Features

Student Housing Interior Designers, Developers Weigh In on What’s Hot and What’s Not

by John Nelson January 23, 2025

As the student housing sector readies for a new generation of students to enter campuses — Generation Alpha — a few of the ‘tried and true’ amenity spaces that were hot with millennials or Gen Z have fallen by the wayside. Golf simulators, movie theaters and bohemian styling with baskets and lots of greenery are just a few of the once popular design choices that are now on the outs, according to Lucy Harrison, brand marketing manager with SouthPark Interiors. Gone, too, are the days of designing one ‘Instagramable’ moment for your building and calling it a day, says Chelsea Kloss, executive vice president of design and curation with LV Collective. “Students want to live in a building that is beautiful and inspiring from all angles — not just with one space built for ‘the gram,’” she says. “They want not only to capture more organic content to share, but to experience it real-time. As designers, that challenges us to push the envelope on experiential design and the importance of finishing all aspects of a built environment.” Students’ desires for their fitness and wellness spaces have also seen a shift over the past few years, according to Kloss. “Designing …

January 23, 2025

Affordable Housing Features Heartland Feature Archive Multifamily

Affordable Housing Creativity Born Out of Necessity

by Kristin Harlow January 21, 2025

Housing affordability continues to be a pressing issue across the country. According to the National Low Income Housing Coalition, the U.S. has a shortage of 7.3 million rental homes affordable and available to renters with extremely low incomes. There are 34 affordable and available rental homes for every 100 extremely low-income renter households, which are defined as households either at or below the federal poverty guideline or 30 percent of the area median income (AMI), whichever is higher. “The country is facing a severe shortage of high-quality affordable housing, with demand far exceeding supply in the Midwest and every market we serve across the country,” says Geoff Milz, director of development for Ohio with Pennrose, which maintains eight offices across the U.S. “The housing crisis, compounded further by inflation and the rising cost of living, spans all demographics, geographies and family types.” In short, the need for affordable housing “has never been more critical,” adds Milz. Affordable housing developers are eager to build, but they must get creative to obtain the necessary financing for new projects. Due to the restricted rents, affordable housing properties are unable to generate as much income as market-rate assets. “The primary tool that we use …

January 21, 2025

Conference Coverage Features North Carolina Southeast Southeast Feature Archive Student Housing

InterFace Panel: Slow and Steady Wins the Race for Student Housing Preleasing, Rent Growth in 2025

by John Nelson January 16, 2025

CHARLOTTE, N.C. — As the clock struck midnight on New Year’s Eve, the 2025-2026 academic year moved further into focus. What can the industry expect to see this year from a preleasing perspective? Are rents expected to keep growing? And by how much? All of these questions and more were discussed during a kick-off panel at the 2024 LeaseCon/TurnCon conference by InterFace Conference Group, which took place this past December in Charlotte. As of Dec. 3, student housing properties across the country were 36.6 percent preleased on average — a 1.3 percent decline from rates seen at the same time in 2023, according to moderator Charlie Matthews, founder and CEO of data provider College House. Editor’s note: InterFace Conference Group, a division of France Media Inc., produces networking and educational conferences for commercial real estate executives. To sign up for email announcements about specific events, visit www.interfaceconferencegroup.com/subscribe. Of markets across the United States, the Southeast led the way with the highest preleasing percentage at 43.5 percent. Asking rents have congruently grown by 4.9 percent across the country as of early December, according to Matthews, with average rents at $990. Leading the way in rent growth for the 2025-2026 academic year …

January 16, 2025

Features Multifamily

Multifamily Investors Hedge 2025 Bets to Guard Against Possible Industry Turbulence

by Taylor Williams January 14, 2025

By Nellie Day The multifamily investment market has provided some mixed signals over the past year. There have been the ebbs and flows in the 10-year U.S. Treasury bond yield and interest rates, a moderating level of inflation (the Consumer Price Index rose 2.7 percent in November on an annual basis), and a hard-fought presidential election with Donald Trump emerging as the victor. Despite the volatility in the debt markets, the overall sentiment among investors remains positive. CoStar Group notes that multifamily transaction volume nationally rose 18 percent year over year in the third quarter of 2024, reaching $74 billion. CoStar adds, however, that momentum noticeably slowed toward the end of the quarter, when fixed-rate borrowing costs climbed in step with the rising yield on the 10-year U.S. Treasury note. “This trend is underscored by a 4 percent decline in quarter-over-quarter transaction volume — a contrast to the typical seasonal uptick in the third quarter — following stronger activity in the first two months of [the fall season],” says Chad Littell, national director of U.S. capital markets analytics at CoStar. Pickup in Transactions Littell observed that the U.S. multifamily investment market “somewhat mirrored” the movement of the 10-year U.S. Treasury yield, …

