Friday, February 28, 2014

Taking a Look at the Labor Force Participation Rate via the Blog of the Real Estate Center

As usual, there is always some new “crisis” in the country. In recent months, the concern is the labor force participation rate. This is the percentage of Americans who have jobs. Keep in mind that this measures only people who earn an income from a job that gets reported to or collected by government agencies.

Listening to the news channels, the decline in the participation rate is viewed as an indication that our economy is so weak that people can’t find jobs and are just dropping out of the market altogether. The reporting makes me feel that there must be something terribly wrong to make people leave the workplace.

Read more...Taking a Look at the Labor Force Participation Rate | the Blog of the Real Estate Center

What Lies Ahead for the Multifamily Market? via Multi-Housing News Online

After several years of white-hot performance, the nation’s multifamily sector is beginning to post more normalized numbers. Rents and occupancy continued to rise throughout 2013, but rates of growth were a bit lower compared to the previous year. Still, make no mistake about it: with demand from Millennials and Echo Boomers expected to remain strong, 2014 should be another good year for the multifamily market.

On a recent episode of the “Commercial Real Estate Show,” my guests and I discussed the current and future performance of the multifamily sector.

Rents, Occupancy on the Rise

Read more...What Lies Ahead for the Multifamily Market? | Multi-Housing News Online

Thursday, February 27, 2014

Property Managers Can Help Grow NOI, Too via

NOI growth is not just within landlords’ purview. Property managers can also contribute to this important real estate metric and help grow their clients’ bottom line, says Joe Greenblatt, San Diego-based president of IREM.

Greenblatt tells that when property managers, particularly in the multifamily sector, team with owners to gain maximum operating efficiency from their properties, they can benefit from these gains. “One of the keys is the recognition that this is an income-driven business and that real estate managers now have access to the understanding of real estate investment metrics that have guided asset managers for some time. There’s a host of best practices that cascade from that core understanding.”

Read more...Property Managers Can Help Grow NOI, Too - Daily News Article -

Wednesday, February 26, 2014

Multihousing Investors Plan to Expand Portfolios via CCIM Institute

Forty-six percent of multihousing investors plan to grow their portfolios in 2014, while just 18 percent plan to reduce holdings this year, according to a recent Beech Street Capital survey.

Of those surveyed, 52 percent expect acquisition financing to be most critical to their business through year-end, while 34 percent expressed concerns about the impact rising interest rates may have on their prospects for growth. Other concerns respondents cited include overbuilding of apartment units (24 percent), the pace of capitalization rate expansion (11 percent), access to financing (10 percent), and global uncertainty (10 percent).

Read more...Multihousing Investors Plan to Expand Portfolios | CCIM Institute

Oversupply is Just Around the Corner via Axiometrics

Right around the time during which apartment developers began delivering more units to meet apparently unending demand, the concern was whether the excess supply would result in too much supply. According to Axiometrics Inc.’s just-released January 2014 Apartment Market Summary, that oversupply could be starting to occur.

The report notes that increasing supply has caused reduction in apartment occupancy and effective rent growth, especially in urban core areas. “As 2014 begins, concern remains about which Metropolitan Statistical Areas (MSAs) will become oversupplied as new supply outpaces demand,” Axiometrics stated in the introduction to the report.

The fact that the effective growth rate was 2.8% in January and the occupancy rate was 94.1% shows that the apartment market is not growing at the rate it had been even a year ago.

Read more...Oversupply is Just Around the Corner

Monday, February 24, 2014

San Antonio: Lagging, But for How Long? via Axiometrics

The four major Metropolitan Statistical Areas (MSAs) of Texas are Austin, Dallas, Houston and San Antonio. The first three MSAs have done quite well in areas ranging from job growth, to unemployment, to housing starts and sales, to apartment rentals.

That’s not the case in the San Antonio MSA, though.

