REBusinessOnline

Despite Booming Jobs Market, Improvement Proves Elusive for Office Sector, Says Ten-X

IRVINE, CALIF. — Recovery of the national office sector has failed to gain traction as completions outpaced net absorption for the fifth consecutive quarter, according to the latest U.S. Office Market Outlook report by Ten-X Commercial. “While the national market shows an office segment that is struggling, a closer look at various local markets shows several different reasons underlying this general malaise,” says Peter Muoio, chief economist for Irvine, Calif.-based Ten-X. “Strong …

Economists: Job Growth Train Rolls On, But Wage Issues Persist

The U.S. economy not only remains on a positive trajectory, but it is also experiencing accelerated job growth in industries such as construction, transportation and warehousing, as well as professional services, says Ryan Tharp, director of research at Houston-based Transwestern. “There is still significant runway left for the U.S. economy,” he says, pointing out that the economic data suggests positive and robust growth for the next 12 to 18 months. At this stage of the economic …

Yardi: Average U.S. Multifamily Rent Hit All-Time High in July

The average monthly rent for multifamily communities in the United States rose $3 to an all-time high of $1,409 in July, according to a recent report by Yardi Matrix. The increase is thanks in part to strong second-quarter economic growth and healthy demand. Year-over-year, rents are up 2.8 percent. Yardi is a California-based software company serving the commercial real estate industry. The company’s Yardi Matrix data branch researches and compiles data through a combination of original …

Senior Housing Occupancy Hits Eight-Year Low as New Supply Continues to Outpace Demand

ANNAPOLIS, Md. — Average occupancy for seniors housing properties throughout the United States has fallen to 87.9 percent in the second quarter of 2018, according to the National Investment Center for Seniors Housing & Care (NIC). The rate is the lowest since first-quarter 2010, when it hit 86.9 percent. Assisted living occupancy, already at record lows, also fell further to 85.2 percent. The industry-wide occupancy slide represents a 40 basis-point drop over the previous quarter, an …

Industrial Rents Reach New Heights in Northeast

The industrial real estate sector across the Northeast continues to exhibit strong rent growth due to a number of factors: increased tenant demand, decreased supply and the ever-growing presence of e-commerce companies. In the five largest metro areas, rent growth over the 12-month period that ended June 4 averaged 6.2 percent, according to CoStar Group. The vacancy rates in those same markets were all at or below 6 percent as of June 4. The Northern New Jersey industrial market led the …

How to Secure Financing for Retail in Today’s Climate

Retail financing, both debt and equity, has become a challenge for many owners, developers and investors throughout the U.S. based on negative press about retail, a perception that the internet will take down many tenants and the weak financial condition of a number of large retailers. Though capital markets are strong, many property owners and investors are finding it difficult to identify lenders willing to provide the type of financing they need for their retail developments, acquisitions …

Don’t Buy into the Hype – Beware of the “Yes” Originator

With a strong commercial real estate market nationwide, many originators are under increased pressure to say "yes" to financing terms and conditions that they would shy away from in a less competitive lending environment. "I don't see the frenzy dying down anytime soon, with at least one to two more years of fairly intense competition," says Tim Madigan, a commercial loan originator for Alliant Credit Union. With more than 15 years of experience as an underwriter before moving to loan …

Not All Bricks are Created Equal: How Functional Obsolescence Affects Property Taxes

Appraisal districts across Texas often use the cost approach to determine market value for property tax purposes. When valuing certain commercial properties via the cost approach, county appraisers frequently use cost-estimating services. These services enable appraisers to estimate the cost of the subject property’s improvements as if they were new, as well as determine the depreciation to apply to the subject. Cost estimators can be a great resource and valuation tool, but the appraiser …

Student Housing Pushes Out Affordable Living in College Towns

For Kyle Bach, CEO of The Annex Group LLC, there’s an affordable housing crisis taking place in large university towns. After extensive research in Bloomington, Indiana, and other similar towns, Bach found that over the past decade or so virtually all new multifamily product added to the market has been either student or luxury housing. This has priced out the workforce or affordable housing residents in those communities, he says. About a year-and-a-half ago, Bach’s Indianapolis-based …

Avison Young Receives $188.6M Equity Investment from Canadian Fund Manager to Grow Platform

TORONTO — Commercial real estate services firm Avison Young is continuing its growth strategy with a new equity investment totaling 250 million Canadian dollars (approximately $188.6 million) from Canadian pension fund manager Caisse de dépôt et placement du Québec (CDPQ). Toronto-based Avison Young will use the new capital to grow its operating platform in North America. “CDPQ’s investment will provide additional momentum as we accelerate our innovative and technology-based …

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