Wednesday, December 4, 2019

Pricing Continues its Downfall into October via CPExecutive

U.S. commercial real estate prices are flat according to the Ten-X Commercial Real Estate Nowcast, as aggregate pricing held constant in October from a month ago, but declined on a year-over-year basis for a third straight month. All five major property segments were listless yet again in October, showing only minor changes from a month ago as the late-cycle plateau persists.

Read more...Pricing Continues its Downfall into October via CPExecutive

Wednesday, November 27, 2019

Texas Economic Indicators November 2019 via Dallas Fed

The Texas economy continues to grow at a moderate pace. Job growth ticked up in October, and the September growth rate was revised up. The unemployment rate remained at a record low, indicating continued tightness in the labor market. The Texas Leading Index edged up, and firms responding to the Texas Business Outlook Surveys reported increases in capital expenditures on net. September existing-home sales were steady. Electricity generated in Texas perked up in August, though electricity generated from renewable resources slipped.

Read more... Texas Economic Indicators November 2019 via Dallas Fed

Eleventh District Beige Book November 2019 via Dallas Fed

Moderate expansion continued in the Eleventh District economy. Growth held fairly steady in services and retail but decelerated slightly in manufacturing. Home sales remained on the rise while energy activity continued to decline. The agriculture picture was mixed, with continued drought conditions but rising prices and decent production prospects. Employment growth was solid and upward wage pressures continued. Selling prices were largely flat, as firms' ability to pass through increased costs remained limited. Outlooks generally improved, except in energy and financial services. Uncertainty generally remained elevated, driven by trade tensions, the political climate, and weaker global growth.

Read more...Eleventh District Beige Book November 2019 via Dallas Fed

Dallas-Fort Worth Economic Indicators November 2019 via Dallas Fed

Dallas–Fort Worth’s economic expansion slowed in October as payroll employment contracted after 17 straight months of growth. Unemployment edged up but remained near historical lows. The Dallas Business-Cycle Index expanded, and the Fort Worth index contracted. Apartment leasing and construction remained solid, and housing affordability improved in the third quarter.

Read more...Dallas-Fort Worth Economic Indicators November 2019 via Dallas Fed

Tuesday, November 26, 2019

Urban Core Areas See Improved Rent Growth Momentum via RealPage

he nation’s downtown neighborhoods have generally underperformed their suburban counterparts for rent growth in the past few years. Recently, however, urban core areas have made notable progress, and that performance gap is closing.

Across the country’s 50 largest markets, apartments in downtown locales averaged year-over-year new-lease rent growth of 2.3% in 3rd quarter. This was the fourth consecutive quarter annual rent growth has hovered near the 2% mark, after the pace of increases averaged at only about half that level between late 2016 and fall 2018. While rent growth in the nation’s urban core submarkets is still not fantastic, this recent momentum is encouraging.

Read more...Urban Core Areas See Improved Rent Growth Momentum via RealPage

Several Markets See Best-Ever Prime Leasing Season in 2019 via RealPage

This year’s prime leasing season proved strong across the U.S. as several individual markets posted all-time high apartment demand.

Seasonality plays a big role in apartment leasing as renters prefer to move in 2nd quarter and 3rd quarter when the weather warms, and they tend to stay put in the colder months. While seasonality is more extreme in some especially cold-winter apartment markets, most experience at least a slight bump during this peak time frame from April through September.

Read more...Several Markets See Best-Ever Prime Leasing Season in 2019 via RealPage

A Recession Is Multifamily Investors’ Top 2020 Concern via GlobeSt

A recession is among the biggest concerns for apartment investors in 2020, but recent interest rates cuts could have stopped a recession from hitting in 2020. However, there are still expectations that the economy could slow next year, and investors are preparing to hedge against increased risk.

Read more...A Recession Is Multifamily Investors’ Top 2020 Concern via GlobeSt

Monday, November 25, 2019

Breaking Down CBRE’s 2020 Market Outlook via NREI

CBRE provided NREI with an exclusive sneak peek at its 2020 Real Estate Market Outlook report.

CBRE sees more growth ahead for the U.S. commercial real estate industry in 2020, although the pace of expansion could slow thanks to already strong fundamentals that will be tough to improve upon combined with some broader economic headwinds as part of its 2020 Real Estate Market Outlook. Specifically, uncertainty surrounding trade negotiations, weakness in manufacturing and the approach of the presidential election season will hang over the industry in 2020.

Read more...Breaking Down CBRE’s 2020 Market Outlook via NREI

Thursday, November 21, 2019

Apartment Sector Likely to Experience Continued Rent Growth, Albeit at a Slower Pace via NREI

Apartment rents are likely to keep rising, even if the economy continues to slow over the next year, according to industry experts.

“The occupancy outlook probably will allow rents to continue to grow, although at a pace a little under the increases recorded of late,” says Greg Willett, chief economist with RealPage Inc., a provider of property management software and services.

Read more...Apartment Sector Likely to Experience Continued Rent Growth, Albeit at a Slower Pace via NREI

Friday, November 15, 2019

Multifamily Building Permits Retreat from Recent High via RealPage

After reaching a four-year high in August, multifamily permit levels fell in September, according to U.S. Census figures.

Multifamily permits fell about 7.5% from August but remain up about 20.8% from a year ago. The seasonally adjusted annual rate (SAAR) for annual multifamily (of projects with five-plus units) starts fell by more than 28% from August and by 5.8% from September 2018.

Read more...Multifamily Building Permits Retreat from Recent High via RealPage