Mark Diebold’s Post

AvalonBay Communities, Inc. highlighted, "operating momentum through the first half of the year has been driven by better-than-expected demand." 2nd quarter earnings calls from leading multifamily REITs reveal that the strong performance observed in the first quarter carried into the peak leasing season. Robust apartment demand, driven by employment growth, wage increases, and in-migration continue to be key factors, even amid economic uncertainty. 📊🏢 #REITs #ApartmentDemand

AvalonBay Communities, Inc. highlighted, "operating momentum through the first half of the year has been driven by better-than-expected demand." 2nd quarter earnings calls from leading multifamily REITs reveal that the strong performance observed in the first quarter carried into the peak leasing season. Robust apartment demand, driven by employment growth, wage increases, and in-migration continue to be key factors, even amid economic uncertainty.

🚨 Big Moves in Build-to-Rent: AvalonBay Enters the Market 🚨 AvalonBay Communities, a leading name in traditional multifamily housing, just made its first major move into the build-to-rent (BTR) space with a $49 million acquisition of Avalon Townhomes at Bee Cave, just outside Austin, TX. Here’s why this matters: 🏘️ New Frontier: AvalonBay is leveraging its experience in luxury apartments to meet the growing demand for professionally managed, suburban-style rental communities. 📈 Surging Demand: Millennials entering their prime household formation years and a nationwide housing shortage are driving unprecedented interest in BTR properties. 💡 Strategic Expansion: This acquisition is just the start. AvalonBay is targeting high-growth markets like Texas, North Carolina, and Colorado for future projects. BTR isn’t just a trend—it’s a reshaping of the rental housing market, offering tenants the feel of single-family living with the perks of a managed community. 👉 Want more insights like this? Stay ahead of the curve by subscribing to BTRList.com, your go-to source for news, data, and trends in build-to-rent multifamily. Let’s talk: What do you think about AvalonBay’s entry into BTR? Drop your thoughts below! 👇 #BuildToRent #RealEstateNews #BTR #MultifamilyHousing #BTRList

🏢 Q2 2024 REITs Performance: Key Highlights 🏢 The second quarter of 2024 has been eventful for multifamily REITs, with several positive trends continuing from the first quarter. Here’s what stood out: 📊 Strong Apartment Demand: Demand remained robust despite macroeconomic uncertainties. Key drivers included employment growth, wage growth, in-migration, and housing affordability. AvalonBay Communities, Inc. reported better-than-expected demand, driven by full employment in sectors relevant to their core customer base. Camden Property Trust highlighted strong demand in its Sun Belt portfolio, driven by household formation and positive demographic trends. 🏢 Solid Occupancy Rates: REITs maintained high occupancy rates, even with elevated new deliveries. Equity Residential reported a strong 96.4% occupancy, driven by good demand and a low turnover. Coastal markets performed particularly well, with UDR and Essex Property Trust, Inc. reporting occupancy rates above 97%. 💼 Focus on Managing Operating Costs: REITs continue to emphasize cost management through optimized technology systems and streamlined operations. Equity Residential is leveraging scale by efficiently sharing employees across properties in established markets. Transaction activity is picking up, with multifamily REITs increasing forward guidance for the remainder of 2024. This performance showcases the resilience and strategic adaptability of multifamily REITs, setting a positive outlook for the rest of the year. #Colliers #Pittsburgh #MoreIn24 #ThriveIn25 #ClosersCoffee #ColliersCapitalMarkets https://lnkd.in/ehSMsXmX

The multifamily industry is navigating a period of change, but long-term growth is on the horizon. As younger generations fuel rental demand and immigration boosts the market, multifamily housing is poised to thrive despite current challenges. Read more on how these trends are shaping the future of commercial real estate: https://hubs.ly/Q02Vx70K0 #MultifamilyHousing #RealEstateTrends #EconomicShifts #GenZRenters

