US – Single-Family Rental Market Trying to Prove It’s Sustainable

October 25, 2013

The recent initial public offering by real estate investment trust American Homes 4 Rent, which captured $706 million, raises more questions than answers about the long-term viability of the single-family rental home market.

Even the Federal Housing Finance Agency—whose Real Estate Owned Pilot Initiative, launched two years ago, has transferred 1,763 REO properties to new owners—seems ambivalent about future demand. 

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US Commercial Market – Appreciation from Cap Rate Compression

June 28, 2013

CoStar’s Property and Portfolio Research (PPR) division is forecasting that the wave of cap rate compression that has in some cases accounted for an astronomical 90% of the gain in core real estate value since the last recession is likely to slow.  Specifically, PPR’s analysis of the top 54 U.S. markets finds that cap rates should remain within 20 basis points of today’s average through 2017, which will reduce the rate of real estate price growth relative to the recent past.

This is significant because transaction pricing tends to be an early indicator of appraisal pricing, and the last time transaction-pricing growth fell below appraisal trends was at the start of the recent recession, in the second half of 2007.

earlyin

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October 12, 2012

As the outlet mall segment of the retail sector has grown amid tough economic times, more outlet centers are focusing on upscale designer brands that appeal to high-end consumers.

There are currently about 185 outlet centers in the United States, with 10 opening in the past 18 months, and 16 phase I projects scheduled to open by the end of 2013. Sales attributed to outlets are projected to reach $25.4 billion for 2012, up 13 percent from 2011, according to data reported by Value Retail News. Neiman Marcus, Saks Fifth Avenue, Lord & Taylor, Nike and Polo Ralph Lauren are among the top 10 chains filling space in outlet centers, according to the report.

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Canadian REITs rallys to new high in 5 years

May 7, 2012

Canadian real estate investment trusts have rallied to the highest levels in five years as rising occupancy and investor demand for yield outweigh concern the Bank of Canada will raise interest rates to cool the market.

Real Estate Trusts Surge Near Five-Year High

The investors in properties from shopping centers and office buildings to rental apartments have benefited as the 10-year Canadian bond yield fell by more than half, boosting the value of their holdings.

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US Apartment Vacancy fell to 4.9%

May 7, 2012

AvalonBay Communities Inc. (AVB), the second-largest publicly traded U.S. apartment owner, said funds from operations climbed in the first quarter as the nation’s multifamily vacancies fell to their lowest level since 2001.

The U.S. apartment vacancy rate fell to 4.9 percent in the first quarter from 6.2 percent a year earlier, Reis Inc. (REIS) said in an April 4 report. It was only the third time since the New York-based property research firm began gathering the data 31 years ago that the rate was less than 5 percent. Renters are competing for units as homeowners are displaced by foreclosures and stricter mortgage standards block purchases.

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Real Estate Stock Picks 2012 – by MorningStar

January 6, 2012

The intrasector flight to more defensive names tempered in the fourth quarter. Other than lodging, recent macro-volatility doesn’t suggest high potential for materially sharp reversals in firming near-term operating metrics. Relative to private investors, and the public non-traded REIT space, publicly traded REITs remain well-positioned.

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