Market Intel

Intel

Arizona’s 30-year outlook: Short-run trouble, long-run growth

There is still a huge amount of uncertainty about the future of the outbreak and the economic impacts associated with it. The baseline forecast assumes that the current surge in the spread of the coronavirus is contained quickly and that there is no major resurgence in the fall. The forecast assumes that the executive order affecting activity at bars, indoor gyms, indoor movie theaters, and other activities, has expired. Keep in mind that the projections

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California Investors Drive Transaction Volumes in Arizona

California investors are driving transaction volumes in Arizona during the pandemic. California investors typically account for 30% to 40% of transaction volumes in the market, but recently, that number has increased to 50%. While the pandemic has impacted all markets, California investors continue to flock to business friendly markets, like California. “We attribute this recent surge to a widening disparity in business climate in Arizona versus California,” Ari Spiro, founding principal of Orion Investment Real

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Multifamily Trends Continue Despite the COVID-19 Pandemic

Despite the havoc the pandemic has visited upon commercial real estate, the multifamily asset class has continued to show resiliency, according to CREXi. “Many investors continue to seek multi unit properties for sale in 2020 as a safe and sound investment,” according to CREXi. It reports that low-interest rates, limited housing supplies and population migration to the south and west have all contributed to the rise of multifamily. All of this was happening prior to

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Intel

Multifamily Developers Offer Generous Concessions to Fill New Buildings

A robust pipeline of new apartments planned prior to the COVID-19 pandemic has continued to deliver projects throughout 2020. To attract tenants to properties at a time when many Americans are facing economic uncertainty and others are considering whether to leave cities and move to the suburbs, owners are now offering generous concessions, including months of free rent. “In the urban core, some of the concessions are scary,” says Ryan Davis, chief operating officer for

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Finance Rates For Small Multifamily Real Estate Find Stability

The cap rates for small multifamily properties barely budged between the first and second quarters of 2020, according to a new report by Chandan Economics and Arbor Realty Trust. Cap rates narrowed by 5 bps in the second quarter, landing at 5.8%, explained the article, which was published on lender Arbor Realty Trust’s website. “In the first quarter, cap rates widened by 21 bps, and there was some concern that they would further inch up

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Multifamily Construction Continues Amid Coronavirus

Despite what some have called the Great Lockdown, most construction lenders are not throwing in the towel, at least not completely, according to a survey of 123 banks by Built Technologies on behalf of the American Bankers Association.         The poll is a snapshot of construction lending as it stood prior to the pandemic. But in interviews conducted in April and May, participants said their fundamental view of the market remains unchanged.           Although some said a

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Intel

Workforce Housing Withstands the Worst of the Pandemic

It is no secret that high-end, four-and five-star apartment buildings in urban areas have struggled to maintain rents, and in some cases struggled to retain residents, since the onset of the coronavirus pandemic. Rents at these Class A properties nationwide are down about 1.9% since March 1 and year-over-year rent growth is negative 1.7%. These properties compete directly with the hundreds of thousands of units that have been completed over the past year, forcing many

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Intel

Bound for a Rebound? The Future of Multifamily Housing

For 10 years, the multifamily sector has enjoyed consistent growth. Often heralded as the “smart investment” of the real estate industry, research cited by CBRE in 2018 reveals that when compared with hotel, industrial, office, and retail spaces, multifamily has the highest average annual return while simultaneously holding the second-lowest volatility. So, when a global pandemic strikes—destabilizing the economy, incapacitating much of the workforce, and lessening disposable income—what happens to the jewel of the real

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Intel

Zillow: Rental Concessions on the Rise as Market Softens

Rental concessions are nearly twice as common as they were in February as the market has softened since the COVID-19 pandemic began, according to Zillow. The share of Zillow rental listings that advertises a concession—such as free months’ rent or parking, a gift card, or a waived deposit fee has increased from 16.2% in February to 30.4% in July. In July 2019, only 12.5% of rental listings advertised concessions. Of the six types of concessions

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Intel

Arizona home prices are among nation’s fastest-rising

Arizona is one of the top states in the nation for home price appreciation according to the recent Federal Housing Finance Agency House Price Index data release. The change in house prices between the second quarters of 2019 and 2020 was 5.4 percent in the nation, with Idaho home prices rising the highest at 10.8 percent followed by Arizona home prices at 9.1 percent. All 50 states and the District of Columbia had positive one-year changes

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