Features

Retail Development Program Lessons Apply Across Property Types

by Sarah Daniels December 13, 2022

Retail development programs have allowed retailers to streamline their goals by creating prototype models based on site particulars. This process saves developers and retailers money as they can be flexible in choosing models that work for each site without needing to alter layouts and features too much between builds. But what makes for successful prototypes and program standards? Can this approach work outside of the retail world? “The lessons of retail programs can apply across property types in this sense: land development consultants and site designers can learn how specific clients need their set of standards and guidelines implemented. It’s essential to thoroughly understand a program client’s procedures, and we’re expected to know these parameters inside and out,” says Steven T. Fortunato, a senior project manager at Bohler’s Rehoboth Beach office in Delaware. Bohler is a land development design and consulting firm that specializes in helping developers move their projects forward faster. “The retail program methodology translates well to other sectors. Starting off with either a new developer or a new client is an opportunity to learn their standards — or help the client create them. The end result must offer the same level of confidence whether the product is retail or …

December 13, 2022

Conference Coverage Development Features Multifamily

Partnership, Early Planning Integral to Multifamily Project Success, Say Interface Design Panelists

by Jeff Shaw December 9, 2022

ATLANTA — This year has been a tumultuous one for multifamily construction. Between rising interest rates, fluctuating supply lines, costs of materials and difficulties procuring labor, developer confidence in new multifamily starts is faltering as work on current projects is beginning to slow. “In this market, it’s so hard to stay abreast of all of the changes that are happening,” said Cara Frost, director of preconstruction at Juneau Construction, which is based in Atlanta. “And that has led to a more design-assist approach on our end.” Frost’s comment came during the “What to Look for in Architecture, Design and Construction Trends in 2023” panel at the 13th annual InterFace Multifamily Southeast on Dec. 1. France Media hosted the event at the Westin Buckhead hotel in Atlanta. There were approximately 325 conference attendees. Joe Martinez, president of Atlanta-based real estate development and investment firm Vida Cos., moderated the panel. Speakers discussed the challenges they are currently facing and emphasized the importance of collaboration and transparency early in the process of a project. “There are three buckets — budget, time and quality — and right now, you get to be really good at two of those things,” remarked Josh Kassing, vice president …

December 9, 2022

John Ducey Walker & Dunlop Affordable Housing

Affordable Housing Content Partner Development Features Leasing Activity Midwest Multifamily Northeast Southeast Texas Walker & Dunlop Western

Walker & Dunlop: Affordable Housing Crisis Calls For New Solutions, Effective Programs

by Sarah Daniels December 8, 2022

By John Ducey, chief production officer of Walker & Dunlop’s affordable lending group Private industry and the federal government are rallying to recover ground lost to a housing affordability crisis that has been decades in the making. Nearly half of the nation’s renters, 46 percent, are housing cost-burdened, which the Census Bureau defines as those families paying 30 percent or more of their income on rent and utilities. The burden is higher for some, with nearly one in four families (23 percent of Americans) paying half or more of their income for housing. The situation calls for a change in tactics, a recognition of recent policy failures and a shared commitment to double down on programs with proven efficacy. As a nation we must ask, what can we do differently to put more homes within reach for the growing ranks of Americans who struggle to meet basic housing costs? A Building Problem The gap between housing costs and strained household budgets has widened due to both insufficient supply and wage stagnation that has fueled demand for affordable housing. The larger of the two issues — a lack of supply — traces chiefly to the 2008 financial crisis, which put a …

December 8, 2022

Affordable Housing Conference Coverage Features Georgia Multifamily Southeast Southeast Feature Archive

