CRE X-Factor: Outlook for Industrial Real Estate Remains Positive, Despite Dip from Record-Setting 2021

By Xander Snyder on March 13, 2023

Industrial space remains in high demand across the country, despite announcements of tabled expansion plans from eCommerce companies and retail store closures. That strong demand has fueled record levels of construction that will ease price and rent growth to more moderate, single-digit rates as the new industrial supply comes to market. The ...

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Commercial Real Estate Industrial Real Estate

Supply Chain Lessons Shape Long-Term Industrial Real Estate Demand

By Xander Snyder on March 6, 2023

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 ...

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Commercial Real Estate Industrial Real Estate

CRE X-Factor: Analyzing the Commercial Real Estate Market Slowdown

By Xander Snyder on February 15, 2023

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.

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Commercial Real Estate CRE X-Factor

Why the Dip in Multifamily Transactions may be Short-Lived

By Xander Snyder on February 13, 2023

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 ...

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Commercial Real Estate Multifamily Market

What Do Fewer Multifamily Transactions and Greater Pricing Uncertainty Mean for Cap Rates?

By Xander Snyder on January 27, 2023

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 ...

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Commercial Real Estate Interest Rates Potential Cap Rate Model

CRE X-Factor: Watch CMBS Maturities for Early Indications of Risk

By Xander Snyder on January 18, 2023

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 ...

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Commercial Real Estate Interest Rates

‘Til Debt Do Us Part: What Maturing CMBS Debt Signals About the Scale of Refinancing Risk in 2023 and Beyond

By Xander Snyder on January 13, 2023

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 ...

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Commercial Real Estate Interest Rates

CRE X-Factor: Where is Commercial Real Estate Deal Activity Heading in 2023?

By Xander Snyder on December 16, 2022

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.

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Commercial Real Estate Interest Rates CRE X-Factor

Renters May Find Deals on Luxury Apartments in 2023

By Xander Snyder on December 8, 2022

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.

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Commercial Real Estate Renter Affordability

How Work-From-Home is Driving Greater Shadow Office Space

By Xander Snyder on November 21, 2022

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 ...

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Commercial Real Estate

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