Serving Milwaukee, Madison, Kenosha, Racine, the Fox Cities and surrounding areas.
KEY EXPERT INSIGHTS
From an underwriting perspective, when we’re looking at a new deal, rental rates and absorption pace are always the first two questions, and we have been pretty conservative when trying to estimate when demand will pick up and if rental rates will be what they were in early 2020.
Our biggest challenge for growth is in experiential type properties. They are free standing assets in real estate that need the real estate to make money. Until there is clarity there, you have an entire sector of the market that’s turned off because the bid-ask spread is so wide.
Working from home has made us adapt. We are doing drone videos, having our third parties take more pictures for us and having a property management firm that we trust and isn’t affiliated with the deal, like Boerke, do a site inspection for us.
I think that banks are seeing a lot of risk in the markets and are being pretty conservative as to how they will transact. It is definitely putting stress on the system, making it difficult to get development loans for new construction, the credit markets are tight when it comes to the banking market.
Watch the Roundtable from October 21, 2020
MEET OUR EXPERTS
Senior Vice President of Acquisitions at STAG Industrial
Principal and CIO at R2
Partner and CIO at Fundamental Income
Executive Vice President and Managing Director at Walker & Dunlop
Real Estate Advisor at Cushman & Wakefiled | Boerke