Archive for February, 2019

Is U.S.-Style Multifamily America’s Next Big Export?

When Greystar first bought into a 6,900-bed student housing portfolio in the U.K. in 2013, its investment dollars were bucking what was quickly... Read full story Read more

Steady interest rates should buoy CRE transactions

Tax cuts and a robust economy helped commercial real estate prices rise 6.2% in 2018, putting them nearly 30% above 2007 levels, according to Real Capital Analytics. With the Federal Reserve's announcement that it would keep rates steady, sales could rise higher, as borrowing costs will remain low, said Sam Chandan, head of New York University's Schack Institute of Real Estate. Read full story Read more

Chinese investors pull back on US real estate

Chinese individuals and entities sold $854 million more in US commercial real estate than they bought in the fourth quarter, according to Real Capital Analytics. That was the third quarter in a row that Chinese real estate investors were net sellers, and it was the lowest level of commercial real estate investment from the country since 2012. Read full story Read more

Fed reconsiders its bond runoff timeline

The Federal Reserve is considering wrapping up its tactic of allowing trillions of dollars' worth of mortgage and Treasury securities to mature without reinvesting the proceeds elsewhere. When the process began in October 2017, an official said the runoff could last five years. Read full story Read more

IMF cuts global growth forecast

The International Monetary Fund cut global economic growth forecasts for 2019 and 2020, citing eurozone weakness, a possible no-deal Brexit, an escalation of trade tensions and the slowdown of China's economy. The IMF placed growth at 3.5% in 2019 and 3.6% in 2020, down 0.2 and 0.1 percentage points, respectively, from October's outlook. Read full story Read more

Worries about global economy send US stocks tumbling

US stocks posted losses Tuesday after the International Monetary Fund scaled back a global economic forecast for this year and after China reported the slowest pace of economic expansion in 28 years. The S&P 500, the Nasdaq composite and the Dow Jones Industrial Average all closed lower, with chipmakers taking some of the biggest losses. Read full story Read more

Report: Multifamily set for another year of strong performance

Yardi Matrix believes the multifamily cycle will continue its long run after solid performance last year. "Despite the recent volatility in the financial markets, we foresee more of the same in 2019, with strong demand producing rent growth just shy of 3% nationally," it says in a report. Read full story Read more

Weak demand for US Treasury notes, bonds could become a concern

Demand for US Treasury bonds and notes last year hit its lowest point in 10 years. Weak auctions and bond losses aren't linked, but the declining demand could become significant to investors, said Torsten Slok, Deutsche Bank's chief international economist, who added, "A declining bid-to-cover ratio increases the vulnerability and probability that investors suddenly will begin to think that a falling bid-to-cover ratio is important." Read full story Read more