Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Friday, 14 July 2017

Apartment Construction Seen Reaching 20-Year High in 2017

More than 345,000 apartment units are expected to be delivered this year, according to Yardi Matrix. That would be a 20-year high and a 21 percent increase from last year's 285,000 additions. But because demand is still expected to continue outpacing supply, rents will continue to increase, albeit at a slower pace.

Commercial Real Estate Direct Staff Report

More than 345,000 apartment units are expected to be delivered this year, according to Yardi Matrix. That would be a 20-year high and a 21 percent increase from last year's 285,000 additions.

It also would compare with the 206,819-unit annual average over the past 20 years.

The five-most active markets account for nearly one-third of all units coming online. Those are topped by New York, which is expected to see 26,739 units, or 7.8 percent of all deliveries; Dallas, which should see 24,960 units, or 7.2 percent, and Houston, with 17,960 expected deliveries, or 5.2 percent of the country's total.

Rental growth, nationwide, was expected to soften this year, growing by 3.9 percent. That's down from 4.1 percent last year, but still above the...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2016
Investment Bank #Deals Vol$mln MktShr%
JPMorgan Securities 14.94 10,350.16 15.14
Deutsche Bank 14.21 9,926.60 14.52
Wells Fargo Securities 13.36 9,513.96 13.92
Citigroup 10.87 8,061.79 11.80
Goldman Sachs 10.05 7,563.72 11.07

 

MOODY'S/RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2016
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 133.67 8,670.33 13.34
Goldman Sachs 156.20 7,418.37 11.41
Deutsche Bank 178.17 6,510.75 10.02
Citigroup 184.41 5,512.20 8.48
Morgan Stanley 113.18 4,130.53 6.35

 

 

 

REITCafe

  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
     
  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds
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