Archive for December, 2014

Apartment Construction Boom Slowing Rent Increases as Market Shifts Into Expansion Phase

With construction on new apartments back in full swing and vacancy rates beginning to trend upward, the robust rent increases enjoyed previously by landlords in most U.S. metro areas are expected to decelerate to below 2% in 2015 as the multifamily market shifts from full recovery into an expansion phase. CoStar Group economists are forecasting that apartment vacancy rates will rise in 46 of the 54 top U.S. metros over the next four quarters due to the massive wave of current... Read ... Read more

CMBS market hit by rating suspension, downgrade

Reports of the Securities and Exchange Commission's possible suspension of Standard & Poor's rating abilities for commercial mortgage-backed securities and Moody's Investors Service's downgrade of a planned issuance could slow the CMBS market in the coming year, according to industry analysts. While low interest rates and climbing property values hold promise for the market, which has regained strength in recent years, risks exist. Read full story Read more

Construction of 405,000 apartments is expected in 2015

Developers will likely begin building 405,000 apartment units next year, according to the 2015 Dodge Construction Outlook. Developers are betting on strong demand as the employment landscape improves and new households form. "Financing for construction projects is becoming more available, reflecting some easing of bank lending standards, a greater focus on real estate development by the investment community and more construction bond measures getting passed,” said Robert Murray, chief economist and vice president of Dodge Data & Analytics. Read full story Read more

Condo Comeback?

It’s not like it's 2005, but, suddenly, for-sale multifamily is making sense again. Read full story Read more

Chasing Yield: The 2015 Dealmaking Outlook

As cap rates continue to fall, investors are pushing for returns in five key areas heading into the new year. Read full story Read more

U.S. GDP posts stronger-than-expected 3.9% growth in Q3

Gross domestic product rose by a seasonally adjusted annual rate of 3.9% in the third quarter, the Commerce Department reports -- up from an earlier estimate of 3.5%. Consumer spending and inventory investment were stronger than previously thought, offsetting weaker export estimates. Some economists had expected a downward revision of third-quarter GDP. Read full story Read more