The Alamo City, its suburbs and neighboring New Braunfels (which make up the total MSA) have arguably been the weakest from an economic growth perspective. Job growth in 2013 was 1.4% (down from the 2.3% reported in 2012). According to the Bureau of Labor Statistics, the unemployment rate dropped only slightly year over year. In December 2012, the unemployment rate was 5.7%. One year later, preliminary statistics report unemployment at 5.3%.

Read more...San Antonio: Lagging, But for How Long?

Texas Manufacturing Picks Up Again but Less Optimism in Outlook via Dallas Fed

Texas factory activity increased for the tenth month in a row in February, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, rose from 7.1 to 10.8, indicating output grew at a slightly stronger pace than in January.

Other measures of current manufacturing activity also reflected a pick up. The capacity utilization index edged up to 9.1, with a quarter of manufacturers noting an increase. The shipments index rose again in February, coming in at 13.3. The new orders index continued to indicate demand growth and was 9.5, down from 14.4 in January but above the levels seen toward the end of last year.

Read more...Texas Manufacturing Picks Up Again but Less Optimism in Outlook - Dallas Fed

Commercial Real Estate Outlook Positive but Moderating via

Market fundamentals in commercial real estate continue to improve but at a slower pace, according to the National Association of Realtors® quarterly commercial real estate forecast.

Lawrence Yun, NAR chief economist, said fundamentals are still on an uptrend. “Growth in commercial real estate sectors continues at a moderate pace from a very slow pace of absorption, despite job additions to the economy. Companies appear hesitant to add new space,” he said.

Read more...Commercial Real Estate Outlook Positive but Moderating |

Battle Test via Multifamily Executive Magazine

As rent growth declines, more new units come on line, and concessions return in some markets, operators will need to differentiate themselves to win renters amid fierce competition this year.

As CEO of Riverstone Residential Group, Terry Danner isn’t able to get out to the company’s properties as often as he’d like. So, he surveys site-level employees for their opinions on trends in the industry to get a grasp on what’s happening in all the places he can’t be.

“I have 120 regional managers. They all have different opinions,” he says. “You would think the industry would be homogenous, but they all think differently and they all run their properties differently.”

The Dallas-based firm’s most recent questionnaire, which will inform its strategy for the upcoming leasing season, focused on the opportunities and challenges leasing consultants will face this coming spring.

Read more...Battle Test - Multifamily Executive Magazine

Friday, February 21, 2014

Resident Retention: The Importance of Resident Comfort in the Renewal Decision via Property Management Insider

When looking at the top reasons a resident chooses not to renew their lease, four of the top 10 reasons have to do with “creature comforts.” Besides the usual suspects related to finances or relocation, it’s remarkable that a large portion of the residents who are ready to call it quits could be saved with a small investment by the property management team.

Here are the top “creature comforts” that can make or break the renewal decision:

Read more...Resident Retention: The Importance of Resident Comfort in the Renewal Decision | Property Management Insider

Brisk Building Pace May Dent Apartment Market Momentum via Yahoo Finance

Multifamily housing analysts remain upbeat about growth prospects for the U.S. apartment market, despite signs that demand will moderate in coming months amid a rapid rise in inventory.

For now, demand for apartments is still strong four years into the sector's recovery, especially in large urban markets such as New York, Southern California and the San Francisco Bay Area.

The industry continues to benefit from an improving economy and job market, as well as newly completed Class A properties with higher-than-average rents.

Read more...Brisk Building Pace May Dent Apartment Market Momentum - Yahoo Finance

ALN Monthly Newsletter February 2014 via ALN Apartment Data

ALN Data just released their January 2014 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 February 2014 via ALN Apartment Data

Year-End Sales Trends Continue Commercial Real Estate Pricing Gains in 2013 via CoStar Group

In the latest CoStar Commercial Repeat Sale Indices (CCRSI) analyzing property sales through December 2013, found that the recovery in U.S. commercial real estate markets advanced in 2013 as broad gains in net absorption, rents, sales activity and pricing extended across markets and property types during the year.

The upbeat performance was driven by relatively steady economic growth and job gains of 2.3 million or 1.7% in 2013. During the year, expanding businesses accounted for the highest aggregate net absorption across all four major commercial property types since the recovery began.

