The relationship between an owner and the local assessor can be tricky to navigate.
The county assessor tends to measure property valuations at higher levels, while the owner, obviously, wants the opposite. It's a timeless dance. But through diligent preparation, and the ability to come to a fair compromise, owners can save hundreds of thousands of dollars on a typical 100-unit property.
“One of the things that the assessor isn’t privy to because they’re doing this on a mass basis – they might not be doing site visits, just lots of internet work – is the physical state of the property,” says R. Lee Harris, president and CEO at Overland Park, Ks.-based Cohen Esrey. “Unless the property is brand new yesterday, there will obviously be things that need to be repaired or replaced.”
Read more...Boosting NOI: Negotiating Taxes, Insurance Can Lead to Big Savings - Multifamily Executive Magazine
Thursday, October 31, 2013
Texas cities: population, housing and renters via Real Estate Center at Texas A&M
The National Multi Housing Council (NMHC) has released population, housing and renter data for the largest U.S. cites. The Texas cites of Austin, Dallas, El Paso, Fort Worth, Houston and San Antonio data are below.
Read more...Texas cities: population, housing and renters via Real Estate Center at Texas A&M
Read more...Texas cities: population, housing and renters via Real Estate Center at Texas A&M
San Antonio 3Q 2013 multifamily statistics via Real Estate Center at Texas A&M
The rental market remains robust in San Antonio, according to the third quarter 2013 report issued by Transwestern.
Read more...San Antonio 3Q 2013 multifamily statistics via Real Estate Center at Texas A&M
Read more...San Antonio 3Q 2013 multifamily statistics via Real Estate Center at Texas A&M
Construction Forecast: Commercial Property Activity Projected to Rise 17% in 2014 via CoStar Group
A leading indicator of future nonresidential construction spending hit a seven-month high in September, lending weight to construction forecasts calling for a greater-than-expected 17% boost in commercial construction next year.
The Architecture Billings Index (ABI) produced by the American Institue of Architects continued to accelerate in September, reaching its highest level since February and second-highest mark of the year.
Read more...Construction Forecast: Commercial Property Activity Projected to Rise 17% in 2014 - CoStar Group
The Architecture Billings Index (ABI) produced by the American Institue of Architects continued to accelerate in September, reaching its highest level since February and second-highest mark of the year.
Read more...Construction Forecast: Commercial Property Activity Projected to Rise 17% in 2014 - CoStar Group
Top Execs: What is the Biggest Threat to Multifamily's Momentum? via Multifamily Executive Magazine
“As always, we have to be careful about overbuilding. In addition, I am also concerned that while the economy is recovering, rents are rising higher than salaries, and that newer product will be priced above what people can afford. This also translates into the prices investors are paying for multifamily. In order to meet their returns at the prices they are paying for communities, rents will need to continue to grow at a healthy pace. If incomes don’t increase to meet the rent increases, we could see challenges in the market.”
Cindy Clare, CEO, Kettler Management
“There are several threats to the very positive market conditions. The first, and most obvious, is overbuilding. While many are concerned about overbuilding, the level of new starts is actually at our 10- to 15-year normal rate of delivery. The key to absorption is jobs. In markets like Seattle, Austin, and Houston, there’s been substantial job growth to support new starts. The second “buzz kill” could be rising interest rates. This, coupled with the impending restructuring of the agency lenders, could slow investor interest in the sector. However, it could also slow the growing return of renters to single-family homeownership.
Read more...Top Execs: What is the Biggest Threat to Multifamily's Momentum? - Multifamily Executive Magazine
Cindy Clare, CEO, Kettler Management
“There are several threats to the very positive market conditions. The first, and most obvious, is overbuilding. While many are concerned about overbuilding, the level of new starts is actually at our 10- to 15-year normal rate of delivery. The key to absorption is jobs. In markets like Seattle, Austin, and Houston, there’s been substantial job growth to support new starts. The second “buzz kill” could be rising interest rates. This, coupled with the impending restructuring of the agency lenders, could slow investor interest in the sector. However, it could also slow the growing return of renters to single-family homeownership.
Read more...Top Execs: What is the Biggest Threat to Multifamily's Momentum? - Multifamily Executive Magazine
Wednesday, October 30, 2013
Deloitte Forecasts Moderate Growth in 2014 Real Estate Market via REIT.com
Protracted economic growth, combined with uncertainty regarding pending regulations and fiscal policy issues, will likely moderate the pace of recovery in the commercial real estate industry in the near future, according to a report on the 2014 industry outlook from consulting firm Deloitte.
The anticipated moderation in 2014 would follow a year in which asset prices, transactions and capital availability all saw a continued recovery. So far in 2013, asset prices have moved close to their 2007 peaks in major metropolitan markets and transaction activity has improved in secondary markets, the Deloitte report stated.
“We expect that the recovery will continue, we just expect that the pace of it will slow down in 2014,” said Bob O’Brien, U.S. real estate services leader at Deloitte.
Read more...Deloitte Forecasts Moderate Growth in 2014 Real Estate Market
The anticipated moderation in 2014 would follow a year in which asset prices, transactions and capital availability all saw a continued recovery. So far in 2013, asset prices have moved close to their 2007 peaks in major metropolitan markets and transaction activity has improved in secondary markets, the Deloitte report stated.
“We expect that the recovery will continue, we just expect that the pace of it will slow down in 2014,” said Bob O’Brien, U.S. real estate services leader at Deloitte.
Read more...Deloitte Forecasts Moderate Growth in 2014 Real Estate Market
FOMC Statement: No Taper via Calculated Risk
About as expected ...
FOMC Statement:
Information received since the Federal Open Market Committee met in September generally suggests that economic activity has continued to expand at a moderate pace. Indicators of labor market conditions have shown some further improvement, but the unemployment rate remains elevated. Available data suggest that household spending and business fixed investment advanced, while the recovery in the housing sector slowed somewhat in recent months. Fiscal policy is restraining economic growth. Apart from fluctuations due to changes in energy prices, inflation has been running below the Committee's longer-run objective, but longer-term inflation expectations have remained stable.
Read more...Calculated Risk: FOMC Statement: No Taper
FOMC Statement:
Information received since the Federal Open Market Committee met in September generally suggests that economic activity has continued to expand at a moderate pace. Indicators of labor market conditions have shown some further improvement, but the unemployment rate remains elevated. Available data suggest that household spending and business fixed investment advanced, while the recovery in the housing sector slowed somewhat in recent months. Fiscal policy is restraining economic growth. Apart from fluctuations due to changes in energy prices, inflation has been running below the Committee's longer-run objective, but longer-term inflation expectations have remained stable.
Read more...Calculated Risk: FOMC Statement: No Taper
Where the Jobs Are via Real Estate Center at Texas A&M
Texas’ economy is all about jobs. To better understand how the state’s metropolitan and nonmetropolitan areas contribute to total jobs in Texas, the Real Estate Center researched the relative contributions of various regions on the
aggregate economic activities of Texas. Employment, income and gross domestic product were analyzed.
There were four key findings:
• Jobs are highly concentrated in the state’s metropolitan areas because of the high degree of metropolitanization of the Texas economy.
• Four major Texas metros (Dallas-Fort Worth-Arlington, Houston-Sugar Land-Baytown, San Antonio-New Braunfels, and Austin-Round Rock-San Marcos) account for more than two-thirds of Texas jobs.
• Two giant metros, Dallas-Fort Worth-Arlington and Houston-Sugar Land-Baytown, are home to more than half of Texas jobs.
• Changes in the relative shares of jobs in the state’s metros are attributable to changes in the relative growth rates of metro industries, particularly since 2000, because of higher oil prices.
Read more...Where the Jobs Are via Real Estate Center at Texas A&M
There were four key findings:
• Jobs are highly concentrated in the state’s metropolitan areas because of the high degree of metropolitanization of the Texas economy.
• Four major Texas metros (Dallas-Fort Worth-Arlington, Houston-Sugar Land-Baytown, San Antonio-New Braunfels, and Austin-Round Rock-San Marcos) account for more than two-thirds of Texas jobs.
• Two giant metros, Dallas-Fort Worth-Arlington and Houston-Sugar Land-Baytown, are home to more than half of Texas jobs.
• Changes in the relative shares of jobs in the state’s metros are attributable to changes in the relative growth rates of metro industries, particularly since 2000, because of higher oil prices.
Read more...Where the Jobs Are via Real Estate Center at Texas A&M
The Amazing Rate, Part 2 via Real Estate Center at Texas A&M
Between 2010 and 2030, Texas' population will grow by 120 percent. Some 50 percent of that increase will be from people moving from other states or countries. Those 65 and older will increase by 259 percent.
Read more...The Amazing Rate, Part 2 via Real Estate Center at Texas A&M
Read more...The Amazing Rate, Part 2 via Real Estate Center at Texas A&M
Dallas ranked 2nd best place for veterans to find jobs via Dallas Business Journal
Dallas is the second best place in the nation for veterans to find work, according to a new study commissioned by USAA and Hiring Our Heroes.
