10 Things You Can Learn from the Matthews™ Publication
The Matthews™ Publication contains insightful articles that intersect information and innovation. Each piece is sourced from credible sources and sets out to educate brokers and investors. Matthews™ prides itself on being a reliable and revolutionized brokerage firm, and this publication’s content further perpetuates that image. Read more to see the top ten things you can learn from this issue of the publication.
1. What to Know Before Entering 2023
Although inflation has been a popular term to use lately, Matthews™ is not concerned with it as we enter 2023. The volatile market does not determine a business’s success, especially in real estate. Brokers must continue executing, performing above average, and moving forward. The publication content provides resources and examples of real estate sectors that have performed well throughout economic turmoil, something all brokers need to comprehend to succeed in the upcoming fiscal year.
2. Importance of Multifamily Assets
The most significant aspect of multifamily is the stability associated with rental demand; even during a severe recession or financial turbulence, individuals will always require a place to live. Real estate, particularly multifamily, has long been seen as a reliable inflation hedge. Investors are increasingly gravitating toward this asset class to plant capital and keep ahead of financial ambitions. Brokers can use this information to focus more on multifamily assets during high inflationary periods.
3. How EVs are set to transform CRE
Electric vehicles (EVs) are becoming increasingly popular across the country, prompting many businesses to boost property value through EV-integrated solutions. As residential, commercial, and retail establishments adapt to EV customers, the real estate sector will see numerous opportunities. So, what does this mean for brokers? The industry must develop updated technologies to meet the growing demand for EV drivers and the rise in electric charging system demand.
The rise of EVs will have an impact on gas station owners across the nation. Although gas stations are not going away, they must remain relevant and convenient as long-term policies favoring EVs are adopted. Providing EV charging stations can increase upselling opportunities, business fleet authorizing agreements, and public awareness. Installing EV charging stations also means that customers will spend more time in convenience stores, allowing retailers to capture a more significant portion of the profit.
4. Understanding Inflation in Today’s Market
Investors must assess whether their assets are prepared for prolonged inflationary pressures, higher interest rates, and market volatility in the future. Land, building, and labor cost increases are anticipated to make new supply less financially feasible, resulting in higher occupancies and more substantial pricing power for existing assets. Many factors can influence property assessments; as a result, it’s essential to analyze each separately when choosing a property that will be profitable and in a favorable market.
5. Niche Property Types to Keep Your Eyes On
The onset of COVID-19 forced many people to reconsider their previous travel and recreational choices, looking for destinations and activities that were both drivable and outdoors. As a result, sales of recreational vehicles (RVs) and boats reached all-time highs in 2021, driving up the need for storage. As a result, a record number of RV and boat storage facilities were sold, nearly tripling previous 2020 sales. Boat and RV sales are expected to continue to reach record highs, reflecting a higher demand for Storage properties across the nation.
Manufactured housing is another sector that investors and brokers should look out for in 2023. These communities make a substantial investment option since they attract a buyer pool that encompasses most Americans. The cost of living in the United States is rising, prompting Americans to reconsider their housing costs while maintaining their desire to reach the American Dream of homeownership. Manufactured home allows middle-income households to invest cash in personal property or land at a reasonable price rather than wasting money on rent or draining their bank accounts to pay mortgage payments.
6. Importance of Rental Increases
With cap rates low and the cost of debt up, several investors are struggling to find high yields. Investors are implementing a strategy to compensate for increased costs: raising rent rates and burdening tenants rather than themselves. Investors can combat inflation with higher annual increases written into new lease structures to ensure their investments stay protected and profitable during these times.
7. State of the Industrial Market
Investors have rushed to industrial real estate in the last two years. Urgent demand, high rents, and minimal vacancy proved to be a winning combination for the commercial real estate asset class, as evidenced by fast growth and sales figures. In terms of the asset’s future, absorption rates are likely to decline, but vacancy will remain stable, guaranteeing industrial as a top investment.
8. Healthcare Markets Seeing Outsized Investor Interest
With the U.S. having the most extensive healthcare industry in the world, the need for care centers and medical office buildings will only expand. The top states include North Carolina, California, Texas, and Arizona. Read the article to understand how these states excel in the healthcare sector.
9. How Investors Can Use Revenge Travel to Make a Large Profit
After years of lockdowns, restrictions, and limitations, consumers are eager to get out and enjoy the world again. With this in mind, the hospitality industry has set new highs in recent quarters. The article provides additional information about the hospitality industry and what investors should consider before making an investment decision.
10. Overview of Top Performing CRE Markets
Phoenix is one of the most active commercial real estate markets, with plenty of job growth, consumer spending, and investment prospects. Phoenix commercial real estate is robust and abundant, but it is changing as it prepares for the year 2023. Investors must work with a skilled and knowledgeable agent to understand what product types meet long-term financial, managerial, and portfolio goals.
The Florida retail industry is prospering due to the state’s rising population, excellent weather, and significant tourism. Commercial real estate is increasing in the market, particularly in the net lease retail sector, which includes supermarkets, discount shops, fitness facilities, and furniture stores. Increased employment rates and housing development are luring investors and developers, propelling Florida to the top of the country’s performance rankings.
