Berkshire Hathaway HomeServices Professional Realty Commercial Division NKY

Home
United States
Florence, KY
Berkshire Hathaway HomeServices Professional Realty Commercial Division NKY

FULL SERVICE COMMERCIAL REAL ESTATE BROKERS, INCLUDING PORTFOLIO MANAGEMENT. GOOD ENOUGH IS UNACCEPTABLE

Jim Carmichael is a seasoned commercial and investment real estate professional with a diverse background and an inspiring journey. A proud US Navy veteran, Jim served on the fast attack submarine USS Oklahoma City (SSN-723) before transitioning into a civilian career. Jim's journey into real estate began with mobile home sales, where he quickly rose through the ranks and achieved multiple sales a

wards. After the 9/11 attacks, he transitioned into commercial real estate, working with Marcus & Millichap, Sperry Van Ness & First Commercial Realty before joining Prudential Commercial Real Estate in 2013 which was bought by Berkshire Hathaway Homeservices. It was during this time that he found his true calling in commercial and investment real estate, as well as property management. Today, Jim leads a successful team of agents and has built a robust portfolio of investments, including a flooring company and other ventures. He is passionate about helping clients find the right opportunities and prides himself on providing exceptional service and expertise. Outside of his professional life, Jim enjoys traveling, fine dining, attending concerts, and riding motorcycles with his partner, Stephany Parker. He attributes his personal and professional growth to strong relationships, valuable mentorship from his broker David Mussari, and a deep sense of gratitude and faith. With an unwavering dedication to his clients and a keen eye for opportunities, Jim Carmichael is the go-to expert for all your commercial and investment real estate needs. Connect with Jim today to learn more about how he can help you achieve your real estate goals.

08/28/2026

From CRE Daily:
Apartment Development Shifts From the Sun Belt to the Coasts
New York and Los Angeles are ramping up apartment permitting while several longtime Sun Belt development leaders are tapping the brakes.

Coasts are cooking: New York led the nation with 35,888 multifamily units permitted over the 12 months ending in July, up 47.9% from a year earlier, according to U.S. Census Bureau data analyzed by RealPage. Los Angeles nearly doubled its annual total, jumping 97.8% to 16,789 units.

A tale of two cities: New York’s activity was relatively dispersed, led by Brooklyn with 8,604 units, the Bronx with 8,594 and Queens with 6,801. Los Angeles was far more concentrated, with 12,724 units — roughly three-quarters of the metro division’s total — permitted within the city itself.

The Sun Belt cools: Several markets that powered the recent apartment construction boom are pulling back. Dallas and Houston each permitted roughly 1,850 fewer units than a year ago, while Atlanta and Phoenix also slowed. Austin recorded the largest annual decline among markets highlighted by RealPage, down 3,921 units, followed by Chicago (-3,253), Orlando (-2,835) and Miami (-2,703).

Where builders are still betting: Washington, D.C., Raleigh/Durham, Seattle and Denver each added roughly 2,000 to 4,000 permits from a year earlier. Outside the top 10, San Jose (+4,281), Tacoma (+2,725), Salt Lake City (+2,534), West Palm Beach (+2,308) and Tampa (+2,001) also posted sizable gains.

Big picture: The top 10 permitting markets collectively accounted for 146,349 units, up 23% year over year but just 0.8% from June. Six of the 10 increased permitting annually, suggesting development hasn't disappeared so much as shifted geographically.

➥ THE TAKEAWAY

The development map is being redrawn: After years of Sun Belt-heavy construction, permitting momentum is shifting toward coastal and other high-demand metros. For multifamily investors, that could reshape where future supply pressure builds, with New York and Los Angeles emerging as key markets to watch.

08/27/2026

From CRE Daily:
Commercial Real Estate Bidding Hits Its Strongest Growth in a Year
CRE’s liquidity drought is easing, with more buyers—and lenders—competing for deals despite elevated borrowing costs.

Capital comes off the sidelines: JLL’s latest indexes show property bidding posted its strongest monthly improvement in a year in June, while July saw the second-highest number of unique bidders in five years. Lending competition also hit record levels, signaling more capital is fueling dealmaking.

Credit opens the door: Financing is flowing more freely from CMBS lenders, insurers, government agencies and debt funds. JLL says credit availability tends to lead investment activity, with lenders growing more comfortable as widespread CRE distress and defaults have not materialized.

