To get a sense of where things are headed, follow the capital flows. If you observe the dot com crash and the housing induced crash of 2007-08, then you begin to realize that almost all crashes throughout history have been preceded by major inflows of capital chasing higher yield or dream returns. Going back to the tulip mania, or the South Sea Bubble, it is always the same. Investors, homeowners, commodity speculators, or whoever, are chasing a fantasy that inevitably blows up in a banking or capital markets collapse.
Read more...GlobeSt.com - Watch The Capital Flows - The Ross Rant Article
Thursday, July 5, 2012
Tuesday, July 3, 2012
U.S. Apartment Sector Posts Good Results in Q2 2012 via Property Management Insider
by Jay Parsons on July 3, 2012
The U.S. economy hit a speed bump in 2nd quarter, but the apartment market continues to improve nicely – just not at the same robust pace seen previously.
Watch video...U.S. Apartment Sector Posts Good Results in Q2 2012 | Property Management Insider
The U.S. economy hit a speed bump in 2nd quarter, but the apartment market continues to improve nicely – just not at the same robust pace seen previously.
Watch video...U.S. Apartment Sector Posts Good Results in Q2 2012 | Property Management Insider
Green Mortgages are Making Headway via Multifamily Executive Magazine
The problem of where to find the financing for energy efficient developments and retrofits has not been as severe on the affordable housing side, as energy savings essentially go hand-in-hand with the mission of affordable housing. But on the market rate side, the data to show evidence that spending money on energy efficient retrofits pays off for investors in the long run is simply not sufficient. And there has historically been a lack of resources.
“There’s this impression that there’s a lot of programs available for energy efficient financing, but they’re really not geared toward the multifamily market rate sector,” said Paula Cino, director of energy and environmental policy at the National Multi Housing Council (NMHC).
Read more...Green Mortgages are Making Headway - Mortgages And Banking - Multifamily Executive Magazine
“There’s this impression that there’s a lot of programs available for energy efficient financing, but they’re really not geared toward the multifamily market rate sector,” said Paula Cino, director of energy and environmental policy at the National Multi Housing Council (NMHC).
Read more...Green Mortgages are Making Headway - Mortgages And Banking - Multifamily Executive Magazine
4 Ways to Monetize Your Green Investments via Multifamily Executive Magazine
A dark cloud still looms over the heads of apartment owners when it comes to spending money on energy efficient retrofits and construction. The problem has largely been justifying, in hard data, when and how they will see a return on investment.
While figures on the actual savings may be difficult to come by, there are specific strategizes being implemented in the industry that are showing positive results. Here’s a look at four ways multifamily owners can cash in on green building investments:
Green Leasing
One of the ways a company can recoup money on energy-efficient investments is called “green leasing.” It’s a relatively new idea, but it’s basically a way that an owner and tenant can work together on the efficient use of energy. Essentially, a green lease outlines future rental increases, and justifies those increases by detailing the energy savings that a tenant can expect to see on their utilities.
Read more...4 Ways to Monetize Your Green Investments - Energy Efficiency - Multifamily Executive Magazine
While figures on the actual savings may be difficult to come by, there are specific strategizes being implemented in the industry that are showing positive results. Here’s a look at four ways multifamily owners can cash in on green building investments:
Green Leasing
One of the ways a company can recoup money on energy-efficient investments is called “green leasing.” It’s a relatively new idea, but it’s basically a way that an owner and tenant can work together on the efficient use of energy. Essentially, a green lease outlines future rental increases, and justifies those increases by detailing the energy savings that a tenant can expect to see on their utilities.
Read more...4 Ways to Monetize Your Green Investments - Energy Efficiency - Multifamily Executive Magazine
Commercial Real Estate Transactions Increase in Secondary Markets via CCIM Institute
Multifamily continues to lead investment ratings, according to CCIM Institute and RERC data.