According to the study conducted by Sperling's BestPlaces, Dallas trails Houston on the list of Top 10 cities, which also includes Austin. The study said Dallas "claimed the No. 2 position by balancing affordability with a dynamic economy, which offers both a large number and variety of jobs for veterans."
Read more...Dallas ranked 2nd best place for veterans to find jobs - Dallas Business Journal
According to the study conducted by Sperling's BestPlaces, Dallas trails Houston on the list of Top 10 cities, which also includes Austin. The study said Dallas "claimed the No. 2 position by balancing affordability with a dynamic economy, which offers both a large number and variety of jobs for veterans."
Read more...Dallas ranked 2nd best place for veterans to find jobs - Dallas Business Journal
NMHC/NAA Comments on FHFA Proposal to Restrict the GSEs' Multifamily Lending via National Multi Housing Council
On October 8, NMHC/NAA submitted extensive comments to the Federal Housing Finance Agency (FHFA) opposing a proposal to further reduce Fannie Mae and Freddie Mac’s presence in the multifamily housing markets.
On August 9, FHFA called for potentially eliminating shorter-term financing options, reducing the number of loan products available, imposing loan limits and placing other restrictions on the GSEs’ multifamily financing activities. This latest move comes on top of a 10% reduction in GSE multifamily lending activities implemented on January 1.
Read more...NMHC/NAA Comments on FHFA Proposal to Restrict the GSEs' Multifamily Lending
On August 9, FHFA called for potentially eliminating shorter-term financing options, reducing the number of loan products available, imposing loan limits and placing other restrictions on the GSEs’ multifamily financing activities. This latest move comes on top of a 10% reduction in GSE multifamily lending activities implemented on January 1.
Read more...NMHC/NAA Comments on FHFA Proposal to Restrict the GSEs' Multifamily Lending
Tuesday, October 29, 2013
Middle-Market Apartments in Fort Worth Post Big Rent Growth via Property Management Insider
Fort Worth, which very rarely makes the list of the country’s stronger apartment rent growth performers, is logging impressive numbers right now. Annual price increases for new leases reached 3.9% as of 3Q, topping the national norm of 3.2%.
The key story in Cowtown’s strong momentum lies in middle-market product, particularly the metro’s very large base of 1980s-era units. These communities posted rent growth averaging 5.0% during the past year. In the submarkets where this 1980s-vintage product niche is especially large, rents went up 6.9% in Southwest Fort Worth, 5.3% in Arlington, 4.1% in East Fort Worth, and 4.0% in Hurst/Euless/Bedford.
Read more...Middle-Market Apartments in Fort Worth Post Big Rent Growth | Property Management Insider
The key story in Cowtown’s strong momentum lies in middle-market product, particularly the metro’s very large base of 1980s-era units. These communities posted rent growth averaging 5.0% during the past year. In the submarkets where this 1980s-vintage product niche is especially large, rents went up 6.9% in Southwest Fort Worth, 5.3% in Arlington, 4.1% in East Fort Worth, and 4.0% in Hurst/Euless/Bedford.
Read more...Middle-Market Apartments in Fort Worth Post Big Rent Growth | Property Management Insider
Monday, October 28, 2013
Apartment developers and investors continue to flock to San Antonio via San Antonio Business Journal
San Antonio’s multifamily market is seeing a flurry of activity on the part of both developers and investors, according to the third quarter 2013 analysis by Austin-based multifamily research firm Austin Investor Interests LLC.
Over the nine months ended Sept. 30, 2013, construction has been completed on close to 4,200 new multifamily units in San Antonio, Austin Investor states.
Read more...Apartment developers and investors continue to flock to San Antonio - San Antonio Business Journal
Over the nine months ended Sept. 30, 2013, construction has been completed on close to 4,200 new multifamily units in San Antonio, Austin Investor states.
Read more...Apartment developers and investors continue to flock to San Antonio - San Antonio Business Journal
Texas Manufacturing Outlook Survey 10/28/13 via Dallas Fed
Texas factory activity picked up further in October, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, rose from 11.5 to 13.3, suggesting output increased at a slightly faster pace than in September.
Other measures of current manufacturing activity also indicated a slightly stronger expansion in October. The new orders index came in at 6.2, slightly above its September level, and marked a sixth consecutive month of increased demand. The capacity utilization index edged up to 11.9, and the shipments index rose 3 points to 13.2.
Read more...Texas Manufacturing Outlook Survey - Dallas Fed
Other measures of current manufacturing activity also indicated a slightly stronger expansion in October. The new orders index came in at 6.2, slightly above its September level, and marked a sixth consecutive month of increased demand. The capacity utilization index edged up to 11.9, and the shipments index rose 3 points to 13.2.
Read more...Texas Manufacturing Outlook Survey - Dallas Fed
Austin economy ranks No. 1 in the country via Real Estate Center at Texas A&M
The city's reputation as a job-creation machine has again propelled Austin to the top of a monthly report by The Business Journals' On Numbers. With an overall score of 83.9 out of 100 based on 18 economic factors, Austin tops the list of 102 cities measured.
The biggest reason why Austin remains No. 1 is its job-growth record. On Numbers reports that Austin is the only city in the nation with double-digit percentage job growth in that five-year period, at just under 11 percent.
Read more...Austin economy ranks No. 1 in the country via Real Estate Center at Texas A&M
The biggest reason why Austin remains No. 1 is its job-growth record. On Numbers reports that Austin is the only city in the nation with double-digit percentage job growth in that five-year period, at just under 11 percent.
Read more...Austin economy ranks No. 1 in the country via Real Estate Center at Texas A&M
Market Snapshot via The Balance Sheet - Yardi Corporate Blog
The multifamily industry is on an ascending path, with trendlines pointing to a steady, albeit slow, recovery of the housing market all throughout the U.S metro areas.
The construction pipeline remains active in most markets, with 1,400 properties, 316,010 units, currently under construction, according to the latest data from Pierce-Eislen. The company’s services monitor the 50+ unit apartment universe from the property level to the submarket/market level within 59 United States markets, extending in geography from the Pacific Northwest to the Mid-Atlantic.
Read more...Market Snapshot | The Balance Sheet - Yardi Corporate Blog
The construction pipeline remains active in most markets, with 1,400 properties, 316,010 units, currently under construction, according to the latest data from Pierce-Eislen. The company’s services monitor the 50+ unit apartment universe from the property level to the submarket/market level within 59 United States markets, extending in geography from the Pacific Northwest to the Mid-Atlantic.
Read more...Market Snapshot | The Balance Sheet - Yardi Corporate Blog
Friday, October 25, 2013
Q3 Commercial/Multifamily Origination Volume Rises Nearly 30 Percent Annually via NationalMortgageProfessional.com
Commercial and multifamily mortgage origination volumes during the third quarter of 2013 were 29 percent higher than during the third quarter of 2012 and originations were essentially flat compared to second quarter of 2013, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
“Commercial and multifamily real estate borrowing and lending continued at a moderate clip in the third quarter,” said Jamie Woodwell, MBA’s vice president of Commercial Real Estate Research. “Mortgage origination volumes were essentially flat from the second quarter, but were up 29 percent from last year’s third quarter and are up 14 percent year-to-date. Lending by life insurance companies remained near last quarter’s record pace, while lending for the GSEs dropped by more than a third.”
Read more..Q3 Commercial/Multifamily Origination Volume Rises Nearly 30 Percent Annually | Mortgage News | Daily National and State Headlines
“Commercial and multifamily real estate borrowing and lending continued at a moderate clip in the third quarter,” said Jamie Woodwell, MBA’s vice president of Commercial Real Estate Research. “Mortgage origination volumes were essentially flat from the second quarter, but were up 29 percent from last year’s third quarter and are up 14 percent year-to-date. Lending by life insurance companies remained near last quarter’s record pace, while lending for the GSEs dropped by more than a third.”
Read more..Q3 Commercial/Multifamily Origination Volume Rises Nearly 30 Percent Annually | Mortgage News | Daily National and State Headlines
Millennials: The Struggle to Earn a Living via Axiometrics
In the past several articles, we’ve shared results from the study entitled “Failure to Launch: Structural Shift and the New Lost Generation.” This report, authored by Anthony Carnevale, Andrew Hanson and Artem Gulish, presents interesting trends, namely that millennials are coming to the job market later in life, while baby boomers are remaining in the workforce well past what’s considered the “regular” retirement age.
Further examination of the millennial demographic and their job prospects is proving to be an interesting exercise. The “Failure to Launch” researchers point out that, during the 1990s, the future looked very promising, thanks to a low unemployment rate, growing workers’ earnings and increased educational opportunities (especially for young women). Then came the one-two economic punch of the dot-com bust during the late 1990s and early 2000s, and the explosion of the housing bubble, in tandem with the Great Recession and the horrific financial aftermath beginning in 2007.