Retail gets crowded: Retail has become a competitive target as its investment outlook improves. With owners enjoying attractive returns and little incentive to sell, renewed demand and limited supply are tightening the bidding environment.

Industrial keeps humming: Industrial remains an investor favorite, fueled by e-commerce, reshoring and reindustrialization. CBRE reported manufacturing leasing rose 27% YoY as companies move production closer to the U.S. to strengthen supply chains and reduce tariff exposure.

Multifamily misses the party: Apartments remain the weakest sector for bidding and credit as the market absorbs a historic construction pipeline. While national vacancies are improving, CoStar found stabilized vacancies rose 34 bps in Q2, signaling continued pressure on existing properties.

➥ THE TAKEAWAY

What’s next: Improving credit conditions have already brought more buyers back, and lower long-term borrowing costs could push competition even higher. JLL sees plenty of runway ahead, but expects a steady climb rather than an explosive rebound.

08/25/2026

From CRE Daily:
Multifamily Debt Gets Crowded as Banks Return to the Lending Game
Multifamily borrowers have more lenders competing for their business in 2026, but abundant capital doesn’t mean underwriting has gotten any easier.

Capital is plentiful: Debt availability has expanded considerably, with Fannie Mae, Freddie Mac, private credit, banks and life insurers all chasing multifamily opportunities. Cushman & Wakefield says well-positioned deals are drawing strong lender interest, although properties with operational or underwriting complications can still face a lengthy path to closing.

Refis rule the market: Refinancing remains the dominant source of lending activity as transaction volume continues to recover. At CBRE, roughly 60% of debt placements are refinancings, versus 40% tied to acquisitions, as owners focus on extending maturities and navigating higher borrowing costs.

Banks are back: After retreating amid rising rates and the 2023 banking turmoil, banks are back. CBRE says bank lending is up 30% YoY, while FDIC-insured multifamily loans rose 4.1% to $665.3B. On some deals, banks are beating agencies with borrowing costs 30 to 40 bps lower.

Private credit provides the bridge: Debt funds remain a key lifeline for developers facing maturing construction loans, providing more time to stabilize assets without selling or injecting fresh equity. Some borrowers are even securing cash-neutral refis at better spreads than their original financing.

But extensions are getting expensive: The safety net has limits. Some debt funds that once charged 1% to 3% of the loan balance for extensions may now demand closer to 10%, raising the stakes for borrowers seeking another modification later this year.

Agencies lose some ground: Fannie Mae and Freddie Mac remain competitive for stabilized properties, but their share of CBRE debt placements has fallen from 50%–60% to about 40% as banks and insurers gain ground, particularly on more complex deals.

➥ THE TAKEAWAY

More lenders, more leverage: Multifamily’s debt market has gone from scarcity to competition, giving strong borrowers more financing choices and potentially better pricing. The real test will come from properties that still need time: as extension costs rise, 2026’s abundance of capital may help postpone distress, but it won’t make troubled capital stacks disappear.

08/24/2026

From CRE Daily:
CRE Borrowing Costs Hit a Floor as Rate Relief Fades
The cheapening of CRE debt lost momentum in Q2 2026 as SOFR leveled off and Treasury yields climbed, pushing borrowers toward fixed-rate financing.

The rate floor: After nearly two years of declines, SOFR averaged 3.62% in Q2, down just 4 bps from Q1, while Treasury yields moved sharply higher, according to Altus Group. The 5-Year Treasury climbed 32 bps to 4.09% and the 10-Year rose 22 bps to 4.42%, even as lender competition remained healthy, with borrowers receiving an average of 5.3 competitive quotes for new financing.

Borrowers pivot to fixed: With further Fed cuts looking less likely, financing activity shifted away from floating-rate debt. Fixed-rate senior short-term quotes surged 28% from Q1 and represented 28% of all quotes, up from 21%. Floating-rate senior short-term quotes fell 16%, with their market share dropping five percentage points to 34%.

Spreads provide some cushion: Lenders continued tightening spreads, particularly on floating-rate loans. Lower-leverage floating senior spreads fell to 239 bps over SOFR, while repo and facility spreads dropped 30 bps to 176 bps. Fixed-rate compression was more modest, leaving borrowers more exposed to rising Treasury yields.

The easy savings are over: Across property types, average all-in borrowing costs declined just 4 bps from Q1, compared with a 45-bp drop in Q4 2025. Rates remain 71 bps below year-ago levels, but most sectors saw borrowing costs flatten or rise during the quarter as higher Treasury yields offset tighter spreads.

