Industrial and Multifamily Sectors Stay Resilient Amid Economic Headwinds via GlobeSt

The current economic headwinds have been a cause for alarm in certain sectors. Not so for industrial and multifamily, however. With US industrial vacancy at 4% and multifamily’s pipeline tightening, the data from Lee & Associates’ Q3 2022 Market Report shows both sectors have room for rent growth.

It’s a story about fundamentals that point to continued strength, according to Jeff Rinkov, CEO of the broker-owned real estate services firm.

Read more...Industrial and Multifamily Sectors Stay Resilient Amid Economic Headwinds via GlobeSt

NMHC: Rising Vacancy Rates No Reason to Stop Housing Development via GlobeSt

The current short-term lessening of apartment demand is no reason for the industry to ignore the long-term trend that the country needs more housing, according to a post by the National Multifamily Housing Council (NMHC) last week.

After a tremendous, multi-year run of rent growth, tents have fallen due to slowing demand in the latter part of the year because of economic uncertainty and increasing vacancy rates, NMHC said.

Read more...NMHC: Rising Vacancy Rates No Reason to Stop Housing Development via GlobeSt

ALN Monthly Market Stats November 2022 via ALN Apartment Data

ALN Data just released their October 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 November 2022 via ALN Apartment Data

Voters Approve Rent Control in Florida County via GlobeSt

By a wide margin, voters in Orange County, FL approved an ordinance that prevents owners of existing apartments from raising rents at a rate higher than the inflation rate for the region.

The vote in favor of the rent-control ordinance was 217,168 while 151,936 voted no, margin of 59% to 41%. The ballot question that was approved read as follows:

Read more...Voters Approve Rent Control in Florida County via GlobeSt

Many Deals Pause But Cash Is a Great Motivator via GlobeSt

That commercial real estate transactions slowed in the third quarter of this year shouldn’t surprise. Costs went up as the Fed turned the screws to baseline interest rates and commercial financing did so as well.

But buyers with cash still did deals, according to Crexi, in its quarterly national trends report.

Read more...Many Deals Pause But Cash Is a Great Motivator via GlobeSt

Dallas-Fort Worth Economic Indicators November 2022 via Dallas Fed

Dallas–Fort Worth’s economy expanded in September. Payroll employment rose following declines in August. In October, consumer spending stayed above prepandemic levels. Home prices fell again in August. Demand for industrial space remained robust in the third quarter, while activity in the office market was tepid.

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

Austin Economic Indicators November 2022 via Dallas Fed

Austin’s economy expanded in September as the Austin Business-Cycle grew, most sectors experienced job growth, wages improved, and the unemployment rate declined. Existing-home price growth is also slowing.

Read more...Austin Economic Indicators November 2022 via Dallas Fed

Apartment Loss to Lease is Plunging. Here's What That Means via GlobeSt

Last week, Federal Reserve Chair Jerome Powell dove into the debate over rent inflation and suggested that while new lease rent growth is slowing, “there’s still some significant (rent) increases coming” via cheaper lease renewals hiked up to market level.

But RealPage data show that’s NOT exactly true for market-rate apartments. U.S. apartments plunged back to the long-term average in “loss to lease” – which means the runway for renewal lease rents will significantly narrow going forward.

Read more...Apartment Loss to Lease is Plunging. Here's What That Means via GlobeSt

Yes, Opportunities Are Still Out There for Multifamily Investors via GlobeSt

The multifamily sector appears to be charging (nearly) full speed ahead into the end of 2022, despite volatility in the capital markets. But will that momentum slow as the cost of capital continues to rise?

Read more...Yes, Opportunities Are Still Out There for Multifamily Investors via GlobeSt

There’s More Multifamily on the Way via GlobeSt

There are changes coming to multifamily that may not seem so desirable in the short run, but which will help stabilize markets and the industry overall.

“Data shows that there are more multifamily than single-family units under construction,” writes Nadia Evangelou, senior economist and director of forecasting at the National Association of Realtors.

Read more...There’s More Multifamily on the Way via GlobeSt

Multifamily’s Imminent Down Cycle Is Overdue via GlobeSt

The long-time, high-flying multifamily housing sector appears on the brink of hitting a down cycle that’s “overdue” – if it’s not already here – according to Phyllis Klein, senior vice president, head of agency production at Capital One.

Klein was part of a panel hosted by Investors Management Group, (IMG), which included three of the nation’s leading experts in real estate investment and lending for a private event in Portland, Ore.

Read more...Multifamily’s Imminent Down Cycle Is Overdue via GlobeSt

As Financial Markets Soften, Multifamily Assets Continue Performing via GlobeSt

The current economic uncertainties have created a “tale of two cities” in the multifamily market, as the overall financial markets waver against record-breaking growth in the sector, panelists said at this year’s GlobeSt multifamily conference.

“What’s different about the current situation is how quickly things have turned,” said Sean Burton, CEO of Cityview, at a panel on institutional investment in the sector.

Read more...Tale Of Two Cities: As Financial Markets Soften, Multifamily Assets Continue Performing via GlobeSt