Carl Brown

President and CEO Robert Broeksmit: "MBA appreciates FHFA’s detailed responsiveness to the key questions we outlined in our regarding the program’s scope, mission, and secondary market implications. FHFA’s receptiveness to feedback through the New Products and Activities Final Rule has produced a pilot rollout that is limited in size and duration, mitigates the impact on the private-label securitization market for second liens, focuses on borrowers with lower loan balances, and will encourage participation by smaller lenders that do not have easy access to liquidity for closed-end seconds." https://lnkd.in/efipeghA

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There has been so many posts regarding the investment from Yardi for the Debtor-in-Possesssion ("DIP") for the exit of WeWork in the Bankruptcy filing at the end of May. There seems to be a lot of anticipation for when WeWork exits bankruptcy, but one thing seems certain: WeWork will have zero DEBT to deal with!! Let that one sit for a while and resonate. The painful bankruptcy process for WeWork and their Landlords has been living this drama every day. For Landlords who got that space back, hopefully they re-leased that space or created a relationship with other flex operators like Industrious. For those Landlords who renegotiated their lease agreements with WeWork, I sure hope it all works out. One thing seems certain about the path toward the future of work: Offering Flexible Workplace Solutions continues to drive results and reactive buildings and create value too! With over 6,500 flex office locations in the US today, demand remains strong as companies continue to embrace distributed teams and a hybrid work schedule. Companies and employees want more flexibility in choices and options on when and where to work. About Yardi for a moment: They have been active in this space for many years as they are the foundation for software management and grew into a research and data-driven company that supports flex operators worldwide. We applaud their DIP action with WeWork and we hope they can convince WeWork to adjust their business model as it can be sustainable and operate on its own without additional subsidies in the future.

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On this episode of RealPage Economy Express, we delve into the latest economic data, shedding light on the robust job growth witnessed in March, persistent inflationary pressures, the mixed housing market picture, and the Federal Reserve's cautious stance on monetary policy. #EconomicTrends #RealPage #MarketAnalysis

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🏦 Regional banks are making deals with hedge funds and private equity shops to reduce risks and comply with new regulations. They're taking the form of a newer type of transaction called: ❗Synthetic Risk Transfers These SRT's involve selling loan default risks to private-debt fund managers. Huntington National Bank, Truist, and others have engaged in such deals, with fund managers potentially earning up to 15% returns. These transactions help banks meet stricter regulations, stabilize finances, and improve capital ratios without selling loans at a loss or issuing new shares. 🏦 The bank sells a portion of those that the manager buys. 👨‍💼 The manager sells credit default swaps that the bank buys and pays interest on (+premium). For the bank(s), the benefit is a reduced capital requirement, improving its regulatory capital ratios and financial stability. For manager(s), the structured combination of premiums and interest income can provide a high return on investment, estimated at up to 15% annually, assuming loan defaults remain within expected limits. ❗Credit markets never fizzle out, they change form. -- #commercialrealestate #realestate #capitalmarkets #structuredfinance #newyorkcity #newyorkrealestate #philadelphia #philadelphiarealestate #multifamily #netlease #development #stoacapital #avlvarchitecture #avlvdevelopment

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A lot has happened on the economic front in the past two weeks. The economy faces headwinds from moderating growth, persistent inflation, and an increasingly hawkish Federal Reserve stance. Please take a moment to listen to a summary of these developments and how they are impacting our industry. #EconomicTrends #RealPage #MarketAnalysis

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If you’re interested in investing in the South Florida rental market , check out our report. #absorption rates rose in April 2024 and the median asking #rents picked up in #vacation home and #affordable markets in April 2024 in the Southeast #Florida. After declining in the second half of 2023, #multifamily asking rents held at their current levels in April from the prior month in #MiamiDade, #Broward, #PalmBeach and #MartinCounty. However, multifamily #asking rents rose in zip codes associated with cities that are #vacation markets: #HobeSound (10.3%), North #PalmBeach (8.7%), #Boynton Beach (8.2%), Palm City 4.0%), Jupiter (3.4%), and #Boca Raton (2.8%). With #renters looking for #affordable homes, markets where the median asking rents of the zip codes were below $2,500 saw strong rent growth such as #Stuart (2.3%), #DelrayBeach (2.3%), #Homestead (1.3%), and #LakeWorth (0.6%). Asking rents are likely to continue to pick up in the affordable Class B/C apartments even with significant construction underway (Class A which where the median rents will be higher).   Check out the report in the link below. I've included lots of historical zip code level data from rental listings on the #MIAMI #MLS and Rental Beast (non-MLS data). Miami Association of Realtors MIAMI Commercial #miamiforwardfocus #miamiforwardthinking

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Wouldn't it be great to take a glimpse into the future of real estate so you can prepare? Hear forecasts for future housing market shifts from experts and equip yourself with the necessary tools to adapt at Inman Connect Miami! Did you know that one future-proof tool in real estate is leveraging real estate-trained virtual assistants? Join us and find out more! See you in 3 weeks! #realestate #residentialrealestate #commercialrealestate #realestatesoftware #marketshifts #realestatemarket #virtualstaffing #virtualassistants #outsourcing

