Archive for March, 2015

Fed edges closer to raising rates

The Federal Reserve signaled an increased likelihood of raising interest rates but said it has a less optimistic view of where the U.S. economy is headed. The policy committee said economic expansion has slowed due to a sluggish housing market and feeble export growth. The Fed said it won't raise rates in April. Read full story Read more

For Foreign Investors, U.S. Assets Are Attractive and Challenging

Now that the United States economy is back on its feet, and the U.S. is once again proving to be a safe investment in the midst of a volatile world, foreign investors are investing billions of dollars in real estate here. The continuing influx of foreign money—including Chinese, Korean, Japanese, European, Mexican and Canadian buyers—is not only creating competition for key assets, especially in the gateway markets, but is presenting new transactional challenges for foreign buyers, particularly when it comes to due ... Read more

Chain Retailers’ Store Opening Plans Remain Healthy, RBC Report Shows

It seems that in spite of a recent spate of bad news from some mid-market retailers, the retail sector overall continues on a stable course, according to the March “National Retailer Demand Monthly” report from RBC Capital Markets. Read full story Read more

More Demand, Less Supply for Student Housing in 2015

The student housing business faced declining college enrollment in 2014. At the same time, developers finished more purpose-built student housing properties than ever before. But these new student housing communities leased up very quickly anyway. Read full story Read more

10 Cities With Skyrocketing Rent

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Cap Rate Limbo: How Low Can They Go?

Already at historic lows, cap rates may yet be pushed lower this year amid an overheated investment environment. Read full story Read more

America’s Fastest-Growing Cities 2015

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Apartment Sales Up 42% in January

2014's apartment sales momentum continues into 2015 as equity funds increase their stake in the market. Read full story Read more

Loan Maturities Loom for Multifamily Financing

Despite the mountain of loans coming due this year, the market more and more belongs to the borrower. Read full story Read more

SEC, S&P reportedly in talks about CMBS suspension

McGraw Hill Financial is negotiating with the Securities and Exchange Commission to keep unit Standard & Poor's from being suspended from rating commercial mortgage-backed securities, a source says. The SEC reportedly is seeking to suspend S&P because of allegations that it doctored ratings in 2011 to obtain business. 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

New CMBS delinquencies decline in Jan.

New delinquencies of commercial mortgage-backed securities totaled $274 million in January, less than half of December's $554 million, said Fitch Ratings. Total outstanding Fitch-rated delinquencies stood at $17.9 billion in January. Fitch expressed concerns for the higher levels of credit enhancements for new CMBS. Read full story Read more

Fed expresses reservations about hiking interest rates

Federal Reserve officials said the recovery of the U.S. economy is too fragile to risk by raising interest rates. According to minutes of their January policy meeting, officials fear that a premature increase could dampen economic growth so much that the central bank would have to reverse course and return stimulus programs. Read full story Read more

Pension funds seek more real estate but remain wary of risk

Real estate's high yields and strong fundamentals have pension funds looking to increase their allocations. Many are focused on core assets in primary markets and are cautious about potential risk in other markets. With demand already high for core assets, that preference presents a challenge when it comes to yields, however. Read full story Read more

Oil Price Declines: Lessons Learned Should Be Bigger Than Texas

Recent volatility in oil prices is an abrupt reminder to real estate investors of how quickly markets outside of commercial real estate can change. It is clear there are risks to being complacent, even in an asset class with longer-term return characteristics, when conditions can change quickly. Read full story Read more

Class C Market Grows Tense

Many of you have read about, and experienced, the current multifamily investment frenzy as we continue to learn of new Class A developments on almost a daily basis. Read full story Read more