Originally published on September 14, 2021, by Michael Tucker for Mortgage Bankers Association.
The hotel sector continues to bounce back from a devastating 2020, according to new reports from STR and JLL Hotels.
Originally published by Jacob Albers and David Bitner for Cushman & Wakefield.
As demand for ESG-committed assets has grown, a key question has arisen: do these assets perform the same or better than their non-ESG peers? If so, is it possible to quantify this difference?
Key takeaways:
Originally published on September 13, 2021, by Huo Jingnan, Rebecca Hersher, Tegan Wendland, Steve Newborn and Daniel Rivero for NPR.
The first thing Larry McCanney fell in love with was the tree in the front yard. It cast shade on the porch of a house that, if he were honest, needed some work. But McCanney is handy, the price was right and the location was perfect, just a couple of miles from his childhood home in Burlington, N.J.
Originally published on September 23, 2021, by Joe Hernandez for NPR.
Home appraisers are more likely to undervalue homes in Black and Latino areas than those in white ones, a new report by Freddie Mac has found.
Originally published on August 31, 2021, on MBA Newslink.
Fitch Ratings, Chicago, said the U.S. commercial real estate market will likely see deteriorating credit metrics once stimulus measures wind down and forbearance programs expire, with smaller CRE-concentrated banks more susceptible to elevated losses, which are expected to peak below levels seen in the past.
Cap rates in the net lease quick-service sector reached a historic low of 5.26% during the second quarter, down 39 basis points from last year, according to the Q2 2021 Net Lease QSR Market Report released Sept. 1 by The Boulder Group. Cap rates for corporate-leased QSR properties dropped 20 basis points to 5%, while properties leased to franchisees dropped 43 basis points to 5.4%.
Originally published on August 23, 2021 by Quintin Simmons for the National Association of Realtors.
WASHINGTON (August 23, 2021) – Existing-home sales rose in July, marking two consecutive months of increases, according to the National Association of Realtors®. Three of the four major U.S. regions recorded modest month-over-month gains, and the fourth remained level. Figures varied from a year-over-year perspective as two regions saw gains, one witnessed a decline and one was unchanged.
Originally published on August 20, 2021, by Nicole Murphy for Realtor.com.
SANTA CLARA, Calif., Aug. 20, 2021 /PRNewswire/ -- 3D printed home technology has hit the mainstream, with builders claiming these homes can be built in half the time and for half the cost. But will people actually buy them? A new survey from Realtor.com® found that 66% of all consumers and 75% of millennials would consider living in a 3D printed home. The survey also found that 30% of all respondents and 43% of millennials think that 3D printed homes will replace traditional methods of homebuilding.
Originally published on August 24, 2021, by Michael Tucker for Mortgage Bankers Association.
Moody’s Investors Service, New York, said rebounding retail sales and new store openings should boost retail property loan performance.
Originally published on August 25, 2021, by Angela Cherry for Redfin.
SEATTLE, Aug. 25, 2021 /PRNewswire/ -- (NASDAQ: RDFN) — America's disaster-prone areas are becoming more populous as new residents move in, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. The U.S. counties with the largest share of homes facing high heat, drought, fire, flood and storm risk saw their populations grow from 2016-2020 due to migration, while the counties with the smallest share of homes facing climate risk largely saw their populations decline.
Originally published on August 17, 2021, by Michael Tucker for Mortgage Bankers Association.
Fitch Ratings, New York, said long-term office leasing plans will not likely be affected even if U.S. corporations continue to delay their return-to-office plans.
Originally published on August 10, 2021 by Michael Tucker for Mortgage Banker's Association.
Moody’s Analytics REIS, New York, reported commercial real estate completions fell in the second quarter from an already record low first quarter.
Originally published on July 12, 2021, by Michael Tucker for MBANewslink.
Consumer retail spending now exceeds pre-COVID levels; investor confidence in retail real estate is also growing, reported JLL, Chicago.
The retail sector–especially non-essentials goods and services–was among the hardest-hit CRE sectors early in the pandemic, but as vaccinations increase and restrictions ease, investor interest is nearly back to pre-pandemic levels. The sector captured an 11-percent share of transaction volume year-to-date in 2021, nearly where it was before the 2020 lockdowns.
“Consumer shopping patterns have bounced back due to pent-up demand over the past 12 months,” said Danny Finkle, JLL Senior Managing Director. “People are spending money across the spectrum of retail locations.”
Finkle noted this increased spending goes “hand-in-hand” with investor sentiment, “so as consumers spend more on food and beverage, apparel and other non-essentials and spend time in malls, departments stores and lifestyle centers, capital will follow,” he said.
Originally published on July 12, 2021 by The Economic & Housing Research Group for Freddie Mac.
As we noted in a previous report, there was an observed shift of home purchases in the last decade, even before the onset of COVID-19, from urban areas to suburbs and rural towns. We went on to link several possible socioeconomic factors driving the ongoing trend of household migration away from urban areas. The present study extends those findings using MLS data collected from January 2000 to May 2021 to address additional changes taking place pre- and post-COVID in the residential environmental preferences of households. While the rising trend of suburbanization and movement to rural areas still holds true, the new data also refutes the notion that urban revival is over—at least not in all cities—by illustrating the heterogeneity of the U.S. housing market across its regions.
Originally published on July 15, 2021 by Michael Tucker for Mortgage Bankers Association.
CRE executives’ market sentiment has improved dramatically from a year ago, reported RCLCO, Washington, D.C.
Originally published midyear 2021 by Marcus & Millichap.
Broader recovery fortifies a positive outlook. Resilient during the health crisis, the medical office segment is in a position of strength. Demographic trends and an anticipated boost in health services are positioned to foster long-term tenant demand that will bolster investor confidence in the sector. Shorter-term, the full-scale reopening of most states’ economies and widespread vaccination efforts have laid the foundation for a broad economic recovery that will fuel continued employment growth in the second half of this year. The expiration of enhanced unemployment benefits in September and many states’ plans to terminate the allowance prior to the deadline have the potential to motivate more individuals to obtain work. Furthermore, the reopening of schools this fall should further aid employers when filling open positions during the final third of the year. The resulting employment growth will raise the number of commercially insured households, lifting health spending and the number of medical visits. Together these factors will fuel health-related hiring and supplement demand for medical office space.
Originally published on July 6, 2021 by Beth Mattson-Teig for WealthManagement.com.
Although the pandemic caused tenants in other real estate sectors to hit the brakes on a new leasing, that was not the case in industrial. The industrial market saw a robust year of leasing activity in 2020 that has carried over into 2021. According to Cushman & Wakefield, net absorption for 2020 reached 268.4 million sq. ft., surpassing the 240.9 million sq. ft. reported at year-end 2019 by 11.4 percent. Demand roared into the first quarter with 82.3 million sq. ft. of net absorption—a record high for the first quarter. Cushman & Wakefield also reported a healthy national average vacancy rate of 4.9 percent and annual rent growth of 7.8 percent.
Originally published on July 1, 2021, for Freddie Mac.
Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey (PMMS), showing that the 30-year fixed-rate mortgage (FRM) averaged 2.98 percent.
Originally published on June 30, 2021 for Freddie Mac.
A new white paper pdf from Freddie Mac (OTCQB: FMCC) Multifamily studies the impact of the end of eviction moratoriums and role of rental assistance as the nation recovers from the economic impact of COVID-19. As eviction moratoriums and renter protections lapse, Freddie Mac is encouraging renters and property owners to proactively understand and seek available rental assistance to help mitigate the remaining economic challenges as the country emerges from the pandemic.
