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Strong economic growth and population shifts in secondary cities are drawing investors to industrial properties in such markets, according to the 2019 Global Industrial Market Report from commercial real estate firm Avison Young, National Real Estate Investor reported May 20. Investor acquisitions totaled $3.9 billion through March.
Roughly two thirds of Americans still believe investing in a home is a good idea, although younger consumers are less optimistic and a higher percentage of them see housing as a bad investment, the Federal Reserve Bank of New York reported May 22.
Mortgage rates last week fell for the fourth consecutive week, continuing a trend where rates remain lower than in 2018, Freddie Mac reported May 23 in its Primary Mortgage Market Survey. The drop in rates is leading to increased purchase demand, especially at the higher end where affluent consumers are more likely to respond to lower rates.
The retail sector remains flat, with vacancy rates remaining above 10%, where they are expected to remain through 2022, according to the Spring 2019 U.S. Retail Market Outlook report from commercial real estate marketplace Ten-X, MBA NewsLink reported May 23. The report noted that investors are looking for redevelopment and repositioning opportunities.
Thanks to strong local economies and job growth, demand for apartments is growing in a number of southeastern cities, including Charlotte, North Carolina; Nashville, Tennessee; and Atlanta, according to property management data firm RealPage, National Real Estate Investor reported May 21.
Sales of new homes in April fell by nearly 7% — the first monthly decline in 2019 — but are still ahead of where they were at the same point last year, according to the U.S. Department of Housing and Urban Development and the Census Bureau, MBA NewsLink reported May 24.
The Appraisal Institute announced May 29 that its elected officers and others represented the organization at major industry events during the past month.
The Treasury Department last month released guidance on Opportunity Zones, which real estate firm JLL believes will make it easier for money managers to raise funds and for developers to start construction, MBA NewsLink reported May 16. JLL said it expects commercial real estate investors will wait until year’s end in order to maximize tax benefits.
The parent company of co-working firm WeWork is creating a $2.9 billion commercial real estate investment fund to underwrite projects worldwide, Inman reported May 15. The Ark fund will enable the We Company to purchase property for various WeWork office space, including the former Lord & Taylor flagship on Fifth Avenue in New York City.
Demand for housing — both single-family and multifamily properties — will remain “robust” for the next decade, according to a Commercial Real Estate Finance Council markets report, Mortgage Media reported May 15. The report noted that new household formations are outpacing new unit supply.
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