Read more...Millennials: The Struggle to Earn a Living
Further examination of the millennial demographic and their job prospects is proving to be an interesting exercise. The “Failure to Launch” researchers point out that, during the 1990s, the future looked very promising, thanks to a low unemployment rate, growing workers’ earnings and increased educational opportunities (especially for young women). Then came the one-two economic punch of the dot-com bust during the late 1990s and early 2000s, and the explosion of the housing bubble, in tandem with the Great Recession and the horrific financial aftermath beginning in 2007.
Read more...Millennials: The Struggle to Earn a Living
Four Steps Property Management Can Take to Help Prevent Lead Paint Poisoning via Property Management Insider
The Environmental Protection Agency’s National Lead Poisoning Prevention Week, running October 20-26, 2013, is a perfect time for property owners and managers to get the lead out, or at least start making plans.
A common source of lead poisoning is from lead-based paints, which were used in abundance in the housing industry prior to the late 1970s. Many apartments in inventory today were built at a time when lead paint was most commonly used to paint exteriors and interiors.
Lead poisoning from these paints is an invisible danger that landlords face but can avoid with proper care and attention. Ignoring a lead-based paint problem can be particularly dreadful, and expensive.
Read more...Four Steps Property Management Can Take to Help Prevent Lead Paint Poisoning | Property Management Insider
A common source of lead poisoning is from lead-based paints, which were used in abundance in the housing industry prior to the late 1970s. Many apartments in inventory today were built at a time when lead paint was most commonly used to paint exteriors and interiors.
Lead poisoning from these paints is an invisible danger that landlords face but can avoid with proper care and attention. Ignoring a lead-based paint problem can be particularly dreadful, and expensive.
Read more...Four Steps Property Management Can Take to Help Prevent Lead Paint Poisoning | Property Management Insider
Fed Must Have Role in MF Housing via GlobeSt.com
Experts argue that the GSEs are needed since they play such a significant role in multifamily financing. MBA Chairman-Elect E.J. Burke recently told the Senate Banking Committee that lawmakers and regulators must craft a long-term plan for multifamily housing that ensures a role for both private capital and the federal government. At the same hearing, Committee Chairman Tim Johnson noted the important role of Fannie Mae and Freddie Mac in the multifamily housing market and cautioned that broad access to credit must continue to be available as GSE reform moves forward.
Closer to home, Gerson Law Firm APC closed more than $100 million in commercial real estate loans in September on GSE lender engagements, plus additional amounts for other lender financings in which the firm was representing lenders or borrowers. Gordon Gerson, managing partner of the firm, tells GlobeSt.com, “People who need rental housing should not be subject to the harsh effects of capitalism, and thus the case for the continued role for GSEs in multifamily housing. Stability in the housing market means stability in multifamily finance. If you take the GSEs out of their traditional role, it could rocket out of control.”
Read more...Fed Must Have Role in MF Housing - Daily News Article - GlobeSt.com
Closer to home, Gerson Law Firm APC closed more than $100 million in commercial real estate loans in September on GSE lender engagements, plus additional amounts for other lender financings in which the firm was representing lenders or borrowers. Gordon Gerson, managing partner of the firm, tells GlobeSt.com, “People who need rental housing should not be subject to the harsh effects of capitalism, and thus the case for the continued role for GSEs in multifamily housing. Stability in the housing market means stability in multifamily finance. If you take the GSEs out of their traditional role, it could rocket out of control.”
Read more...Fed Must Have Role in MF Housing - Daily News Article - GlobeSt.com
Thursday, October 24, 2013
Apartments: ‘Potential for a Nice Long Cycle’ via GlobeSt.com
The multifamily sector has clearly been the best performing sector for the last four years. With consistent strong rent growth and low vacancies, combined with readily available financing at record low interest rates, investors have, in many cases, bid the pricing of apartments to past their 2007 peaks. So said Scott Farb, partner at CohnReznick, who served as moderator of the Economic Update panel at ALM’s RealShare Apartments 2013 Thursday morning. “With consistent strong rent growth and low vacancies, combined with readily available financing at record low interest rates, investors have, in many cases, bid the pricing of apartments to past their 2007 peaks.”
But despite the good news, Farb said to the 2,000 industry executives in the audience, there are clearly headwinds confronting the apartment sector.
Read more...Apartments: ‘Potential for a Nice Long Cycle’ - Daily News Article - GlobeSt.com
But despite the good news, Farb said to the 2,000 industry executives in the audience, there are clearly headwinds confronting the apartment sector.
Read more...Apartments: ‘Potential for a Nice Long Cycle’ - Daily News Article - GlobeSt.com
Houston apartments 3Q 2013: Hendricks-Berkadia via Real Estate Center at Texas A&M
Builders completed 2,990 multifamily units in third quarter 2013, according to Hendricks-Berkadia. The additions put deliveries at 6,890 units for 2013. The last six months outpaced first half 2012, when 3,520 units were completed.
Developers have requested permits for 10,370 multifamily units in the first three quarters 2013. Close to 70 projects were in planning phases during the third quarter, with 17 prospective developments in the Montrose-River Oaks submarket.
Vacancy finished September at 5.7 percent, the same rate as June 2013. Vacancy improvements for Class B and C properties offset the 10-basis-point vacancy rise for Class A apartments to 4.2 percent.
Read more...Houston apartments 3Q 2013: Hendricks-Berkadia via Real Estate Center at Texas A&M
Developers have requested permits for 10,370 multifamily units in the first three quarters 2013. Close to 70 projects were in planning phases during the third quarter, with 17 prospective developments in the Montrose-River Oaks submarket.
Vacancy finished September at 5.7 percent, the same rate as June 2013. Vacancy improvements for Class B and C properties offset the 10-basis-point vacancy rise for Class A apartments to 4.2 percent.
Read more...Houston apartments 3Q 2013: Hendricks-Berkadia via Real Estate Center at Texas A&M
Austin MF Vacancy Stays Steady, San Antonio Increases via GlobeSt.com
Hendricks-Berkadia's Q3 multifamily report concerning Austin and San Antonio show several interesting dichotomies. One of these involves vacancies; while Austin's 4.6% area-wide vacancy is relatively unchanged from the 4.5% reported during the same time last year, San Antonio's vacancy rate stood at 6.2%, a definitely increase from the 4.8% reported year-over-year.
In both markets, effective rent growth effectively dropped. In San Antonio, Q3 effective rent growth was reported at 1.7% versus the 2.8% reported last year. Further north in Austin, effective rent growth stood at 2.9%, less than the 3.4% reported during the third quarter of 2012.
Read more...Austin MF Vacancy Stays Steady, San Antonio Increases - Daily News Article - GlobeSt.com
In both markets, effective rent growth effectively dropped. In San Antonio, Q3 effective rent growth was reported at 1.7% versus the 2.8% reported last year. Further north in Austin, effective rent growth stood at 2.9%, less than the 3.4% reported during the third quarter of 2012.
Read more...Austin MF Vacancy Stays Steady, San Antonio Increases - Daily News Article - GlobeSt.com
Wednesday, October 23, 2013
Top Markets for Rental Property Growth via Multifamily Blogs
As we look forward to what the quickly approaching New Year has to hold for the rental property industry, we need only look at the fact that in 2013, developers have added the largest number of multifamily units since late 2009.
It’s for this reason that even independent research firmMPF Research reports that the apartment industry’s performance through the midway point of the year has been both in “strong demand” and experiencing an “accelerated rent growth.”
One of the biggest factors to play a role in the growth seems to correspond with the fact that the technology sector seems to have the ability to drive development.
Read more...Multifamily Trends | Top Markets for Rental Property Growth - Multifamily Blogs
It’s for this reason that even independent research firmMPF Research reports that the apartment industry’s performance through the midway point of the year has been both in “strong demand” and experiencing an “accelerated rent growth.”
One of the biggest factors to play a role in the growth seems to correspond with the fact that the technology sector seems to have the ability to drive development.
Read more...Multifamily Trends | Top Markets for Rental Property Growth - Multifamily Blogs
As CRE Turns Corner, Banks Face Decision On How Hard to Compete for Loans via CoStar Group
Legacy CRE loan portfolios for some of the largest national and regional banks have stabilized and their loan pipelines are growing with a mix of multifamily, REIT, conduit, investment real estate and owner-occupied deals. Bank executives also told investors this past week that some have begun to actively pursue construction and office property loans.
But as it seems with every aspect of this recovery, it’s an uneven mix, largely reflecting what stage of recovery the individual bank's loan portfolio is in. Some have just cleared up the messes in their portfolios from the Great Recession of 2007; others have already started growing that business - and pretty aggressively too; yet another batch is already starting to pull back as competition for deals has driven down yields and loosened credit standards beyond their comfort zones.
