Borrowers have lots of choices as lenders make more and more capital available for commercial real estate, according to the latest report from the Mortgage Bankers Association (MBA), an industry organization.
Top analysts expect there to be a few more vacant apartments by the end of 2014, but strong demand will keep the percentage of vacant apartments compared to overall stock very low for a very long time.
Buyers continued to bid up commercial property prices this spring and summer, according to the latest round of commercial property price indices. But not every property type is gaining value in the same way. Many investors are broadening their horizons, looking beyond the most expensive properties and the safest core property markets as they hunt for higher yields.
Apartment buildings have a new way to show off how energy efficient they are: an Energy Star score from the U.S. Environmental Protection Agency. If the score is high enough, a building can even get an Energy Star plaque to go next to its front door.
When it comes to multifamily properties, it pays to go green, according to the latest research from Fannie Mae. The government-sponsored enterprise’s new report found a huge difference between the spending on utilities at the most efficient apartment buildings compared to the least efficient.
Even supercharged demand is unlikely to rescue a few metro areas where the supply of new apartments is growing especially quickly. Most of these construction-crazy metros have something desirable to draw developers, such as strong projected job growth.
Good news for multifamily housing—demand for space is likely to be even stronger than experts estimated, helping the sector keep ahead of new construction for the immediate future, according to the Mid-Year Outlook 2104 from Freddie Mac Multifamily Research.
It’s shaping up to be another big year for commercial and multifamily lending—especially for banks and conduit lenders, according to the latest figures from the Mortgage Bankers Association (MBA), an industry trade group.
Microapartments—living spaces of less than 500 sq. ft.—are already popular in gateway cities like New York and Boston, but haven’t quite caught on yet in secondary markets. Developers like Evan Granoff are trying to change that. Granoff has brought new apartments of less than 300 sq. ft. to his native Providence, R.I. And residents are paying top dollar to rent them.