Just $5 billion in multifamily sales closed in the first quarter, according to Avison Young, the lowest amount since the second quarter of 2020, when COVID reduced sales volume to some $4 billion. That followed a decrease of 61 percent in 2023, to $119 billion, according to Matthews Real Estate Investment Services. The movement is coming from a few spheres. Institutional investors and lenders both need to deploy capital, while some property owners that have delayed entering the market due to the high cost of capital and uncertain market are finding they have no choice. But, are they making the right choices? Throwing capital at a property is not always the right answer/ Underwriting is an art. Poor underwriters - Put the numbers into a Excel spreadsheet - Add some increase for rents - Reduce the staff expenses And then they think they are going to make a great cash on cash return. But they really don't spend enough time looking at: 1) Optimizing Rent for the location - can you do the increase and will it rent? 2) Increasing Occupancy - Giving the wrong concession can be a big mistake 3) Reducing Delinquency - Not necessarily evicting tenants behind, but working with them 4) Controlling Operational Expenses - especially when you take over a portfolio, there is a lot of "This is the way we have always done it." But too much change too quickly can create high staff turnover, and which further increases costs. #RenaTalksMultifamily https://lnkd.in/gdVqUi23

In February, the multifamily sector experienced a notable uptick in distress rates, with an 80 basis point rise to over 3%—the most significant increase seen in 18 months. WHILE THIS WAS THE LARGEST INCREASE AMONG CRE PROPERTY TYPES, THE PERCENTAGE IF TROUBLED CRE LOANS REMAINS HIGHER AT 7.35%. Although this points to growing pressures within the apartment sector, it's interesting to note a slight decrease in overall troubled loans across commercial real estate, buoyed by gains in specific areas. Moreover, a drop in the multifamily commercial mortgage-backed special servicing rate suggests emerging positive dynamics, despite the challenges. Such nuances in market movements are essential for informed investment strategies. #commercialrealestate #multifamily #multifamilyinvesting Source: https://lnkd.in/gWSB9HAg

Grayslake Advisors Founder and Principal, Paul Habibi, was recently featured on Marketplace discussing diverging trends in the housing market. Paul provided key insights on why single-family home construction is rising, while multifamily developments face financing challenges. His perspective on how the current volatile interest rate environment impacts developers underscores Grayslake’s expertise in navigating complex market dynamics. #RealEstate #HousingMarket #EconomicConsulting

✂ Multifamily rents have softened over the past two months in Dallas-Fort Worth. Rents are down 0.6% from August to September, the second-consecutive month of rent declines. Rents generally slow down in the autumn months, coming off the heels of busy leasing periods over the spring and summer. Annual rents remain underwater at negative 1.3%, under continued pressure due to elevated construction and new developments entering the market, though the supply picture is shifting. The supply picture in Dallas-Fort Worth has hit an inflection point. Completed units peaked in the second quarter and continue to decline through the fourth quarter of 2024. Even so, the past two years have been record-setting for completed units, with builders adding 32,650 units in 2023 and 31,120 units thus far in 2024, a tally that will only rise through the end of the year. The pipeline is poised to thin further, with construction starts tapering over the past several quarters. As a result, the market is expected to be supply-constrained in 2025 and 2026, teeing up a rebound in rent growth. Following the rules of supply and demand, renter neighborhoods receiving the heaviest supply are also laggards in terms of rent growth. Rent growth in Frisco/Prosper and Allen/McKinney fell below 3% over the past year. Demand is working to keep pace, with the same areas leading in terms of renter demand. Negative performances are more pervasive across the market, with 68% of renter neighborhoods reporting negative rent growth performances, up from 45% during the same time last year. Annual rent growth remains negative, holding static over the past several quarters. With construction rollover, the outlook calls for marginal improvements to rent through the end of the year before picking up closer to 3% in 2025 and 2026. https://lnkd.in/gEJFQqUB #multifamily #DFW #closets #clozzits #innovation

Is Jacksonville, Florida, the place to buy multifamily right now? The market's facing some real challenges today. - Occupancy fell from 95.5% (Dec '21) to 92% (Dec '23) - Rents have dropped more than the national average - About 7,100 units will deliver this year Obviously it depends on your specific investment, but tread carefully. https://hubs.la/Q02qQhck0