Read more...As CRE Turns Corner, Banks Face Decision On How Hard to Compete for Loans - CoStar Group
But as it seems with every aspect of this recovery, it’s an uneven mix, largely reflecting what stage of recovery the individual bank's loan portfolio is in. Some have just cleared up the messes in their portfolios from the Great Recession of 2007; others have already started growing that business - and pretty aggressively too; yet another batch is already starting to pull back as competition for deals has driven down yields and loosened credit standards beyond their comfort zones.
Read more...As CRE Turns Corner, Banks Face Decision On How Hard to Compete for Loans - CoStar Group
The Top Cities for Commercial Real Estate Investment via Axiometrics
At one time, when speaking about commercial real estate investment, the focus tended to be on local, regional or national investors. Certainly there were instances during which an out-of-country investor might come into the United States (US) to buy an office portfolio, but such actions were rare.
This has changed, however. We’re seeing more foreign capital flowing into the United States, eager to snap up portfolios and buildings because of higher yields and more favorable cap rates. Cushman & Wakefield (C&W) has been on top of this trend – in its third annual “Winning in Growth Cities” report, the organization provides information on commercial real estate investment by property sector by city ranging from yields and investment volumes, to market activity patterns, to sources of international capital, to drivers of each city’s success.
Read more...The Top Cities for Commercial Real Estate Investment
This has changed, however. We’re seeing more foreign capital flowing into the United States, eager to snap up portfolios and buildings because of higher yields and more favorable cap rates. Cushman & Wakefield (C&W) has been on top of this trend – in its third annual “Winning in Growth Cities” report, the organization provides information on commercial real estate investment by property sector by city ranging from yields and investment volumes, to market activity patterns, to sources of international capital, to drivers of each city’s success.
Read more...The Top Cities for Commercial Real Estate Investment
Monthly Review of Texas Economy, September 2013 via Real Estate Center at Texas A&M
The Texas economy gained 258,500 nonagricultural jobs from August 2012 to August 2013, an annual growth rate of 2.4 percent compared with 1.7 percent for the United States (Table 1 and Figure 1). The state’s nongovernment sector added 247,800 jobs, an annual growth rate of 2.7 percent compared with 2 percent for the nation’s private sector (Table 1).
Texas’ seasonally adjusted unemployment rate fell to 6.4 percent in August 2013 from 6.8 percent in August 2012. The nation’s rate decreased from 8.1 to 7.3 percent (Table 1).
Table 2 shows Texas industries ranked by employment growth rate from August 2012 to August 2013. Table 3 shows the relative importance of the state’s industries based on number of employees.
Read more...Monthly Review of Texas Economy, September 2013 -- Real Estate Center at Texas A&M
Texas’ seasonally adjusted unemployment rate fell to 6.4 percent in August 2013 from 6.8 percent in August 2012. The nation’s rate decreased from 8.1 to 7.3 percent (Table 1).
Table 2 shows Texas industries ranked by employment growth rate from August 2012 to August 2013. Table 3 shows the relative importance of the state’s industries based on number of employees.
Read more...Monthly Review of Texas Economy, September 2013 -- Real Estate Center at Texas A&M
DFW apartments 3Q 2013: Hendricks-Berkadia via Real Estate Center at Texas A&M
More than 3,270 apartments were completed in the Metroplex since third quarter 2013, according to Hendricks-Berkadia. Year-to-date deliveries reached 8,790 units, which exceeded total 2012 construction by 19.7 percent.
On average, 8,750 apartments came online annually in the last five years.
Permits were requested for 9,350 apartments in the first three quarters 2013. Year-to-date issuance trailed permitting requests for 11,200 units during the same period in 2012.
Read more...DFW apartments 3Q 2013: Hendricks-Berkadia via Real Estate Center at Texas A&M
On average, 8,750 apartments came online annually in the last five years.
Permits were requested for 9,350 apartments in the first three quarters 2013. Year-to-date issuance trailed permitting requests for 11,200 units during the same period in 2012.
Read more...DFW apartments 3Q 2013: Hendricks-Berkadia via Real Estate Center at Texas A&M
Apartment Trends Q3 2013 via ReisReports
Reis VP of Economics & Research, Dr. Victor Calanog, provides an update on the apartment sector performance for the 3rd quarter of 2013.
Vacancy rate dropped 10 basis points to 4.2%
Current vacancy rate 100 basis points below national long term average vacancy rate
Asking and effective rents grew by 0.9% and 1.0% respectively
Watch viedo...Apartment Trends Q3 2013 | ReisReports
Vacancy rate dropped 10 basis points to 4.2%
Current vacancy rate 100 basis points below national long term average vacancy rate
Asking and effective rents grew by 0.9% and 1.0% respectively
Watch viedo...Apartment Trends Q3 2013 | ReisReports
Houston MF Continues Tight via GlobeSt.com
The metro region's success story from a commercial real estate perspective continues in the area of multifamily statistics. Specifically, Hendricks-Berkadia's Q3 multifamily report notes an area-wide vacancy of 5.7% (down from 6.7% year-over-year) and rent growth decreasing ever-so-slightly to 3.7% from 3.8% the same time last year.
Read more...Houston MF Continues Tight - Daily News Article - GlobeSt.com
Read more...Houston MF Continues Tight - Daily News Article - GlobeSt.com
Tuesday, October 22, 2013
Employment Report Comments via Calculated Risk
Overall this was a weak employment report.
The decline in the unemployment rate to 7.2% in September, from 7.3% in August, was a little bit of good news, but the recent decline has been mostly due to declining participation.
If we look at the year-over-year change in employment - to minimize the monthly volatility - total nonfarm employment is up 2.225 million from September 2012, and private employment is up 2.290 million. That is essentially the same year-over-year gain as in August (2.215 million total, 2.282 million private year-over-year in August).
So the story mostly remains the same: slow and steady job growth.
Read more...Calculated Risk: Employment Report Comments
The decline in the unemployment rate to 7.2% in September, from 7.3% in August, was a little bit of good news, but the recent decline has been mostly due to declining participation.
If we look at the year-over-year change in employment - to minimize the monthly volatility - total nonfarm employment is up 2.225 million from September 2012, and private employment is up 2.290 million. That is essentially the same year-over-year gain as in August (2.215 million total, 2.282 million private year-over-year in August).
So the story mostly remains the same: slow and steady job growth.
Read more...Calculated Risk: Employment Report Comments
MF Vacancy Declines 50 BPS; Rents Continue Increasing via GlobeSt.com
Hendricks-Berkadia's Q3 2013 stats for the multifamily sector show a general year-over-year decline in vacancy rates. Vacancy stood at 5%, a 50 basis-point decline from the 5.5% during the same period a year ago.
As vacancies continue their downward slide, asking rents have increased – area-wide, average rents increased by 3.1% versus the 2.5% year over year. A year ago, concessions were 2.3% of asking rents. By Q3 2013, concessions had tapered off to 1.3% of asking rents.
Read more...MF Vacancy Declines 50 BPS; Rents Continue Increasing - Daily News Article - GlobeSt.com
As vacancies continue their downward slide, asking rents have increased – area-wide, average rents increased by 3.1% versus the 2.5% year over year. A year ago, concessions were 2.3% of asking rents. By Q3 2013, concessions had tapered off to 1.3% of asking rents.
Read more...MF Vacancy Declines 50 BPS; Rents Continue Increasing - Daily News Article - GlobeSt.com
Monday, October 21, 2013
Apartment Markets Retreat in Third Quarter NMHC Survey via NMHC
All four indexes of the National Multi Housing Council’s (NMHC) October Survey of Apartment Market Conditions dipped below 50 for the first time since July 2009. Market Tightness (46), Sales Volume (46), Equity Financing (39) and Debt Financing (41) all indicated declining conditions from the previous quarter.
“After four years of almost continuous improvement across all indicators, apartment markets have taken a small step back,” said Mark Obrinsky, NMHC’s Vice President of Research and Chief Economist. “Conditions cannot continue to improve indefinitely and new development is at least somewhat constrained by available capital—though more on the equity than the debt side. Even so, both the Market Tightness and Sales Volume Index are within hailing distance of the breakeven level and the Debt Financing Index rose despite some rise in interest rates. This bodes well for the apartment industry going forward.”
Read more...Apartment Markets Retreat in Third Quarter NMHC Survey - - NMHC - National Multi Housing Council
“After four years of almost continuous improvement across all indicators, apartment markets have taken a small step back,” said Mark Obrinsky, NMHC’s Vice President of Research and Chief Economist. “Conditions cannot continue to improve indefinitely and new development is at least somewhat constrained by available capital—though more on the equity than the debt side. Even so, both the Market Tightness and Sales Volume Index are within hailing distance of the breakeven level and the Debt Financing Index rose despite some rise in interest rates. This bodes well for the apartment industry going forward.”