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WHERE DOES THE STATE OF RETAIL INVESTMENT SALES STAND? Here, we will focus on Prince Georges County, Maryland. Eric Pinkett and I are talking to retail owners and investors almost every day, and here is what we are seeing/hearing anecdotally, and in the data. In a higher interest rate environment, investors are more cautious about where they invest their capital, and retail is one of the asset classes that we continue to see strong demand throughout the Baltimore-Washington Corridor. Specifically, well-located neighborhood retail—both non-grocery anchored, and grocery-anchored—with or without value-add potential (although everyone wants to add value).    Between 2021 and 2022, values in PG County notably improved, mirroring trends in the broader markets. However, in 2023, both values and overall transaction volume experienced a significant decline, aligning with the rise in interest rates and decreased demand for the product. The substantial fluctuations in value are noteworthy and may indicate a heightened sensitivity to consumer spending, and tenants' ability to pay increasingly higher rents.   The golden rule in real estate has always been: Location, Location, Location, and it is evidenced throughout the retail landscape in Prince George's County. Some of the areas where we're seeing stronger values include Laurel, along the Route 1 Corridor; Bowie, particularly in neighborhood pockets with strong residential presence and good demographics; and, in the more southern corridor of Route 1, in College Park, which has traditionally shown stronger retail valuations with the University of Maryland supporting the product.   Another consideration retail investors may want to consider is the value-add potential. If you're looking for something without issues, you're going to be competing with a lot of other investors. If you can find some "problems" that you can get very good at solving, focusing an investment strategy on the retail centers with those problems that you can solve, will reduce competition, and increase the potential overall return.   Lastly, a long-term purview has succeeded time and time again for investors we speak with- but patient capital and "diamond hands" are critical characteristics of this strategy. 😉 The data reflects a shorter timeline, but over the long-term retail values have increased in this market. Holding for the long term helps investors avoid being caught in short-term market volatility, and macroeconomic influencers, effectively reducing risk.   What are you seeing in your markets? Hyatt Commercial Real Estate #retail #cre #commercialrealestate #maryland #pgcounty #princegeorgescounty #realestate #investment #market  

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Apartment purchase prices are down compared to recent peaks…so why hasn't transaction volume picked up? Part of the reason is that, despite the recent decline in prices, they still remain meaningfully higher than they were pre-pandemic. In this latest post, I look at how price changes have varied between Class A, B and C units over the last four years. https://lnkd.in/giZwArcT

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Good news! Annual CPI #inflation was 3.6% in March quarter 2024, lower than the 4.1% annual rise in the previous quarter. This is the 5th consecutive quarter of lower annual inflation since the peak of 7.8% in December 2022 quarter. The most significant price rises this quarter were #rents (+2.1%), Secondary education (+6.1%), Tertiary education (+6.5%) and medical hospital services (+2.3%). So unfortunately our renters are still in dire times. How will this impact #cashrate? High chance we will see a hold, continuing from the current pattern. Inflation rate is not in the 2-3.0% target band just yet, which is most likely what the RBA need to see before any cuts. This means stability in household #budgets, creating a conducive base for more #realestate transactions.

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Commercial Banking System Commercial Real Estate loans amount to about $5 trillion. Banks’ exposure to CRE as % of their loan book, by bank size... The large banks: 6% of their loans are CRE loans. Each of these banks has over $250 billion in assets. Mid-size banks: 17% of their loans are CRE loans. These banks have between $10 billion and $250 billion in assets. Small banks: 31% of their loans are CRE loans. These banks have between $1 billion to $10 billion in assets. Tiny banks: 28% of their loans are CRE loans. These banks have between $100 million and $1 billion in assets. (Source: Wolf Street) _____________________________________________ Whether Buying Commercial Or Residential Property In New York State, You MUST Protect It…That's Where Title Insurance And Due Diligence Comes In! Do Some Research Concerning The Title Insurance Provider That Will Be Used For Your Real Estate Purchase In New York! Watch 'Do You Ever Wonder About Title Insurance? Maybe You Haven't, But You Should’ at YouTube here https://lnkd.in/gdpgZFju. And remember that it’s your RIGHT to choose the title company you would like to use! Hallmark Abstract Service...You Buy Real Estate, We Protect It! #CRE #commercialrealestate #banking #cmbs #reit #privateequity #tobigtofail #commercialbanks #multifamily #bankingsystem

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In this week’s Radix Review podcast, Chris and I talk about: 📈 May results for #multifamily: - U.S. trends for occupancy, traffic, and more -Wilmington, NC as market of the month (also ranked as PODS to demand market) -Quick spotlight on San Jose 📊 Economy: -What we’re looking for in May’s job report (consensus estimates around 185K jobs) -Some indicators like GDP, ISM manufacturing index, and recent 10-year treasury movement hint towards an economic slowdown 🏀 Given our affiliations with Boston (Chris) and Dallas (me), there might be some cheesy Celtics/Mavs comparisons to those multifamily markets towards the end of the recording. 🎥 YouTube (full video): https://lnkd.in/eCv9c42q 🎧 Spotify: https://lnkd.in/eNCegF4b 🎙️ Apple: https://lnkd.in/eHN4ersK

