What is the current state of the real estate market?

This is a question that anybody interested in commercial real estate should be asking themselves constantly. Why? Because CRE is a constantly shifting industry, and one that is dominated by trends.

That being said, here are the top five commercial real estate trends that are both defining and reshaping the industry right now:

1. Telecommuting is in the Rise

Computers are making everything easier, including people's jobs. They are making jobs so much easier to do, in fact, that many professionals can now work from the comfort of their own homes. This, combined with the fact that many companies see a reduction in office space as an effective cost cutter, has led to a significant increase in the amount of telecommuters. Some companies are even paying employees' rent, decreasing the need for roommates.

Because of this change, one can expect that there will be a reduction in office space use, with an increased demand for residential properties.

2. Fewer Flyers, More Online Ads

Studies have shown that online marketing can produce better results at a lower cost than offline marketing. Studies have shown that a helpful blog post, for example, is 63 percent more likely to influence a purchase than a print magazine ad. This rule applies to just about every industry, including commercial real estate. Adept CRE investors are recognizing this trend, and spending their marketing dollars on online strategies instead of traditional 'interruption' marketing campaigns.

3. The Impending Millennial Surge

The Millennial generation is so numerous that they outnumber even the baby boomers, which were once the largest generation the United States had ever seen. This generation also rents a lot. They rent so often, in fact, that some people believe the widespread notion of home ownership will fade away with the Millennials. Commercial real estate experts, however, expect there to be a huge surge in millennial home purchases in the 2020s, when a large portion of this generation will be ready to settle down.

4. Small Cities are Becoming Metropolises

Many people love big cities such as New York and Los Angeles -- they have incredibly diverse cultures and they seem to operate 24 hours per day. There is just one problem: These cities are extremely expensive to live in.

However, the high demand for the easy access of an urban lifestyle -- especially by the millennial generation -- has led to interesting shifts in the culture of smaller, less bustling cities. Many small cities are transforming into 18-hour cities, which are microcosms of their much larger 24-hour counterparts. As a result, commercial real estate investments are surging in these areas.

5. A Spike in High-Tech Photography

Just about every industry, including commercial real estate, has succumbed to the influence of the web. As such, a high percentage of commercial real estate transactions begin via an online interaction. This increased use of the web has led to a high level of competition to attract the interest buyers, renters, investors, etc., especially on listing websites. In order to stand out from the crowd, people are taking better pictures of their properties. And this doesn't just mean HD photos with the latest smartphone, either. High-tech photography solutions, including DSLRs and even drones (for aerial shots) and 3-D virtual tours are becoming the norm.

. . . . . . . . . .

Commercial real estate has undoubtedly become a part of the tech boom.

As this article has shown, most of the current commercial real estate trends revolve around our burgeoning reliance on modern technology, and the digital natives who are most likely to use it (Millennials). Anybody who wants to keep up has to take technology seriously, and figure out how it can benefit their commercial real estate endeavors.

Want to learn more about how the latest CRE trends should be influencing your investment decisions? Contact Andrew Jubelt at ajubelt@avant-capital.com or 212-231-9779.

Energy retrofits are often considered to be too expensive by businesses. The surprising truth, however, is that most alterations to a building's energy structure are very affordable, as long as they're approached in the right way.

Here are seven common ways to help finance such a project:

1. PACE Loans

The Property Assessed Clean Energy (PACE) program is an ongoing initiative that allows for tax liens to be used in financing. These are especially valuable for larger projects, as they can be repaid over as many as 30 years, and nearly any profitable property can easily work that into its plans. It's worth noting that most retrofits will not take this long to pay off -- between three and five years is a normal payback period for most properties.

2. Financing From Utilities

Most utility departments run incentive programs to help property owners reduce the amount of energy they use. Not every utility company will offer major loans, but at the very least, companies can expect to save significantly on energy-efficient equipment like new lighting fixtures.

3. Tax Credits

These vary by region, but property owners will usually be able to cut some of the cost of the installation from their taxes. If the business actually pays taxes to begin with, this is effectively a direct discount in the price -- albeit one that only comes into effect when taxes would normally be due, rather than paying it off right away.

4. ESCO

The Energy Service Company (ESCO) model is one of the more recent ideas for renovating buildings. In essence, the ESCO company performs the upgrades to the building and often sells the power later on, after which they enter into a profit-sharing agreement where they are paid off over time. This is affordable for nearly any business, as long as the amount of profit shared is less than the costs saved by the retrofit. Keep in mind, however, that ESCO financing may not always be eligible for combining with other forms of financing. It's unlikely, for example, that a property owner can claim tax deductions if they're not the ones paying directly for the retrofit.

5. Leasing Equipment

While this isn't practical for large-scale projects, leasing programs (or, better, lease-to-own agreements) can provide properties with access to energy-efficient equipment at minimal up-front costs.As with ESCO financing, the goal is to ensure that the company is able to save more money through the use of the equipment than it spends for borrowing it. When this is the case, even minimally-profitable properties can afford the retrofit they've been looking for.

6. Bond Financing

This is one of the least-used methods of financing an energy retrofit, but it may become more popular in the future as companies realize its value. Private municipal or corporate bonds offer the ability to fund multiple smaller transactions and scale the costs of the retrofit to what a buyer is able to pay for.

7. Capital Expenditures

This is the most common method of financing an energy retrofit, yet businesses should consider this their final option instead of their first. Simply put, many of the opportunities listed above offer ways to reduce some or all of the costs associated with a retrofit project, and using several of these techniques (such as tax credits, utility financing and lease-to-own agreements, all at the same time) can drastically reduce the amount of capital that needs to be expended for the property. Most retrofits are too expensive to be paid off right away, so businesses planning to pay through this method should consider using loans, leases, or other pay-over-time agreements to finance the retrofit.

As a principal at Avant Capital Partners, Andrew Jubelt can advise you on any CRE energy retrofit projects you may be considering. He can also provide you or your clients with the commercial real estate funding you need. Contact Andrew Jubelt at ajubelt@avant-capital.com or call 212-231-9779.

By definition, money that is invested in a firm by its owners or holders of common stock, but which is not returned in the normal course of the business, is an “equity investment”. Investors recover their investment only when they sell their shareholdings to other investors, or when the assets of the firm are liquidated and proceeds distributed among them after satisfying the firm's obligations.

Although investments on equity don’t give immediate returns, in the long run they are safer bets than many other types of investments.

Many investors, nervous about making poor decisions, are avoiding the stock market entirely. If you are nervous about the stock market, but looking to earn income in today's low-yield environment, you may want to consider this investment strategy by taking a step back into equities.

Avant Capital Partners provides attractive risk-adjusted returns on structured debt and equity investments that provide investors diversification outside the public markets. Qualified investors include:

•  Accredited Investors
•  Family Offices
•  Hedge/Private Equity funds
•  Other Institutional Investors and Advisors

Investing in AVANT Capital Partners equity means that you will own a share of the company, in form stock certificates. Avant Capital Partners’ team of analysts and originators, in conjunction with locally based, affiliated investment sales firms, will work with you to uncover investment opportunities in select markets that provide significant value. The local knowledge and presence of our affiliate investment sales partners can provide you with access to off-market transactions and the on the ground support you need to make investments work.

Contact Andrew Jubelt about how to use AVANT Capital Partners in your portfolio. E-mail him at ajubelt@avant-capital.com or call at (212) 231-9779 for more information.