Commercial real estate investors are expanding their search for quality office, industrial, and apartment properties into secondary markets such as Nashville, Tenn., Austin, Texas, and Charlotte, N.C., according to CCIM Institute and Real Estate Research Corp.’s 2Q12 RERC/CCIM Investment Trends Quarterly (PDF). Another positive trend is the extension of institutional investors beyond coastal hubs into large inland markets, such as Chicago and Denver, where some significant transactions are taking place, according to the survey.
Multifamily Leads Investment Conditions Ratings
Read more...Commercial Real Estate Transactions Increase in Secondary Markets | CCIM Institute
Commercial real estate investors are expanding their search for quality office, industrial, and apartment properties into secondary markets such as Nashville, Tenn., Austin, Texas, and Charlotte, N.C., according to CCIM Institute and Real Estate Research Corp.’s 2Q12 RERC/CCIM Investment Trends Quarterly (PDF). Another positive trend is the extension of institutional investors beyond coastal hubs into large inland markets, such as Chicago and Denver, where some significant transactions are taking place, according to the survey.
Multifamily Leads Investment Conditions Ratings
Read more...Commercial Real Estate Transactions Increase in Secondary Markets | CCIM Institute
Do Green Student Housing Assets Pay Back? via GlobeSt.com
No longer a fad or associated with granola-eating activists, environmental consciousness has become a part of everyday life. The commercial real estate industry jumped on the wagon several years ago, and now almost every property developed today has some sort of sustainable features. From including solar panels and reduced water use, to being LEED and Energy Star certified, to name just two, green development has become the norm for properties in most developed countries these days.
But sustainable building comes with a price tag, and it’s understandable that a lease in such properties would be a bit pricier than one without green features. Developers would generally tell you that tenants are willing to pay more to live or work in an environmentally friendly property. But does that apply to the student housing sector, where price is certainly a major factor in students’—and their parents’—leasing decisions?
Read more...GlobeSt.com - Do Green Student Housing Assets Pay Back? - Daily News Article
But sustainable building comes with a price tag, and it’s understandable that a lease in such properties would be a bit pricier than one without green features. Developers would generally tell you that tenants are willing to pay more to live or work in an environmentally friendly property. But does that apply to the student housing sector, where price is certainly a major factor in students’—and their parents’—leasing decisions?
Read more...GlobeSt.com - Do Green Student Housing Assets Pay Back? - Daily News Article
Monday, July 2, 2012
The Student Housing Opportunity via NREIonline.com
The rapid growth of university enrollments in the United States has been bolstered by highly favorable demographics, particularly the echo boomer age cohort (those born between 1982 and 1995), and an increasing number of international students. With heightened economic demand for advanced skills and knowledge, more high school graduates are attending full-time colleges. According to the U.S. Department of Education, 68.1 percent of high school graduates went on to attend college as of 2010.
MEET THE ECHO BOOMERS
The echo boomer generation, whose oldest members became college-aged in 2000-2001, boasts a cohort of 77 million strong. College student populations are expected to continue to grow over the next decade (by an average of 1 percent annually through 2020). According to the National Center for Education Statistics, between 2011 and 2020, U.S. college enrollment is projected to increase by about 2.3 million students. Additionally, colleges have been experiencing a steady increase in international student attendance. The United States has one of the best higher education systems in the world, which draws students worldwide.
Read more...The Student Housing Opportunity via NREIonline.com
MEET THE ECHO BOOMERS
The echo boomer generation, whose oldest members became college-aged in 2000-2001, boasts a cohort of 77 million strong. College student populations are expected to continue to grow over the next decade (by an average of 1 percent annually through 2020). According to the National Center for Education Statistics, between 2011 and 2020, U.S. college enrollment is projected to increase by about 2.3 million students. Additionally, colleges have been experiencing a steady increase in international student attendance. The United States has one of the best higher education systems in the world, which draws students worldwide.
Read more...The Student Housing Opportunity via NREIonline.com
Trepp CMBS Delinquency Rate Hits New All-Time High in June via Ereleases.com
Trepp, LLC, the leading provider of information, analytics and technology to the CMBS, commercial real estate and banking markets, released its June 2012 U.S. CMBS Delinquency Report today (available at http://www.trepp.com/knowledge/research).