Office gets another look: Office financing continued showing signs of rehabilitation. The sector accounted for 19% of quotes, up from 17% in Q1, while average office borrowing costs slipped 3 bps to 5.84% and were 78 bps below last year. Trophy office financing held at 5.67%, while medical office fell to 5.58%. Retail also gained lender attention, rising to 20% of quote activity from 17% in Q1.

Sector check: Apartments remained the cheapest financing category at 5.22%. Residential averaged 5.33% and industrial 5.40%, though both increased modestly during the quarter. Hotel financing posted the largest property-level increase, rising 25 bps to 6.07%, while construction fell 26 bps to 6.08%, helped by a sharp reversal in office construction pricing.

➥ THE TAKEAWAY

Lock it or risk it: CRE borrowing costs remain well below year-ago levels, but the quarter-to-quarter improvement has largely stalled. If rates stay flat or move higher, today’s financing terms could start looking more attractive in hindsight.

08/14/2026

From CRE Daily:
Higher Treasury Yields Put CRE’s Recovery on a Shorter Leash
Cap rates are holding their ground, but elevated borrowing costs and growing uncertainty are making investors less confident about where pricing — and dealmaking — goes next.

By the numbers: CBRE’s H1 2026 Cap Rate Survey, based on 3,600 estimates across more than 50 U.S. markets, found average cap rates essentially unchanged. That stability came despite Treasury volatility, with the 10-year yield peaking at 4.67% in May and hovering around 4.6% by mid-July.

Under the hood: Flat averages don't mean a flat market. Cap rates generally compressed more in the eastern U.S., while Class B and C and value-add properties saw greater compression than Class A and stabilized assets. Neighborhood retail recorded the strongest average compression, followed by hotels and industrial.

Confidence gets cloudy: Investors entered 2026 expecting cap rates to hold steady or decline, but the outlook has grown more mixed. Roughly 60% of CBRE respondents still expect no change, while more now anticipate increases. Infill multifamily was the most bearish subtype, with Class C properties also facing stronger expectations for cap-rate expansion.

Office remains the wild card: Lower-quality office remains one of CRE’s toughest sectors to price. CBRE found Class B and C cap-rate estimates have bounced between surveys, while the range of office yield estimates widened. Other sectors saw ranges narrow, suggesting price discovery is improving faster outside office.

The dealmaking hurdle: The bigger obstacle may be the bond market. CBRE professionals said the U.S./Iran conflict lowered expectations for 2026 investment activity, while 3.75% was the median 10-year Treasury yield needed to boost sales volume, roughly 85 bps below the 4.6% level cited in the report.

➥ THE TAKEAWAY

Pricing has found its footing, but liquidity hasn't: Stable cap rates despite higher Treasury yields show CRE values remain resilient, but that alone won’t unlock a full recovery. The next leg may depend less on cap-rate compression and more on whether lower yields give buyers and sellers room to make deals pencil.

08/12/2026

From CRE Daily:
AI Now Occupies 10% of San Francisco’s Office Market
San Francisco’s office comeback has a new engine: AI companies have gone from niche tenants to controlling roughly one in every 10 square feet of the city’s office inventory.

By the numbers: AI companies now occupy 8.5M SF across San Francisco, or about 10% of the city’s office stock, according to JLL. Since the start of 2026 alone, the sector has committed to another 2.4M SF.

The ChatGPT effect: In 2022, San Francisco had just 23 AI companies occupying less than 1.1M SF. Today, JLL counts 413 AI companies, representing nearly 1,700% growth in company count and an almost 700% increase in occupied square footage.

And there’s more coming: Those figures don't yet fully capture some blockbuster commitments, including Anthropic’s 420K SF lease at 300 Howard Street and OpenAI’s 280K SF at Dropbox’s former HQ, because those spaces have not been fully occupied. JLL also estimates AI companies are currently seeking another 2M+ SF across the city.

A different kind of demand: AI isn't just absorbing traditional offices. Roughly 10% of the 2.4M SF leased by AI firms this year went to R&D space, reflecting the growth of robotics and physical AI companies that need more industrial-style layouts. That shift could benefit projects like Pier 70, Dogpatch Power Station and Candlestick, which offer flexible office and R&D space.