Read more...Year-End Sales Trends Continue Commercial Real Estate Pricing Gains in 2013 - CoStar Group

Urban Shift Means Growth Industries via

As reverse migration from suburbs back into cities continues, it stands to reason that the multifamily construction sector will reap the benefits. However, a report from IBISWorld, based here, says that it’s not only rental and condominium apartment builders that will gain from the urbanization trend over the next five years.

“As the US economy picks up during the next five years, both the rate of urbanization across the country and the per capita income of urban residents are expected to accelerate,” according to the IBISWorld report, titled “Moving on up: Top industries to benefit from urbanization.” Along with apartment construction, these shifts will lead to growing demand for testing and educational support, single location full-service restaurants, apartment rental, street vendors and public transportation.

Read more...Urban Shift Means Growth Industries - Daily News Article -

Thursday, February 20, 2014

Will Demand for Apartments Remain High in Houston? via Axiometrics

It seems as though every time we turn around, another apartment building is under construction in the Houston area. That anecdotal comment is backed with data—according to Axiometrics’ apartment market research, the MSA is forecast to receive an identified 15,219 new units in 2014 (this takes into account units that are already under construction, meaning this number could actually increase as more planned projects break ground). This total is close to twice as many units that were delivered in 2013 (7,692) and more than three times the number delivered in 2012 (4,391).

Even with the new supply coming online, Houston MSA’s annual effective rent growth has trended way above the national average. In January 2014, annual effective rent growth was 5.02%, while the national average was 2.78%. Though the MSA’s effective rent growth was down year over year from the 6.07% reported during 1Q13, it still increased from the 4.87% reported in 4Q13.

Read more...Will Demand for Apartments Remain High in Houston?

Dallas-Fort Worth Multifamily Growth Poised to Continue in 2014 via Multi-Housing News Online

The Dallas/Fort Worth multifamily market continued to grow in the fourth quarter of 2013. Asking rents edged up and the vacancy rates declined, creating a favorable context for multifamily to thrive. Effective rents climbed 4.1 percent to $861 per month in 2013, building on a 3.5 percent gain during the previous year, according to Marcus & Millichap’s Fourth Quarter Apartment Market Report.

In the Dallas half of the Metroplex, apartment vacancy plunged 80 basis points during the past year to 5.3 percent in the third quarter. Fort Worth followed a similar trend yet with more modest gains as vacancy retreated 20 basis points to 6.4 percent.

Read more...Dallas-Fort Worth Multifamily Growth Poised to Continue in 2014 | Multi-Housing News Online

Top 10 Metros With Most Units Under Construction via Multifamily Executive Magazine

Texas markets will be ripe with new units as three cities lead the country in most units under construction.

However, the Washington, D.C. metro area is at the top of the list with more than 23,700 units under construction, according to the list put together by REIS, Peirce Eislen and Jones Lang LaSalle.

Read more...Top 10 Metros With Most Units Under Construction - Multifamily Executive Magazine

By Request: Repeat U.S. Population by Age and Distribution, 1900 through 2060 via Calculated Risk

Here are animations of the U.S population by age and distribution, from 1900 through 2060. The population data and estimates are from the Census Bureau (actual through 2010 and projections through 2060).

Also - by request - I've slowed the animation down to 2 seconds per slide (and included a slower distribution animation below).

Note: For distribution, here are the same graphs using a slider (the user can look at individual slides).

There are many interesting points - the Depression baby bust, the baby boom, the 2nd smaller baby bust following the baby boom, the "echo" boom" and more. What jumps out at me are the improvements in health care. And also that the largest cohorts will all soon be under 40. Heck, in the last frame (2060), any remaining Boomers will be in those small (but growing) 95 to 99, and 100+ cohorts.

