Market Outlook, Mortgage and Lending
Businesswire | July 10, 2023
Today, Valligent a market-leading appraisal management company, recently acquired by VerosTM, an industry leader in enterprise risk management and collateral valuation services, announced their integration to the ICE Mortgage Technology™ Platform. Through this integration, mortgage industry stakeholders have the most efficient access to all collateral valuation related products and services.
The combined forces of Valligent and Veros provide lenders with a unified ecosystem of solutions for a compliant, efficient, and accurate valuation process. By partnering with Valligent and leveraging the ICE Mortgage Technology® Platform, lenders will have access to a seamless technology solution that can solve all property valuation and collateral risk management needs. A full spectrum of valuation products is available including traditional appraisals, AVMs, desktop valuations, and the only 4-hour Evaluation product for equity lending.
“Integrating with Encompass® by ICE Mortgage Technology® was always part of the plan when we acquired Valligent,” said Darius Bozorgi, CEO of Veros Software. “Providing a streamlined experience with our full spectrum of appraisal, valuation data and analytics and related collateral risk management solutions has always been our priority. Our partnership with ICE Mortgage Technology enables Veros and Valligent to drive more efficiency for all our customers. Collectively, we can expand our products and services to meet the demands of the digital mortgage industry.”
Founded in 2003 and headquartered in Roseville, California Valligent established itself as a leader in appraisal, alternative valuation, QC and Regulatory Audit solutions. Utilizing a combination of experienced property valuation personnel, automation, Artificial Intelligence, powerful functionality, and mobile technology, Valligent is dedicated to making the property valuation process simple and efficient for everyone involved. Valligent provides comprehensive valuation technology expertise and services to hundreds of banks, credit unions, mortgage lenders and insurance companies nationally. We have developed a state-of-the-art valuation technology platform, fully integrated with best-in-class data providers, Loan Origination Systems (LOS) and on-demand cloud computing platforms and API providers. For more information, visit valligent.com.
A mortgage technology innovator since 2001, Veros is a proven leader in enterprise risk management and collateral valuation services. The firm combines the power of predictive technology, data analytics, and industry expertise to deliver advanced automated solutions that control risk and increase profits throughout the mortgage industry, from loan origination to servicing and securitization. Veros’ services include automated valuation, fraud, and risk detection, portfolio analysis, forecasting, and next-generation collateral risk management platforms. Veros is the primary architect and technology provider of the GSEs’ Uniform Collateral Data Portal® (UCDP®). Veros also works closely with the FHA to support its Electronic Appraisal Delivery (EAD) portal. The company is also making the home buying process more efficient for our nation’s Veterans through its appraisal management work with the Department of Veterans Affairs.
About ICE Mortgage Technology
ICE Mortgage Technology® is part of ICE (NYSE: ICE), a global data, technology and market infrastructure company that designs, builds, and operates digital networks to connect people to opportunity. Backed by ICE’s global resources, we offer a truly differentiated digital platform that provides straight-through processing for a more comprehensive end-to-end workflow than any other provider in the market. We reach almost every mortgage in the U.S. by combining the native automation of Encompass® with the e-collaboration and e-recording capabilities of Simplifile®, along with the national electronic registry for nearly 90% of the U.S. mortgage market in MERS®. Ultimately, our technology enables people across the industry to focus on personal connections when they need it most, and support borrowers for a better journey of homeownership. Visit icemortgagetechnology.com to learn more. ICE Mortgage Technology combines technology, data, and expertise to help automate the mortgage process, from consumer engagement through loan registration, and every step and task in between. ICE Mortgage Technology is the leading cloud-based loan origination platform provider for the mortgage industry, with solutions that enable lenders to originate more loans, lower origination costs, and reduce the time to close, all while ensuring high levels of compliance, quality, and efficiency. Visit icemortgagetechnology.com or call (877) 355-4362 to learn more.
Market Outlook, Real Estate Investment
Businesswire | July 06, 2023
Workspace Property Trust (Workspace), the preeminent US suburban commercial office property owner and partner for the Fortune 1000, announced today that it successfully modified and extended its approximately $1.3 billion CMBS facility, securing a two-year extension for loans supported by its nearly 10 million square foot portfolio of 146 suburban office and light industrial, R&D and flex industrial properties in 14 major metropolitan markets across the US. In additional to this portfolio, Workspace owns an additional nine million Class A square feet of commercial office portfolio across 59 properties in the US.