The delinquency rate for U.S. commercial real estate loans in CMBS moved up 12 basis points in June to 10.16%. This new all-time high comes just one month after cracking through the 10% barrier.
Late last year, Trepp had predicted that the market could easily see a spike of 70 basis points in the short term. As the CMBS market has now seen the rate increase 64 basis points since late 2011, that forecast turned out to be pretty close. Since February, the delinquency rate is up 79 basis points.
Read more...Trepp CMBS Delinquency Rate Hits New All-Time High in June: Rate Increases for Fourth Straight Month
The delinquency rate for U.S. commercial real estate loans in CMBS moved up 12 basis points in June to 10.16%. This new all-time high comes just one month after cracking through the 10% barrier.
Late last year, Trepp had predicted that the market could easily see a spike of 70 basis points in the short term. As the CMBS market has now seen the rate increase 64 basis points since late 2011, that forecast turned out to be pretty close. Since February, the delinquency rate is up 79 basis points.
Read more...Trepp CMBS Delinquency Rate Hits New All-Time High in June: Rate Increases for Fourth Straight Month
Rental real estate market has legs, experts say via Urban Land Institute
The rental sector’s run at the top of the housing ladder has more staying power than most observers think, according to industry experts speaking at the National Association of Real Estate Editors’ annual conference in Denver.
Mark Obrinsky, vice president of research and chief economist of the National Multi-Housing Conference, pointed out that despite the recent surge in apartment production, starts are still far below the “normal” yearly run rate achieved in the ten-year span between 1996 and 2005.
“We’re still 100,000 starts a year away from meeting demand – or maybe more,” Obrinsky said. “Demand will continue to outstrip supply for the next couple of years at least.”
Read more...Rental real estate market has legs, experts say
Mark Obrinsky, vice president of research and chief economist of the National Multi-Housing Conference, pointed out that despite the recent surge in apartment production, starts are still far below the “normal” yearly run rate achieved in the ten-year span between 1996 and 2005.
“We’re still 100,000 starts a year away from meeting demand – or maybe more,” Obrinsky said. “Demand will continue to outstrip supply for the next couple of years at least.”
Read more...Rental real estate market has legs, experts say
Late-Pays Fall for Banks, Rise for CMBS via GlobeSt.com
Non-securitized commercial mortgage debt continues to look pretty healthy compared to CMBS. The Mortgage Bankers Association, based here, reported in June that delinquency rates rose for CMBS during the first quarter, while for banks and life companies, they declined further from levels that are already low compared to securitized loans. And for legacy CMBS, more pain is on the horizon as Morningstar said last week that nearly half the securitized debt scheduled to mature over the next 12 months is already on its watchlist.
With a Q1 60-plus-day delinquency rate of just 0.14%, “The life companies’ numbers is extremely low and stayed low throughout the credit crunch and recession,” Jamie Woodwell, MBA’s VP of commercial/multifamily research, tells GlobeSt.com. During the same period, banks’ commercial and multifamily mortgage delinquencies increased, “but they have been coming in for a number of quarters as the economy has stabilized, demand for commercial real estate has stabilized and prices have begun to improve.”
Read more...GlobeSt.com - Late-Pays Fall for Banks, Rise for CMBS - Daily News Article
With a Q1 60-plus-day delinquency rate of just 0.14%, “The life companies’ numbers is extremely low and stayed low throughout the credit crunch and recession,” Jamie Woodwell, MBA’s VP of commercial/multifamily research, tells GlobeSt.com. During the same period, banks’ commercial and multifamily mortgage delinquencies increased, “but they have been coming in for a number of quarters as the economy has stabilized, demand for commercial real estate has stabilized and prices have begun to improve.”
Read more...GlobeSt.com - Late-Pays Fall for Banks, Rise for CMBS - Daily News Article
Subscribe to:
Posts (Atom)