Apartment Rents Rise Fastest in Class-B Submarkets

Written on February 21, 2017 at 04:55 PM

Apartment rents are growing most quickly in working-class, suburban submarkets that apartment developers have avoided. “With a handful of exceptions, the neighborhoods posting the strongest rent growth don’t have much ongoing construction,” says Greg Willett, chief economist for Real Page and MPF Research. The suburban areas are often working-class areas with older, less-expensive housing and limited supply.

In contrast, rents are growing much more slowly in the heavily-supplied urban, core markets where the rents are already high. “The high-income tenants in these areas can consider home ownership, and can play off the amply new product one against the other for the best deals,” says John Affleck, international economist for CoStar Group. Those cities – along with towns hurt by low energy prices—are now home to the submarkets with the slowest rent growth.“ The bottom performers are really concentrated in a handful of metros, in this case Houston, San Francisco and New York,” says Willett.

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Categories: Arizona, Real Property, North Carolina, Multi Family, California, Florida

Report: Top 10 CRE Markets to Watch in 2017

Written on October 31, 2016 at 04:37 PM

The Urban Land Institute and PwC recently released Emerging Trends in Real Estate 2017, an in-depth outlook report that reflects the views of more than 2,000 professionals in real estate development and investment who completed surveys, conducted interviews, or participated in focus groups as part of the research process. The reports includes a "Markets to Watch" section, that takes an expanded look at all 78 markets included in this year’s survey. 

Survey respondents shuffled the markets a little for 2017. Austin, which has been a fixture in the top ten for the past few years, is getting its turn at the top. Austin's market has benefited from a diverse economy that was affected in a minimal way by the global financial crisis, a growing population base made up of an educated labor force, and the undeniable “hip” factor that makes Austin attractive to the millennial dominated workforce.

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Categories: South Carolina, Washington, Real Property, North Carolina, Tennessee, Texas, California, Oregon

Survey: 11 Best Non-Gateway Cities for CRE Investment

Written on May 05, 2016 at 05:31 PM

Due to low cap rates and sky high prices in gateway cities, many commercial real estate investors in search of good yield are turning to non-gateway markets as a more appealing and affordable option. A recent “State of the Market” survey by global law firm DLA Piper found that 78 percent of real estate professionals it surveyed agreed that non-gateway markets will come to the forefront of investment preferences in the next 12 months (33 percent said they agreed, and 45 percent said they somewhat agreed). The preference was more pronounced among domestic rather than foreign investors, DLA Piper reports.

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Categories: Washington, Georgia, Real Property, North Carolina, Colorado, Tennessee, Texas, Florida, Oregon

Study: Cincinnati Most Affordable U.S. City for Businesses

Written on March 31, 2016 at 01:04 PM

Cincinnati is the most cost-friendly city to do business among the 31 largest U.S. metro areas (those with populations of 2 million or more), according to the 2016 Competitive Alternatives study by KPMG LLP. Cincinnati's favorable leasing costs and low property taxes contributed to its first place ranking in the study, which compares key cities across a range of costs and other factors related to doing business. Orlando, Fla., was the second most cost-competitive location in the large-cities category, followed closely by Tampa, Fla., Cleveland, and San Antonio. Other locations ranked among the top 10 large U.S. cities included Atlanta, Charlotte, N.C., Miami, St. Louis and Kansas City, Mo.

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Categories: Georgia, Real Property, North Carolina, Missouri, Texas, New York, Ohio, California, Florida

Wake County, NC Approves 4-Year Property Appraisal Cycle

Written on March 23, 2016 at 04:36 PM

Wake County Commissioners unanimously agreed to four-year property tax reappraisal cycle starting in 2020, in an effort to improve accuracy from the current eight-year cycle.  While the more frequent property appraisals will likely lead to more frequent tax bill fluctuations, county commissioners said they hope the additional appraisals will lead to more accurate property values, fewer appeals, and improved operations. However, critics of the new reappraisal cycle say it will result in a “backdoor tax increase.”

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Categories: Real Property, North Carolina

NREI: Top Five Multifamily Investment Markets

Written on February 22, 2016 at 03:30 PM

In 2015, high demand for multifamily space resulted in 306,000 new units being added to the U.S. market, according to Freddie Mac—the highest number since 1989. While momentum is expected to remain strong for 2016, the sector will start experiencing increasing vacancy. Multifamily investors will need to carefully consider which markets will stretch their dollar the furthest. Cities in the West and the South hold the highest ‘buy’ ratings from market experts, with the exception of markets with oil-reliant economies such as Dallas-Fort Worth, an expected pain point for multifamily investment in 2016.

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Categories: Arizona, Real Property, North Carolina, Multi Family, California, Florida

North Carolina Restores Historic Tax Credit Program

Written on October 30, 2015 at 04:02 PM

After letting the historic preservation tax credit program expire last year, North Carolina legislators restored the credits in its budget last month, and developers around the state will begin moving forward with dormant renovation projects. Without the incentives, many historic preservationists said the renovations weren't financially feasible. Restoring the program was a big priority for Gov. Pat McCrory and Susan Klutz, N.C. secretary of natural and cultural resources, who acknowledged the grassroots effort from local officials and historic preservation groups to help restore the credits. 

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Categories: Historic Tax Credits, Real Property, North Carolina

New Corporate Apartment-Hotel Hybrid Plans Expansion

Written on September 04, 2015 at 10:28 AM

WaterWalk Hotel Apartments — a new concept that combines apartment living with an extended-stay hotel as a new corporate housing option — first opened a year ago in Wichita, Kansas, and has plans for 11 more locations in seven states, including North Carolina, Texas and Florida. Guests can stay short-term, as they would in an extended-stay hotel, or live long-term and furnish the space as they would their own one-, two- or three-bedroom apartment. Tenants have access to all of the amenities available to hotel guests, including housekeeping, a fitness center and concierge. Part of the expansion is thanks to a $100 million franchisee agreement with the United Kingdom-based Henley Group announced late last month, which includes plans to develop five U.S. locations.

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Categories: Real Property, North Carolina, Apartments, Hospitality, Hotels, Multi Family, Texas, New York, Florida

N.C. House Advances Historic Property Tax Credit

Written on May 07, 2015 at 11:11 AM

The North Carolina House voted to bring back the state's Historic Property Tax Credit program, which aided rehabilitation of designated historic buildings and homes and mill and warehouse buildings by lowering the tax bills of the developers based on their development costs. The program expired Jan. 1, and developers banned together to stress how important the program is to North Carolina, arguing that the credits make are a tool that preserve history, promote economic development, generate jobs and often spur development in economically depressed areas of the state where developers would otherwise avoid. In addition, supporters say the tax credit is needed to make the projects financially viable, as it it generally costs significantly more to rehab an old building than to build a new one.

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Categories: Historic Tax Credits, Real Property, North Carolina

NC House Passes Historic Property Tax Credit Bill

Written on March 27, 2015 at 10:21 AM

The Historic Property Tax Credit, a state income tax credit intended to help developers raise money to restore historic properties, was granted bipartisan approval by the North Carolina House and now moves to the state Senate. The bill, which passed with a 98-15 vote, would offer a 15 percent income tax credit for up to $10 million of the costs of rehabilitating designated historic buildings. It would allow a 10 percent credit on costs between $10 million and $20 million. Additional credits would be available in certain circumstances.

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Categories: Historic Tax Credits, Real Property, North Carolina

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