Archive for March, 2018

Is CMBS Underwriting Getting Loose?

According to the ratings agencies, the gap between their estimated cap rates on conduit loans and those being underwritten by the market is growing. Read full story Read more

Asking-Rent Growth Rises, Effective-Rent Growth Falls in Q4 2017

Effective-rent growth has dropped by 250 bps since market peak in 2015. Read full story Read more

Banking overhaul bill adds measure to loosen CRE lending

The Senate added new provisions to a bill that would roll back some aspects of the Dodd-Frank Act, including a measure that would limit regulators' ability to control banks' commercial real estate lending. Another measure would let the Federal Reserve exert stricter control over foreign banks with substantial US operations. Read full story Read more

Apartment landlords offer concessions for newly built projects

Concessions by apartment landlords, especially at newly constructed properties, continue to grow, with such things as free rent for a month or two, amenity upgrades or free televisions offered at 19.9% of existing apartments at the end of 2017, up from 4% in 2015, according to RealPage. Concessions are most common in cities such as Las Vegas, San Antonio, New York, Virginia Beach and Houston, where new supply is plentiful. Read full story Read more

REITs reorient strategies as economic environment shifts

REITs are adjusting their acquisition and disposition plans in response to continued volatility in the market and the expectation of a rising interest-rate environment. In many cases, they are using the proceeds from sales to buy back stock, as "it is just a much better risk-adjusted yield to buy back stock than in buying assets or development," says Mizuho REITs analyst Haendel St. Juste. Read full story Read more

Suburbs Heat Up as Downtown Rents Cool

As rents in the urban core flatten, those in markets beyond are taking off. Read full story Read more