Month: September 2017

Barbara Denham, Economist with Reis, joins The Commercial Real Estate Show to talk about industrial buying and selling, retail, and e-commerce while looking at the impact on the economy. Highlights include:

• Warehouse and vacancy rates 9.7 from 9.9 in prior quarter and 10.3 last year
• Strong net absorption in industrial property market
• Q2 rent growth 0.6%
• Lot of strong construction is happening across country to meet optimistic demand outlook
• Consumer confidence strong than one would expect at this point in the cycle

Watch part 2.

Paula Munger, Director of Research & Analysis with the National Apartment Association (NAA) shares key statistics on demand for U.S. multifamily property as well as tips for improving demand. Highlights include:

• Certain markets certain sectors like luxury sector where starting to see overbuildings
• New study between NAA and NMHC (National Multifamily Housing Council) found there is a need for 4.6 million apartments across the country at all price points
  • Miami ranks fourth in demand nationally
  • Study indicates Miami needs for additional 185,000 units
• Increase in demand driven by demographic changes, ageing population, immigration, and deferral of marriage and children by millennials
• Builders are having challenges “penciling out” developments to due to land cost
• 51% of apartments in USA built before 1980
• Adding washers and dryers to units and common space can add an efficent way to add value to older apartments
• Tenants are willing to pay up for WiFi as an amenity
• Allowing pets is highly popular with tenants and a big revenue generator for owners
• In the past 10 years the highest growth of tenants has been with baby boomers over 50, but younger set still dominates