Real Estate Finance: Key Trends & Challenges 2023 | On-Demand Webinar

Agenda:

SEGMENT 1: 

Marc Betesh, Executive Chairman & Founder, Visual Lease

and

Joe Fitzgerald, SVP, Lease Market Strategy, Visual Lease

• Most people are stunned to find out that after headcount-related expenses, leases (real estate, fleet, equipment, land and more) are typically the second largest expense for organizations.
• To further complicate matters, leases are very dynamic agreements; they are often subject to changes that need to be documented, tracked and reported over time to ensure proper, ongoing compliance with the lease accounting standards (ASC 842, GASB 87 and IFRS 16).
• With leases now being represented on the balance sheet, these agreements are a priority to the Office of Finance – this critical shift has provided businesses with an opportunity to get a handle on their leases.
• If businesses do not implement proper lease controls, they open themselves up to a range of risks. In fact, an overwhelming four out of five tenants experienced negative impacts to their business due to inadequate internal controls including the inability to respond to changing circumstances due to the pandemic, missing an option to extend a deadline, miscalculating lease costs, the inability to update an unwanted or unfavorable term, missing a reimbursement or incentive, overpaying rent or expenses and incurring the landlord’s responsibilities.
• While adopting dedicated technology might seem like extra work and an added expense, the truth is it’s much more efficient and less costly in the long run.

SEGMENT 2: 

Heather McClure, Senior Director, Capital Markets, Walker & Dunlop

Update on real estate equity and debt markets

• Brief overview of recent increases in Treasury
• Debt
  • Lower loan to cost due to changes in underwriting
  • Increase in rates coupled with more stringent underwriting assumptions, specifically rent growth assumptions and market exit or refinance test
  • Issues impacting banks and thereby availability of capital
  • Contraction of SASB market
  • Life company and debt fund options
  • Agencies for MF
• Equity underwriting changes
  • Market rent growth
  • Exit caps
  • Construction pricing
  • Pref vs. JV
• Investment sales updates
  • Cap rates
  • Per pound considerations
• Property types in favor or out of favor
  • Primary property types
  • Recent “hot” properties – BFR, cold storage, MF, self-storage
  • Geographic considerations

SEGMENT 3: 

Alexander J. Szikla, Founder, Rockson Advisory

• How to Get Deals Done in a Rising Interest Rate Environment?
  • How Did We Get Here?
  • Historical Inflation
  • Federal Reserve Overview
  • Historical Interest Rates
  • Central Bank Balance Sheet Size
  • S&P 500 Year to Date
• What Does This Mean for Real Estate Investors?
  • Cost of Borrowing

Who Should Attend: