The Mountaintop Group

Published in June, Inman put out an article stating the following: As of May, U.S. asking rents rose for the second month in a row, hitting the highest level since October 2022 at $1,653, which is $47 below the record high. This followed an 11-month period of declines, with April also seeing a 0.9 percent increase. The increase in rents is moderated by the influx of new apartment inventory from the post-pandemic building boom. Despite the rising prices, the rental vacancy rate has stabilized around 6.6 percent, the highest since 2021. Washington, D.C., saw the largest annual rent increase at 11.1 percent, followed by Cincinnati, Chicago, and Virginia Beach, all with increases above 10 percent. In contrast, Sun Belt cities like Jacksonville, San Diego, and Austin experienced significant decreases in rents due to extensive new housing construction during the pandemic. Demand remains high among young renters who are staying in the rental market due to the unaffordable homebuying landscape, according to Redfin Senior Economist Sheharyar Bokhari. The recent stabilization of rent prices indicates a balanced market where supply is keeping pace with demand. This trend offers hope for renters, as it suggests that further dramatic increases in rental costs may be avoided. #washingtonDC #rent #increase #realestate John Casolaro Jr. Darren J. Griffith

In a recent Forbes Advisor article, Robin Rothstein and Caroline Basiel report that mortgage rates have experienced significant volatility in 2024. Rates were at a high of 7.22% in early May and fluctuating between 6.89% and 7% through July. Experts predict that rates will remain elevated but may gradually decrease, contingent on Federal Reserve rate cuts. Freddie Mac expects rates to stay above 6.5%, while Fannie Mae and the MBA forecast slight declines to around 6.8% by year-end. The Fed's cautious stance on interest rate cuts, influenced by persistent inflation and a strong labor market, has kept mortgage rates high. Despite the current high rates, there's cautious optimism among experts. With potential Fed rate cuts later in the year, we may see mortgage rates decrease slightly, providing some relief to homebuyers and homeowners looking to refinance. This could improve affordability and stimulate the housing market, offering opportunities for those who can navigate the current economic landscape. #interestrates #realtor #realestate #homebuying John Casolaro Jr. Darren J. Griffith

We recently came across this May 2, 2024 Bisnow article, by Sonya Swank, discussing the rising importance of artificial intelligence (AI) in the Northeast's industrial development sector. AI is increasingly integrated into various processes such as site selection, underwriting, and build-out, offering optimization and streamlining for warehouse developers. Major firms are investing in AI-boosted tools like TestFit for feasibility analysis, while others, like Mesh Consulting, are using AI-equipped drones for efficient site mapping. Despite concerns about job displacement, there's a consensus that AI is the future of industrial development, with expectations of further integration of robotics and automation in construction processes. #commercialrealestate #AI #siteselection #realestateinvestment #corporaterealestate #industrialreaestate #warehouses

In an April 29th article by Michael Rudy, he reported that the multifamily property market witnessed its seventh consecutive monthly decline in prices, with a 1.0 percent drop in March alone, according to CoStar's value-weighted index. Year-over-year, multifamily property prices fell by 11.0 percent. Meanwhile, non-multifamily commercial property prices also experienced a decrease, dropping 0.2 percent month-over-month and 8.9 percent year-over-year. Although the rate of decline in multifamily property prices slowed in March compared to previous months, prices are still notably lower, standing at 25.6 percent below their peak in July 2022. However, they remain 9.8 percent higher than their pre-pandemic level in January 2020. The year-over-year growth in both multifamily and non-multifamily property prices has consistently been negative, hovering around -10 percent recently. In regional analysis, multifamily property prices in the Northeast region have shown resilience compared to other regions, with prices rising in the first quarter of 2024 while declining in the South, Midwest, and West. Transaction volumes increased in March, a departure from previous months, with a notable rise in both the number of transactions and the dollar volume. CoStar's Commercial Repeat Sales Index (CCRSI) provides a relative measure of property prices, with the value-weighted index reflecting monthly changes and highlighting multifamily property as a separate category. #commercialrealestate #realestate #realestateinvestment #multifamilyrealestate https://lnkd.in/etbq5cft

Bloomberg has reported that 2024 is seeing a massive resurgence in Commercial Mortgage-Backed Securities, with investments soaring to $24.6 billion—up a staggering 170% from 2023! This surge reflects renewed confidence in the market, with key players like Blackstone Inc. leading the charge and the Fed signaling stability in interest rates. Link to the article below. #CMBS #InvestmentOpportunity #commercialrealestate