Read more...Calculated Risk: By Request: Repeat U.S. Population by Age and Distribution, 1900 through 2060

Wednesday, February 19, 2014

Dallas/Fort Worth? Or Dallas AND Fort Worth? via Axiometrics

In most people’s minds, the cities of Dallas and Fort Worth are inseparable, even though they’re 60 miles apart and are the seats of two different counties (Dallas County and Tarrant County, respectively). Travelers regularly fly into—and out of—Dallas-Fort Worth International Airport. Both cities, and their suburbs, are lumped together with the appellation of “DFW Metroplex” or simply, “Metroplex.” Thanks to Interstates 20 and 30, not to mention rail transportation courtesy of the Trinity Railway Express, travel between these two cities seats is fairly easy.

Though linked together through infrastructure and designation, these two cities have different economies; Dallas—Big D—is more oriented toward professional services, whereas Fort Worth—Cowtown—has more of a manufacturing and distribution base. It’s these differences that make it logical for the Office of Management and Budget to be split the cities and their suburbs into two Metropolitan Statistical Areas (MSAs): Dallas-Plano-Irving MSA and Fort Worth-Arlington MSA.

Read more...Dallas/Fort Worth? Or Dallas AND Fort Worth?

Off Market Deals Prevalent in Tight Dallas Multifamily Market via

Multifamily supply in the Dallas market is tight forcing investors to shop for under marketed and off market assets.

The Fortis Company, based in Shreveport, LA purchased the Mountain Ridge apartments in South Dallas for an undisclosed price. The 236-unit complex was presented only to well-qualified buyers and closed quickly in the active market.

Read more...Off Market Deals Prevalent in Tight Dallas Multifamily Market - Daily News Article -

Dallas ranks as fourth-fastest-growing metro area in U.S.via Dallas Business Journal

Dallas is the fourth-fastest growing city in the United States, according to Forbes list of America’s 20 Fastest-Growing Cities 2014.

That should come as no surprise to those of us who live in the area and see the steady stream of new residents and businesses and growth in many of the long-standing businesses that call DFW home.

Read more...Dallas ranks as fourth-fastest-growing metro area in U.S. - Dallas Business Journal

Tuesday, February 18, 2014

ALN Houston apartments Jan. 2014 via Real Estate Center at Texas A&M

ALN Apartment Data released January 2014 apartment occupancy and effective rent data for apartments in the Houston market.

Read more...ALN Houston apartments Jan. 2014 via Real Estate Center at Texas A&M

4 Easy Water Conservation Tips for Apartment Communities via Property Management Insider

With rising water rates, persistent drought conditions, and a growing U.S. population, water conservation is becoming more important every day. Water and sewerage costs have doubled in one of every four municipalities over the last 12 years, which can hurt property managers today and in the future.

Did you know that March 2013 was the 5th driest year nationally since 1895? According to the National Oceanic and Atmospheric Administration (NOAA), 50 percent of the U.S. continues to fight drought conditions. While conditions are improving, about seven percent of the contiguous U.S. was experiencing severe to extreme drought as of the end of September 2013. At the same time, other utility costs have increased faster than inflation, creating a need for conservation and improving efficiencies.

Read more...4 Easy Water Conservation Tips for Apartment Communities | Property Management Insider

Dallas MSA: A Tale of Supply and Demand via Axiometrics

Just about anyone who knows basic economics understands the concept of supply and demand—if supply of a certain product or service outstrips demand, prices decrease. And the opposite is true; if demand is larger than supply, prices go up. According to the law of supply and demand, a desirable state is that of equilibrium, in which supply and demand are equal, and the price charged is what the market is willing to bear.

The law of supply and demand operates in a similar fashion in the apartment sector as well, but is somewhat more complex. To explain this in more detail, we’ll use the Dallas-Plano-Irving Metropolitan Division (consisting of Collin, Dallas, Denton, Ellis, Hunt, Kaufman and Rockwall Counties) to explain supply and demand, apartment-style.

Read more...Dallas MSA: A Tale of Supply and Demand

Friday, February 14, 2014

Austin Still Going Strong via Axiometrics

The American Business Journal’s January 2014 “On Numbers Economic Index” had some not-so-great news for Austin in January 2014. Specifically, the index reported that Oklahoma City overtook Texas’ capitol city for the number-one spot.