➥ THE TAKEAWAY

The bigger picture: San Francisco still has an office vacancy rate of roughly 32%, but that headline number increasingly masks a tighter market for desirable Class A properties. If AI leasing maintains its current pace, the industry's appetite could help absorb premium inventory while creating a new market for R&D-oriented development inside city limits.

08/10/2026

From CRE Daily:
Apartment Cap Rates Reach 11-Year High as Investment Activity Shifts
Apartment investment sales held steady in the second quarter of 2026, but the real story wasn't volume—it was a major shift toward higher-priced urban assets that pushed cap rates and average pricing higher.

By the numbers: U.S. apartment transaction volume totaled $36.7B in 2Q 2026, essentially flat year-over-year despite 7.4% fewer properties changing hands. Investors completed 1,631 transactions, averaging $22.5M per deal, up from $20.4M in the first quarter. Even so, quarterly volume remains roughly one-third below the five-year average of $54B.

Cap rates continue to reset: Apartment cap rates widened to 5.79% in 2Q, up from 5.71% in the first quarter and 5.52% a year ago—the highest level since 3Q 2015. Despite expanding 114 bps from the mid-2022 low, apartments still command the lowest cap rates among major commercial property sectors, reflecting continued investor demand.

Urban assets take the lead: For the first time since MSCI began tracking the data in 2001, mid-rise and high-rise apartments accounted for the majority of investment volume, capturing 51.8% of dollar volume. That shift toward higher-priced urban assets—not broad market appreciation—helped lift the average sales price to $206,982/unit, even as pricing within the segment remained largely unchanged.

Investment recovery continues: Over the past 12 months, apartment sales totaled nearly $174B across 7,439 properties, up 11% from a year ago. While activity has rebounded from the 2023 low of $121B, it remains well below the 2021 record of nearly $360B.

Where investors put their capital: California led the nation in transaction count, with San Francisco (111 sales) and Los Angeles (102 sales) recording the most property trades. Los Angeles also led in investment volume at roughly $1.4B, while Dallas, Los Angeles, and Chicago topped the list by units sold due to larger asset sizes.

➥ THE TAKEAWAY

Looking ahead: Capital remains available for quality multifamily assets, but buyers are becoming increasingly selective about where they deploy it. Whether urban properties continue to dominate—or garden-style communities regain their footing—will be a key trend to watch through the rest of 2026.

08/07/2026

From CRE Daily:
Industrial Market Enters Its Next Growth Cycle
The U.S. industrial market is shifting from recovery to expansion as stronger leasing demand, limited new supply and rising rents reshape the logistics landscape.

By the numbers: Demand continues to outpace expectations. U.S. net absorption totaled 66 MSF in the second quarter, the strongest quarterly performance since 2022. Prologis expects 220 MSF of demand in 2026, exceeding the projected 205 MSF of new completions, signaling tighter market conditions ahead.

Demand broadens beyond e-commerce: E-commerce and essential goods remain key demand drivers, but growth is broadening. Advanced manufacturing, data center supply chains, defense and supply chain reshoring are fueling leasing activity, while housing, automotive, furnishings and appliances have yet to fully rebound—leaving room for additional demand.

Inventory strategy remains cautious: Despite stronger leasing activity, warehouse utilization remains uneven. Prologis' Industrial Business Indicator (IBI) utilization rate averaged 83% in Q2, reflecting companies' cautious inventory management. Retail and wholesale inventories also remain lean, with an inventory-to-sales ratio of 1.1, below the historical expansion range of 1.2 to 1.3.

Prime industrial space is becoming harder to find: Slowing construction and stronger demand are tightening availability, especially for large-format distribution facilities. Bulk vacancy sits 60 bps below the overall market average, while bulk leasing is running 10% to 15% above 2025 levels. With little speculative supply underway, more occupiers are turning to build-to-suit projects.

Rents gain momentum: Industrial rents increased 70 bps quarter over quarter in Q2 as vacancies tightened. Texas, the Southeast, the Midwest and the Bay Area are leading rent growth, while coastal markets could see the strongest gains next as limited supply and improving occupancy support further increases.

➥ THE TAKEAWAY

Growth meets scarcity: Demand is broadening across industries just as the development pipeline begins to thin. That combination should support higher occupancy, stronger rent growth and increased competition for prime industrial space.

08/06/2026

From CRE Daily:

Retail's Winning Streak Continues as Consumers Keep Spending
Resilient consumer demand, stronger retail sales, and limited new supply are giving retail real estate fresh momentum, with landlords and investors benefiting from healthy fundamentals.

