Block & Company Quarterly Review - 1st Quarter 2023
April 10, 2023
Letter from President David M. BlockIt is with deep sadness to mention the passing of Stephen J. Block who was in our industry for nearly 50 years. Stephen was my first cousin and we worked close together for many years at Block & Company until his departure to Block Real Estate Services. Stephen worked his entire adult life in commercial real estate and was truly an icon in all aspects of real estate. He was an absolute wizard in public finance and proformas and a wonderful family man. Stephen will be greatly missed by folks all over KC and the country. Our thoughts and prayers go out to his wife Suzy, their children, and his entire family during this heartbreaking time.
The beginning of 2023 has started off extremely strong and it is my belief that we will continue to see the same level of activity throughout the year.
Both national and regional retailers continue to take advantage of higher interest rates by leasing commercial real estate space at lower rates. Cap rates on investment properties have remained stable mainly due to the demand of 1031 exchange buyers who are looking to take advantage of the tax deferment.
I believe that the continued increase in interest rates will slow down soon in the near future which will bring comfort to investors who are patiently waiting for lower rates and better pricing. Base upon the current demand, I don't personally see a negative change in property valuation or lease rates for the remainder of 2023.
Our entire brokerage group at Block & Company, Inc. is as active as ever and we're optimistic and confident that 2023 will turn out to be another banner year at the firm.