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Supply challenges continue to escalate; however, builders are adapting by placing orders early in advance and being flexible with substitution products. Not as easy to adapt to is the rising cost of lumber. For example, the spot market for random length lumber ($/1,000 board feet) increased from $354 in June 2020 to $975 in February 2021. …Read Entire Post
But the divergence in pricing across sectors remains. Retail properties, for example, have been hardest hit. Retail sees the immediate link between the revenue a tenant makes in a store and the rent it pays for that store space. Meanwhile, Industrial properties have continued to be very strong and even accelerated in some markets.
Built as a seven-story parking garage for HemisFair ’68, CPS Energy has been the building’s sole occupant since the event, adding three stories of office space above the garage in 1987.
According to NAIOP analysis, the $2-trillion economic stimulus bill recently passed by House and Senate leaders in response to the COVID-19 pandemic, has multiple positive implications for commercial real estate. |
The new analysis of the impact of long-term remote work after the pandemic and its potential impact on cities indicates that more remote work means fewer commuters – and that means less revenue for cities and potential challenges for the commercial real estate sector. 
The headwinds caused by COVID-19 and the related shutdowns of various segments of the national economy has impacted the local real estate market, including skyrocketing lumber prices and other related construction costs, manufacturing delays, a slowdown in municipal approvals, changing consumer habits, record homebuilding starts and closings as well as shifting construction priorities by developers.
There is a disconnect in the public and private markets and across sectors. Some small disconnect isn’t anything new but there’s been a significant repricing on public assets since COVID while valuations on the private side didn’t moved as much, especially earlier in 2020. That said, the positive vaccine news increased valuations by the end last year which has closed some of the gap between the private market and the public market.
CPS Energy recently sold its Navarro Building to Los Angeles-based BH Properties for $22.3 million. The building and garage, located at 
Despite the uncertainty in the air, some of San Antonio’s largest and most anticipated commercial developments are still set to finish this year.