January 14, 2025

Capital-Markets-Panel_Philadelphia-Seniors-Housing-Conference

Features Multifamily Seniors Housing

Why Are So Many Seniors Housing Lenders Still on the Sidelines? Capital Markets Panel Weighs in

by Taylor Williams January 9, 2025

By Matt Valley PHILADELPHIA — Despite industry-wide improvement in operating performance, many senior living providers are still finding it difficult to secure bank financing. Kathleen Shields, founder and president of Health Financing Consultants, said there are three root causes of the problem, starting with insufficient cash flow. “Operators have done a good job of pushing through [rental] rate increases in order to keep up with inflation and higher interest rates. So, the margins are normalizing and getting a little bit better. But banks are looking for historical cash flow of at least six months, if not 12, at coverage levels that they’re comfortable with. And I’m not hearing 1.25 anymore [for the debt-service coverage ratio]. I’m hearing more like 1.4,” explained Shields, a panelist at the InterFace Seniors Housing Northeast conference, which took place Dec. 4-5 in Philadelphia. Editor’s note: InterFace Conference Group, a division of France Media Inc., produces networking and educational conferences for commercial real estate executives. To sign up for email announcements about specific events, visit www.interfaceconferencegroup.com/subscribe. “It depends on the lender, but you do need to have a track record of historical cash flow that supports your request, and that’s not easy,” emphasized Shields. The other two main …

January 9, 2025

Features

How Commercial Developers Can Adapt to Lasting Effects of COVID-19, High Interest Rates

by Taylor Williams January 7, 2025

By Leah LaFramboise, partner at Frost Brown Todd LLP When COVID-19 became a global pandemic, commercial real estate developers saw unprecedented disruptions. Materials became both more expensive and harder to come by. Even those developers that could source supplies had to reckon with labor shortages as workers sheltered at home. Construction projects had to be put on hold indefinitely to comply with new public health restrictions, ballooning budgets and timelines. What’s more, elevated interest rates — stemming from the turbulent economic landscape during the pandemic — made obtaining financing more expensive and difficult. While lockdowns may be long over, the lasting effects of the pandemic and a more difficult financing environment are still posing challenges for developers. Fortunately, there are plenty of ways they can adapt. A One-Two Punch While the most dire construction material shortages during the pandemic have largely abated, many materials are still in short supply — and are much pricier. According to the National Association of Home Builders, for example, steel mill product prices are still 65 percent higher than pre-pandemic levels, while drywall is 42 percent more expensive than in 2020. Commercial contractors, meanwhile, continue to face a significant worker shortage. Demand in key segments …

January 7, 2025

Features Multifamily Multifamily & Affordable Housing Feature Archive

How Tech Upgrades are Expanding Access Control Solutions at Multifamily Communities

by Channing Hamilton January 2, 2025

Security is a top priority in the multifamily industry. Monitoring and controlling access to a property protects owners and their residents from the impacts of violent crime, theft, vandalism and trespassing. The benefits of an effective security, monitoring and access system run deep. “Access control is not just about security,” says Roger Solomon, a senior associate at Trio Advisory Group. The company offers consulting services on access control, video surveillance and other technologies for commercial real estate properties. “Access control is also about ensuring convenience for residents and staff, enhancing the overall quality of life at a community and future-proofing assets against technological advancements,” says Solomon. “The right access control system will add real value to both the property and for its residents.” The type of access control system an owner-operator installs can increase operational efficiency and net operating income, free up staff, reduce costs and lower resident turnover rates. Locks and Keys Still Popular Option The benefits of an old-fashioned lock-and-key system are clear. Mechanical locks are weatherproof and do not require electrical power or Wi-Fi connectivity. Key-controlled locks also are relatively affordable to install. According to a report from the National Apartment Association (NAA), 53 percent of property management …

