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Fed reports increased CRE activity, tariff concerns

Commercial real estate activity has increased, although construction prices are rising, according to the Federal Reserve's Beige Book. The US business outlook is positive overall, and the economy is on target for ongoing growth, but companies are concerned about tariffs and a potential trade war, it said. Read full story Read more

Positioning Class B as a Lucrative Value Alternative

Multifamily developers are continuing to target supply-constrained urban core markets. As land availability tightens and construction prices skyrocket, the bulk of new development in... Read full story Read more

Prices Keep Rising for Apartment Properties, Forcing Investors into Smaller Markets

Investors keep looking for apartment buildings to buy at good prices. The search is leading them to smaller properties in smaller markets. Read full story Read more

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

A Close-Up Look at the ‘Apartment of the Future’

KTGY/NMHC concept project takes a needs-driven look at how communities will live 10 years from now. Read full story Read more

Insurance Premiums Don’t Have to Break Your Property Budget

Here’s how to negotiate with insurance companies. Read full story Read more

Property Pricing Declines for 8th Consecutive Month in Ten-X CRE ‘Nowcast’

Apartment pricing growth reaches its weakest level this cycle. Read full story Read more

Investor Sentiment Indicates More Pros Think CRE Cycle Is in Expansion Phase

The percentage of NREI readers who believe the current real estate cycle is in expansion/recovery phase has jumped to 41 percent this January, from 26 percent during our last reading in November. Read full story Read more

What the 2017 Transaction Landscape Suggests for 2018

Rising interest rates, fewer value-add opportunities, and major institutional capital will surely have an impact. Read full story Read more

Top 10 Cities With the Largest Rent Increases

Numbers are based on rents and incomes. Read full story Read more

The Top 10 Metros for Multifamily Permits

Which metro areas issued the most multifamily permits over the past year? Read full story Read more

Apartment demand expected to be robust for years

Overall demand for apartments will likely keep the national vacancy rate at a sustainable level for several years, according to a report by the National Multifamily Housing Council and the National Apartment Association. In some markets -- such as Las Vegas; Raleigh, N.C.; and Miami, Fort Lauderdale, and Orlando, Fla. -- there will be a supply shortfall, says Greg Willett, chief economist with real estate data firm RealPage. Read full story Read more

Multifamily groundbreakings dropped 17.1% in July

US housing starts fell 4.8% in July, a slump driven by groundbreakings for multifamily properties that dropped 17.1%; single-family house construction starts decreased 0.5%. Building permits dropped by 4.1%, to 1.22 million. Read full story Read more

How Can We Meet Future Apartment Demand?

Four strategies for building the 4.6 million apartments the U.S. needs by 2030. Read full story Read more

CMBS Delinquencies Remain Muted

The CMBS delinquency rate for U.S. commercial real estate loans rose 28 basis points in June to reach 5.75 percent, according to research firm Trepp. Read full story Read more

Investors Become More Uncertain About Current Market Cycle Phase

In May, the percentage of survey respondents who said they were “not sure” where we are in the cycle rose to 10 percent. Read full story   Read more

2017–2018 Forecast: Class B and C Apartments Will Rule

Move over Class A, your less-expensive counterparts are poised to be the darlings of investors for the remainder of the year and well into next. Read full story Read more

Apartment Market Wavers in Q1 but Retains Long-Term Strength

The multifamily market has experienced a 4.1% increase in overall rent over the past year. Read full story Read more

Another Rate Hike Causes Little Concern in CRE Circles

The move is unlikely to change conditions in the commercial real estate sector, according to industry insiders. Read full story Read more

Student Housing Sales Outperform the Rest of the Market

Not counting portfolio deals, investors bought and sold $1.1 billion in student housing properties in the first quarter of 2016, according to real estate services firm CBRE. Read full story Read more

Investors no longer confident of 3 US rate hikes in 2017

Investors are starting to doubt whether the Federal Reserve will increase interest rates three times this year because data show US inflation is surprisingly weak. The shift in attitude is injecting life into the bond market. Read full story Read more

Yardi: Rents Rise by 1.5% Nationwide in May

Prices increase for third-straight month, but rate of growth drops to 2011 lows. Read full story Read more

Data show US labor market tightening

Job openings in the US continue to rise even as hiring slows down, according to Labor Department data for April. Economists say that may point to a dearth of skilled workers and suggest the market may be reaching full employment. Read full story Read more

Data show US labor market tightening

Job openings in the US continue to rise even as hiring slows down, according to Labor Department data for April. Economists say that may point to a dearth of skilled workers and suggest the market may be reaching full employment. Read full story Read more

Private-sector payrolls added 253,000 workers last month

About 253,000 private-sector workers were added to the nation's payrolls in May, well above the consensus forecast of a 180,000 gain, according to payroll processor Automatic Data Processing and Moody's Analytics. "Increasingly, businesses' No. 1 challenge will be a shortage of labor," says Mark Zandi, chief economist at Moody's Analytics. Read full story Read more

Latest Readings Show Commercial Property Prices Continuing to Moderate

Commercial real estate prices remain flat according to the most recent readings from three major indices. Read full story Read more

Fed minutes indicate a rate increase coming in June

Assuming economic conditions warrant it, the Federal Reserve indicated it will raise its benchmark rate in the near future, possibly at its next meeting in June, according to minutes from the last policy meeting. The Fed also came to an agreement on the mechanics of unwinding its $4.5 trillion in Treasury and mortgage securities holdings. Read full story Read more

Luxury Apartments Galore: At What Cost?

Too many high-end units are creating an affordability crisis among renters. But a huge opportunity for owner–operators. Read full story Read more

Fannie, Freddie Profit Payments Should Continue, Treasury Says

The position is likely to disappoint some advocates of immediately suspending the dividend, including small lenders, affordable housing advocates and large home builders. Read full story Read more

RCA: Apartment Deal Volume Falls 35% in 1Q

Despite the drop in volume, apartment investment activity is still ahead of the $17.0 billion average pace set in the first quarters of 2001 through 2016, and prices remain tight. Read full story Read more

Renters Say Down Payment Costs Prevent Home Purchases

Zillow report shows almost 70% say the expense holds them back. Read full story Read more

Reis: Rent-Growth Deceleration Continues in 1Q ’17

National vacancy rate stays stable, but numbers rise in 39 of 79 MSAs. Read full story Read more

Fed’s $4.3T wind-down might cause volatility

The Federal Reserve's wind-down of $4.3 trillion in mortgage-backed securities and Treasurys likely will reintroduce market volatility, experts say. Several scenarios could unfold, including wider mortgage spreads and reduced use of the Fed's facility for overnight reverse repurchase agreements. Read full story Read more

Investors eye $1.7T for global CRE investment

Investors have $1.7 trillion in capital ready to invest in global commercial real estate, according to CBRE, although not all of it will be actually invested. Most of this capital is controlled by the investment management community, but 11% comes from REITs and another 11% from private investors. Read full story Read more

Rate rise looks 95% certain, FedWatch says

CME Group's FedWatch gauge puts the likelihood of the Federal Reserve announcing a rate increase today at 95%, after positive reports on US employment and inflation. With the rise priced into the market, observers are considering the possibility of more increases in 2017 than the three the Fed forecast in December. Read full story Read more
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