Hold onto your seats! 2020 is already underway. It’s sure to be a memorable if not historic year and a strong one for the CRE industry. Multifamily construction continues to tick up in multiple major metros, suggesting that the recent run of strong development in the industry is expected to carry over into the new year.
Berkadia spent the final month of 2019 focused on the future. Two of our goals in December? Expand our footprint in new metro areas and develop solutions for challenges affecting all asset classes.
Director Jennifer Ray Talks Property Taxes and Multifamily Construction at Bisnow Event
Taking center stage at Bisnow’s Houston Capital Markets event on December 4, Berkadia Director Jennifer Ray spoke on the impact of rapidly rising property taxes on commercial real estate.
The Houston metro’s complex tax laws place intense pressure on property owners of all types. It’s a longtime strategy to offset the absence of a state income tax. Some county property taxes are nearly twice the national average. As a result, legal support for disputing these taxes now generates $88 million annually, according to Bisnow.
Addressing the audience at the Houston Capital Markets event, Director Ray pointed to a strong understanding of the local market as a key factor in navigating the expensive landscape of Houston metro property taxes.
“We’ve been really trying to find those plays where we’re not going to get crushed by the taxman,” Ray said. “It’s about where can you go and feel like you’re going to get a better tax reassessment. There’s certain counties that will be more aggressive than others.”
Berkadia Adds Permanent Presence to Growth-Friendly Milwaukee
In December, Berkadia established its first permanent office in the explosive Milwaukee metro, where new multifamily construction should outpace the previous year in 2020.
“What we wanted to do was make sure we had a space to accommodate our growth strategies. We wanted a central location, someplace people could get to easily. We wanted to be in the city,” said Barry, referring to Berkadia’s new 4,000-square-foot office. The new work space provides a spectacular view of Lake Michigan from the 833 East building’s ninth floor.
“One of the things we are going to focus on around here is affordable housing,” added Dellonte. He indicated that the new space could support over a dozen new employees as Berkadia seeks to expand its presence into new real estate sectors.
- We here at Berkadia ended the year on a high note by putting the final touches on our comprehensive Forecast 2020 report. We’re excited to share our extensive research on upcoming multifamily trends across the country. The report can be found here.