January 2, 2025

Conference Coverage Features Georgia Multifamily Multifamily & Affordable Housing Feature Archive Southeast Southeast Feature Archive

Stickiness of Renter Sets Build-to-Rent Sector Apart from Traditional Multifamily, Says InterFace Panel

by Kristin Harlow December 23, 2024

ATLANTA — When considering a single-family, build-to-rent (BTR) development or acquisition, the main priority of the developer or investor is to focus on finding a place where people want to live, said Zach Persky, vice president of acquisitions for Quinn Residences. Access to jobs, retail corridors and good school districts are all important factors for potential residents. Persky was one of the speakers on the BTR panel at the 15th annual InterFace Multifamily Southeast conference, which took place Wednesday, Dec. 4 at the Cobb Galleria Centre in Atlanta. Kyle Palmer, managing partner of Palmer Real Estate Investment Services, moderated the discussion. Editor’s note: InterFace Conference Group, a division of France Media Inc., produces networking and educational conferences for commercial real estate executives. To sign up for email announcements about specific events, visit www.interfaceconferencegroup.com/subscribe. While the BTR segment may still be in its infancy, its fundamentals are solid, according to the panel. Demand comes from would-be homebuyers who are priced out of the single-family market. These purpose-built rentals have many of the same perks of for-sale homes, such as yards and private garages, without the handicaps of down payment and mortgage commitment. BTR construction completions nationally totaled more than 50,000 units …

December 23, 2024

Conference Coverage Features Healthcare Southeast Southeast Feature Archive Tennessee

Creative Capital, Partnerships Loom Large in Healthcare Real Estate, Says InterFace Panel

by John Nelson December 20, 2024

NASHVILLE, TENN. — Healthcare real estate investment is at a pivotal point of this current cycle. On one hand, the investment sales market is expected to rebound heartily following a few subdued quarters. According to data from Maryland-based research firm Revista, investment sales volume for medical office buildings (MOBs) was $2.1 billion in third-quarter 2024, in line with the first two quarters of the year but down from more robust quarters in 2021 and 2022. On the other hand, funding this expected uptick in acquisitions will be more layered than ever before, even with the recent cuts to the federal funds rate by the Federal Reserve. Ben Appel, executive managing director of Newmark’s healthcare capital markets team, said that the competition level is increasing as deals come to market, but what’s more notable is the capital stack behind those bids. Editor’s note: InterFace Conference Group, a division of France Media Inc., produces networking and educational conferences for commercial real estate executives. To sign up for email announcements about specific events, visit www.interfaceconferencegroup.com/subscribe. “Today those bids have two to three different sleeves of capital behind them,” said Appel, who is based out of Newmark’s Philadelphia office. “We are seeing some of …

December 20, 2024

Content Partner Features Industrial Midwest Multifamily Northeast Office Southeast Texas Walker & Dunlop Western

Multifamily, Industrial, Office Transaction Activity Trends Upward Amid Shifting Valuation Landscape

by Sarah Daniels December 18, 2024

The spike in interest rates nearly three years ago brought investment sales to a virtual standstill, as deep disagreements over valuation between buyers and sellers dominated the market. While recent Federal Reserve cuts to the federal funds rate raised hope for a resurgence in transactions, ongoing volatility in the bond market, concerns about reemerging inflation and uncertainty over fiscal and monetary policy continued to weigh on a full-blown rebound in investment activity. The uncertain environment makes it difficult for investors to easily evaluate commercial property values, underscoring the importance of access to comprehensive, real-time data on transactions, market fundamentals and emerging trends, says Alex Hoenig, MAI, Midwest regional managing director at Apprise, Walker & Dunlop’s independent valuation firm. “Our understanding of current values for commercial real estate relies on transactions actually taking place, and sales velocity has started to inch back up,” reports Hoenig. “But there’s no question that there has been a lot of volatility in the market, which requires a local expert with access to a strong network and a constant pulse on market comparables.” Walker & Dunlop launched Apprise in 2020 to accelerate technology-driven solutions in the commercial real estate sector. Apprise serves owners and investors nationwide, …

December 18, 2024

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