Market Intel

On the heels of record investment sales volume on multifamily properties in 2021, early indications are that deal volume continued to flow during a busy first quarter of 2022. Last year, the rents residents paid for apartments rose by a whopping 13 percent on average across the U.S., according to the economists the CBRE Capital Markets. That kind of rent growth offset any hesitation by investors due to uncertainties caused by the pandemic or the highest rate

With both inflation and interest rates rising, following the first Federal Reserve rate hike in three years, many multifamily investors are fearful about the impact these duel forces will have on apartment cap rates, which have trended downward over the last twenty years. In Q4 2021 apartment cap rates reached a low of 4.7%, down 30 basis points since the prior year, according to apartment transaction data tracked by Real Capital Analytics that the National

Two days before bids were due on a 110,000-square-foot, five-story multifamily project, four of the bidding general contractors privately called the owner with the same question: Where did he come up with the cost of construction numbers? They were at least 20% below what they expected. Had they missed something? For Jonathan Byler, owner and operator of Byler Holdings, a Pennsylvania-based business group and project owner, the calls confirmed what he already knew. Not only did

The best time to list a home for sale in Metro Phoenix is in early May, according to a new Zillow analysis. Homes listed in those weeks can sell for a 3.4% premium, or $15,400 on a typical home. Early November is the worst time to list a home for sale. Homes listed those weeks can sell for a 3.4% discount, which is $15,400 on the typical home. Nationwide, a Thursday during the second half of April

Commercial real estate professionals got worried in 2021 when the Biden administration floated its proposals to cut big tax reduction strategies, including 1031 like-exchanges. Congress didn’t move them into law, generating a giant collective sigh of relief in the CRE industry. But the recent White House budget shows that the administration would still love to get rid of the 1031 by making it only eligible for a top property value of $500,000 for an individual and $1 million for

With more attention being placed on investments that meet environmental social governance (ESG) standards, it’s becoming easier to secure financing to buy or build apartment buildings if the apartments have rents that are relatively affordable or if the buildings are designed to be good for the environment. “You get more capital sources interested in developments that meet ESG,” says Rob Hinckley, senior managing director in the New York office of JLL Capital Markets, Americas. That’s because

It’s been an intense 18 months for commercial real estate lenders. Thanks in part to low interest rates, many lenders have achieved record volumes. However, it’s not just volume that’s creating all the activity—it’s also rapidly evolving consumer preferences, coupled with increased complexity in the due diligence process. Since the start of the COVID-19 pandemic, renter behavior and preferences have been changing faster than ever before. This constant introduction of new behavior and decision-making considerations

In the housing boom that preceded the financial collapse of 2008, everybody wanted a piece of the housing bubble, including banks that bundled subprime mortgages into speculative instruments and house flippers who could turn a property around before the first loan payment came due. Everyone made a ton of money, until the music stopped and the bubble burst. In 2022, the race to invest in houses is being fueled by the highest inflation rate in

To say that multifamily and industrial sectors are hot is like noticing heat at the equator. Did anyone not already notice? The National Association of Realtors has been tracking the 12-month sales price changes on various property categories. In March, they were as follows: 14.7% for industrial, multifamily at 10.6%, retail’s 5.1%, and, bringing up the rear, office’s 2.3%. Except for office, the appreciation rates exceeded those of pre-pandemic times. “As interest rates increase, one

Home shoppers who paused their search last year, in hopes that 2022 would be friendlier, aren’t feeling great: We learned on Tuesday that year-over-year U.S. home price growth accelerated to 19.2% in January. That’s up from the 11.3% uptick posted at the same time last year. The latest jump is also well above the peak annual rate (14.5%) posted in the lead-up to the 2008 housing bubble. That stubbornly hot housing market is beginning to raise more eyebrows. Look no