Read more...Apartment Markets Retreat in Third Quarter NMHC Survey - - NMHC - National Multi Housing Council
ULI Forecast Sees CMBS Issuance Rising to $100 Billion in 2015 via Urban Land Magazine
A new U.S. forecast from the Urban Land Institute and EY projects continued improvement for real estate capital markets and commercial real estate fundamentals. The latest findings reveal high expectations for growth in the housing sector, as well as improved confidence about commercial mortgage–backed securities (CMBS) issuance, existing single-family housing prices, and industrial-sector fundamentals when compared to responses from just six months ago.
The results are from the latest ULI/EY Real Estate Consensus Forecast, a semiannual survey of economists and analysts at 38 of the nation’s leading real estate organizations—the fourth in a series of polls initiated to gauge industry sentiment. The survey, conducted by the ULI Center for Capital Markets and Real Estate between August 27 and September 13, provides forecasts for broad economic indicators, real estate capital markets, property investment returns for four property types, and vacancy rates and rents for five property types, as well as housing starts and prices.
Read more...ULI Forecast Sees CMBS Issuance Rising to $100 Billion in 2015 - Urban Land Magazine
The results are from the latest ULI/EY Real Estate Consensus Forecast, a semiannual survey of economists and analysts at 38 of the nation’s leading real estate organizations—the fourth in a series of polls initiated to gauge industry sentiment. The survey, conducted by the ULI Center for Capital Markets and Real Estate between August 27 and September 13, provides forecasts for broad economic indicators, real estate capital markets, property investment returns for four property types, and vacancy rates and rents for five property types, as well as housing starts and prices.
Read more...ULI Forecast Sees CMBS Issuance Rising to $100 Billion in 2015 - Urban Land Magazine
Friday, October 18, 2013
Green Buildings - Improve Your Building's Eco Performance via Appfolio
Are you planning renovations or repairs to your building? If so, it’s a great time to take advantage of innovative ideas that will help you improve your building’s Eco Performance. Here are some things you can do to make your buildings more environmentally friendly.
Insulation
There are now plenty of eco- and health-friendly options for insulation. One of the latest is a soy-based polyurethane spray-in foam that expands to fill cracks and provides an airtight seal with high thermal resistance.
Some batting insulation products are now made from postindustrial cotton and denim fibers that contain no chemical irritants. Some blown-in insulation is now odor- and formaldehyde-free. There’s also alternative fiberglass insulation that resists mold and is formaldehyde-free, as well.
Read more...Green Buildings - Improve Your Building's Eco Performance
Insulation
There are now plenty of eco- and health-friendly options for insulation. One of the latest is a soy-based polyurethane spray-in foam that expands to fill cracks and provides an airtight seal with high thermal resistance.
Some batting insulation products are now made from postindustrial cotton and denim fibers that contain no chemical irritants. Some blown-in insulation is now odor- and formaldehyde-free. There’s also alternative fiberglass insulation that resists mold and is formaldehyde-free, as well.
Read more...Green Buildings - Improve Your Building's Eco Performance
Consumers flock to multifamily properties via HousingWire
Multifamily construction remained stronger than single-family construction across the majority of districts in the Federal Reserve’s latest Beige Book, an anecdotal report from the Federal Reserve District and Banks. Overall in single-family housing, things slowed considerably since June, when all districts reported housing strength.
However, the book states that the rise in multifamily construction comes at time when Americans want to pursue purchasing their own property, but continue to face tighter lending and credit standards.
Read more...Consumers flock to multifamily properties | 2013-10-16 | HousingWire
However, the book states that the rise in multifamily construction comes at time when Americans want to pursue purchasing their own property, but continue to face tighter lending and credit standards.
Read more...Consumers flock to multifamily properties | 2013-10-16 | HousingWire
Millennials, Jobs, Independence and Households via Axiometrics
In a previous blog, we introduced information from an interesting report entitled “Failure to Launch: Structural Shift and the New Lost Generation.” In this report, authors Anthony Carnevale, Andrew Hanson and Artem Gulish compare and contrast the baby boomers with the millennials. The millennials, incidentally, are the “lost generation.”
The takeaway from this report is that:
1) Young adults are launching their careers later, and
2) Older adults are retiring later.
It goes without saying that such trends have a definite impact on housing; if young adults don’t have jobs, they don’t earn money with which they form separate households.
Read more...Millennials, Jobs, Independence and Households
The takeaway from this report is that:
1) Young adults are launching their careers later, and
2) Older adults are retiring later.
It goes without saying that such trends have a definite impact on housing; if young adults don’t have jobs, they don’t earn money with which they form separate households.
Read more...Millennials, Jobs, Independence and Households
Austin the top U.S. city for twentysomethings via Real Estate Center at Texas A&M
Austin is the nation’s top citiy for people in their twenties, a new study by CreditDonkey.com shows. The state capitol took the No. 1 slot, in front of San Antonio at No. 5 and Houston at No. 9.
With the exception of its fairly high rent costs, Austin ranks in the top five for every category measured, including first for population growth. People flock to the city for its warm weather, lively atmosphere, and strong job market.
Read more...Austin the top U.S. city for twentysomethings via Real Estate Center at Texas A&M
With the exception of its fairly high rent costs, Austin ranks in the top five for every category measured, including first for population growth. People flock to the city for its warm weather, lively atmosphere, and strong job market.
Read more...Austin the top U.S. city for twentysomethings via Real Estate Center at Texas A&M
NMHC Survey: What Residents Really Want via Multifamily Executive Magazine
It's been almost two decades since the Spice Girls delivered their pointed request for a confession of what we really, really want. And during those two decades, apartment owners and managers have been making the same request of residents and potential residents.
But while the question is seemingly simple and direct, apartment residents’ answers haven’t always been so. There’s what they say they want—but also what they’re willing to pay for and what they can ultimately live without.
Read more...NMHC Survey: What Residents Really Want - Amenities, Green Sales And Marketing, Multi-Tools - Multifamily Executive Magazine
But while the question is seemingly simple and direct, apartment residents’ answers haven’t always been so. There’s what they say they want—but also what they’re willing to pay for and what they can ultimately live without.
Read more...NMHC Survey: What Residents Really Want - Amenities, Green Sales And Marketing, Multi-Tools - Multifamily Executive Magazine
Multifamily Permitting Decreases in August via Axiometrics
The U.S. Census Bureau posted its August residential permitting numbers by metropolitan statistical area (MSA) on Thursday, September 26. Privately-owned housing units authorized by building permit in August, measured on a seasonally adjusted annual rate (SAAR), were 918,000. This was down 3.8% from the revised July rate of 954,000, but was 11.0% higher than the August 2012 estimate of 827,000. Single-family permits in August—627,000 units—were up 3.0% from the July number and more than 20% over August 2012. Annual multifamily (MF) permits decreased 15.7% from July’s annual rate and were 3.9% lower than the comparable period a year ago. With August 2013 MF permits totaling 268,000 units, annual MF permitting has averaged 312,000 units over the last 12 months. New York, Houston, Austin, and Dallas remain some of the strongest multifamily permitting markets in the nation and Denver, Los Angeles, Seattle, and Washington, DC are still in the top ten. Miami dropped out of the top ten, switching places with last month’s number 11, Orlando. Moving onto the list of the top twenty is Columbus, OH, which dropped Santa Ana (Orange County) to number 21.
Read more...Multifamily Permitting Decreases in August
Read more...Multifamily Permitting Decreases in August
Wednesday, October 16, 2013
NOI Value Creation via Multifamily Blogs
Let’s face it, your NOI was tremendously impacted over the past few years. And right now in 2013 you have a unique opportunity for income growth. Engaging performance methodologies wisely - will pay you richly.
Enhancing your manager’s skills has a direct correlation to the bottom-line financial performance they deliver to you. Let me give you undeniable, bottom-line proof. There’s hard data that skill development really does determine your NOI!
The Facts:
An Indiana property management company with a focus on employee development from 1999-2007 (over a 9 year period) was able to realize noteworthy results throughout their 16,000 unit portfolio.
The results were quantifiable and impressive with a:
Read more...NOI Value Creation - Multifamily Blogs
Enhancing your manager’s skills has a direct correlation to the bottom-line financial performance they deliver to you. Let me give you undeniable, bottom-line proof. There’s hard data that skill development really does determine your NOI!
The Facts:
An Indiana property management company with a focus on employee development from 1999-2007 (over a 9 year period) was able to realize noteworthy results throughout their 16,000 unit portfolio.
The results were quantifiable and impressive with a:
Read more...NOI Value Creation - Multifamily Blogs
September 2013 Apartment Market Summary via Axiometrics
Annual effective rent growth at national level has been moderating for the last two years and the trend continued in September. For the month, annual effective rent growth measured 2.99%; occupancy remained at Axiometrics’ forecasted rate of 94.9%.
