Archive for October, 2014

Report: REITs are driving CRE transactions

Commercial real estate transaction volume in the US increased 16.4% Y/Y for the first 7 months of 2014, up to $204.5B. REITs are driving much of this activity. Read Full Story Read more

Real Estate Institutional Assets Reach $1Trillion

Assets held by institutional real estate money managers rose 13.7% to $1.003T. It was the second time that assets reached $1T, and the first time since 2008 Read Full Story Read more

Denver Leads List of Top 10 Quarterly Rent-Growth Markets

All 79 markets that Reis tracks saw rent increases in the third quarter, but these 10 stood out from the pack. Read full story Read more

Fannie, Freddie, FHFA, lenders work on mortgage deal

Fannie Mae, Freddie Mac, the Federal Housing Finance Agency and lenders are working on an agreement that would expand access to mortgages. The deal "would allow credit to flow more freely to lower- and middle-income households," said Mark Zandi, Moody's Analytics' chief economist. "That's vital to getting the housing recovery moving forward." Reuters (10/17), The Wall Street Journal (tiered subscription model) (10/17), Bloomberg (10/17) Read full story   Read more

U.S. posts strong output, jobs numbers

Production at U.S. factories, mines and utilities jumped 1% last month for the biggest gain in nearly two years while initial claims for jobless benefits plunged to a 14-year low last week. The data reinforced other figures pointing to an improving economy but contributed to a mixed picture overall, including weak retail sales data reported a day earlier. Reuters (10/16) Read full story Read more

CMBS projected to reach $100B this year

The U.S. commercial mortgage-backed securities market is expected to post $100 billion in originations for 2014, an important post-financial crisis milestone. Despite market fluctuations, demand for these securities remains strong, CREFC CEO Steve Renna says. GlobeSt.com (10/16) Read full story Read more

Consumer spending gives strength to U.S. economy

Consumer spending is on the upswing in the U.S. and will likely keep the economy solid even as global growth slows, economists say. Low gas prices and low borrowing costs will likely keep consumers spending in the near term. Bloomberg (10/14) Read full story Read more

Capital from Self-Directed IRAs Flows to Real Estate

Individuals with self-directed IRAs are adding to the abundant capital flowing into commercial real estate investments these days. Read full story Read more

CalPERS is increasing its real estate investments

Real estate has risen to 9.9% of investments for the California Public Employees’ Retirement System, up from 8.7% as of July 31, according to documents. The largest U.S. pension fund plans to increase that to 11% in fiscal year 2016. Its focus is on fully leased office towers and multifamily properties in large cities, which CalPERS says are safer investments than some of its precrisis real estate holdings. The Wall Street Journal (tiered subscription model) (10/7), Bloomberg (10/7) Read full story Read more

Expectations for Rise in Rates Pummel REITs

REIT stock prices lagged behind the broader stock market as investors bet rates would rise over the next year Read full story   Read more

Draghi’s Case for Quantitative Easing in Europe [Forbes]

ECB announcing QE plans via purchase of private sector credit, covered bonds, and cutting interest rates. Read full story   Read more

Sept. 2014 US Economic & Housing Market Outlook – “Multifamily On The Move” [Freddie Mac]

Strong demand for apartments among younger households has created ripe conditions for rental apartment development.  Read full story Read more

Cap Rates Fall to Historic Lows as Investors Chase Yield Far Afield [Multifamily Executive]

Cap rates fell to 4.4% in Big Six markets for Q2. Volume increasing in secondary/tertiary markets. Read full story   Read more

5 Reasons Occupancy is Growing Stronger [Multifamily Executive]

Even with 180k units coming online in the last year, occupancy & rent growth highest this century. Read full story Read more

Millennials Maintain Multifamily Momentum—Spur Sustained Investment [CoStar News]

Multifamily continues to be a hot sector based on rental demand from Millennials. Read full story Read more