This index, which measures the economic vitality of 102 metros with populations of more than 500,000 examines factors such as job creation, unemployment rates, earnings, home values and retail employment on a monthly basis to determine top cities. For much of 2013, Austin held the top spot.

But Austin’s demotion to second place doesn’t mean that the MSA’s economic growth is going away any time soon. As Austin’s workforce and population have expanded during the past decade, jobs and employment have expanded with it.

Read more...Austin Still Going Strong

Houston Economic Update February 2014 via Dallas Fed

The Houston Business Cycle Index surged 6.7 percent in December after rising a revised 2.9 percent in November. A solid jobs report and ongoing strength in housing and construction continue to signal a robust economy, although import and export growth in the region have flattened out. Overall, the outlook for Houston remains healthy.

December employment growth was a vigorous 4.2 percent overall. Leisure and hospitality posted the fastest growth rate, while financial activities had a sharply negative month. Education and health accelerated in December due to strong gains in health services.

Read more...Houston Economic Update February 2014 via Dallas Fed

Not all Texans Are the Same (At Least, the MSAs Aren’t) via Axiometrics

There’s little doubt that the Texas economy keeps humming along. It’s been doing very well since the Great Recession, and has earned the admiration of various entities from Forbes, to USA Today, to the U.S. Conference of Mayors.

Closer to home, the Dallas Federal Reserve also has nice things to say about Texas’ economy. Specifically:

Payroll employment in the Lone Star State grew annually by 2.3% in 4Q13, while the Texas Business Outlook Survey readings remained positive. Texas Manufacturing Outlook Survey (TMOS), Texas Service Sector Outlook Survey (TSSOS) and Texas Retail Outlook Survey (TROS) all advanced in January 2014 from December 2013 levels, suggesting growth ahead.

Read more...Not all Texans Are the Same (At Least, the MSAs Aren’t)

Wednesday, February 12, 2014

Transaction Volume of Multifamily Properties are Rising, Apartment Sales Falling via Real Capital Analytics

National Real Estate Investor (NREI) reports: While transaction volumes for U.S. multifamily properties continue to be high and rising, apartment properties are not seeing the same trend in their price values, a phenomenon that has caused REITs to trade apartment properties as part of larger portfolios or through mergers. Sales of individual apartment properties fell in 2013, dropping 13% in Q4’13, according to data from global commercial research firm Real Capital Analytics (RCA).
“I think you’re going to see them becoming more neutral or even becoming net sellers,” says Dan Fasulo, Managing Director at RCA.

Read more...Transaction Volume of Multifamily Properties are Rising, Apartment Sales Falling | Real Capital Analytics

ALN Dallas-Fort Worth apartments Jan. 2014 via Real Estate Center at Texas A&M

ALN Apartment Data has released January 2014 apartment occupancy and effective rent data for apartments in the DFW market.

Read more...ALN Dallas-Fort Worth apartments Jan. 2014 via Real Estate Center at Texas A&M

Monday, February 10, 2014

Q4 2013 Apartment Market Trends via ReisReports

Demand for apartments remains strong four years after the recovery began, even as construction activity has gradually been increasing. Not even the seasonal weakness normally observed during the fourth quarters of calendar years had much if any impact on the market dynamics.

Vacancy declined by 10 basis points during fourth quarter to 4.1%, in line with last quarter’s 10 basis point decrease. Over the last year the national vacancy rate fell by 50 basis points. The national vacancy rate now stands 390 basis points below the cyclical peak of 8.0%, recorded right after the recession ended in late 2009.

Read more...Q4 2013 Apartment Market Trends | ReisReports

Moderate Employment Growth Anticipated — Maybe via Axiometrics

Axiometrics is in the process of sending out its forecast newsletter, which focuses on employment, jobs and housing.