Interest Rate Volatility Will Slow Multifamily Investment Activity in 2023, Says InterFace Panel

by John Nelson December 6, 2022

ATLANTA — A lot can happen in a year. This time a year ago, the 10-year Treasury yield was at 1.489 percent, the federal funds rate was at a range of 0 to 0.25 percent and SOFR was at 0.05 percent. As of this writing, those three benchmark interest rates are at 3.527 percent, 3.75 to 4 percent and 3.82 percent, respectively — none of which are within 200 basis points from a year ago. Debt capital has become decisively more expensive, and officials at the Federal Reserve are signaling that more rate hikes are coming. For the U.S. multifamily sector, the result is that investors are increasingly becoming “pencils down” until interest rates find their footing. “We haven’t had much [investment] sales volume, as you can imagine, in the third or fourth quarter,” said Bennett Sands, managing development director at Wood Partners, an Atlanta-based apartment developer. “Looking ahead, our sales volume in 2023 will be down 50 percent [from 2022], if we’re lucky.” “It has been pretty quiet the past few months, and we expect that to continue for the next few months as well,” added Andrew Zelman, vice president of acquisitions at GID, a multifamily and mixed-use developer …

December 6, 2022

Features Multifamily

NAHB Survey Reveals Decline in Developer Confidence in Third Quarter, Forecasts Decrease in 2023 Multifamily Starts

by Jeff Shaw December 6, 2022

WASHINGTON, D.C. — Confidence in the market for new multifamily housing development notably declined in the third quarter of 2022, according to results from a survey of 63 multifamily builders conducted by the National Association of Home Builders (NAHB), which is based in Washington, D.C. The survey is conducted quarterly and produces two separate indices — new multifamily production and multifamily rental occupancy in the current versus preceding quarter. “Although demand for multifamily housing remains strong in many parts of the country, some multifamily developers are starting to see signs of a slowdown,” says Sean Kelly, chairman of NAHB’s Multifamily Council. “The ongoing problems of scarcity and high cost of land and materials are making it difficult to go forward with certain projects, particularly affordable housing projects.” Confidence in Multifamily Production Decreases The Multifamily Production Index (MPI) measures builder and developer sentiments regarding current production conditions in the market — including the construction of affordable housing units, market-rate units, and for-sale units or condominiums — on a scale of 0 to 100. A number below 50 indicates that more respondents reported that conditions in the market are worsening than reported conditions are improving. All three components of the MPI saw …

December 6, 2022

Features Multifamily

Co-Living Creates Unique Opportunities for Multifamily Investors

by Jeff Shaw December 6, 2022

After years of strong growth in property values and rental rates, momentum in the housing market is beginning to slow. Growth is stagnating across the country, and values in some markets are slipping. This shift has caused some investors to hold off on acquiring additional real estate holdings as we go into 2023. However, some multifamily investors are seeking unconventional opportunities to ensure annualized returns, such as co-living models. The Rise of Co-Living According to iPropertyManagement, an online informational database which provides resources for landlords, the average rent price nationwide has increased 8.85 percent per year since 1980, consistently outpacing wage growth and creating financial strain for renters. To make rent more affordable, more renters are opting for co-living, splitting the rent with multiple roommates in larger apartments. These renters quickly run into a few problems, however. First, most rentals offer only one or two bedrooms. In fact, around 65 percent of the nationwide apartment inventory has two bedrooms or fewer, according to a 2020 study conducted by Harvard University on rental housing. With the high cost of two-bedroom units, splitting the rent with only one other roommate may not reduce the per person rent to an affordable rate. The …

December 6, 2022

Features

Equal, Uniform Taxation of Commercial Assets Serves Best Interests of Taxpayers, State Governments

by Taylor Williams December 1, 2022

By Steve Nowak, Esq., of Siegel Jennings Co. LPA It has been said that the people who complain about taxes can be divided into two classes: men and women. While we all complain, taxes ensure that various levels of government have funds to perform essential functions — to keep society civil and in, more or less, working order. A tax must be fair to be supported, however. In countless instances, a taxpayer’s first complaint about an assessor’s valuation is that the amount exceeds his or her neighbors’ valuations. In essence, the property owner claims that the valuation — and resulting tax liability — is unfair or non-uniform. Too many jurisdictions lack an efficient mechanism to address non-uniform taxation. Fortunately, several states specifically require tax uniformity, and two offer legal remedies to help taxpayers combat unfair assessments. A Constitutional Concept Most taxing jurisdictions seek to assess real property at market value, which is the amount the property might sell for as of a certain date. Many states even address the legal requirements of taxation in their governing documents. Ohio’s constitution, for example, requires that “Land and improvements thereon shall be taxed by uniform rule according to value.” Virginia’s constitution states: “All …

