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The U.S. hotel construction pipeline is up 2% from last year, according to the Lodging Econometrics Construction Pipeline Trend report published May 1, MBA NewsLink reported. Hotels in the early planning stages jumped 24% during the first quarter to a record 2,218 projects. Dallas, Atlanta and Los Angeles have the most hotels underway.
Mortgage rates continued climbing during the past week, reaching their highest point since 2009, Freddie Mac reported May 5 in its Primary Mortgage Market Survey. The higher rates coupled with high home prices are putting pressure on potential buyers; however, home price acceleration is expected to slow in the coming months.
The Federal Reserve on May 4 increased interest rates a half-point, the biggest jump in 22 years, Reuters reported. The Fed also announced that it would begin efforts in June to reduce the nearly $9 trillion in assets amassed during its effort to combat the economic impact of the coronavirus pandemic.
Florida has the nation’s five most overpriced residential rental markets, according to a study released May 3 by Florida Atlantic University, Florida Gulf Coast University and the University of Alabama. Rents in South Florida (including Miami-Dade, Broward and Palm Beach counties) top the list, followed by Fort Myers, Tampa, Sarasota-Bradenton and Port St. Lucie.
Commercial real estate is not immune from the effects of rising inflation, but the multifamily, self-storage and hotel sectors are well positioned based on how quickly a property’s net income can be increased and how low their operating expenses are as a percentage of revenue, according to a CrowdStreet report, GlobeSt.com reported May 3.
The Appraisal Institute on May 6 opened registration for its 2022 AI Annual Conference, which will be held Aug. 2-3 at the Bellagio Hotel in Las Vegas. Ryan Leak, a motivational speaker and author, will be the keynote speaker. The conference will feature an exciting lineup of speakers, extensive opportunities for networking and continuing education.
The increase in interest rates could broadly affect economic growth, but commercial real estate should perform well in the short-term, the National Association of Realtors reported May 4. NAR noted that while the office sector is struggling, the industrial, retail, hotel and apartment sectors are performing well.
The nation’s housing supply is on the upswing as builders construct new homes, but rising interest rates, increasing inflation, higher gas prices and the Russia-Ukraine conflict will strain potential homebuyers this year, National Association of Realtors Chief Economist Lawrence Yun predicted in a May 4 report. Purchasing a home now is 55% more expensive than it was at this point last year.
Face Value, a new podcast from the Appraisal Institute, released its first episode May 5, with hosts Warren Boizot, SRA, AI-RRS, and Tonia Vailas, MAI, AI-GRS, talking with Ben Sellers, MAI, about some of their most unusual valuation assignments.
Cap rates for the single-tenant bank ground lease sector were down 20 basis points to 5.15% during the first quarter compared with the same point last year, The Boulder Group reported May 5 in its Q1 2022 Net Lease Bank Ground Lease report. The decline is primarily attributed to broader market conditions in the net lease sector and greater supply of longer-leased properties.
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