The successful refinancing of this Workspace’s Class A portfolio is a major accomplishment in one of the most difficult commercial real estate and capital market environments in decades and reflects the strength, experience and operating performance of the Workspace management team. Iron Hound Management Company LLC served as financial advisor to Workspace.
Workspace Strengthens Its Balance Sheet To Invest in Growth
“We are thrilled to have successfully modified and extended our $1.3 billion CMBS facility with a two-year extension and significant equity participation,” said Thomas A. Rizk, co-founder and CEO of Workspace. “Getting this deal done in what many have described as the most challenging real estate market in decades was no small feat and is testament to the underlying strength of our portfolio, the resilience of the suburban office sector, the promise of our pipeline and the capabilities of Workspace’s vertically integrated national platform. With the strengthening of our balance sheet, we are now in the enviable position of driving growth by investing in our leasing operations and deploying state-of-the-market enhancements in key market locations as we double down on the opportunities in the suburbs. We appreciate the support of our lenders, partners and investors and are focused on the tremendous opportunities in front of us.”
Workspace owns and operates suburban office buildings in 14 of the top 20 US metropolitan areas, including Atlanta, Philadelphia, Dallas, Charlotte, Tampa, Phoenix, Silicon Valley, South Florida, Houston, Portland, Seattle, Minneapolis, Chicago and St. Louis. Approximately 40% of the Fortune 500 have headquarters in Workspace markets and nearly seven million square feet of the Workspace portfolio is leased by companies included in the Fortune 1000.
Workspace Suburban Markets Outperform Central Business Districts
In addition to the financing news, Workspace also released the findings of a recently conducted analysis of national real estate data that highlight the meaningful outperformance of suburban commercial office markets over downtown commercial office locations. The data set, compiled for Workspace by CBRE Strategic Investment Consulting, a global leader in commercial real estate services and investments, underscores the strength, vitality and energy of suburban office markets as employers across the country reinvent how and where people work today.
At the national level—and in key markets driving US economic growth— suburban office submarkets have outperformed central business district submarkets during each of the past three economic downturns, with smaller declines in rent growth and absorption rates and much steadier vacancy rates. This pattern has been particularly pronounced since the onset of COVID-19 and is leading to a fundamental reset in how corporate America is thinking about where and how their people should work. Based on the CBRE data, this resiliency is largely expected to persist through the current cycle, as many suburban locations continue to benefit from a rising number of occupiers and employees prioritizing the value of working closer to home.
“Workspace Property Trust is differentiated by our proven core strategy – to provide innovative and responsive real estate solutions to the Fortune 1000 in fast-growing, highly desirable suburban commercial markets across the country,” said Roger W. Thomas, co-founder, President and COO of Workspace. “In the last year, we transformed our business by doubling our footprint to more than 19 million square feet of commercial and light industrial assets in some of the most vibrant markets in the US, offering our customers lifestyle oriented, community-based working environments that are fundamental requisites for corporations today. The CBRE data we are highlighting today is a clear and resounding affirmation that today’s most progressive companies – large and small – are investing in suburban markets, reversing decades of legacy thinking.”
Mr. Rizk further stated, “New patterns of work and new demands by our tenants and their employees directly translate into the need for new long-term real estate innovation. We know the biggest single issue for our tenant partners is reducing the commuting time for their employees, allowing them to spend more time with their families. Our commitment to service and convenience and relentlessly focusing on delivering on our promise of “Work. Life. Balanced.” has solidified our partnerships with a number of Fortune 1000 organizations as they double down on their suburban footprints, investing significant dollars and resources in the lives of their team members. When Roger and I started Workspace, suburban office was a contrarian bet. The CBRE data validates what we’ve been experiencing on the ground over the last few years coming out of the pandemic: suburban office is benefitting from a foundational demographic shift to suburban submarkets in gateway metropolitan areas across the country where the quality of the work experience is the defining factor in leasing decisions.”
