Industrial Saw Most Cap Rate Compression In H2 2021 via GlobeSt

The industrial sector saw the most cap rate compression in the second half of 2021, driven by skyrocketing e-commerce sales, helping the real estate capital markets end the year on a high note.

“Cap rates declined across the real estate spectrum,” CBRE analysts write in a new report analyzing the firm’s most recent Cap Rate Survey, which was conducted before the Russian invasion of Ukraine.

Read more...Industrial Saw Most Cap Rate Compression In H2 2021 via GlobeSt

Housing inventory in Dallas area sinks from bad to worse, homes getting ‘upwards of 50 offers’ via Dallas Business Journal

The supply of houses in the Dallas area has sunk from bad to worse for buyers, with market inventory decreasing by more than half year over year.

The decrease of 53.3% locally in January is more than three times the national average decrease of 16.5%, according to a new report from Compass real estate brokerage.

Read more...Housing inventory in Dallas area sinks from bad to worse, homes getting ‘upwards of 50 offers’ via Dallas Business Journal

Multifamily Rents Continue To Soar via GlobeSt

Multifamily asking rents defied expectations by ticking up yet another $10 in February to hit a national average of $1,628, according to the latest numbers from Yardi Matrix. Year-over-year growth also posted a 15.4% increase.

Read more...Multifamily Rents Continue To Soar via GlobeSt

ALN Monthly Market Stats March 2022 via ALN Apartment Data

ALN Data just released their February 2022 market stats on occupancy and rents for over 80 markets. In Texas, it includes DFW, Austin, Houston, San Antonio, Lubbock, Amarillo, Abilene, Corpus Christi and more. It is a must read from a great provider of apartment data.

Read more...ALN Monthly Market Stats March 2022 via ALN Apartment Data

Multifamily Investors Adjusting for Lower Profit Margins This Year via GlobeSt

Investors are predicting a solid 2022 for multifamily investment, but one that might include lower profit margins than 2021, according to Lightbox’s Q1 2022 Investor Sentiment Report.

As higher interest rates put upward pressure on borrowing rates and cap rates, earnings will be impacted. But David Scherer, Co-CEO of Origin Investments, said this does not mark the end of what has been a very strong multifamily market.

Read more...Multifamily Investors Adjusting for Lower Profit Margins This Year via GlobeSt

Skyrocketing Apartment Rent Growth Shows Signs of Moderating via RealPage

Apartment rents continued to increase in February 2022, but the pace of growth reverted closer to normal – even as occupancy remained at record highs.

Effective asking rents for new leases in February increased 0.75% month-over-month on a same-store basis. While that was the largest increase for a February on record, it wasn’t by much – and that alone is a notable shift.

Read more...Skyrocketing Apartment Rent Growth Shows Signs of Moderating via RealPage

Sellers Push for Shorter Due Diligence Periods Amid Supply Chain Issues via GlobeSt

It seems that no industry is exempt from the supply chain issues that are plaguing the economy. These challenges are affecting third party companies that provide due diligence support and documentation to buyers during a transaction, essentially elongating the process. As a result, sellers are now requesting shorter due diligence periods as one of the most popular concessions.

Read more...Sellers Push for Shorter Due Diligence Periods Amid Supply Chain Issues via GlobeSt

A Surge In Nonrefundable Offers on Apartment Deals Highlights Strong Competition via GlobeSt

Multifamily has been the darling of commercial real estate for more than a decade, and the pandemic has only served to renew investor confidence in the asset class. As a result, there is record competition in the space. To win deals and provide a certainty of close, investors are more regularly using nonrefundable offers.

Read more...A Surge In Nonrefundable Offers on Apartment Deals Highlights Strong Competition via GlobeSt

US Commercial Property Prices Touch New Highs; Office Lags via Real Capital Analytics

The headline rate of U.S. commercial property price growth extended a rally of accelerating double-digit price growth in January. The RCA CPPI National All-Property Index climbed 20.3% from a year earlier and 1.6% from December, the latest RCA CPPI: US report shows.

Read more...US Commercial Property Prices Touch New Highs; Office Lags via Real Capital Analytics

Deal Flow For Multifamily Hitting Record Levels via GlobeSt

Deal flow for the multifamily asset class has officially hit record levels, as increased competition for assets is pushing investors into smaller markets.

New research from Marcus & Millichap notes a “historic level of trading activity” in 2021 after a 22% contraction the year before. Deal velocity for apartments at $1 million and above rocketed up 50% in 2021, while rents grew by double digits.

Read more...Deal Flow For Multifamily Hitting Record Levels via GlobeSt

Eleventh District Beige Book 3/2/22 via Dallas Fed

Expansion in the Eleventh District economy moderated, with the COVID-19 surge exacerbating labor and supply-chain shortages and disrupting demand in certain sectors. Growth in manufacturing and nonfinancial services continued but at a slower pace, and retail sales declined slightly. Loan demand growth decreased a bit amid rising interest rates. Home sales remained elevated. The energy sector saw further expansion, while worsened drought hampered agricultural conditions. Employment rose fairly robustly, and wage growth pushed to new highs due to widespread labor shortages. Supply-chain issues continued to drive up costs, and prices rose at a rapid clip. Outlooks remained positive, though uncertainty surged and businesses expressed concern that labor market tightness and supply-chain disruptions will not soon be resolved.

Read more...Eleventh District Beige Book 3/2/22 via Dallas Fed