TRANSACTION VOLUME WILL INCREASE
MORE CONVERSIONS TO HOUSING
LESS FACE-TO-FACE WITH TENANTS
Many mom-and-pop landlords are increasingly turning to online platforms to simplify the management of their rental units. As this trend grows and more landlords rely on these platforms, it will lead to a disconnect between landlords and their tenants, potentially resulting in many problems. They will miss out on the personal interaction that occurs when meeting a prospective tenant face to face, which will also interfere with the ability to evaluate prospective tenants effectively. As mom-and-pop landlords increasingly embrace digital platforms, there is a risk that they may overlook the invaluable personal aspects that contribute to successful property management.
2024 will be the year of conversions. There is a housing shortage across the country, especially in the low-income sector. Investors and developers are looking for deals in every market and category. You’ll see more conversions of hotel to condo, hotel to apartment, office to apartment, church to hotel, and I have even seen abandoned malls converted to senior living! Obviously, you must be very aware of zoning restrictions and architectural issues. (Think about adding a restaurant on the first floor of an office, extra HVAC and exhaust needed, so multiple architects must be involved). Keep your options open, and you might find a great opportunity where you never expected it!
Interest rates are dropping, and people have settled into the new world order. The number of deals that will come to the market after the new year will increase. We are already seeing transaction volume starting to increase and as the interest rates drop, money that is ready to be deployed will be put to work. Although there are many variables still up in the air, private equity firms are ready to move on distressed assets. Once the leaders in the commercial real estate space start investing, we will see an accelerated market recovery.
THERE IS A RISK THAT THEY MAY OVERLOOK THE INVALUABLE PERSONAL ASPECTS.
I HAVE EVEN SEEN ABANDONED MALLS CONVERTED TO SENIOR LIVING!
PEOPLE HAVE SETTLED INTO THE NEW WORLD ORDER.
Shiral Torres Owner of Simply Shiral Author of Rental Properties Made Simple Connect with Shiral
Kevin Taub Senior Associate Marcus & Millichap Connect with Kevin
Allen Artcliff-Cronrod Managing Director AAOA Properties Connect with Allen
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