Ivan Kaufman’s Blog 2017-07-19T16:32:21+00:00

Ivan Kaufman’s Real Estate Blog

Weekly Roundup: June 8th, 2018

This week’s industry news highlights feature information on apartment building trends, blockchain technology and the continued growth of the Dallas market. First, RealPage states that builders are shifting their focus to building in taller, urbanized, infill locations with higher density. Then, Commercial Property Executive discusses the growing interest in blockchain technology and the impact it could have on simplifying real estate transactions. Arbor Chatter gives a synopsis of the Dallas market’s performance throughout Q1 2018. Next, RealPage names a few of the rent growth leaders in secondary and tertiary markets. Finally, MultiHousing Pro weighs the strong returns and relatively low risk of multifamily, concluding that it is a solid CRE investment.

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Apartment Development Trends Toward Taller, Denser Buildings

RealPage – June 6, 2018

“While these locations are associated with higher upfront costs and strict permitting processes, they offer the sense of sustainable long-term tailwinds, leveraging existing infrastructure and proximate workforce capacity.”

Simplifying CRE Finance Through Blockchain Technology

Commercial Property Executive – June 6, 2018

“Commercial real estate players looking for a smoother transaction process that also opens the investment field to a wider audience are pursuing blockchain and cryptocurrency as potential solutions.”

Dallas Multifamily Market Remains Strong Through Q1 2018

Arbor Chatter – June 4, 2018

“Rent growth and investment activity remained strong, while vacancy rates held at historically low levels despite a high volume of new supply added to the market.”

Secondary and Tertiary Market Leaders Post Strong Rent Growth

RealPage – June 5, 2018

“The range of rent performances among major U.S. apartment markets has narrowed, due in part to smaller increases among top performing metros. Top performing smaller markets, however, are still seeing large increases.”

The Case for Multifamily Investment

Multihousing Pro – May 31, 2018

“New research shows apartment returns best those of other commercial real estate property types over time and across geographies.”

Weekly Roundup: June 15th, 2018

This week’s industry news highlights feature information on small balance lending growth as well as the new amenities that are attracting college students. First, MBA reports that small balance multifamily lending could increase 4 to 6 percent this year due to factors like having a superior risk-adjusted performance outlook. Then, Multifamily Executive states that effective rents are growing and the average sales prices for most property types should trend higher, in line with these increases. Arbor Chatter provides an analysis of the small balance lending market in Q1 2018 with insights from Chandan Economics. Axios reveals some of the elements that are expected to attract millennials in the coming years. Lastly, National Real Estate Investor explores the student housing shift toward amenities that reflect a focus on studying, health and fitness and the ride-sharing economy.

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Small-Balance Lending Could Grow 6% in 2018

Mortgage Bankers Association – June 12, 2018

“The firms’ Small-Balance Multifamily Investment Trends report said sub-$5 million multifamily loan disbursement reached $49.8 billion last year, the highest level since the financial crisis.”

Reis: Investor Interest in Multifamily Remains High

Multifamily Executive – June 11, 2018

“Effective rents rose 0.8% in the first quarter, with positive rent growth expected to continue.”

Q1 2018 Small Balance Multifamily Investment Trends Report

Arbor Chatter

“Buoyed by the favorable economic outlook, a robust labor market and higher inflation, lending in Q1 2018 was $44.5B, improving on Q1 2017. “

Millennials are Moving to the Exurbs in Droves

Axios – June 10, 2018

“For this younger generation, what I see is more clustered developments within the suburbs, and smaller metros, greater reliance on public transportation and perhaps ride-hailing and self-driving cars.”

Focus in Student Housing Amenities Changes from Luxury to Health and Wellness

NREI – June 15, 2018

“Some companies that provide student housing say they have seen a shift away from over-the-top amenities that were popular with off-campus renters a few years back.”

Weekly Roundup: Week of May 25, 2018

This week’s news pieces feature a mixture of commercial real estate topics including the impact of new supply, luxury apartments and the draw of single-family rentals. First, MBA predicts how the industry will continue to change in the future with insightful contributions from MBA Vice President, Jamie Woodwell. Then, NREI states that while apartment demand is expected to remain strong, it may not be able to keep pace with the addition of new supply. Real Page explains the difference in Class A and Class B properties when it comes to renter turnover. Next, Curbed highlights the importance of single-family rentals in meeting evolving consumer preferences. Finally, NREI concludes with an overview of America’s most prosperous cities and which factors influenced the results.

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 Predicting the Evolving Future of Commercial Real Estate

Mortgage Bankers Association – May 23, 2018

“I think it’d be a mistake to assume the mortgage world will be the same 10 years from now.”

 Apartment Market Weathers the Storm of New Supply

NREI – May 22, 2018

“Demand remains strong, but the number of new apartments opening has been trending higher than the number of apartments absorbed.”

 Luxury Apartments Hold Onto Fewer Renters at Lease Expiration

RealPage – May 22, 2018

“When leases for Class A apartments reached expiration in calendar 2017, 52.6% of the households opted to move. In comparison, 48.9% of the residents in Class B apartments moved at lease expiration.”

 Wall Street’s New Housing Frontier: Single-Family Rental Homes

Cubed – May 18, 2018

“Because the homes they bought are highly concentrated in areas affected by the foreclosure crisis, these companies could have an outsize impact on individual cities and specific neighborhoods.”

 A Look at America’s 20 Most Prosperous Cities

NREI – May 24, 2018

“The firm looked at the magnitude of proportional changes that affected their population, median income, home values, share of inhabitants holding a higher education degree, poverty rate and unemployment.”