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Negativity sells. Gloomy real estate headlines flood YouTube, TikTok, Instagram, and X (formerly Twitter), spreading stories of bubbles, crashes, and price collapses. These channels, often lacking economic expertise, misguide many consumers, discouraging potential buyers for years. Many dream of a market crash to finally afford a home. The pandemic caused prices to surge, and then rates surged higher, sparking more negative narratives. Distinguishing fact from fiction in these headlines is challenging but crucial. The latest report does just that. Subscribe today for the full report that debunks the myths of the current housing market! Subscribe by visiting our website at www.ReportsOnHousing.com Our reports are designed to set expectations. Invest in your business and subscribe. It will help you close more deals.

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BlackRock Atlanta recently hosted a fireside chat with Samara Cohen, BlackRock’s Chief Investment Officer of ETF and Index Investments. The conversation was moderated by Teja Tops, an analyst in BlackRock’s Atlanta office, with an audience of fellow analysts. Here were some of Samara’s recommendations for the rising leaders: 1. Look at your career as a marathon, not a sprint. As you paint the portrait of your career, set mile markers for yourself that are both measurable and achievable — then figure out what you want to do next. 2. Move from competency to mastery. During her own analyst years, Samara aimed to move from learning everything she could, as fast as she could, to teaching what she’d learned to others. That’s a crucial way to take ownership of everything you’ve learned. 3. Build up those around you. It’s a win when you can look at someone and say you helped them excel into their best selves.

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Everyone in the CRE industry is waiting with baited breath for interest rates to fall, and keeping an eye on the labor market as a driver of inflation. But, the strength of the consumer also impacts what landlords can charge for rent, an important consideration that should not be forgotten about as the labor market continues to moderate. So, how does the labor market look today? The JOLTS report from this morning showed that the labor market continued loosening in April. The relative strength or weakness of labor market has two direction implications for CRE: First - interest rates. A tighter labor market provides consumers with more dollars to spend and puts upward pressure on inflation, a major determinant of interest rate paths. A loosening labor market works the other direction - it has a disinflationary effect. A labor market that's balanced - where the supply and demand of labor are relatively equal, is what the Fed is looking for as data-driven motivation to begin cutting interest rates. Second - demand for goods and services impacts what landlords can charge for rent. A strong labor market forces employers to compete for employees by raising wages, which in turn boosts consumers' ability to spend more money on goods and services. Over the last two and a half years, consumer spending has been buoyed by excess pandemic-era savings that acted as a tail wind for overall demand in the economy. Now, that stock of savings is estimated to be fully depleted, and as a result consumer spending will now more closely track wage growth. Decreased demand for goods and services will limit the recent, strong growth in retail sales which in turn impacts what landlords can charge for rent in multiple asset classes. Retail, some industrial (warehouses & logistics centers related eCommerce), and apartment properties all depend, to some degree, on how much money the consumer has to spend.

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Despite a seemingly healthy #office market, #SouthFlorida sublease activity reveals cracks under the surface. A divergence in sublease asking rents can provide attractive deals for potential rent-sensitive tenants, though these trends also indicate the leasing struggle older properties face. CoStar Group subscribers can click the link to find out more! #CRE #miamidadecounty #browardcounty #palmbeachcounty

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Demystifying The SBA Loan Application - The Commercial Appraisal Report Business owners purchasing or refinancing commercial real estate financed by an SBA 504 or 7a loan are required to hire a certified commercial appraiser to prepare a commercial real estate appraisal report which includes the “as is” value of the subject property on the day the report is delivered to the lender. Every loan applicant needs to know the following regarding the commercial appraisal report. The cost is generally between $2,500 - $4,500 The lender’s appraisal department orders appraisal bids from their approved vendor list This means that neither the loan applicant, lender representative, nor the loan broker order the appraisal bids The returned appraisal bids will reveal the delivery date and cost of the appraisal The lender’s appraisal department chooses the appraiser based on the business owners goals, ie. delivery time and cost The lender’s appraisal department will not disclose the appraiser’s name to the loan applicant prior to selecting the appraiser Listen to more episodes 🎧 ▶ https://mysbaloanpro.com ▶ https://mysba.pro/applepod ▶ https://lnkd.in/gwHWHHSE

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Attention commercial/multifamily professionals! Here are the top things you need to know for this week, 5/27: 1) MBA Joins Coalition in Letter to FHFA on Building Code Requirements 2) House Energy & Commerce Subcommittee Advances Wide Ranging Data Privacy Bill 3) MBA Responds to SEC Regarding CMBS Compliance Documentation 4) FHFA Releases Advisory Bulletin on Climate-Related Risk Management 5) House Subcommittee Holds Hearing on Energy Codes, Green Building Policies Read MBA’s latest commercial/multifamily legislative and policy update: https://bit.ly/4bw8Az1.

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