believes, has prompted many investors to flee the sector and seek out opportunities in industrial properties instead.

Commercial real estate is highly regulated, and it can be difficult for developers to adjust their plans in light of changing market conditions. Attorneys with experience in this area may be familiar with these regulatory hurdles and help developers to ensure that their applications and proposals meet zoning, environmental and land use restrictions. This experience may be particularly useful to commercial real estate owners who wish to put vacant properties, such as big-box retail locations, to more productive use.

No Comments

Leave a comment
Comment Information

Contact Us Today

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

L. Scott Karlin

L. Scott Karlin

Attorney Profile
David E. Karlin

David E. Karlin

David E. Karlin is a California attorney with a primary focus on business and real estate, including law and legal issues...

Attorney Profile
Michael J. Karlin

Michael J. Karlin

Michael J. Karlin is a Southern California based attorney whose practice primarily focuses on Entertainment Law. Michael began...

Attorney Profile

Recent Articles

ADA Fraud Reported

A recent article on the news concerns a man in Riverside County who allegedly has attempted to obtain money from property owners and businesses based on alleged violations of the Americans with Disablities Act (ADA). Read More

Tustin Office
13522 Newport Avenue, Suite 201
Tustin, CA 92780

Phone: 714-881-0054
Tustin Law Office Map

Newport Beach Office
2901 West Coast Highway, Suite 200
Newport Beach, CA 92663

Phone: 949-427-9328
Newport Beach Law Office Map

Carlsbad Office
2173 Salk Avenue
Suite 250
Carlsbad, CA 92008

Phone: 760-407-2409
Map & Directions

Riverside Office
6809 Indiana Avenue
Suite 100
Riverside, CA 92506

Phone: 951-643-8769
Map & Directions

Los Angeles Office
1100 S. Hope Street
Suite 103
Los Angeles, CA 90015

Phone: 213-519-5633
Map & Directions

Fresno Office
1444 Fulton Street
Fresno, CA 93721

Phone: 951-373-4384
Map & Directions