In line with slowing annual effective rent growth at the national level, Class A and B properties also continued to show signs of moderation for the month. Comparing September 2012 to September 2013, both Class A and B properties decreased in annual effective rent growth, from 3.81% to 2.55% and 3.53% to 3.20%, respectively. In contrast, Class C properties increased annual effective rent growth from 3.73% in September 2012 to 4.32% in September 2013.
Read more...September 2013 Apartment Market Summary
In line with slowing annual effective rent growth at the national level, Class A and B properties also continued to show signs of moderation for the month. Comparing September 2012 to September 2013, both Class A and B properties decreased in annual effective rent growth, from 3.81% to 2.55% and 3.53% to 3.20%, respectively. In contrast, Class C properties increased annual effective rent growth from 3.73% in September 2012 to 4.32% in September 2013.
Read more...September 2013 Apartment Market Summary
Dallas Beige Book 10/16/13 via Dallas Fed
The Eleventh District economy expanded at a moderate pace over the past six weeks. Manufacturing activity increased overall and retail sales edged up. Services firms reported mixed demand. The housing sector remained strong, with rising construction and sales. Office and industrial leasing activity picked up. Financial institutions said loan demand was flat to up modestly. Energy activity remained at high levels, and the severity of drought conditions eased somewhat. Prices held steady or rose at most responding firms. Employment levels were flat or slightly increased, and wage pressures picked up.
Prices
Contacts said prices were stable or up over the reporting period. Manufacturers reported flat prices with the exception of increases in cement, brick, and paper. Contacts noted no change in retail or automobile prices since the last report. Accounting and legal firms noted modest increases in billing rates, and shipping rates increased in light of higher fuel costs. Airlines reported mostly flat ticket prices but higher fees. Home prices rose notably, and several real estate contacts noted strong growth in office and apartment rents. There were some reports of increased input costs, particularly for steel, rubber, beef, and dairy products.
Read more...Dallas Beige Book - Dallas Fed
Prices
Contacts said prices were stable or up over the reporting period. Manufacturers reported flat prices with the exception of increases in cement, brick, and paper. Contacts noted no change in retail or automobile prices since the last report. Accounting and legal firms noted modest increases in billing rates, and shipping rates increased in light of higher fuel costs. Airlines reported mostly flat ticket prices but higher fees. Home prices rose notably, and several real estate contacts noted strong growth in office and apartment rents. There were some reports of increased input costs, particularly for steel, rubber, beef, and dairy products.
Read more...Dallas Beige Book - Dallas Fed
Five Essentials for a Green Community via Multifamily Executive Magazine
Gauging what residents want and need in a green community is tough. Some residents want solar panels while others prefer to focus on water conservation.
A survey conducted by Strata Research earlier this year found that 77 percent of renters felt green apartments were important. The survey took responses from more than 1,000 renters and was conducted in partnership with HD Supply, according to Kelly Vickers.
Vickers, national director of sustainability for Alliance Residential, says the survey sheds light on green development and what renters expect a green community to have.
Here are the Top 5 features renters considered were essential:
Read more...Five Essentials for a Green Community - Green Design, Energy Efficiency, Energy Star, Water Conservation, Bathroom Faucets, Energy-Efficient Construction, Green Products, Multifamily Building, Spas, Water, Water Supply, Renewable Energy, Bath, Shower - Multifamily Executive Magazine
A survey conducted by Strata Research earlier this year found that 77 percent of renters felt green apartments were important. The survey took responses from more than 1,000 renters and was conducted in partnership with HD Supply, according to Kelly Vickers.
Vickers, national director of sustainability for Alliance Residential, says the survey sheds light on green development and what renters expect a green community to have.
Here are the Top 5 features renters considered were essential:
Read more...Five Essentials for a Green Community - Green Design, Energy Efficiency, Energy Star, Water Conservation, Bathroom Faucets, Energy-Efficient Construction, Green Products, Multifamily Building, Spas, Water, Water Supply, Renewable Energy, Bath, Shower - Multifamily Executive Magazine
Tuesday, October 15, 2013
Multifamily Marketing Trend | Why Your Apartment Community Needs Video Marketing via Multifamily Blogs
What’s wrong with pictures? Still images of the property are still the default visual for many apartment community owners in terms of online marketing. It’s easy to see why. Great cameras are affordable now and they make it easy to choose the best lighting and angle for compositions that are stunning and persuasive. Apartment owners who do not use video on their sites give excuses like “Too much can go wrong with video,” or “Amateur video sends all the wrong messages and professional video is too expensive.”
Those are understandable objections, but while these owners are making objections, those with videos are signing leases. Here are few basic facts that explain why video is an essential part of the contemporary marketing scene for apartment owners:
Read more...Multifamily Marketing Trend | Why Your Apartment Community Needs Video Marketing - Multifamily Blogs
Those are understandable objections, but while these owners are making objections, those with videos are signing leases. Here are few basic facts that explain why video is an essential part of the contemporary marketing scene for apartment owners:
Read more...Multifamily Marketing Trend | Why Your Apartment Community Needs Video Marketing - Multifamily Blogs
ALN Monthly Newsletter October 2013 via ALN Apartment Data
ALN Data just released their September 2013 stats on occupancy and rents for 23 markets. In Texas, it includes DFW, Austin, Houston, San Antonio, Lubbock, Amarillo, Abilene and Corpus Christi. It is a must read from a great provider of apartment data.
Read more...ALN Monthly Newsletter October 2013 via ALN Apartment Data
Read more...ALN Monthly Newsletter October 2013 via ALN Apartment Data
San Antonio apartments 3Q 2013: Hendricks-Berkadia via Real Estate Center at Texas A&M
Since March, metrowide deliveries totaled 2,580 apartments, twice the number of completions from March to September of last year, according to Hendricks-Berkadia.
Also during this time, the vacancy rate rose 50 basis points to 6.2 percent as completions outpaced absorption.
From March to September of last year, 3,310 apartments were absorbed. During the same period this year, leasing demand dropped by nearly 50 percent to 1,660 newly occupied units.
Read more...San Antonio apartments 3Q 2013: Hendricks-Berkadia via Real Estate Center at Texas A&M
Also during this time, the vacancy rate rose 50 basis points to 6.2 percent as completions outpaced absorption.
From March to September of last year, 3,310 apartments were absorbed. During the same period this year, leasing demand dropped by nearly 50 percent to 1,660 newly occupied units.
Read more...San Antonio apartments 3Q 2013: Hendricks-Berkadia via Real Estate Center at Texas A&M
San Antonio Apartment Market Update September 2013 via Oconnerdata.com
Market Summary
Most key metrics of the San Antonio area multifamily sector recorded positive changes in September 2013.
The occupancy figures recorded positive values for all the classes except for Class D properties. For class D properties, occupancy continued to decrease by 0.48% over the month to close at 90.32%; and increased by 0.33% over the year. For Class A properties, occupancy went up by 0.27% over the month and decreased by 0.50% over the year to close at 94.12%. The largest annual increase was noted for Class C with an increase of 0.36% to close at 91.41%.
Read more...San Antonio Apartment Market Update September 2013
Most key metrics of the San Antonio area multifamily sector recorded positive changes in September 2013.
The occupancy figures recorded positive values for all the classes except for Class D properties. For class D properties, occupancy continued to decrease by 0.48% over the month to close at 90.32%; and increased by 0.33% over the year. For Class A properties, occupancy went up by 0.27% over the month and decreased by 0.50% over the year to close at 94.12%. The largest annual increase was noted for Class C with an increase of 0.36% to close at 91.41%.
Read more...San Antonio Apartment Market Update September 2013
Austin Apartment Market Update September 2013 via Oconnerdata.com
Market Summary
All metrics for the Austin multifamily sector recorded mostly positive changes in September 2013.
Occupancy figures recorded mostly an upward trend for the classes for the month. Class A properties reported an increase of 0.07% over last month, and an increase of 0.43% over last year. Over the month, Class D properties recorded a decrease of 0.13%. The largest increase over the month as well as over the year was recorded for Class C reporting an increase of 0.51% and 0.44% respectively.
Read more...Austin Apartment Market Update September 2013
All metrics for the Austin multifamily sector recorded mostly positive changes in September 2013.
Occupancy figures recorded mostly an upward trend for the classes for the month. Class A properties reported an increase of 0.07% over last month, and an increase of 0.43% over last year. Over the month, Class D properties recorded a decrease of 0.13%. The largest increase over the month as well as over the year was recorded for Class C reporting an increase of 0.51% and 0.44% respectively.
Read more...Austin Apartment Market Update September 2013
Houston Apartment Market Update September 2013 via Oconnordata.com
Market Summary
Key metrics for the Houston area multifamily sector recorded both positive and negative changes in September 2013.
