Here at RealtyMogul.com, we keep our finger on the pulse of all things real estate, from finance to technology and everything in between. We make a point of sharing interesting articles and think pieces among RealtyMogul.com staff to help our team stay abreast of the market, and ahead of the curve.
So we thought, why not share some of these insights with you, our partners?
Got A Minute? Here’s some recommended reading with key points from the content:
Apartment Demand Still Exceeds Supply (Globe St)
- RealPage Inc. is reporting that multifamily occupancies have reached a 16-year high as of the end of the third quarter with an occupancy rate of 96.5%. This is just 30 basis points short of the all-time record of 96.8% that was set during the year 2000.
- According to Greg Willett, chief economist with RealPage. “While an upturn in high-end deliveries is yielding more product availability in select spots, most new projects are moving quickly through the initial lease-up process.”
- The article also mentions several cities with the highest levels of construction activity (ranked in order of % of current inventory): Nashville, Dallas, Charlotte, Austin.
Office Developers Size Up Suburban Markets for Spec Development (Costar)
- A good read from Costar on the current state of construction in the office sector. “Overall U.S. office supply addition has been muted throughout the recovery. Despite pockets of strong building in Silicon Valley, San Francisco, New York, Seattle, Dallas and a few other top markets, total projects under construction currently make up just 1.5% of U.S. office inventory, well below historical trends, with just 36% of metros seeing more new office space entering inventory than their long-term averages.”
- It is interesting to compare construction levels to the multifamily sector where 79% of metros are seeing construction levels above their historical trends.
- Office construction has been concentrated in the CBD and downtown districts with 38% of the pie while suburban office development has been falling recently.
"The current housing recovery could stall' (Business Insider)
- According to the National Association of Realtors, “the current housing recovery could stall” if new construction for single family residential does not pick up. The monthly August report showed that pending sales of single-family homes, condos, and co-ops fell 2.4% in August suggesting buyers are finding inadequate inventory and/or steeper pricing.
Yellen: There’s ‘No Fixed Timetable’ for Next Rate Hike (Bisnow)
- Nothing definitive from her most recent speaking session at the House Financial Services Committee, but Fed Reserve Chairwoman Janet Yellen says “we expect to see job growth continue, but we do need, if things continue on their current course, to gradually remove the accommodation that is there.” She also added the Fed officials are “not actively considering” raising the target.
Walgreens struggling to sell stores (CSA)
- Anyone in the market for a Walgreens store? The company is reportedly having trouble selling stores following the proposed Rite-Aid/Walgreens Merger in which they planned to close between 500-1,000 stores. In the event they cannot sell these stores there could be a lot of big box vacancies in retail centers nationwide.
Douglas Emmett, QIA Grab LA Ocean-View Office Gem (CPE)
- Douglas Emmet, in a JV with the Qatar Investment Authority, picked up another high-profile West LA office building with the purchase of 233 Wilshire Boulevard in Santa Monica. The purchase price was $139.5M (~$1,081/SF) and the seller was Blackstone.