In 2013, employment gains were moderate at 1.7% annual growth. This was slightly higher than the 1.6% reported in 2012. The average employment gain for 2012 and 2013 was 2.2 million, though the jobs created tended toward lower-paid and temporary positions. Until higher-paying jobs are filled, discretionary income growth will remain tight and continue to be a drag on the economy.

Axiometrics expects employment gains and growth to remain at similar levels for the next three to five years. Employment gains are forecast to average close to 2.3 million annually from 2014 to 2018, with annual growth averaging close to 1.65% during the same period.

Read more...Moderate Employment Growth Anticipated — Maybe

Rent Growth Levels Regain Momentum (for Now) in Austin [Video] via Property Management Insider

After posting brisk rent growth in 2011, Austin saw rent growth levels start to cool moderately in 2012 as construction ramped up. That pattern was expected to continue into 2013 as even more new product broke ground. But instead, rent growth levels actually picked up again. It’ll be much tougher to sustain that performance in 2014, when new supply should hit peak levels.

Austin Performance Highlights Q4 2013
The Austin apartment market has been one of the trendy markets among investors and developers. That status led to a very quick ramp up in apartment construction coming out of the recession. In fact, construction levels are back around peak levels set prior to the recession. Austin saw about 14,000 new units under way at the end of 2013 and of those, nearly 13,000 are scheduled to complete in 2014.

And that’s in addition to the 5,500 units completed in 2013.

Watch Video...Rent Growth Levels Regain Momentum (for Now) in Austin [Video] | Property Management Insider

Friday, February 7, 2014

Going Green, Apartment Style via Axiometrics

It seems as though when it comes to the words “apartment rentals,” the word “millennial” isn’t too far behind. We’ve explored this connection in previous articles – young adults are more inclined to rent apartments than to buy homes. Furthermore, young adults are more interested in living in urban locations (as opposed to the suburbs) – and they’re more interested in sustainability issues as well.

Along those lines, Axiometrics’ client Apartment Guide recently put together the top ten metropolitan areas boasting green-friendly apartments. In their methodology, Apartment Guide researchers examined data among cities with the most “green” communities. “Green,” in this case, focused on offerings and certifications including Leadership in Environmental and Energy Design (LEED) certification, energy efficient windows, lighting and plumbing, and drought-resistant landscaping.

With these parameters in mind, Apartment Guide’s top ten metro list for green-friendly apartments is:

Read more...Going Green, Apartment Style

The Missing Millennials via The Balance Sheet - Yardi Corporate Blog

Millennials who flocked to their parents’ nests during the recession are a huge source of ushutterstock_13824976ntapped revenue for the apartment industry. The trick, however, is getting them to leave a place that is so cozy, convenient, and inexpensive.

Millennials, or Generation Y, already make up a notable portion of renters. Yet there is another wave of them, approximately 2.4 million strong, that is dancing on the peripherals of the rental market. Developers are pushing forward with construction plans, optimistically expecting that these young adults will soon form their own households. There are quite a few challenges that may further postpone, if not deter, the young adults’ entrance to the rental market.

Read more...The Missing Millennials | The Balance Sheet - Yardi Corporate Blog

The Overbuilding Watch List: Texas and Downtown Seattle Should Proceed with Caution While Multifamily Gears up for Big 2014 via Realty News Report

The National Association of Home Builders is forecasting an increase in multifamily construction in 2014, but a few hot markets, such as Texas, need to be monitored to make sure an oversupply is not developed.

“The multifamily market has come a long way since the collapse,” said panelist Guy K. Hays, president of Legacy Partners Residential Inc. in Foster City, Calif. “Overall, supply and demand are in balance, and in most markets there is a need for the continued production of new units.”

Hays, a panelist speaking at the NAHB’s International Builders Show in Las Vegas, said financing for new apartment projects in Houston has become more difficult to obtain recently because lenders are aware that the Texas city has seen a large number of new units open in the last two years. Also, downtown Seattle should be on the overbuilding watch-list, Hays said, although the industry is a long way from a overbuilding problem situation anywhere in the nation at this point.