Occupancy figures mostly recorded negative changes for the classes over the month. Class A recorded a decrease of 0.21% to close at 94.88%. The largest monthly increase was noted for Class C properties (0.41%). For Class A properties the average went down by 0.15% over the year. The largest annual increase was also noted for Class C properties with an average increase of 3.05% to close at 88.94%.
Read more...Houston Apartment Market Update September 2013
Key metrics for the Houston area multifamily sector recorded both positive and negative changes in September 2013.
Occupancy figures mostly recorded negative changes for the classes over the month. Class A recorded a decrease of 0.21% to close at 94.88%. The largest monthly increase was noted for Class C properties (0.41%). For Class A properties the average went down by 0.15% over the year. The largest annual increase was also noted for Class C properties with an average increase of 3.05% to close at 88.94%.
Read more...Houston Apartment Market Update September 2013
Dallas/Ft. Worth Apartment Market Update September 2013 via Oconnerdata.com
Market Summary
The key metrics for the Dallas/Fort Worth area multifamily sector recorded significant changes both over the month and over the year.
Over the month all the classes recorded mostly an upward trend in terms of occupancy. Class A properties recorded an increase of 0.06% over previous month. On a year-over-year basis Class A properties recorded a decrease of 0.01%. Class C recorded the largest increase of 0.11% over the month. Class B recorded a decrease of 0.05% over the month. The largest annual increase of 1.32% was also noted for Class C properties.
Read more...Dallas/Ft. Worth Apartment Market Update September 2013
The key metrics for the Dallas/Fort Worth area multifamily sector recorded significant changes both over the month and over the year.
Over the month all the classes recorded mostly an upward trend in terms of occupancy. Class A properties recorded an increase of 0.06% over previous month. On a year-over-year basis Class A properties recorded a decrease of 0.01%. Class C recorded the largest increase of 0.11% over the month. Class B recorded a decrease of 0.05% over the month. The largest annual increase of 1.32% was also noted for Class C properties.
Read more...Dallas/Ft. Worth Apartment Market Update September 2013
Monday, October 14, 2013
Will CBD Investments Continue to Be the Center of Attention? via Housing Finance
Central Business District (CBD) apartment investments have comprised an increasing share of the transaction market. They’ve also had higher cap-rate compression than their suburban counterparts. The question is, if supply keeps flowing or the overall apartment market slows down, will CBDs continue to attract investors?
The share of CBD transactions has gradually increased since the end of the recession, from 13 percent in the fourth quarter of 2009 to nearly 20 percent in the second quarter of 2013, according to CoStar data.
In addition, the spread between suburban and CBD transaction cap rates has widened in the last six quarters, moving from about 60 basis points (bps) at the end of 2011 to roughly 100 bps by mid-2013. Since their peaks, CBD cap rates compressed by more than 110 bps, while suburban cap rates decreased about 85 bps.
Read more...Will CBD Investments Continue to Be the Center of Attention? - Dispositions And Transactions, Cap Rates, Local Markets - Housing Finance
The share of CBD transactions has gradually increased since the end of the recession, from 13 percent in the fourth quarter of 2009 to nearly 20 percent in the second quarter of 2013, according to CoStar data.
In addition, the spread between suburban and CBD transaction cap rates has widened in the last six quarters, moving from about 60 basis points (bps) at the end of 2011 to roughly 100 bps by mid-2013. Since their peaks, CBD cap rates compressed by more than 110 bps, while suburban cap rates decreased about 85 bps.
Read more...Will CBD Investments Continue to Be the Center of Attention? - Dispositions And Transactions, Cap Rates, Local Markets - Housing Finance
Austin multifamily 3Q 2013: Hendricks-Berkadia via Real Estate Center at Texas A&M
Inventory expanded by 1,540 new units in the last three months, according to Hendricks-Berkadia. With year-to-date deliveries at 4,250 units, this year's construction outpaced the 2,760 units delivered in all of 2012.
Leasing activity remained healthy with the net absorption of 1,690 units in third quarter 2013. Rental demand was less than the 2,143 units absorbed during 2Q 2013.
Read more...Austin multifamily 3Q 2013: Hendricks-Berkadia via Real Estate Center at Texas A&M
Leasing activity remained healthy with the net absorption of 1,690 units in third quarter 2013. Rental demand was less than the 2,143 units absorbed during 2Q 2013.
Read more...Austin multifamily 3Q 2013: Hendricks-Berkadia via Real Estate Center at Texas A&M
Friday, October 11, 2013
Do Renters Really Care if Their Building is Green? via Multifamily Executive Magazine
Green certification programs have come a long way from where they were when Carl Seville began getting involved about eight years ago.
Seville was working as a contractor when he recognized the value a green certification could add to a building.
He even worked with the Greater Atlanta Home Builders Association to help develop the EarthCraft Multifamily certification program.
Read more...Do Renters Really Care if Their Building is Green? - Green Building, Building Performance, Funding And User Fees, Green Builders, Green Building, Green Standards, Laboratory Projects, Multifamily Building, Renewable Energy, Value Engineering, Water Conservation, Air Quality, Finance, Licensing And Certification, Residential Construction - Multifamily Executive Magazine
Seville was working as a contractor when he recognized the value a green certification could add to a building.
He even worked with the Greater Atlanta Home Builders Association to help develop the EarthCraft Multifamily certification program.
Read more...Do Renters Really Care if Their Building is Green? - Green Building, Building Performance, Funding And User Fees, Green Builders, Green Building, Green Standards, Laboratory Projects, Multifamily Building, Renewable Energy, Value Engineering, Water Conservation, Air Quality, Finance, Licensing And Certification, Residential Construction - Multifamily Executive Magazine
Houston Economic Update October 2013 via Dallas Fed
The Houston Business-Cycle index slowed to a 1.1 percent growth rate in August, down from a revised 3.6 percent rate in July. The slowdown in economic activity was centered in a decline in jobs. While energy-related activity and construction and real estate have slowed in recent months, they continue to be dominant forces in the region’s economy.
Houston payroll employment fell from July to August. Declines were led by financial activities and government, but construction and mining also fell. Offsetting some of this weakness, jobs grew in leisure and hospitality; trade, transportation and utilities; and professional and business services. During the three months ending in August, employment grew at an annualized rate of 0.7 percent, down from 1.1 percent in the prior three-month period ending in May.
Read more...Houston Economic Update October 2013 via Dallas Fed
Houston payroll employment fell from July to August. Declines were led by financial activities and government, but construction and mining also fell. Offsetting some of this weakness, jobs grew in leisure and hospitality; trade, transportation and utilities; and professional and business services. During the three months ending in August, employment grew at an annualized rate of 0.7 percent, down from 1.1 percent in the prior three-month period ending in May.
Read more...Houston Economic Update October 2013 via Dallas Fed
Corpus Christi apartments 3Q 2013: Hendricks-Berkadia via Real Estate Center at Texas A&M
Builders added 40 units in the third quarter, the first this year, while construction continued on 990 units in the metropolitan area, according to the third quarter 2013 report from Hendricks-Berkadia.
Rental demand remained positive with the net absorption of 60 units in 3Q 2013. The leasing activity slowed from the 110 units absorbed in the previous quarter.
Average asking rent ascended 2.6 percent to $872 per month in September from June. Asking rents in 3Q 2013 were up 7.3 percent from 12 months ago.
Read more...Corpus Christi apartments 3Q 2013: Hendricks-Berkadia via Real Estate Center at Texas A&M
Rental demand remained positive with the net absorption of 60 units in 3Q 2013. The leasing activity slowed from the 110 units absorbed in the previous quarter.
Average asking rent ascended 2.6 percent to $872 per month in September from June. Asking rents in 3Q 2013 were up 7.3 percent from 12 months ago.
Read more...Corpus Christi apartments 3Q 2013: Hendricks-Berkadia via Real Estate Center at Texas A&M
Tuesday, October 8, 2013
New Supply Levels Surge in Dallas – and So Do Occupancy Rates via Property Management Insider
New apartment supply is hitting the Dallas market in big numbers again. But so far, apartment demand is more than keeping pace. Occupancy rates surged to a 12-year high in Big D thanks to brisk employment growth.
Dallas leads the nation in new apartment supply over the past year, and yet apartment occupancy is at a 12-year high. How did that happen?
Read more...New Supply Levels Surge in Dallas – and So Do Occupancy Rates | Property Management Insider
Dallas leads the nation in new apartment supply over the past year, and yet apartment occupancy is at a 12-year high. How did that happen?
Read more...New Supply Levels Surge in Dallas – and So Do Occupancy Rates | Property Management Insider
Monday, October 7, 2013
Houston apartment vacancies continue to drop via Real Estate Center at Texas A&M
Apartment vacancies in Houston, at 6.4 percent through third quarter 2013, are down 1.2 percent from 3Q 2012, the fifth-largest drop among major markets in the nation, according to Reis Inc.
