Steady interest rates should buoy CRE transactions

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

A Breakdown of the Government Shutdown’s Impact on CRE

Which government agencies are affected and what is the fallout for the commercial real estate sector? Read full story Read more

‘Seasonality’ in the Multifamily Market

MBA - December 7 "Rents are up year-over-year in an even greater share of the nation's largest markets--83 of the 100 largest cities have seen rents increase over the past twelve months." Read full story Read more

How U.S. Homebuyers Will Help Bolster the Rental Market in 2019

"Favorable economic factors in 2018 and rising interest rates, which can cause delays in home-buying, helped push rental costs upwards at the year’s end." Read full story Read more

2019 Real Estate Report: How Does the Multifamily Market Look?

If you're considering investing in a multifamily venture, or if you're already in the market, there are challenges and opportunities to watch for in the coming year. From rent trends to supply and cost factors, here's what to expect in 2019. Read full story Read more

4 Multifamily Development Trends to Watch in 2019

Changing demographics, shifting social values, and evolving development landscapes all continue to drive a surging, nationwide demand for multifamily housing. With empty-nesters looking to downsize, millennials staying single longer, and a general desire for a more convenient and social lifestyle, more and more “renter-by-choice” Americans are forgoing mortgages for lease agreements. Read full story Read more

Fed reports growth but points out unease over tariffs

The Federal Reserve's latest report on economic conditions, known as the Beige Book, says most of the central bank's 12 regions achieved satisfactory growth in November but says there is "increased uncertainty" among businesses regarding the influence of US tariff policy. The report highlights rising costs for manufacturers and problems for farmers because of countertariffs imposed by China and others. Read full story Read more

Fed holds rates but sticks with plan for gradual hikes

The Federal Reserve still plans to gradually increase interest rates but has left them unchanged at a meeting this week. The central bank says the US economy remains healthy but notes a downturn in growth of business investment. Read full story Read more

Capital Markets Outlook: A Tough Road Ahead

Interest rates, costs continue to rise for developers. Read full story Read more

Experts: Midterms won’t change Trump economic programs

The midterm elections, in which Democrats have taken control of the House and Republicans have increased their majority in the Senate, are unlikely to have any short-term impact on economic programs implemented by the Trump administration, market experts said. The stock market's reaction to a split Congress has been positive. Read full story Read more

Fannie Mae adds REMIC structure to credit-risk transfer program

Fannie Mae has made changes to its Connecticut Avenue Securities credit-risk transfer program and now can sell bonds in a real estate mortgage investment conduit, or REMIC, structure as well as give investors recourse to underlying real estate. The REMIC issuance "checks all of those REIT boxes, and we think it's important over the long-run to have a structure that works for them from a tax and regulatory standpoint," says Fannie Mae's Laurel Davis. Read full story Read more

Fannie Mae Seeks Strategies to Make Affordable Housing Healthier

GSE issues call for ideas as part of $10M, two-year Innovation Challenge. Read full story Read more

A 2018 Mid-Year Investment Update on the Student Housing Sector

As foreign and institutional investors seek portfolio diversification capital is likely to continue flowing into student housing properties. Read full story Read more

Q2 GDP growth revised upward to 4.2%

GDP growth in the second quarter has been revised upward by the Commerce Department to an annualized 4.2% from an initial estimate of 4.1%, after economists expected no change. Adjusted corporate profit before tax has climbed 7.7% during the past year, the largest 12-month increase in four years. Read full story Read more

Fannie and Freddie to Exit Single-Family Rental Market

The government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, will conclude their single-family rental pilot programs and terminate their participation in the single-family... Read full story Read more

New Freddie Mac incentive looks to keep rents affordable

Freddie Mac announced Tuesday its new program to keep rents more affordable by incentivizing investors with favorable loan pricing. Read full story Read more

National Average Rents Rise to an All-Time High

The national average rent rose by $3 in July 2018 as the market remains on its steady pace, up to an all-time high of $1,409, according to the latest Yardi Matrix Multifamily National... Read full story Read more

No ‘Looming Threats’ to Multifamily Performance

"The multifamily market's current strong performance should continue throughout 2018 and well into 2019, said Freddie Mac Multifamily, McLean, Va." Read full story Read more

Multifamily Starts Mixed in Top 10 Metros in H1 2018

"Half of the top 10 metropolitan markets for commercial and multifamily construction starts showed increased activity during the first six months of this year compared with a year ago." Read full story Read more

Fund managers foresee US recession by early 2020

A majority of fund managers expect a recession in the US by early 2020, according to a Bank of America survey. A separate survey of bond-market experts reveals widespread expectations of a yield-curve inversion, a recession signal, within two years. Read full story Read more

5 Trends to Watch in Multifamily Investment for the Rest of 2018

Multifamily investors have continued to enjoy rock-solid stability and strong fundamentals in the early half of 2018.  Read full story Read more

Yardi: Strong Market Performance Expected Despite Rising Interest Rates, Moderate Rent Growth

Despite decelerating rent gains, high supply, and rising interest rates in the late market cycle, the multifamily market remains healthy, according to Yardi Matrix's report U.S.... Read full story Read more

Fannie Mae: Economic Growth to Accelerate Through 2018

Upsides include consumer-spending increase; downsides, Fed tightening. Read full story Read more

Senior housing REITs back off aggressive acquisition strategies

Senior housing REITs are selling off more properties than they are acquiring this year following a period when they were aggressive buyers. They still are buying but are waiting for near-term headwinds to subside before they pick up the pace. Read full story Read more

Report: Housing Moves Further Out of Reach

It is getting harder for low-income Americans to afford a modest apartment. In no state can an individual working a 40-hour week at the minimum wage afford a two-bedroom apartment... Read full story Read more

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
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