April 15, 2024 – Communication and creativity is key to weathering interest rates and economic shifts in commercial real estate, pens Nicole Chynoweth of Rochester Business Journal. With $2.81 trillion in commercial real estate debt coming due by 2028, according to data firm Trepp, the current landscape in commercial real estate holds a variety of economic obstacles.
Rochester-based DiMarco Group President and CEO John DiMarco II said his firm has seen instances where clients have had to delay projects or completely revisit the purpose of a project and what they might change in the marketplace in order to help offset what’s going on in terms of economic challenges. He said costs of commercial real estate projects have been impacted as well as the availability of capital for new projects.
Like Cox and Card alluded to with the emphasis of building a reliable team of advisors, DiMarco agrees that relationships are key.
“We’ve really leaned more into the relationships that we’ve established over the years,” he said. “It’s reducing the commodity of the business and creating more of a collaborative team approach to try to bring something into balance. It’s good to have relationships in these times.”
From vendors and financing to municipalities, architects, engineers and consultants, DiMarco said almost every project at the firm is advancing because of those relationships.
“Everyone is in the same scenario and trying to be helpful and proactive in getting things accomplished because it is that difficult,” he said.
Read the entire article on the Rochester Business Journal’s website.