However, Houston's vacancy rate of 6.4 percent still remains relatively high, ranking 75th out of 79 markets. By comparison, vacancy in Austin through 3Q 2013 was 4.4 percent (48th); 5 percent in Dallas (59th); and 5.6 percent in San Antonio (70th).
Meantime, rents in Houston continue to rise, up 4.4 percent from a year ago, the sixth-largest increase among major markets. Average rent in Houston through 3Q 2013 was $810.72.
Read more...Houston apartment vacancies continue to drop via Real Estate Center at Texas A&M
However, Houston's vacancy rate of 6.4 percent still remains relatively high, ranking 75th out of 79 markets. By comparison, vacancy in Austin through 3Q 2013 was 4.4 percent (48th); 5 percent in Dallas (59th); and 5.6 percent in San Antonio (70th).
Meantime, rents in Houston continue to rise, up 4.4 percent from a year ago, the sixth-largest increase among major markets. Average rent in Houston through 3Q 2013 was $810.72.
Read more...Houston apartment vacancies continue to drop via Real Estate Center at Texas A&M
Wednesday, October 2, 2013
Pimco's Gross: Low interest rates may persist for decades via Reuters
Bill Gross, manager of The Pimco Total Return Fund, said on Wednesday that the global economy may be facing low policy rates for decades.
Gross wrote in his October investment outlook that investors should "bet against" expectations that the federal funds rate - the U.S. Federal Reserve's benchmark short-term borrowing rate - will rise by one percentage point by late 2015.
"The U.S. (and global economy) may have to get used to financially repressive - and therefore low policy rates - for decades to come," wrote Gross, a co-founder and co-chief investment officer at Pimco, whose flagship Pimco Total Return Fund has roughly $250 billion in assets.
Read more...Pimco's Gross: Low interest rates may persist for decades | Reuters
Gross wrote in his October investment outlook that investors should "bet against" expectations that the federal funds rate - the U.S. Federal Reserve's benchmark short-term borrowing rate - will rise by one percentage point by late 2015.
"The U.S. (and global economy) may have to get used to financially repressive - and therefore low policy rates - for decades to come," wrote Gross, a co-founder and co-chief investment officer at Pimco, whose flagship Pimco Total Return Fund has roughly $250 billion in assets.
Read more...Pimco's Gross: Low interest rates may persist for decades | Reuters
U.S. Apartment Market Sustains Strong Performance During Q3 2013 via Property Management Insider
Apartment occupancy remained tight during the third quarter while rents continued to climb at a pace above the historical norm giving the U.S. apartment market another strong performance during the third quarter of 2013, according to MPF Research, the Carrollton-based apartment market intelligence firm.
The healthy quarterly performance reflected strong leasing activity at new developments coming on-stream plus solid pricing power at most already-full existing properties.
In this exclusive video report, Greg Willett and Jay Parsons from MPF Research highlight the nation’s latest apartment occupancy and rent growth statistics as well as other key performance indicators.
Read more...U.S. Apartment Market Sustains Strong Performance During Q3 2013 | Property Management Insider
The healthy quarterly performance reflected strong leasing activity at new developments coming on-stream plus solid pricing power at most already-full existing properties.
In this exclusive video report, Greg Willett and Jay Parsons from MPF Research highlight the nation’s latest apartment occupancy and rent growth statistics as well as other key performance indicators.
Read more...U.S. Apartment Market Sustains Strong Performance During Q3 2013 | Property Management Insider
Apt. Development Seen Tapering in 2014 via GlobeSt.com
Notwithstanding a wave of new units coming on line by year’s end, the pace of multifamily development is moderating in the near term. So says locally based Axiometrics, which also noted Tuesday that rent growth nationally moderated slightly during the third quarter.
With the quarter winding down, Axiometrics said in a report late last week, “concern remains about which metropolitan statistical areas (MSAs) will become oversupplied due to new deliveries increasing more than demand or job growth. However, by the latter half of 2013, development of new apartment properties is expected to spread more broadly and to encompass a more generalized suburban sector.” For the full year, Axiometrics is forecasting delivery of 180,723 units across 192 MSAs, up from 86,554 the year before.
Read more...Apt. Development Seen Tapering in 2014 - Daily News Article - GlobeSt.com
With the quarter winding down, Axiometrics said in a report late last week, “concern remains about which metropolitan statistical areas (MSAs) will become oversupplied due to new deliveries increasing more than demand or job growth. However, by the latter half of 2013, development of new apartment properties is expected to spread more broadly and to encompass a more generalized suburban sector.” For the full year, Axiometrics is forecasting delivery of 180,723 units across 192 MSAs, up from 86,554 the year before.
Read more...Apt. Development Seen Tapering in 2014 - Daily News Article - GlobeSt.com
Tuesday, October 1, 2013
Report: Rising Caps Will Meet Stronger CRE via GlobeSt.com
Rising interest rates, which the capital markets in general and the CRE industry in particular have been watching anxiously over the past few months, most likely will happen as the economy improves and the Federal Reserve begins tapering off its monthly $85-billion bond purchases. Yet in the long term the improving economy will boost CRE performance even as cap rates rise, says Marcus & Millichap in its fall capital markets report, which GlobeSt.com obtained exclusively in advance of its publication.
The tapering of the Fed’s quantitative easing should mark a return to a more normal credit environment, wherein interest rates fluctuate naturally in response to economic and capital market drivers more than Fed intervention,” according to the report, written by Hessam Nadji, SVP and managing director with Marcus & Millichap Real Estate Investment Services, and William Hughes, director of Marcus & Millichap Capital Corp. “Many investors remain concerned, however, by the premise that a stronger economy, coinciding with withdrawal of Fed monetary support, will exert upward pressure on interest rates.”
Read more...Report: Rising Caps Will Meet Stronger CRE - Daily News Article - GlobeSt.com
The tapering of the Fed’s quantitative easing should mark a return to a more normal credit environment, wherein interest rates fluctuate naturally in response to economic and capital market drivers more than Fed intervention,” according to the report, written by Hessam Nadji, SVP and managing director with Marcus & Millichap Real Estate Investment Services, and William Hughes, director of Marcus & Millichap Capital Corp. “Many investors remain concerned, however, by the premise that a stronger economy, coinciding with withdrawal of Fed monetary support, will exert upward pressure on interest rates.”
Read more...Report: Rising Caps Will Meet Stronger CRE - Daily News Article - GlobeSt.com
The Other Multifamily via Axiometrics
The following charts show annual building permits issued for the three main categories of residential units: single-family, 5+ multifamily, and 2-4-unit multifamily. This latter category of duplexes, triplexes, and fourplexes is often overlooked in discussions about the health and direction of the national residential market. Nationally, their numbers are relatively small and in the charts below, they had to be scaled on a separate axis in order to make comparisons of their trends versus single-family and 5+ unit trends. Little to no data is available on average rents or occupancy for these rental units due to their small numbers spread out throughout the country and the diversity of ownership.
Read more....The Other Multifamily
Read more....The Other Multifamily
Renters May Be Stickier Than We Thought via CoStar Group
While it may be a popular belief that rising rents and low interest rates have chased tenants away from institutional apartments and into more affordable rental alternatives or homeownership, the data shows this to be more myth than reality, at least for now.
Along with vacancy, turnover is another way to analyze current market conditions. If a tenant leaves on the first of the month and the apartment is filled 25 days later, the month-end vacancy rate does not change. However, turnover will capture this move-out-indicating that the initial renter may now be at a competing property or has become a homeowner.
Read more...Renters May Be Stickier Than We Thought - CoStar Group
Along with vacancy, turnover is another way to analyze current market conditions. If a tenant leaves on the first of the month and the apartment is filled 25 days later, the month-end vacancy rate does not change. However, turnover will capture this move-out-indicating that the initial renter may now be at a competing property or has become a homeowner.
Read more...Renters May Be Stickier Than We Thought - CoStar Group
Reis: Apartment Vacancy Rate declined to 4.2% in Q3 2013 via Calculated Risk
Reis reported that the apartment vacancy rate declined in Q3 to 4.2% from 4.3% in Q2. In Q3 2012 (a year ago) the vacancy rate was at 4.7%, and the rate peaked at 8.0% at the end of 2009.
Some data and comments from Reis Senior Economist Ryan Severino:
Vacancy declined by 10 basis points during third quarter to 4.2%. Although vacancy compression has clearly slowed over the last few years, the decline of 10 basis points is an improvement versus last quarter when vacancy was unchanged.
Read more...Calculated Risk: Reis: Apartment Vacancy Rate declined to 4.2% in Q3 2013
Some data and comments from Reis Senior Economist Ryan Severino:
Vacancy declined by 10 basis points during third quarter to 4.2%. Although vacancy compression has clearly slowed over the last few years, the decline of 10 basis points is an improvement versus last quarter when vacancy was unchanged.
Read more...Calculated Risk: Reis: Apartment Vacancy Rate declined to 4.2% in Q3 2013
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