Thomas Rodriguez’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. 📊🏢 #REITs #ApartmentDemand

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

Chicago & the Midwest are the best markets to invest in. See my post below. The national average multifamily rent fell by $3 in October, down to $1,748, according to Yardi Matrix’s latest National Multifamily Report. Year-over-year rent growth was unchanged from the previous month at 0.9%; Yardi notes that the growth rate has fluctuated between 0.7% and 0.9% since January. The market has absorbed 329,000 new units so far this year, but new unit supply is trending ahead of demand, with 554,000 market rate deliveries expected in 2024. Occupancy fell 10 basis points in September, down to 94.7%. (Occupancy numbers are current to the previous month.)

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

HERE IT COMES...the tidal wave of multifamily units into Austin. Will this cause rent to go down??? 🏙️ Austin faces a multifamily property oversupply, straining the market with historically high vacancy rates. 📊 ALN Apartment Data forecasts the trend to persist into 2024, ranking Austin eighth nationwide for new construction. 🔨 Current figures include 63,882 units preconstruction, 41,071 units under construction, and 27,488 units in various stages of lease-up. 📈 The population of young adults aged 20-34 in Austin is expected to grow by 1.8% in 2024, potentially stabilizing the market as this group prefers renting. 🏢 Shift in investment strategies seen, with properties in North Austin experiencing a rise in cap rates from 3 to approaching 7, reflecting changing market dynamics. 🔄 Multifamily owners are adjusting tactics, some acquiring new properties while others upgrade existing ones, all influenced by asset age and strategic location considerations. 🤔 Economic outlook remains cautious with a "higher-for-even-longer" interest rate scenario unlikely to revert to the low levels of the past decade. Questions for my multifamily friends out there: - How will the ongoing construction boom impact Austin’s housing market in the next 5 years? - Can the influx of young adults sufficiently counterbalance the current oversupply? - What strategic adjustments should multifamily owners consider to navigate this evolving landscape? #AustinRealEstate #MultifamilyMarket #HousingCrisis #ConstructionBoom #InvestmentTrends #RealEstateEconomics #MarketDynamics #UrbanDevelopment

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

Thinking about multifamily investing outside your local market? According to Yardi Matrix and Multi-Housing News, 10 markets stood out going into 2023. These top markets in 2023 were West Palm Beach(FL), Louisville(CT), White Plains(NJ), Colorado Springs(CO), Knoxville(TN), Huntsville(AL), Spokane(WA), Madison(IL), New Orleans(LA), and Albany(NY). I will include this link in the comments. Crexi has released its bold 2024 predictions of national markets that are poised for the stars next. Only a select few markets broke through 2023's turbulent year with higher expectations in 2024. Take a look at what cities carry an upside in 24' through the link below! Slatt Capital has originated and currently services over $5 Billion in commercial loans in 42 states. If you would like to learn more about other Markets, Trends, and how this influences financing, feel free to comment, call, or email for information. Parker Watson C: 925.899.5686 E: parker.watson@slatt.com #NHM #multifamilyinvesting #topmarkettakeaways #mortgagebanker

Stable Renters and High Retention: Why Multifamily Investments Are Booming. The multifamily sector is looking strong, and Q2 2024 has proven it with impressive performances from public REITs. For developers and investors, this is significant news. Here are the key takeaways that could impact your strategy: ⬇ 🔹 Strong Q2 Performance: Public REITs have shown robust results, highlighting the sector's resilience. 🔹 Low Turnover Rates: Benefiting from low turnover rates, multifamily properties remain in high demand. 🔹 Housing Costs: With high homeownership costs, fewer renters are moving out to buy homes, sustaining occupancy rates. 🔹 Employment Stability: Stable employment trends for renters ensure consistent rental income. 🔹 Operational Efficiency: Innovations like AI are enhancing operational efficiency, a trend to watch for optimizing your own projects. 🔹 Financial Growth: REITs like AvalonBay and Equity Residential report growth in core funds from operations and revenue, signaling a healthy market. 🔹 Positive Outlook: Despite supply concerns, positive demographic trends and high retention rates bolster the sector's outlook. This is a pivotal time to leverage these trends for your multifamily projects. With the market's positive outlook, focus on strategies that capitalize on high demand and operational efficiencies. Read the full article for more insights and detailed analysis: https://lnkd.in/gceGXXXY #MultifamilyRealEstate #RealEstateDevelopment #MarketTrends #OperationalEfficiency #InvestmentStrategies

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