Ivan Kaufman’s Real Estate Blog
This week’s selection of multifamily news pieces reveal the expected performance outlook of the 2018 multifamily market as well as the amenities that matter most to renters. First, Mortgage Bankers Association identifies that the strength and stability of the CRE market will likely be sustained due to factors like increasing asking rents. Next, Axiometrics explores the dynamics that are causing small metro markets to outperform their counterparts. Alex Chatter discusses the significance of offering residents high speed connectivity and access to evolving technologies. Then, NREI predicts that 2018 will be another strong year for multifamily with an elevated level of transaction volume, low cap rates and a continued focus on secondary and tertiary markets. Lastly, The Wall Street Journal discovers that while nearly all residents say they care about having an on-site fitness center, less than half take advantage of the facilities they have.
MBA – Jan. 4
“Commercial real estate and finance markets were strong and steady during the third quarter, with fundamentals holding tight, prices still climbing, finance activity growing and loan performance extremely strong.”
Axiometrics – Jan. 4
“What might be causing the discrepancy in market performance between these marquee-name markets and their lesser-known neighbors? There are a few potential explanations.”
ALEX Chatter – Jan. 2
“While Internet access makes steady inroads in small apartment buildings, renter preference for faster connectivity is shifting access to newer technologies.”
NREI – Jan. 2
“Investors bought a lot of properties as 2017 came to a close, partially making up for the year’s slow start.”
The Wall Street Journal – Jan. 3
“82% of respondents say an on-site fitness center is important in apartment buildings, but 42% note they rarely or never use those facilities.”
ALEX Chatter recapped their top posts from 2017. In 2017, they covered many topics from the fastest growing metro markets and the factors that determine rent growth to tech solutions and the future of amenity offerings. They served as the go to source for multifamily news and information. An expansive array of topics have been covered in 2017, but below are the top 10 articles that we believe will keep you up to date on the latest industry trends and ahead of the competition.
Here are the Fastest Growing Multifamily Markets for Small Properties
Chandan Economics – March 1, 2017
Small asset growth rates across the Top 20 US metro areas by size varied widely, with metros in the US Southeast (Orlando, Atlanta and Miami) growing the fastest.
Is Job Growth a Good Predictor for Rent Growth?
Barbara Denham – March 31, 2017
The recent success of the apartment market has shown that two key variables have driven apartment demand – job growth and tech-related job growth.
6 Tech Solutions Every Multifamily Investor Should Know
Michael Beckerman – April 5, 2017
Choosing the right tool could mean the difference between closing in days or weeks, tenant retention or high turnover, and a low or high NOI.
The Numbers Behind the Dallas Multifamily Boom
Matt Maison – April 18, 2017
Rent growth accelerated as vacancy reached historic lows, strong employment growth continued to drive new development, and investment activity reached record highs.
High Skilled Workers are Moving to Secondary Markets
Chandan Economics – May 30, 2017
Workers in higher wage STEAM occupations help stabilize small asset apartment demand in the Gateway markets, while fueling growth in regional and secondary markets.
Video: A Conversation of Small Multifamily Loans
Ivan Kaufman – June 26, 2017
Ivan Kaufman, Chairman, President & CEO of Arbor Realty Trust, Inc., sits down with Steve Johnson, Vice President of the Small Loan Business at Freddie Mac Multifamily, for a discussion on how the Freddie Mac Small Balance Loan program has expanded liquidity to underserved markets.
How Does Property Age Impact Multifamily Asking Rents?
Chandan Economics – September 6, 2017
Recently released Census data shows that certain older structures – especially those representing specific design epochs – command higher rents.
Q&A: Trends in Commercial Real Estate with the MBA’s Jamie Woodwell
Chatter Staff – October 26, 2017
Commercial real estate has always been heavily data dependent, and that naturally leads one to technology. The amount of information available to investors and lenders has expanded tremendously, making it more accessible and actionable.
Autonomous Vehicles and the Future of Multifamily Parking
Chatter Staff – November 27, 2017
With the introduction of autonomous cars, transit-oriented development and the rise of ride-sharing companies, it seems inevitable that parking will take somewhat of a back seat.
Chicago Multifamily Market Update: Deal Volume Up as Investors Chase Yield
Matt Maison – November 27, 2017
Rents in the Chicago multifamily market continue to rise as corporate relocations and an emerging technology sector continue to drive demand.
This week’s collection of industry news stories touch upon the movement patterns of renters along with predictions for financial and digital trends in multifamily. First, The New York Times reports that there has been a drop in mobility for renters and homeowners alike. Then, Axiometrics weighs in on the risks and returns of investing in apartments, concluding that the flexibility of the sector leads to a more stable cash flow than some alternatives. MBA introduces us to the final ‘Duty to Serve’ plans that Fannie Mae and Freddie Mac will use to meet the needs of low income families by focusing in on manufactured housing, affordable housing preservation and rural housing. Next, City Lab forecasts that even as millennials age, the number of those who choose to live in the city will remain fairly consistent. Lastly, Property Management Insider suggests that multifamily owners should pay close attention to developments in video consumption, social media and artificial intelligence to maximize their returns in 2018.
The New York Times – December 21, 2017
“Only 21.7 percent of renters moved in 2017, a historically low rate, according to newly released United States Census Bureau data. Homeowners moved at an even lower rate — 5.5 percent, a slight uptick from 2016.”
Axiometrics – December 19, 2017
“Their value is solid, whether compared to other commercial real estate assets or to stocks, bonds and T-bills, even if transaction volume is down from one year earlier.”
Mortgage Bankers Association – December 19, 2017
“The statute requires Fannie Mae and Freddie Mac to serve three specified underserved markets–manufactured housing, affordable housing preservation and rural housing–by increasing the liquidity of mortgage financing, for very low-, low- and moderate-income families.”
CityLab – December 19, 2017
“’Peak Millennial’ doesn’t mean what it used to, because Millennials are getting older. And even still, they’re sticking around cities more than older generations.”
Property Management Insider – December 15, 2017
“As we prepare for a new year, it’s clear that residents and consumers are spending more time online. Here are the top three digital trends that multifamily should pay attention to in 2018:”