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MISMO is inviting the public to comment on Phase 2 of its proposed Commercial Appraisal Dataset Standards, MBA NewsLink reported May 17. The current standards would add retail-, industrial- and office-related data points. Comments are due by July 12.
Already highly prized in recent years, last-mile facilities are now emerging as the most desirable asset class for industrial real estate investors, WMRE’s latest industrial market study revealed May 16. More than 52% of investors chose last-mile warehouses as the most in-demand industrial sub-sector, while modern last-mile facilities with clear height and parking are most sought after by end-users.
Confidence in the multifamily sector took a blow during the first quarter, the National Association of Home Builders reported May 19 in its Multifamily Production Index. The MPI dropped to 48; the MPI measures builder and developer sentiment about current multifamily conditions, and a number below 50 indicates worsening conditions.
The sales of existing homes fell 2.4% between March and April, and are down 5.9% year-over-year as demand for homes dropped and the inventory of unsold homes climbed, the National Association of Realtors reported May 19.
Mortgage rates fell slightly during the past week amid economic uncertainty, waning purchase demand and declining homebuilder sentiment, Freddie Mac reported May 19 in its Primary Mortgage Market Survey. Builders are also facing rising building materials costs, so sentiment likely will remain low.
The Biden administration on May 16 released its Housing Supply Action Plan to increase the supply of quality housing by closing the supply shortfall in five years, starting with the creation and preservation of hundreds of thousands of affordable units during the next three years. Rental and down payment assistance also are part of the plan.
The hospitality sector continues its recovery, with more than three-quarters of U.S. hotel markets reporting higher revenue per available room (RevPAR) than was reported in May 2019, before the pandemic put a halt to most travel, STR reported May 23. Leisure travel accounts for most of the gains, but business travel is increasing and boosting the performance of hotels in central business districts.
Physical office usage hit 40.5% nationally last month, the highest since the onset of the COVID-19 pandemic, according to data from Kastle Systems, GlobeSt.com reported May 16. However, office vacancy reached 18.1% during the first quarter and the rate is still rising, especially in expensive cities like New York and San Francisco where tenants are more financially motivated to shed space.
The ongoing rise in inflation and interest rates is putting the single-family housing market at the most significant risk for a correction, according to CBRE’s global chief economist, GlobeSt.com reported May 19. However, commercial real estate market fundamentals should be OK in the near-term.
The ongoing shortage of for-sale homes is showing signs of easing; inventory in April was down 9% year-over-year but it was the smallest drop since March 2020, Redfin reported May 20. Home sales slid 8% in April, the biggest drop since June 2020, allowing price growth to slightly normalize.
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