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

Development Features Multifamily Western Feature Archive

Want to Appeal to Multifamily Tenants? Go Green

by Jeff Shaw September 1, 2022

By Barry Manuel, CIO, MEB Management Services Did you know that 39 percent of energy-related carbon dioxide emissions are generated through manufactured buildings? We spend the majority of our lives using indoor spaces to gather, work, socialize and live, which means multifamily developers and managers need to consider environmentally friendly options that don’t contribute to the global climate crisis. It’s the right thing to do, and we’re not the only ones who know that. Residents are getting wise to the impact their buildings play in the climate crisis. Creating A Solution With this in mind, we recently created the MEB Sustainability Committee to address environmental issues and adapt sustainability practices for our multifamily properties throughout Arizona and New Mexico. Our goal is to have at least 75 percent of all MEB properties engaged in energy-saving initiatives. MEB is taking a two-pronged approach. We’re using ESG ratings to measure long-term environmental, social and governance risks while educating and sharing sustainable practices with our residents and management teams. Through a collaborative effort, we’re reducing emissions by making changes to both new and existing apartment buildings. Part of our strategy and collaboration involves partnering with one of the most sustainably conscious builders in Arizona …

September 1, 2022

Features Office Western Feature Archive

Office Space Is Back in Demand — With a Wellness Component

by Jeff Shaw July 28, 2022

By Michael Brumley, Project Executive, Kiewit Building Group AT The pandemic sent ripple effects throughout the construction industry. Along the way, it also heavily influenced and impacted the way employees in the workforce now operate and interact. With COVID prompting a shift in remote work, many are wondering if it’s beneficial to go back to the office full-time, adopt a hybrid approach or forgo investing in office space altogether. There are many justifications for investing in office space when you consider variables like productivity, industry-specific jobs or trades, and overall employee satisfaction and benefits. The distinction is you need to invest in spaces that are successful for employers and employees alike. It’s All About the Benefits The pandemic proved work can be done anywhere as long as Wi-Fi is available. So, how can companies entice employees to work at an office once the investments have been poured into developing the physical space? According to a survey from McKinsey on consumer interest and purchasing power, 79 percent of respondents said they believe wellness is important while 42 percent consider it a top priority. Consumers in each market studied reported a substantial increase in the prioritization of wellness over the past two to three …

July 28, 2022

Features Multifamily Seniors Housing Western Feature Archive

Universal Design Strategies Foster Intergenerational Living in Multifamily Communities

by Jeff Shaw July 26, 2022

By Carol Cole, director of interior design, DAHLIN Group Architecture AT Intergenerational households are growing at a faster pace than they were pre-pandemic. Generations United, a nonprofit dedicated to supporting intergenerational programs and policies, estimates that 66.7 million U.S. adults live in a multigenerational household, with nearly 57 percent of this statistic spurred by COVID. Even after the immediate impacts of the pandemic subside, intergenerational living will remain prevalent for a variety of reasons. These can range from the need for child and/or elder care to cultural expectations and economic-related factors, such as loss of a job, high educational expenses or housing availability. Considering this trend and recognizing that more than 16 million Americans are currently over the age of 65, the movement toward incorporating universal design strategies on residential projects is key for creating aesthetic living spaces that are usable by everyone to the greatest extent possible. Already a standard in the healthcare community, universal design is the design and composition of a space set up to meet the needs of all users, not as a special requirement to benefit only a small fraction of a population. The practice results in inclusive environments that support high-functioning, independent living for …

July 26, 2022

Features Leasing Activity Multifamily Single-Family Rental Western Feature Archive

Redfin: US Residential Median Asking Rents Up 14.1 Percent in June on Annual Basis

by John Nelson July 12, 2022

SEATTLE — Redfin, the residential real estate brokerage giant, has reported that the national median asking rent in June is $2,016 per month, a 14.1 percent increase year-over-year. The Seattle-based company analyzed data from 20,000 separate multifamily and single-family properties from its RentPath platform across the top 50 U.S. metro areas. The June figure is a slight increase from May at 0.7 percent, which represents the smallest month-over-month gain since the start of the year. The median asking rate is also the smallest annual increase since October 2021. Daryl Fairweather, Redfin’s chief economist, says while still elevated, the current slowdown in rent growth could be anticipatory on the part of landlords in reaction to overall inflation. (The Consumer Price Index saw its biggest annual gain since 1981 in May, according to the U.S. Bureau of Labor Statistics). “Rent growth is likely slowing because landlords are seeing demand start to ease as renters get pinched by inflation,” says Fairweather. “With the cost of gas, food and other products soaring, renters have less money to spend on housing.” “This slowdown in rent increases is likely to continue, however rents are still climbing at unprecedented rates in strong job markets like New York …

