Radius Insight: Q1 2017 Market Report

South Coast commercial sales for the first three months of 2017 were the strongest we have seen in the last 18 years.

During the first quarter there were 30 commercial sales, twice as many as the 18-year average of 15 for Q1 sales. We even surpassed the 24 sales closed in Q1 2016 which was another strong opening quarter.

Total sales volume for the first quarter was $134 million, up slightly from 2016’s $129 million and completely overshadowing the $49 million closed in Q1 2015…

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Leasing Summary: Macy’s & The State of Retail

Undoubtably the big news heading into 2017 was that Macy’s would be closing their massive 141,000 sq. ft. anchor location in the Paseo Nuevo Mall this Spring. The store is now closed. With 48 years remaining on their lease with the City of Santa Barbara, the retailer is in the process of deciding what to do with the property. Macy’s is able to transfer the lease to another retail tenant as long as a minimum of one floor is dedicated to retail use. A potential tenant could be either another large retailer or a mixed use project. Through the lease language, the City doesn’t have much control over the type of retail tenant…

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Wall Street Journal: Apartment Rents Are Rising Steadily and Quickly

Wall Street Journal: Apartment Rents Are Rising Steadily and Quickly

Wall Street Journal – Published 10/1/2014

By Robbie Whelan

 

Wall Street Journal - Apartment Rents Are Rising

Workers build frames for one of the three- and four-story apartment buildings that make up the 308-unit Brooklyn Riverside apartment complex in Jacksonville, Fla., in September. Bob Self/The Florida
Times-Union/AP

Cost Has Risen For 23 Consecutive Quarters; Shows No Sign of Easing

The pace of rent growth for U.S. apartments is accelerating despite an uptick in construction of new dwellings, as the economy steadily improves and vacancies remain stubbornly low.

Rental rates increased 1% during the third quarter to an average of $1,111 a month nationwide, according to Reis Inc., a real estate research firm that collects data on 79 U.S. metropolitan areas. That was up 3.3% from the same quarter a year ago. Last quarter’s 1% increase was faster than the second quarter’s 0.9% rise.

Apartment rents have risen nationally for 23 straight quarters and are 15.2% higher than they were at the end of the recession in 2009. The figures suggest the five-year squeeze on renters shows little sign of easing.

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Globest.com: Unemployment Won’t Affect Multifamily Market

Globest.com: Unemployment Won’t Affect Multifamily Market

Published 7/28/14
Globest.com

LOS ANGELES—Although many economists are talking about slow job recovery, the commercial real estate space is experiencing one of the hottest multifamily markets ever. To find out about this dichotomy and look at the correlation between unemployment and the multifamily market a little better, we sat down with StarPoint Properties CEO Paul Daneshrad. In this interview, Daneshrad explains how fluctuations in unemployment have a direct impact on the market, and how the current unemployment rates and job recovery is impacting the multifamily market today and in the future.

GlobeSt.com: How do fluctuations in the unemployment rates affect the multifamily market?

Paul Daneshrad: The employment rate and “quality of employment” has a direct impact on the multifamily market because the renter needs income before they can afford to pay for an apartment. There is no general rule when it comes to the correlation of the employment rate and the multifamily market, but our internal statistics show that every 1% increase or decrease (100 basis points) in the unemployment rate correlates to a loss or gain of 800,000 renters. The quality of employment also matters. Our current unemployment figures include part-time employment, which does not allow an individual enough income to support the average rent in the US.

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National Real Estate Investor: CMBS Lenders Fight Back

National Real Estate Investor: CMBS Lenders Fight Back

Published 6/6/14
National Real Estate Investor
National Real Estate Investor: CMBS Lenders Fight Back
By Bendix Anderson

Multifamily borrowers can now get more loan proceeds and longer interest-only periods from lenders that securitize commercial mortgage-backed securities (CMBS).

“They have gotten more competitive in every aspect of their quotes,” says Michael J. Riccio, senior managing director and co-head of national production of debt and structured finance, CBRE | Capital Markets. CMBS lenders are bending over backwards to make up for the intense competition from banks and Fannie Mae and Freddie Mac lenders to offer low interest rates.
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National Real Estate Investor: Investors Will Remain Interested in Multifamily Through 2015 (And Likely Beyond)

National Real Estate Investor: Investors Will Remain Interested in Multifamily Through 2015 (And Likely Beyond)

Published 5/14/14
National Real Estate Investor
National Real Estate Investor: Investors Will Remain Interested in Multifamily Through 2015 (And Likely Beyond)
By Mark Robinson

It’s no secret that the nation’s apartment sector has been on fire in recent years. With new multifamily construction largely stalled and homeownership on the decline, occupancy and rental rates at apartment communities surged, and investors entered the market in droves.

Now, with construction levels beginning to rise and the single-family housing sector showing signs of recovery, people have been wondering if multifamily’s moment in the sun has passed. In short, my answer is, “No.”

The sector should continue to experience strong consumer and investor demand for at least several years. The kinds of properties investors are chasing, however, are changing. Continue reading