Generational dynamics are playing a role in amenities for apartment buildings according Diana Mosher of Multi-Housing News as she reports from the 2014 National MultiHousing Council Apartment Strategies Conference. Millennials and their pets are setting a trend among apartment amenities. “Exercise areas, grooming stations and daycare options are quickly becoming the norm. Developers that don’t provide relevant features for pet owners will be in for a rude awakening. And property management teams need to be friendly to pets as well, taking the time to connect the name with the face. “You have to smile and pet them when you run into them in the elevator,” advised Gregory Mutz, chairman & CEO of AMLI Residential.” With 80 million millennials possibly seeking apartment living, it’s quite progressive of the industry to tap into their needs. Developers and property managers pay heed.
I just attended the annual Multifamily Summit and had a chat with Michael Lynd, Jr, CEO and Chief Investment Officer at the Lynd Company. Michael’s company develops Class A multifamily properties across the United States, including Miami, Chicago, Denver, San Antonio, Austin and more cities. He cites strong job growth in Texas and housing demand to continue to be strong compared to many other parts of the country. Texas has some of the lowest vacancy rates in apartment buildings he observed.
Many rental markets are still very strong and demand the very best finish-out and amenities, including LEED certification and popular granite and high end finishes. Michael’s properties tend to be multistory towers of 8+ floors, over 200+ units, and located in central/downtown locations where high rents and where downtown professionals live/work.
The U.S. government is the primary data source for many including academics, analysts, and trade associations. The National Association of Home Builders is no exception. NAHB relies on data provided by the government to conduct studies on local economic impact of home building, update forecasts, and provide timely analysis of topics posted to Eye on Housing.
The government shutdown affects NAHB’s ability to obtain data and provide these services. The government shutdown recently forced NAHB to postpone Eye on Housing posts on construction spending, labor statistics, and producer prices. If the shutdown continues, analysis of consumer prices and housing starts will also be postponed.
An abbreviated list of upcoming data releases already postponed or in jeopardy is provided below.
Housing Starts – October 17
- However, it is important to note that the NAHB/Wells Fargo Housing Market Index (HMI) will be published on schedule as it is an…
View original post 150 more words
As I was perusing the daily industry news, I came across a really great article title, Taconic Tackles NY Multifamily Adaptive Reuse that I thought: well, that’s a mouthful. It certainly caught my attention (well played GlobeSt.com) and so I proceeded to read the article and was fascinated about the latest commercial trend- adaptive reuse. What came to mind, at first, was historic preservation and how in Houston in its infancy was such a point of neighborhood contention. It is refreshing to learn that supply and demand of converted/retrofitted buildings that preservation of the nostalgic character and charm is and hopefully will be a long-lasting trend.
Investors are always on the look out for the right time to buy. What kind of market is it? Is a buyer or sellers market? According to Rayna Katz of The GlobeSt.Com, the time is now. Well, it’s not just Rayna but several folks who know a little something about real estate investing. ICYMI- insert sarcasm. Timing is everything along with location, leverage, interest rates, cap rates, supply, demand, industry changes and even mentioned in the article urbanization. Be wise and patient. Do your research and have a good advisor/REALTOR on your side.
I attended the National AREAA Conference in Los Angeles. There were lots of great networking and workshops. AREAA is starting a national network of brokers in CRE and will have an exchange of listings, marketing techniques, referrals and best practices. James Huang, Founder of BRC Advisors, is heading the AREAA Commercial Committee along with help from Kevin Chin, CCIM, Parker Kim, Carmela Ma, CCIM, me and others around the country to integrate and develop this system for AREAA.
I had the opportunity to meet with Sr. Vice President for NAI Capital Daniel Hu and First Vice President at CBRE Norman Lee. Both brokers indicated the commercial real estate market was strong in LA and continues to get stronger with the improving economy. My CCIM colleague, Ted Dang, CCIM, of the Oakland/San Francisco Bay Area indicates the same – multiple offers on the best properties. The Bay Area market is high tech dependent and is growing with that sector’s continued upswing.
Also at the conference, I was able to chat a bit with Ivan Choi, newly inducted 2014 National Chair for AREAA. Ivan is a bit taller in person than I expected as pictured. Ivan has a good vision to carry AREAA into the next year and continue to promote real estate interests at the local and national level. AREAA is in good hands.
I just had lunch at the Los Angeles CCIM Chapter meeting. Great group of folks with a wide variety of expertise. The workshop topics on commercial real estate financing, bridge loans, and equity/debt risks was timely and informative. Yes, single tenant NNN sale at 50% leverage is our pie in the sky too.
Our economy is not out of the woods yet…. but there is certainly light at the end of the tunnel. Thank you Wayne D’Amico, CCIM, and the LA Chapter for the lunch meetup.