by admin | Oct 14, 2015 | Market Data
As the single-family rental space becomes more populated with investors, all of whom are trying to gain any advantage that will help them cut costs and streamline processes, therefore maximizing profits, more of them are turning to technology.
Source: dsnews.com
As the single-family rental space becomes more populated with investors, all of whom are trying to gain any advantage that will help them cut costs and streamline processes, therefore maximizing profits, more of them are turning to technology. Many new technologies have come along just in the last few years to aid single-family rental investors with their business, and technology is expected to play an even more significant role in the SFR market going forward. The industry should see a lot more transaction management software, acquisition management software, and even property and asset management disposition software to help combat the management inefficiencies which have plagued the industry.
by admin | Oct 14, 2015 | Market Data
Although lodging fundamentals have remained strong for several years, record occupancy levels and supply coming online indicate the cycle is nearing its end.
Source: www.cpexecutive.com
Lodging occupancy rates reached an all-time high in 2014 at 64.4 percent, and a modest increase of less than 1 percent in 2015. However, new supply expected over the next 12 months may result in occupancy rates reversing course and beginning to decline. ADR will continue to drive RevPAR growth through 2016 as the pipeline for new product is extremely robust in many markets.
by admin | Oct 14, 2015 | Market Data
Where did all the construction workers go?
Source: blogs.wsj.com
Home builders are facing delays and rising costs as they struggle to find enough construction workers.
That’s partly a function of the housing boom and bust, which helped push industry-wide employment above 7.7 million in 2006, only to watch it come crashing down by nearly 2.3 million over the next five years. While builders are used to ups and downs, the most recent bust was extreme in magnitude and duration.
While this can be viewed as a problem, it can also be viewed as a positive since unfettered growth can be somewhat constrained. This does produce an uptick in labor costs, but it appears to be offset for the time being by lower commodity costs.
by admin | Oct 14, 2015 | Market Data
What amenities do you need for your multifamily properties? IREM has the answers.
Source: www.bisnow.com
What types of buildings offer the highest rents? According to IREM data, all four building types reported increases in gross potential apartment rents in 2014. Elevator buildingsreported the highest increase in gross potential rents, 4.4%, raising the rent/SF from $17.85/SF in 2013 to $18.63/SF in 2014. Low-rise buildings with 12 to 24 units increased from $11.79/SF in 2013 to $11.96 in 2014. The rents in garden buildings increased 3% to $11.36/SF, and low-rise buildings with 25 or more units experienced an increase of 2.1%, bringing rents to $11.82/SF.
This chart also reflects the NOI experienced by each building type. (NOI is defined as the income remaining after operating expenses Elevator buildings reported the highest NOI, rising 5.9% to $11.07. Garden buildings reported the greatest increase of 6.3%, from $5.56/SF in 2013 to $5.91/SF in 2014. Low-rise buildings with 12 to 24 units reported the lowest NOI, $4.93/SF in 2014. Low-rise buildings with 25 or more units reported a minimal increase of 0.6% at $6.30/SF in 2014.
The findings mirror the industry’s migration toward more infill projects which typically are more dense and are taller. Rents have risen dramatically in many urban infill areas, however, the pipeline for new construction projects in many of these markets may slow the growth rate and increase occupancies so caution should be exercised in over saturated submarkets.
by admin | Oct 13, 2015 | Market Data
Source: www.businessobserverfl.com
Hoffman Commercial Real Estate paid $74.4 million for property on upscale Fifth Avenue in Naples highlighting more investor interest in rapidly growing southwest Florida.
by admin | Oct 13, 2015 | Market Data
A confluence of factors has created the “perfect storm” for sustained growth in the single-family rental market, according to one expert in the Securities Lab of the Inaugural Five Star Institute Single-Family Rental Summit on Monday, October 12, in Las Vegas.
Source: dsnews.com
Higher mortgage rates, tightening credit standards, rising home prices, an increased number of rental options, ever-increasing student loan debt, and the number of household formations to building permits combined with declines in income growth, distressed sales, personal savings rate, and the overall desire to earn a home are all leading to the perfect storm for sustained growth, according to Chris Crippen, managing director for US Residential Asset Fund