By the numbers: Retail sales continue to outperform despite inflation concerns, tariffs, higher fuel costs, and cautious consumer sentiment. Total retail sales climbed 6.7% YoY in June, while inflation-adjusted sales rose 3.5%. Core retail sales, excluding autos and gasoline, increased 5.7%, underscoring consumers' willingness to keep spending.

Retail landlords see the payoff: Tanger Inc. raised its full-year outlook for the second time this year after stronger-than-expected results driven by domestic travel, early back-to-school shopping, and World Cup tourism. Average tenant sales rose 5% in Q2, while revenue reached $156.4M, topping analyst expectations. The outlet REIT is also expanding beyond outlet centers through acquisitions of traditional shopping centers.

Demand outpaces new supply: Retail fundamentals remain among CRE's strongest. Net absorption rebounded in Q2, keeping the national retail vacancy rate at 4.9% as limited new construction constrained supply. Average multi-tenant rents rose 2.2% YoY, led by markets including Phoenix, Nashville, Raleigh, Minneapolis-St. Paul, and Orange County.

Capital continues to chase retail: Investors continue to favor retail as one of CRE's most sought-after sectors. Transaction volume is nearing the record pace set in 2022, with single-tenant retail investment reaching an all-time high. Stable occupancy, durable cash flow, and limited new development continue to support the sector's appeal.

Retailers stay on the offensive: Strong consumer demand is driving retailers to add stores, supporting leasing activity. Tanger said retailer demand remains healthy as new development slows, a trend Marcus & Millichap says is helping sustain occupancy and rent growth.

➥ THE TAKEAWAY

The winning formula: Limited new construction remains retail's biggest advantage. Combined with resilient consumer demand, it's helping keep vacancies low and supporting rent growth across the sector.

08/05/2026

CBRE: CRE Loan Volume Climbs 11% as Lenders Compete on Pricing
CBRE says lending fundamentals remained healthy in Q2 2026, with more loans closing, larger deal sizes, and lenders competing aggressively on pricing rather than leverage.

By the numbers: The CBRE Lending Momentum Index eased to 1.0 in Q2 2026 from a five-year high of 1.5 in Q1, but remained well above the 1.3 reading from a year ago. Loan activity continued to climb, with the number of commercial loans increasing 11% YoY and the average loan size rising 5%.

Pricing gets more competitive: Lenders tightened spreads as competition intensified. Commercial mortgage loan spreads narrowed 21 bps YoY to 204 bps, while multifamily spreads tightened 15 bps to 162 bps. At the same time, loan-to-value ratios declined, signaling lenders are competing on price instead of offering higher leverage.

Borrowers shift to floating rates: CBRE says the steep yield curve is encouraging borrowers to favor floating-rate loans over fixed-rate financing. A roughly 70 bps gap between SOFR and five-year fixed rates, combined with greater prepayment flexibility, is driving the trend despite higher interest-rate cap costs.

Alternative lenders gain ground: Debt funds continued to expand their market share, with alternative lenders accounting for 38% of CBRE's non-agency loan closings, up from 34% a year ago. Banks increased their share to 30% from 24%, while life companies represented 21%. CMBS lenders lost ground, falling to 11% of non-agency volume from 19% a year earlier.

Healthy underwriting persists: Credit quality metrics remained solid. Debt service coverage ratios improved to 1.43 from 1.34, while debt yields increased to 10.2% from 9.7%. Average mortgage rates edged down to 5.7%, and leverage became more conservative, with commercial LTVs declining to 59.6% and multifamily LTVs falling to 63.3%.

➥ THE TAKEAWAY

Pricing takes priority: Capital remains widely available, but lenders are becoming increasingly aggressive on pricing instead of leverage. With floating-rate loans gaining favor and alternative lenders continuing to capture market share, competition for high-quality CRE loans is likely to remain strong through the second half of 2026.

Address

2320 Grandview Drive Ste 102
Florence, KY
41017

Website

http://investwithcarmichael.com/

Alerts

Be the first to know and let us send you an email when Berkshire Hathaway HomeServices Professional Realty Commercial Division NKY posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Contact The Practice

Send a message to Berkshire Hathaway HomeServices Professional Realty Commercial Division NKY:

Want your practice to be the top-listed Law Practice in Florence?