Tier II Multifamily Markets Draw Investors

Tier II markets experienced the largest increases in multifamily investment this year through July. Tier II acquisitions totaled $37.4 billion, up 18.5% from the same period last year, with Houston and Raleigh the investment growth leaders Investment in Tier III markets rose 5.9% year-over-year, with Tier I investment climbing 2.4% New York led the U.S.

The Koreans Have Arrived!

In global commercial real estate markets, Korean investors are hardly bit players. In recent times, it’s the opposite, establishing themselves as bona fide participants in cross-border investments. In real estate circles, the rise is often discussed as a rapid emergence. Looking closer, the fundamentals driving the offshore push by Korean investors ensure that this development

Is Brexit a blessing in disguise for the UK’s Real Estate Market?

The UK’s long-term average share of global real estate investment is about 13%.  Until early 2016, the level of UK investment moved in sync with the global total (Figure 1). A divergence appeared around Q2 2016 in the run up to the UK’s historic Brexit vote (June 23, 2016). Investment fell sharply, and then fell

A New Budget, a New Capital and New Opportunities

There is a shift occurring in Indonesia. For several years, the largest economy in South East Asia has performed adequately but not spectacularly. Much of the economic malaise can be blamed on legacy issues of civil conflict, bureaucratic inertia and grappling with tried and true emerging markets issues like overpopulation, degrees of under and over

The Census and Multifamily

Census statistics on new multifamily product characteristics provide quantitative support for well known trends and insights into less discussed trends. The statistics paint a picture of several key aspects of multifamily’s evolution over the past two decades. The first major characteristic is that development of rental product —vs. for-sale— has become far more dominant in

Active Adult Housing is Hot – But What is It?

Active adult is one of the hottest specialty housing products today. Consumer and investor demand are both rising rapidly. Over 40% of baby boomers are 65+ years old; the oldest turns 73 in 2019. Older boomers are in active adult’s entry target ages—late 60s to mid 70s. Active adult is often marketed to younger seniors,

Capital Accepting Lower Returns for Multifamily’s Other Benefits

Q2’s one-year unlevered return for institutionally-owned multifamily assets was a moderate 5.78%, according to the NCREIF Property Index (NPI), down slightly from Q1’s 5.90%. The quarterly return of 1.42% was on par with the prior two quarters but under most previous quarters in recent years. Over the post-recession period, the appreciation return has fallen considerable,

The Land Where Cold is Hot

Across Asia Pacific, cold is now officially hot. According to real estate investors at least, who have consistently voted with capital allocations into cold storage facilities.    Growing investor interest in cold storage real estate has been brewing for some time. This appetite is part of a larger push into less competitive areas of industrial real estate. Equally influential, the

The Turnover Chain

Multifamily turnover rates continue to drop. RealPage reported 47.5% for 2018, down 80 basis points from 2017. The

U.S. Homeownership Edges Down

The homeownership rate has ticked down again. Q2’s U.S. homeownership was 64.1% not seasonally adjusted and 64.2% seasonally adjusted. Both rates fell slightly from Q1 and year-over-year. Q2 marked the second quarter in a row where the rates fell from the prior quarter. This was the first quarter since 2016 that experienced a year-over-year decline,