Category Archives: Market Trends

Commercial Real Estate Market Trends

How to Implement a RUBS Program at Multifamily Properties

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.

2023 eXp Commercial Commercial Real Estate Symposium

become commercial real estate agent

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.

Midwest home to most competitive rental markets in U.S. for 2022

rental markets

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.

Top 5 New Apartment Amenities to Budget For in 2023

Top Apartment Amenities

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

Chicago Becomes the Hottest Rental Market Amid a Nationwide Cooldown

Hottest Rental Market

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.

Here’s What to Expect in Investment Sales in 2023

Investment Sales in 2023

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.

Cash on Cash Return vs IRR: Understanding the Difference

Cash on Cash Return vs IRR:

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.

What You Should Know About Real Estate Valuation

real estate valuation

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.

Do You Know Where Your Money Is Coming From? Navigating Today’s Lending Market

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.

FHFA Announces 2023 Multifamily Loan Purchase Caps for Fannie Mae and Freddie Mac

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.

Should I Sell or Should I Hold? When is the best time for asset repositioning?

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.

How Will Rising Costs (CPI) Affect Real Estate Investments

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

CRE Beware: Niche Markets Specialized Talent Will Win Big In 2023

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.