Monday, November 23, 2020

CRE Prices Continue Their K-Shaped Recovery via GlobeSt

Commercial real estate prices continue to nudge along, or not, depending on their asset class. Their journey reflects a larger economic concept made popular in this recession: the K-shaped recovery, meaning that different parts of the economy are improving at different rates. While pricing in the retail and hospitality sectors continue to slide, apartment and industrial are posting gains, according to the RCA CPPI.

Pricing in the office sector sits between these two groups. Namely, for October, the US National All-Property Index rose 3.6% from a year ago, the apartment index rose 7.2% and the industrial index 8.5%. Retail prices were down 5.2% from a year prior. The office sector continued to fall at about a 1% annual rate, with suburban offices leading that slide, falling 1.6% year-over-year in October.

Read more...CRE Prices Continue Their K-Shaped Recovery via GlobeSt

Wednesday, November 18, 2020

Texas homeownership hits record high as sales surge via Dallas Morning News

The COVID-19 pandemic hasn’t put a pause on the increase in Texas homeowners.

The state’s homeownership rate just hit an all-time high of 70%, according to a new report from the Real Estate Center at Texas A&M University.

Texas' homeownership share now tops the nationwide rate of 67.4%. It’s the first time in eight years that Texas has surpassed the national average.

Read more...Texas homeownership hits record high as sales surge via Dallas Morning News

Apartment landlords lure renters with more freebies via Dallas Morning News

Renters searching for an apartment deal in North Texas won’t have to look far.

More than 41% of apartment properties are offering some kind of freebie to attract tenants, according to a new report from Zillow.

Apartment rental concessions in the Dallas-Fort Worth area and across the country have zoomed higher in the last year as landlords have scrambled to sign new tenants during the pandemic.

Read more...Apartment landlords lure renters with more freebies via Dallas Morning News

Texas Rebound Likely Slowed by Renewed COVID-19 Impact on Services, Retail via Dallas Fed

The Texas economy’s recovery from COVID-19 in the spring continues, though a resurgence of the virus likely contributed to a recent slowing of growth in the service and retail sectors.

Overall, Texas jobs grew at an annualized 3.6 percent in the third quarter, falling short of the national growth rate of 11.9 percent.

Read more...Texas Rebound Likely Slowed by Renewed COVID-19 Impact on Services, Retail via Dallas Fed

Suburbs Apartment Rents Close to Their Pre-Pandemic Peak via GlobeSt

Though the rental market in major cities has been hard hit by the Coronavirus pandemic—plagued with a mass migration by remote workers seeking larger homes, as well as relocations because of social distancing concerns—it appears that the suburbs have not just survived COVID-19’s wrath, they’re thriving in spite of it.

“While rents have declined steadily in the larger, denser, principal cities at the core of each metropolitan region, rents in the outlying suburban areas have, on the whole, rebounded to pre-pandemic levels,” according to a new report from Apartment List.

Read more...Suburbs Apartment Rents Close to Their Pre-Pandemic Peak via GlobeSt

ALN Monthly Market Stats November 2020 via ALN Apartment Data

ALN Data just released their October 2020 market stats on occupancy and rents for over 80 markets. In Texas, it includes DFW, Austin, Houston, San Antonio, Lubbock, Amarillo, Abilene, Corpus Christi and more. It is a must read from a great provider of apartment data.

Read more...ALN Monthly Market Stats November 2020 via ALN Apartment Data

Monday, November 16, 2020

NMHC: Pandemic Continues to Impact Multifamily Construction via Multifamily Executive Magazine

The ongoing COVID-19 pandemic continues to affect multifamily development, according to the latest round of the National Multifamily Housing Council (NMHC) Construction Survey.

Conducted between Oct. 6 and Oct. 27, 57% of multifamily developer respondents reported construction delays in the jurisdictions where they operate. Out of this group, 90% reported delays in permitting, which is the greatest share seen in the five survey installments since the end of March.

Read more...NMHC: Pandemic Continues to Impact Multifamily Construction via Multifamily Executive Magazine

CBRE Chief Economist: Cap Rates Will Trend Down When Crisis Alleviates via GlobeSt

Despite seeing economic headwinds in the short-term, and fall-out from the Presidential election, CBRE Global chief economist and head of Americas research Richard Barkham anticipates a recovery starting to take place in 2021. The executive has authored a new paper on the firm’s outlook for next year and was interviewed last week for CBRE’s Weekly Take podcast.

GDP growth this year appears to be at minus 4%, he said, but “we’re looking at the reverse of that in 2021, somewhere between 4% and 5% GDP growth.”

Read more...CBRE Chief Economist: Cap Rates Will Trend Down When Crisis Alleviates via GlobeSt

Friday, November 13, 2020

Can Apartment Players Finally Exhale? via Multifamily Executive Magazine

After months of suffering because of the Coronavirus pandemic, the multifamily sector is finally getting not just one good report but, instead, a healthy batch of good news. Several indicators are pointing to a change in landlords’ near-term fortunes while, for both the medium and long-term, the beginnings of a recovery are expected to emerge.

The number of rent payments received this month increased from October collections, albeit only by 1%, according to a new report from Rentec Direct.

Read more...Can Apartment Players Finally Exhale? via Multifamily Executive Magazine

Wednesday, November 11, 2020

We’re On Track to be a Renter Nation Again via GlobeSt

When the Great Recession sent scores of Americans out of their homes and Millennials began to move out on their own, renting took off in the early 2010s.

By the mid-2010s, 111 million people were renting in the US, according to RENTCafe.com.

Then, for the first time since 2004, the number of renters declined in 2016, ticking down 0.1%, according to RENTCafe.com. Since then, the renter population has been on a downward trend, decreasing by 1% in 2019.

Read more...We’re On Track to be a Renter Nation Again via GlobeSt