Demand to lease and own industrial space remains robust, despite a general cooling of commercial real estate (CRE) activity occurring across asset classes. Net absorption, a measure of leasing demand relative to available space, remained high in the fourth quarter of last year compared with historical levels, at 112 million square feet. Though ... Read More ›

Several indicators now point firmly to a broad cooling in commercial real estate (CRE) markets. The extent of the cooling, however, varies meaningfully by asset class and geography. Read More ›

The rapid change in the macro-economic environment has resulted in some dire forecasts for multifamily. Higher interest rates, a slowdown in household formation rates from the heady pandemic-era pace, decelerating rent growth,and increasing vacancy rates have already sapped trading activity. In terms of multifamily transaction volume, the fourth ... Read More ›

Slowing demand to lease apartments is now reducing demand to own multifamily properties. Declining rent growth, as well as higher interest rates, has limited the prices that prospective buyers can afford to pay for a property, opening a gap in price expectations between buyers and sellers. As a result, multifamily transaction volumes in the fourth ... Read More ›

Since Commercial Mortgage-Backed Securities (CMBS) are actively traded, their prices fluctuate more than other types of commercial debt as interest rates move. Given this interest rate sensitivity, CMBS provide insight into what trends may evolve in private lending markets, which are larger but less transparent, so they are less likely to quickly ... Read More ›

As the Federal Reserve further tightens monetary policy by raising interest rates, existing borrowers of fixed-rate debt will be impacted when that debt matures. At that point, borrowers will likely need to refinance at higher interest rates, raising the question of whether or not they can afford costlier debt service. Understanding the quantity ... Read More ›

Several commercial real estate (CRE) fundamentals continued to soften in October. It was the second consecutive month where prices for multifamily, retail, and central business district (CBD) office sectors all declined on a month-over-month basis, though prices remain higher for all asset classes compared to October 2021. Read More ›

During the pandemic, household formation soared and people sought more ideal remote working environments, which drove demand for housing, both owned and rented. In the apartment rental market, vacancy rates for all types of apartments declined in the second half of 2020 and through most of 2021, reflecting heightened demand. Read More ›

During the Great Recession, the phrase “shadow inventory” referred to the number of foreclosed housing units that had not yet hit the market but could be listed soon. A similar concept can be applied to today’s office vacancy rates. In a number of major cities, office buildings remain half empty and, given the remaining prevalence of hybrid and ... Read More ›

Surging mortgage rates have suppressed demand for home purchases by reducing affordability, which has prevented many renters from transitioning to homeownership. As a result, rental demand has remained strong and real estate investor interest in multifamily properties has remained high. Multifamily transaction volume broke records in 2021, and ... Read More ›