December 1, 2022

Content Partner Features Leasing Activity Midwest Multifamily Northeast Pavlov Media Southeast Student Housing Texas Western

The Evolution of Internet Setups: How Student Housing Internet Preferences Are Influencing Traditional Multifamily

by Sarah Daniels November 29, 2022

Multifamily properties have witnessed a rapid expansion in Internet needs, a trend presaged by burgeoning Internet demands in student housing. Multifamily residents have increased their connection demands and are becoming increasingly sophisticated in their requirements for high-quality Internet. What can the lessons of student housing connectivity teach us about traditional multifamily trends, especially when it comes to bulk Internet? Bulk Internet approaches allow for more sophistication in multifamily properties, as demonstrated by student housing best practices. Student housing pioneered built-in networks to keep mobile devices from competing for Wi-Fi bandwidth, minimize downtime and use fiber connections to ensure speed and reliability. This style of network is becoming the gold standard for constant, heavy-duty Internet use in multi-dwelling units (MDUs). High-level connectivity is becoming an absolute necessity for multifamily properties, drawing in residents and improving their Internet-driven lifestyles. And as never-before-seen demand for bandwidth is graduating from dorm rooms to traditional apartments, well-planned multifamily Internet connections can help operators adapt gracefully. COVID’s Role in Internet Use Expansion COVID lockdowns accelerated already growing Internet requirements, which pushed Internet quality to the forefront as connectivity became increasingly important. “COVID put the spotlight on properties to make sure they had great infrastructure. The demand …

November 29, 2022

Features Heartland Feature Archive Northeast Feature Archive Other Southeast Feature Archive Texas & Oklahoma Feature Archive Western Feature Archive

Forecast Survey: What’s Your Take on Commercial Real Estate in 2023?

by John Nelson November 21, 2022

The editors of REBusinessOnline.com are conducting a brief online survey to gauge market conditions in 2023, and we welcome your participation. The survey should only take a few minutes to complete. Questions range from property sectors that you are most bullish on heading into 2023 to trends in deal volume to your outlook for interest rates. The results of our 12th annual survey will be collated and published in the January issues of our regional magazines. Conducting these surveys is part of our mission at France Media to provide readers with indispensable information, and we couldn’t do it without your help. To participate in our broker/agent survey, click here. To participate in our developer/owner/manager survey, click here. To participate in our lender/financial intermediary survey, click here. (Note: Please remember to click on “done” to properly submit the survey.)

November 21, 2022

Features Student Housing

Will the Fourth Quarter See a Return to Normal Investment Sales Activity in Student Housing?

by Katie Sloan November 18, 2022

The cancellation of the NMHC Student Housing Conference due to Hurricane Ian took some wind out of the student housing investment sales market this fall. The annual event is where many dealmaking meetings are held. Activity was a little slower during the third quarter due to changes in the capital markets climate, but is expected to pick up as the year draws to a close and more sellers bring properties to market. “August was a little bit slower, but now that we have the rent rolls for fall 2022 we are seeing a lot of assets hit the market,” says Teddy Leatherman, senior managing director, capital markets, with JLL. “Our team has never been busier from a broker’s opinion of value (BOV) or RFP standpoint.” The investment sales market, overall, has had a strong year. Even removing Blackstone’s $13 billion acquisition of American Campus Communities from the market, the student housing sector has had a robust year. Add that transaction in the mix, and the industry will likely have a record year in 2022. “The first three quarters of 2022 surpassed 2021’s volume and broke 2018’s record for annual transaction volume,” says Timothy Bradley, founder of TSB Capital Advisors and …

November 18, 2022

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