Texas Manufacturing Outlook Survey June 2022 via Dallas Fed

Growth in Texas factory activity decelerated sharply in June, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, fell from 18.8 to 2.3, reaching its lowest reading since May 2020.

Read more...Texas Manufacturing Outlook Survey June 2022 via Dallas Fed

DFW Economic Indicators June 2022 via Dallas Fed

The Dallas–Fort Worth economy expanded robustly in April. Payroll employment grew swiftly, and unemployment dipped further, bolstering growth in the Dallas and Fort Worth business-cycle indexes. Fourth-quarter benchmark revisions indicate that in 2021, DFW payrolls grew nearly 1 percentage point more than previously estimated. Home sales ticked up in April, and housing affordability improved in the first quarter. DFW population growth picked up in 2021 after slowing in 2020.

Read more...Dallas-Fort Worth Economic Indicators June 2022 via Dallas Fed

CRE Lenders Are Dusting Off The MAC Clause Again via GlobeSt

The last time Mark Scott, president of Commercial Mortgage Capital, remembers a lender invoking the Material Adverse Change, or MAC, clause in a deal was during the Great Recession. Now, he’s hearing it more and more in conversations with capital providers. “I’ve had lenders email me and say the market is experiencing a MAC and we are now raising the rate on your loan from 3.5% to 4.5%,” he tells GlobeSt.com. “It is definitely being invoked more now.”

There are other changes in the commercial real estate lending market that Scott says do not bode well for borrowers, or for liquidity in general.

Read more...CRE Lenders Are Dusting Off The MAC Clause Again via GlobeSt

Analysts Agree, May’s Apartment Numbers Are Pretty Good via GlobeSt

Shrugging off inflationary concerns, apartment rents in nearly every market continue to rise, setting all-time highs in year-over-year growth, according to leading apartment analyst firms’ data released this week.

“May’s yearly rents at the market level remain well above historical averages, despite our data showing rents moderating from the record highs posted last year,” Jay Lybik, national director of multifamily analytics, CoStar Group, parent company of Apartments.com, said in prepared remarks.

Read more...Analysts Agree, May’s Apartment Numbers Are Pretty Good via GlobeSt

DFW surpassed Austin in rent price growth over the last 12 months via Star-Telegram

Since the beginning of the year, the average rent in Dallas-Fort Worth has jumped $90 a month, according to ApartmentData.com.

It now costs about $1,475 a month to rent an apartment in the Metroplex, a 6.5% increase since January.

Read more...Dallas-Fort Worth surpassed Austin in rent price growth over the last 12 months via Fort Worth Star-Telegram

Commercial Property Sales Slow as Rising Interest Rates Sink Deals via WSJ

Commercial real estate is showing the first signs of cooling in more than a year, disrupted by rising interest rates that are already causing some deals to collapse.

Property sales were $39.4 billion in April, which was down 16% compared with the same month a year ago, according to MSCI Real Assets. The decline followed 13 consecutive months of increases.

Read more...Commercial Property Sales Slow as Rising Interest Rates Sink Deals via WSJ

May Apartment Rents Posted Largest Increase for 2022 via GlobeSt

Apartment rents are growing more slowly than they did in 2021, but at a pace faster than the years immediately preceding the pandemic, according to the latest national rent report by Apartment List.

Year-over-year rent growth currently stands at a “staggering” 15.3 percent, according to the report, but is down from the 17.8 percent peak it showed at the start of the year.

Read more...May Apartment Rents Posted Largest Increase for 2022 via GlobeSt

Eleventh District Beige Book 6/1/22 via Dallas Fed

Expansion in the Eleventh District economy slowed to a moderate pace during the reporting period. Most notably, home sales slowed, retail sales fell, and growth in manufacturing and nonfinancial services decreased from a solid to a moderate pace. Growth in loan volumes remained strong across most loan types, except for residential real estate, which saw no change in loan volumes over the last six weeks. Activity in the energy sector expanded further, while worsening drought further hampered agricultural conditions. Employment rose robustly, and wage growth continued to be elevated amid labor market tightness. Supply-chain issues and high energy prices continued to drive up costs. Optimism in outlooks waned, and uncertainty stayed elevated amid concerns about inflation, rising interest rates, resolution of supply-chain issues, and expectations of weakening demand.

Read more...Eleventh District Beige Book 6/1/22 via Dallas Fed