Suburban Markets Outperformance: National and Local Metrics
Nationally, suburban commercial office outperformed central business district commercial office in several key metrics, including vacancy, net absorption and rent growth. In 2022:
By year-end, the national vacancy rate for suburban office was 17.2% vs. 17.6% for central business districts, the first time the suburban rate has been tighter since 1989.
On net, the amount of suburban office space absorbed by occupiers in 2022 was equivalent to 0.3% of total suburban inventory. Meanwhile, downtown space was put back on the market (negative net absorption) at an amount equivalent to 0.2% of downtown inventory.
Year-over-year rent growth in the suburbs was a full percentage point higher than in central business districts -- 1.6% vs. 0.6%.
Additionally, when ranking U.S. suburban office markets across a variety of performance metrics, every Workspace market was represented within the top 15 for at least one metric, with several markets ranking in the top 15 multiple times. For example, over the past two years (Q4 2020 – Q4 2022):
Fort Lauderdale and Miami tied for the sixth-highest increase in post-pandemic rent growth among all suburban office markets, with asking rent increases of 1.7% in both markets.
Charlotte and Phoenix tied as the 11th highest in rent growth, with increases of 0.8% in both markets.
San Jose ranked second for the most square feet of suburban office space absorbed and seventh for absorption as a share of total inventory.
Other Workspace markets appearing in the top 15 for one or both of these absorption metrics were Chicago, Atlanta, Fort Lauderdale, and Miami.
Based on forecasts for the next two years (Q4 2022 – Q4 2024):
Workspace markets represented five out of the top eight suburban markets with the strongest near-term rent growth projections.
These markets include Milwaukee, Phoenix, Houston, Miami and Fort Lauderdale.
Dallas was the third-highest ranking market for the expected gap between the suburban and central business district vacancy rate – 22.4% in the Dallas suburbs vs 27.1% in the Dallas CBD.
Other Workspace markets in the top 15 across this metric include Seattle, Houston, Kansas City, St. Louis, Fort Lauderdale and Minneapolis.
About Workspace Property Trust
Workspace Property Trust is a privately held, vertically integrated, full-service commercial real estate company specializing in the ownership, management, leasing and development of office and light industrial, R&D and flex space across the US. Founded in 2015, as combined Workspace owns and operates approximately 19 million square feet of suburban office and light industrial, R&D, Flex (IRDF) properties in markets across the country, including 14 of the top 20 US metropolitan areas. For more information on Workspace, please visit www.workspaceproperty.com
Mortgage and Lending
PR Newswire | August 24, 2023
RE/MAX, LLC, one of the world's leading franchisors of real estate brokerage services, announces a groundbreaking relationship with the CCIM Institute, the premier provider of commercial real estate education. This collaboration, unveiled during the 2023 RE/MAX Broker Owner Conference, opens up new possibilities for growth and success for commercial brokers and residential agents interested in expanding their expertise.
RE/MAX® affiliates can now access the comprehensive educational resources at discounted rates through RE/MAX University® and the CCIM platform. The courses range from foundational knowledge for beginner agents to advanced topics for seasoned brokers.
RE/MAX provides a wide variety of educational opportunities that enable agents to expand their knowledge and stay cutting-edge. "At RE/MAX, we support the growth and development of our affiliates, and this relationship with CCIM is a testament to that dedication," said Shawna Gilbert, Senior Vice President of RE/MAX Global and Commercial. "We recognize the growing demand for expertise in commercial real estate, and through this alliance we offer our agents and brokers unparalleled access to valuable education and resources."
With CCIM Institute's offerings integrated into RE/MAX University, learners can conveniently engage with the courses at their own pace and on their own time. Broker/Owners can track their agents' progress, fostering a culture of continuous learning and development within their offices.
Aside from the new education CCIM Institute will provide, real estate professionals who are interested in commercial real estate can attend the 2024 RE/MAX Global Commercial Symposium from June 10 – 12 in Tampa, Florida. The annual event provides agents with insights from leaders in the commercial space and ample opportunities for networking.
About the RE/MAX Network
As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings with more than 140,000 agents in over 9,000 offices and a presence in more than 110 countries and territories. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides. RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children's Miracle Network Hospitals® and other charities.