Apartment managers should not rush to cut rents, even if a flood of new apartments are expected and the construction cranes loom over their properties. If vacancies are still low, there still may be time to raise rents before competition for tenants force existing apartments to trim their rental rates.
Investors are seeking higher yielding investments, looking far beyond conventional, class-A apartment properties in prime markets. A growing number are bidding for government subsidized affordable housing properties.
Lending to commercial and multifamily properties made another strong showing in the third quarter of 2013, according to the latest Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations released last week by the Mortgage Bankers Association.
Despite declining stock prices for student housing REITs, the fundamentals of the student housing business are still strong, according to Jim Arbury, Vice President for Student Housing with the National Multi-Housing Council.
As the first shutdown of the federal government since the 1990s continues, the Banking Committee of the U.S. Senate held a hearing on the reform of mortgage giants Fannie Mae and Freddie Mac that focused on multifamily lending.
If you’re waiting to close a Federal Housing Administration loan, the shutdown of the federal government that began October 1 is adding weeks or even months of uncertainty. The number of FHA borrowers affected by the shutdown grows every day.
Owners and managers might not have much time. In just three months, one of the strongest incentives to make buildings more energy efficient will expire. Commercial real estate owners and managers are hurrying to place energy-saving improvements in service by New Year's Eve in order to claim a $1.80-per-sq.-ft. tax deduction under the Energy Efficient Commercial Building Tax Deduction, Sec. 179d of the tax code. Meanwhile advocates for the commercial real estate advocates are pressing Congress to renew the tax benefit and even expand it to apply more easily to companies like real estate investment trusts.