This week’s roundup of the top multifamily and commercial real estate news stories looks at change on several different levels. We start on a small level, examining the various factors that influence whether or not a renter chooses to renew their lease. Age, inventory and employment opportunities all play a role.
A search for value is another reason for turnover, and some Millennials renters are choosing to leave cities for urban-like pockets in the suburbs. As these suburbs come to incorporate amenities typically found in city centers, apartment developers are now working with housing officials to align parking requirements with a decreased demand for cars – due in part to services like Uber and the same day delivery of goods.
The continued growth of e-commerce has also lead to a rethinking of logistics and industrial space, as companies like Amazon open up new fulfillment centers inside the urban core to complete the ‘last mile’ of the supply chain. While overall commercial real estate lending is up 20% year-over-year in 2Q17, lending for industrial properties was up 91%.
via Real Page – August 7, 2017
“Renter turnover is inevitable. Unless rents are absurdly cheap, people are going to come and go. It’s the nature of the multifamily industry.
But what does the turnover ratio tell us?”
via Yahoo Finance – August 7, 2017
“Why live in a metropolis when you can find urban perks in the suburbs? Older millennials are realizing they don’t have a good answer to that question anymore. The result: a migration out of the city.”
via National Real Estate Investor – August 8, 2017
“There is a growing awareness among housing officials that the required parking ratios are out of whack with reality.”
via World Property Journal – August 7, 2017
“Second quarter 2017 commercial and multifamily mortgage loan originations were 20 percent higher than during the same period last year and 28 percent higher than the first quarter of 2017.”