To a large degree, the commercial real estate industry is being shaped by shifting market conditions and changes in consumer behaviors. Some of the most significant consumer behavior changes are directly related to technology advances.
Since the signing of the JOBS Act in 2012 and more specifically the changes to Regulation D, which previously restricted the direct solicitation of investors, crowdfunding platforms for commercial real estate have seen tremendous growth.
The initial passing of the JOBS Act in 2012 allowed for direct solicitation but limited it to accredited investors. Accredited investor meaning any person with an annual income of $200,000.00 a year for the past two years, or an individual’s net worth exceeding $1 million dollars, excluding their primary residence.
Office Market Experiences Third Quarter Slowdown
The 3rd Quarter Office Sales could be reflecting the slowdown in sales that have been anticipated by some market watchers. The quarter saw zero sales of buildings in excess of 25,000 square feet and 20 sales of buildings in the 3,000 to 25,000 square feet including four medical office buildings. This marks a significant retreat from the activity seen in the first two quarters of 2017.
Craig Tucker & Cordell Brown of Price Edwards & Company completed the sale of the historic First National Center to NE CS First National, LP for $23 million. Buyer principals Gary Brooks and Charlie Nicholas plan to convert the one million square foot art deco building into a luxury mixed-use project that will include upscale apartments, a luxury hotel, first floor retail and restaurants.