July 12, 2022

California Features Student Housing Western Western Feature Archive

Yardi: Student Housing Shows Healthy Rent Growth, Preleasing Levels for Fall 2022

by John Nelson May 5, 2022

SANTA BARBARA, CALIF. — The student housing industry continued to show strong fundamentals in the first quarter of this year, with preleasing levels off to a robust start and annual rent growth exceeding pre-pandemic levels, according to the latest installment of Yardi’s National Student Housing Report. As of March, preleasing for fall 2022 was reported at 63.8 percent — a number that is 13.5 percent higher than the same time last year and 9.9 percent higher than March 2019 — and the average rent per-bedroom for fall 2022 is $777. These figures are based on the company’s “Yardi 200” markets, which include the top 200 investment-grade universities across all major collegiate conferences, including the Power 5 conferences and Carnegie R1 and R2 universities (research universities in the Carnegie Classification of Institutions of Higher Education). A handful of university markets were almost fully preleased as of March, with Purdue University (99.9 percent preleased), the University of Pittsburgh (99.8 percent preleased) and the University of Wisconsin-Madison (98.3 percent preleased) topping the list. Few universities are struggling with fall 2022 preleasing so far, but those that are tend to have higher acceptance rates, according to the report. The University of Houston had the …

May 5, 2022

California Features Industrial Western Western Feature Archive

CommercialEdge: Industrial Rents Rise at Torrid Pace Amid Record Supply

by John Nelson April 1, 2022

SANTA BARBARA, CALIF. — The national average for in-place industrial rents across the top 30 U.S. markets reached $6.45 per square foot in February, a 4.4 percent year-over-year increase according to research from CommercialEdge, a product of Yardi Systems. The Santa Barbara-based firm found that the average effective rental rates signed over the same interval was $7.35 per square foot, 90 cents higher than the national average for in-place leases, a nearly 14 percent swing. Southern California markets led the nation in rent expansion, largely due to intense activity in the Ports of Los Angeles and Long Beach. Orange County recorded the most significant 12-month change with a 7 percent hike, reaching $11.65 per square foot. Los Angeles (6.7 percent) and the Inland Empire (6.5 percent) rounded out the top three markets nationally. On the other end of the spectrum, markets that have higher availability of developable land recorded weaker rent growth in the last 12 months. Newly delivered stock in these markets is helping developers meet demand, while also elevating vacancy levels. Across the top 30 U.S. markets, rent growth was slowest in Charlotte (1.1 percent), Houston (1.7 percent) and Indianapolis (2.3. percent). The spread between the average lease …

April 1, 2022

Conference Coverage Features Multifamily Seniors Housing Western Feature Archive

Seniors Housing Occupancy on the Mend, but NOI Trails, Say Industry CEOs

by Jeff Shaw March 15, 2022

LOS ANGELES — After bottoming out at 78.7 percent in the second quarter of 2021, private-pay seniors housing occupancy has been on a slow, steady climb, according to data from the National Investment Center for Seniors Housing and Care (NIC). The most recent data — for the fourth quarter of 2021 — showed occupancy at 81 percent. However, the pace of recovery varies widely among individual markets, individual companies and even individual properties. “Some people are able to manage the turmoil. Some are even thriving, or at least doing pretty well,” said J.P. LoMonaco, president of Valuation & Information Group. “Other people are really floundering. The questions I’m getting all revolve around occupancy, inflation, maintaining margins and revenue growth.” LoMonaco’s comments came as moderator during a panel titled, “The Power Panel: CEOs Discuss the State of the Industry” at France Media’s InterFace Seniors Housing West conference in Los Angeles on Feb. 24. Nearly 225 industry professionals attended the event. Other panelists included Chris Belford, CEO, Sinceri Senior Living; Rob Leinbach, principal, Cadence Living; Bill Pettit, president, R.D. Merrill Co.; Courtney Siegel, president and CEO, Oakmont Management Group; and Dave Sedgwick, president and CEO, CareTrust REIT. All the panelists reported their …

March 15, 2022

Company News Features Heartland Feature Archive Hospitality Industrial Mixed-Use Multifamily Northeast Feature Archive Office Retail Southeast Feature Archive Texas & Oklahoma Feature Archive Western Feature Archive

Forecast Survey: What’s Your Take on Commercial Real Estate in 2022?

by John Nelson November 18, 2021

The editors of REBusinessOnline.com are conducting a brief online survey to gauge market conditions in 2022, 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 2022 to trends in deal volume to your outlook for interest rates. The results of our 11th 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 18, 2021

Lee & Associates Breaks Down Third-Quarter Economic Outlook by Sector

by Sarah Daniels November 1, 2021

The calculus for which asset classes are likeliest to demonstrate strong growth continues to shift as the pandemic appears to be receding. Patterns in labor shortages, supply chain issues and material costs have managed to solidify through the third quarter of 2021. Lee & Associates’ newly released Q3 2021 North America Market Report dissects third-quarter 2021 industrial, office, retail and multifamily findings, with a focus on where demand is moving and the challenges facing each asset class. Lee & Associates has made the full market report available at this link (with further breakdowns of factors like vacancy rates, market rents, inventory square footage and cap rates by city). Below is a bird’s-eye overview of four commercial real estate asset classes as general categories, broken down to frame each through the trends and complications they faced up to the fourth quarter, according to Lee & Associates’ research. Industrial: Q3 Posts More Record Demand Pandemic-fueled consumer spending drove up third-quarter demand for warehouse and distribution facilities that eclipsed previous records. And despite a nationwide surge in new construction, some metros can barely accommodate the pace of tenant expansion. Additionally, year-over-year rent growth is at a record 6.7 percent for the industrial property sector …

November 1, 2021

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