Kristen Naughton

NAIOP's index of CRE sentiment rose above 50 for the first time in 18 months (reaching 52), in the expectation that conditions will improve over the next 12 months. Respondents had a more positive outlook for every component except construction costs. Notably, there is a belief that capital will start flowing more easily in the year ahead. What's your take on the CRE sentiment index results?

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Your #multifamily #NOI is the difference between booming success and watching your profits evaporate. But let’s face it: some traditional tactics to boost multifamily NOI are like clinging to a sinking ship. https://lnkd.in/gCR2zWJ3 #cretech #realcomm2024 #retech #realestatetech #propertymanagement

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New to the commercial real estate industry? You've got all the key terms and concepts you need at your fingertips with our newly updated CRE Terms and Definitions glossary: https://ow.ly/1hy650RuUG0

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CoStar reports, in Q1 2024, the U.S. multifamily market witnessed a strong resurgence in demand, absorbing 104,000 units—the highest figure since Q3 2021. Factors such as steady economic expansion and increased consumer confidence contributed to this rebound, prompting pent-up household formation. However, the market’s supply-demand dynamics remained imbalanced due to the completion of 140,000 new units during the same period. Although the vacancy rate rose by 10 basis points, it was the smallest increase observed recently, hinting at potential stabilization. Notably, rent growth seems to be recovering, with national annual growth reaching 0.8%. While most major markets are expected to return to positive rent growth in 2024, some may struggle to reach their pre-pandemic averages, particularly in Sun Belt regions. Read more: https://bit.ly/3QI6LqC #MarketRent #MultifamilyMarket #SunBeltRegions #RentTrends #RentGrowth

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The NAIOP CRE Sentiment Index has increased significantly from the last survey in fall 2023. The Index rose to 52, from 46 in September, indicating that respondents expect conditions for commercial real estate development to be somewhat better over the next year. #CRE #DEVELOPMENT #CONSTRUCTION #CRENEWS https://lnkd.in/gkDwHyCh

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In commercial real estate, pricing cycles are common, lasting about 7-10 years. Focusing on multifamily properties, many trends have followed this pattern. Using CoStar's Commercial Sales Index, this shows the past and current conditions. There was a significant drop in multifamily during 2023-2024. As for March 2024, multifamily prices were down 26% from their peak in July 2022. Factors such as higher interest rates and slowing net operating income are contributing to these declines. Experts are suggesting a potential 25-30% reduction in multifamily property values. https://lnkd.in/ePEAp8G6 - #commercial #commercialrealestate #multifamily #apartmentsnearme

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We recently asked you to give us your thoughts about the direction of rents in Q2. The question was spurred by the recent report by CBRE that predicts multifamily rents will accelerate📈 in the second half of 2024. The research showed that in Q1 2024, average monthly rents increased📈 0.4% YOY with average rents reaching $2163. Two reasons the report offered up are slowing new construction completions and ongoing positive net absorption. Here's what you said about what you think will happen with rents. Thanks for sharing your insights.

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Multifamily real estate's tough times may spell opportunity for bargain buyers! Check out the latest insights on GlobeSt.com. #MultifamilyRealEstate #Opportunity https://lnkd.in/gEkFUpkV

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Has the CRE Market Reached a Turning Point? - The challenges CRE investors still face - Is sentiment beginning to shift? - Why taking action today may be the best option #investments #cre #commercialrealestate #marketinsights #marketresearch

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Check out Bisnow's article: ‘No Rest For The Weary’: What Higher Interest Rate Expectations Mean For CRE.  Donahue Peebles shared his insights, noting that interest rates remaining high will keep transaction activity down overall, but it does present new opportunities. "A prolonged tightening cycle largely yields more of the same for CRE. Transaction volume will continue to be depressed, refinancing property debt will be challenging in the near term, and the sector as a whole faces increased risk of distress with office at the epicenter of the discussion." Peebles added that interest rates staying high could help his firm to "play offense." He said, "From a credit perspective, many incumbent lenders are constrained by underperforming or distressed paper creating opportunity for new entrants to win market share." Read more here: https://lnkd.in/gdkaATBH

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CoStar reports with high interest rates and low rent growth, investors are looking for more immediate income, especially in the office and multifamily sectors. In the post-COVID period, investors were willing to take lower initial yields, hoping for more rent increases and capital gains later. But in the multifamily sector, especially in the higher-quality four and five-star segments that institutional investors like, cap rates have gone up by around 160 basis points since late 2021. The current gap with U.S. Treasuries is only 90 basis points, much lower than the average gap of 277 basis points since 2000. Read more: https://bit.ly/3UL6t3n #MarketRent #RealEstateInvesting #IncomeProperty #MarketTrends #CommercialRealEstate #CapRates #RentGrowth #MultifamilyRealEstate

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Tough CRE market? Get insights from top experts! Struggling to navigate the commercial real estate market? Our latest article features exclusive insights from CRE experts on generating higher returns, plus the top 4 investment strategies to watch, according to experts like Insignia’s MD, John Morelli. Discover how to: - Repurpose existing properties for a new future  - Use public subsidies strategically ️ - Stress test investments to minimize risk - Secure financing to seize opportunities fast Read the full article for expert tips and explore Duckfund's Sign Now, Pay Later model to unlock top-tier CRE deals! https://lnkd.in/gRRWqtP6 #CRE #RealEstateInvesting #InvestingStrategies #CREExperts #Duckfund

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Discover the latest breakthroughs and illuminating insights shaping the landscape of Commercial Real Estate (CRE). Explore further below. #commercialrealestate #financing

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A great article from CoStar News. Is your loan currently in CMBS Special Servicing? Are you aware of what monthly fees your incurring? Modification Fees? Exit Fees? Legal Fees? Understanding how to effectively communicate and what to request from a CMBS Servicer to obtain a loan modification or extension is critical. Everything must be in writing. Need guidance? Contact BCA today. Access = Success