Read more...The Overbuilding Watch List: Texas and Downtown Seattle Should Proceed with Caution While Multifamily Gears up for Big 2014 | Realty News Report

Texas Economic Indicators February 2014 via Dallas Fed

The Texas economy continues to expand, with employment growing at a 2.3 percent annual rate in December. Texas existing-home sales and housing starts increased in December, while single-family construction permits declined. Texas exports edged up in November. Manufacturing activity increased for the ninth month in a row in January, according to the Texas Manufacturing Outlook Survey.

Texas gained 21,400 jobs in December after adding 16,100 jobs in November. Texas employment stands at 11.31 million, according to the Bureau of Labor Statistics’ payroll survey.

The Texas unemployment rate declined to 6 percent in December from 6.1 percent in November. The Texas rate remains lower than the U.S. rate, which was 6.7 percent in December.

Read more...Texas Economic Indicators February 2014 via Dallas Fed

Thursday, February 6, 2014

Investors 'Optimistic' About U.S. Real Estate Markets via WORLD PROPERTY CHANNEL

Investors are more optimistic in U.S. commercial real estate, citing 2014 as the year the market "recovers from the recovery," with space market fundamentals and not capital driving the market, according to a new report.

The new Emerging Trends in Real Estate 2014 report, co-published by the PricewaterhouseCooopers US and the Urban Land Institute found investors are bypassing core markets and entering secondary markets in search of higher yields.

"Core was king three years ago," Dean Schwanke, senior vice president, ULI, said at an event this week hosted in Miami by ULI Southeast Florida/Caribbean. "Now the strategy preferred is to create value, not just buy properties."

Read more...Investors 'Optimistic' About U.S. Real Estate Markets - WORLD PROPERTY CHANNEL Global News Center

Keep the Keys: Secrets to Scoring Resident Renewals via Multifamily Executive Magazine

Dan Haefner believes the key to future success can be inspired by his past.

Haefner, who serves as president and COO of CFLane, can remember renewing the lease on his first apartment in Menlo Park, Calif. more than 30 years ago.

“For me, it was really about convenience, cost and location,” he says.

Renewals are a hot topic of conversation for Haefner and the team at the Atlanta-based management firm this winter because retention will be the name of the game in this upcoming leasing season.

Competition is expected to heat up as more than 240,300 new apartments are slated to be delivered this year, according to Dallas-based research firm Axiometrics. And that gives renters many more options. In fact, resident renewal intent dropped from 65 percent in the second quarter of 2010 to 54.9 percent in the last quarter of 2013, according to a recent NMHC survey conducted by Kingsley Associates.

Read more...Keep the Keys: Secrets to Scoring Resident Renewals - Multifamily Executive Magazine

Demand for Multifamily Housing Will Continue to Rise in 2014 According to NAHB Chief Economist via

Strong demand for apartments will increase over the next several years, said panelists during a press conference at the National Association of Home Builders (NAHB) International Builders’ Show (IBS) in Las Vegas. And while multifamily construction continues to be strong, NAHB does expect the speed to decrease as sustainable levels are reached in 2015 or 2016.

“The multifamily market has rebounded significantly from its trough in 2009 at 82,000 multifamily housing starts to 340,000 in 2013,” said NAHB Chief Economist David Crowe. “NAHB is forecasting 363,000 multifamily housing starts in 2015, which is above the previous longer term average of 340,000 as more young adults prefer renting.”

Read more...Demand for Multifamily Housing Will Continue to Rise in 2014 According to NAHB Chief Economist - Multifamily News Headlines – Breaking News, Stories, Top Headlines ::

Wednesday, February 5, 2014

CRE Industry Faces Dramatic Changes in Multifamily Supply, Financing Environment via CoStar Group

The U.S. apartment market continued to see robust growth in 2013, but investors are keeping a wary eye on looming changes going into 2014, including the impact from rising supply, rising interest rates and the prospects of restructuring the nation’s two biggest government-sponsored enterprises (GSE’s) Fannie Mae and Freddie Mac.

