Demand for apartment buildings will remain strong, considering many buyers have already been priced out of the market. Due to rapidly rising mortgage rates, buyers need to earn more than $100,000 to afford to buy the median-priced home. However, only 15% of the renters earn that income.
These are the average available rates from eXp Commercial’s Capital Partner CommLoan database of 700+ commercial lenders as of 1/16/2023 and are provided for comparison purposes only. Actual rates are dependent on property and sponsor.
Are you a Realtor interested in joining, but would like to do both Residential and Commercial transactions? Now you can! Earn a MiCP Designation (Masters in Commercial Property) with eXp Realty to gain the knowledge and certification to promote your knowledge to your clients.
Utility costs represent a major expense for landlords. This is especially true at multifamily apartment buildings where base rent often includes utility costs. When landlords must incur these costs, the cash flow impacts can be substantial. In this article, we will look at what’s known as RUBS -or a ratio utility billing system. Implementing a RUBS program is a common way owners pass utility costs on to their renters.
Multifamily rents cooling off at last? Compared to previous years, according to a new report by Apartment List. While prices remain up 5.5% year-over-year, they fall behind the Illinois average of 6.6% and outpace the U.S. average of 4%.
Date: April 25-26, 2023
Time: 9 a.m. – 4 p.m. CST
The Commercial Real Estate Symposium will provide junior and senior agents and brokers with valuable insights on international opportunities, capital and funding for small businesses in today’s market, how to attract investors, and much more.
Date: Jan. 10, 2023
Time: 9 a.m. – 10a.m.CST
Join us via Zoom for our Comprehensive Intro to Commercial Real Estate event on Jan. 10! Professionals from every sector of the industry will share their knowledge as we explore the fundamentals of commercial real estate.
Marketing a property can increase the sale price by up to 23%, which runs counter to the idea that off-market deals can achieve higher values because a buyer will be more aggressive to seal a trade.
The Chicago-based Daniel Management Group (DMG) Multifamily investment affiliate completed the acquisition of Alice Mae Court, a multifamily townhome portfolio in Orland Park, Illinois, for $5.36 million.
Suburban Chicago ended the year as the country’s 18th most competitive rental market, according to RentCafe. Nearly 70% of renters here decided to stay put and renew their leases, further driving competition—close to 17 renters applied for each available unit, a number well-above the national average.
Date: January 17, 2023
Time: 11 a.m. – 1 p.m CST
Join eXp Commercial President James Huang and Economist KC Conway on January 17 for a fireside chat as they discuss the state of the 2023 economy and how you can prepare your business for success in the changing market.
A few key practices and thought processes to maximize the return on your property upgrades and to help you select the improvements that will become a profit center and not just a cost.
By taking a holistic approach and empowering teams with comprehensive solutions that account for asset needs throughout the property life cycle, management companies can establish an operational advantage across their portfolios that will benefit them for years to come.
There are no citizenship requirements for buying real estate in the US. Foreigners who are non-citizens can even apply for a mortgage in the US. However, foreign property owners may face complex tax laws compared to US citizens.
While the possibilities to improve your community may be endless, we know that resources are not. With that in mind, we’ve considered the needs and preferences of today’s renters and focused on what upgrades could make the greatest impact. Here are the Top 5 New Apartment Amenities we think are worth considering for your 2023 community budget
We have a housing crisis in the United States, and there is only one way to solve it: to build much more housing. You cannot solve a supply and demand problem like housing affordability by trying to make providers less profitable.
Utilities are one of the biggest expenses for apartment communities. And with inflation pushing the price of utilities to record-highs, it’s even more important that you’re keeping these expenses to a minimum.
In major economic hubs such as Chicago, Boston, and New York, where there are more employment opportunities and higher concentrations of college students, monthly rents climbed by double digits compared to a year ago. Chicago Becomes the Hottest Rental Market. Chicago experienced the largest annual growth, with the median rent increasing 20.8% to $1,949 monthly.
CRE Investment Forecast for 2023. The market is going to have to adjust starting in the middle of next year,” LaSalvia said. “I have a feeling that we will start to see deal volume pick up a little bit more as prices maybe adjust a little bit and also as investors find creative ways to get deals done.
Current market conditions have highlighted the fact that cap and interest rates are not highly correlated. Most folks believe this is the case, but it is not. Interest rate fluctuations generally predict the direction of cap rates but not the magnitude of those increases. Investment Sales in 2023? The cap rate versus interest rate relationship over the long term shows that the relationship is not highly correlated.
The average income of renters in Chicago isn’t quite enough to allow them to afford an entry-level home. And as long as interest rates stay high and inventory is low, that will likely remain the case.
For commercial real estate investors, having access to as many metrics as possible to provide insight and comparison opportunities is critical. Various metrics are available, including cash-on-cash return and internal rate of return, enabling investors to compare properties more closely when deciding which to choose for investment.
Estimating the value of real estate is necessary for a variety of endeavors, including financing, sales listing, investment analysis, property insurance, and taxation. But for most people, determining the asking or purchase price of a piece of real property is the most useful application of real estate valuation.
Realizing a preapproval and rate and term sheet are not set in stone will go a long way in the current lending environment. Lenders are changing underwriting criteria, not making as many or any exceptions to lending guidelines, and lowering loan-to-value midstream in the escrow process.
The Federal Housing Finance Agency (FHFA) announced today that the 2023 multifamily loan purchase caps for Fannie Mae and Freddie Mac (the Enterprises) will be $75 billion for each Enterprise, for a combined total of $150 billion to support the multifamily market. The 2023 caps reflect an anticipated contraction of the multifamily originations market in 2023.
Portfolio management can move from macro to micro through the proactive use of job category targeting across individual property rent rolls and overall diversification benefits from lower reliance on local labor markets
It doesn’t really matter what the current real estate market is like if you are looking to replace the investment property with another investment property, the ultimate decision to sell should also be based upon if you can increase your returns with the new replacement property, not what state the current market is in now.
Because there is a correlation between inflation and goods with a limited supply, CPI also impacts real estate investments and housing costs. Here’s how rising costs affect real estate investments and why making smart real estate purchases can benefit you in periods of high inflation
As the seller of a multifamily asset, it’s crucial that the buyer you select is the best possible prospect for your property. Don’t waste time, money and opportunities: you must ensure they’re qualified, and can close and execute on the contract as signed.
Though wage growth and employment rates are also focuses of Fed policy, a retreat in inflation could give the financial regulator a signal that the aggressive interest rate hikes it pursued this year are no longer necessary.
Multifamily represents a greater share of the CRE market today and going forward “it’s going to be 50% of the market permanently.” At the moment, multifamily and industrial are the CRE asset classes that hold the most promise.
The growing need for rental properties will also continue to fuel growth in multifamily, AmTrustRE President Jonathan Bennett said. Space constraints will mean that entrepreneurial developers will need to work with municipal and zoning boards to increase potential development sites that feed the country’s housing stock, and focus on conversions.