Townline Real Estate Advisors LLC

FROM CRE DAILY: Rents Expected to Grow in 2025 on Strong Multifamily Fundamentals Rising rents and tightening supply are setting the stage for a big year in multifamily despite mounting operational challenges. Leading the way: Multifamily retained its dominance in CRE, representing 35% of total sales volume in 2024. Declining interest rates, expected later in 2025, could unlock sidelined capital and further boost activity. Meanwhile, sky-high home prices and 7.5% mortgage rates continue to make rentals the more viable option for many households. Stabilizing: Occupancy rates, currently around 93%, are forecast by Savills to bottom out mid-year before rebounding to 94% by year-end. Rent growth, which stagnated at 1.2% in 2024, is projected to accelerate to 3-4%, signaling a return to healthier fundamentals. Regional trends: The Midwest and Northeast lead in stability, with rent growth projected at 4.5% and 4.2%, respectively, due to limited supply pressures. In contrast, the Sun Belt will see slower rent growth of 2-3%, reflecting higher vacancy rates from overbuilding. Supply slowdown to drive growth: New multifamily permits dropped 20% in 2024, with completions expected to fall another 15% in 2025. This slowdown will push rents higher, especially in high-demand markets like Atlanta, Phoenix, and Dallas. Rising costs squeeze NOI: Operational costs continue to climb, with insurance premiums up 15-20% after 2024’s active hurricane season. Labor and materials costs have risen 5% and 3%, respectively, further compressing NOI. Colliers says Sun Belt markets face the greatest strain, with oversupply driving 10-15% occupancy declines. ➥ THE TAKEAWAY A window of opportunity: Investors have a rare chance to acquire assets below replacement costs in high-growth areas. Cap rates in secondary markets, such as Raleigh and Nashville, are trending upward, averaging 5.5% vs. 4.8% in primary markets. These conditions and stabilizing fundamentals make multifamily a top pick for 2025.

Happy New Year! Hoping everyone had an enjoyable and relaxing holiday. As we move forward in 2025- reach out to Townline Real Estate Advisors LLC for all your commercial real estate service need- property management , leasing or sales. Reach out at info@treallc.com or visit us at www.treallc.com We look forward to hearing from you !

Wishing everyone a safe and healthy 2025!

🎉 Happy New Year from Townline Real Estate Advisors LLC! 🎉 As we step into 2025, we want to express our heartfelt gratitude to our clients, partners, and community for making 2024 an incredible year. Your trust and collaboration inspire us every day. Looking ahead, we’re excited to continue offering exceptional commercial property management and real estate advisory services tailored to meet your needs. Whether you’re looking to optimize property performance, streamline operations, or explore new opportunities, we’re here to help you achieve your goals. Let’s make 2025 your most successful year yet! 📞 Contact us today to see how Townline Real Estate Advisors LLC can elevate your commercial real estate investments. 📧 Email: info@treallc.com 🌐 Website: www.treallc.com Here’s to a prosperous and thriving New Year! Cheers! 🥂

Colliers: Transaction volume to climb in 2025!

Happy Friday from Townline Real Estate Advisors LLC! As we wrap up the year, we’re filled with gratitude for our clients, partners, and community who have made 2024 a success. Here’s to an even brighter 2025, filled with new opportunities and continued growth! If you’re looking for expert guidance in commercial real estate property management , leasing or investment sale services, we’re here to help. Let’s make your 2025 real estate goals a reality! 📞 Contact us today at 708-606-2432 📧 Email us at frank@treallc.com Cheers to the new year ahead! #commercialrealestate #townlinerealestateadvisors #leasing #sales #propertymanagement

Merry Christmas & Happy Holidays from Townline Real Estate Advisors LLC

Cautious optimism for CRE 2025 outlook !

Townline Real Estate Advisors LLC wishes everyone a wonderful holiday season and a prosperous 2025!

We hope you had a great weekend! ☀️ At Townline Real Estate Advisors LLC we’re here to support all your commercial real estate service needs — from property management to advisory services and everything in between. Let us help you maximize your investments and simplify operations. 📞 Contact us today to see how we can assist! Townline Real Estate Advisors 📍 Serving Illinois and beyond 📧 info@treallc.com 📞 708-606-2432 #CommercialRealEstate #PropertyManagement #RealEstateAdvisors #TownlineRealEstate