For the top 54 U.S. metros, CoStar Group forecasts more than 240,000 new multifamily units will be added in 2014, and a combined nearly 350,000 units in 2015 and 2016. Those projections are on top of the more than 200,000 new apartment units developers added between 2012 and 2013.

Read more...CRE Industry Faces Dramatic Changes in Multifamily Supply, Financing Environment - CoStar Group

5 Steps to Successful Multifamily Energy Management Projects via Property Management Insider

Locked away in the nation’s multifamily buildings are billions of dollars of energy savings potential. According to the National Academy of Engineering, 40 percent of the United States’ total energy is consumed by 81 million single-family houses, 25 million multifamily residences, seven million mobile homes and 75 billion square feet of commercial floor space.

And while energy usage stats can be jaw dropping at times, so can the potential for significant energy and cost savings for property management companies. That’s good news considering that many multifamily companies hold energy as their third largest annual expense.

Yet many companies aren’t ready to embark on energy conservation measures (ECMs) because they doubt whether these projects can yield verifiable results or they hear about perceived failures across the industry.

Read more...5 Steps to Successful Multifamily Energy Management Projects | Property Management Insider

Video – Reis Q4 2013 Apartment Trends via Multi-Housing News Online

Reis VP of Economics & Research, Dr. Victor Calanog, provides an update on the apartment sector performance for the 4th quarter of 2013.

Some highlights include:

National vacancies 390 basis points below cyclical peak.
Asking and effective rents up 0.8% from the third quarter.
Effective rent growth positive in 79 out of 82 markets.

Watch video...Video – Reis Q4 2013 Apartment Trends | Multi-Housing News Online

Tuesday, February 4, 2014

Help for Multifamily Building Owners to Cut Carbon Pollution via Environmental Leader

Multifamily housing property owners can cut carbon pollution and save money under an agreement signed by the EPA and Freddie Mac.

The agreement outlines strategies to save water, energy and money for multifamily property owners and residents.

Housing industry studies have projected that multifamily properties can become 30 percent more efficient by 2020, unlocking $9 billion in energy savings and preventing more than 35 million metric tons of greenhouse gas emissions per year, the EPA says.

Read more...Help for Multifamily Building Owners to Cut Carbon Pollution · Environmental Management & Energy News · Environmental Leader

Houston one of top markets for multifamily rental, occupancy growth via Houston Business Journal

A new report released by Jones Lang LaSalle shows that multifamily in Houston is a smart investment.

While Houston ranks third in the nation for the number of units projected to be constructed by 2017 and second in units to be absorbed in 2017, there will not be a shortage of tenants to fill those units as Houston’s rental and occupancy rates lead most of the country, according to JLL.

A national study by JLL predicts 30,000 units will be constructed by 2017, ranking Houston third in multifamily construction over the next three years, just behind Atlanta, which is projected to build just more than 35,000 million, and Dallas-Fort Worth, which is projected at just 40,000.

Read more...Houston one of top markets for multifamily rental, occupancy growth - Houston Business Journal

Enlightenment: The PMI Guide to Energy Efficient Light Bulbs via Property Management Insider

The last of the common incandescent light bulbs are going dark, by virtue of the government’s mandate that companies cease making them as of January 1. Household staples 40- and 60-watt bulbs are no longer being manufactured in accordance with the Energy Independence and Security Act. You may recall that 100- and 75-watt incandescent bulbs were shelved in the past couple of years.

But apartment communities have a couple of options for keeping the lights burning bright. Energy efficient Halogen, Compact Fluorescent Lamps (CFL), and Light-Emitting Diodes (LED) light bulbs are expected to carry the load once inventories of incandescent bulbs are exhausted from store shelves.

Better technology of CFLs, LEDs and Halogens has not only improved energy efficiencies but some have replicated the desirable warmth that the long-lived incandescent bulbs have been known for since their invention in the early 1900s. The warm light offered a cozy, relaxed feeling that made a house a home.

Read more...Enlightenment: The PMI Guide to Energy Efficient Light Bulbs | Property Management Insider