The U.S. economy isn’t the only thing unwilling to capitulate despite sharply higher interest rates. Commercial real-estate prices have been heading lower in the wake of the pandemic and the Federal Reserve’s inflation fight, but the bulk of the pain still looks poised to come, according to Morgan Stanley analysts. Prices for apartment buildings, offices
Real estate in the world’s superstar cities has not kept up with shifts in behavior caused by the pandemic. The cities’ vibrancy is at risk, and they will have to adapt. Continue reading here.
For over a century in New York, commercial-property investors have carved up the value of the city’s skyscrapers by separating the land from the building and trading the pieces separately. But now, in the midst of one of the worst office downturns since World War II, that practice is escalating disputes between the owners of
There’s a lot of uncertainty surrounding commercial real estate, with all eyes on the office space. From research notes published by the big banks to academic papers, it’s not looking too good for the sector that has been plagued by remote work. But is the office the next shoe to drop in an already turbulent
Nearly $1.5 trillion in commercial mortgages are coming due over the next three years, according to data provider Trepp. Many of the commercial landlords on the hook for the loans are vulnerable to default in part because of the way their loans are structured. Unlike most home loans, which get paid down each year, many
Apartment rent growth is declining fast, shifting the rental market to the tenant’s favor for the first time in years. The average of six national rental-price measures from rental-listing and property data companies shows new-lease asking rents rose just under 2% over the 12 months ending in May. That is down from the double-digit increases
A sharp downturn in commercial real estate performance could have a big impact on the banking sector, but not big enough to destabilize the financial system, according to analysis from one of the top real estate economists in the country. More than 300 banks have enough commercial real estate loans on their books to see
Ubiquitous and unremarkable, self-storage solves a deeply American problem: what to do with too much stuff. A bunch of empty rooms near a highway is not the sexiest part of a property portfolio. Yet few property assets have matched their performance lately.. One reason is more people moving house. (Ron Havner, former boss of Public
For-sale housing supply saw its biggest drop in over a year, with inventory now almost 40% below levels seen in mid-2018, according to new data from Redfin. The total number of home listings tumbled 6.3% year-over-year for the four-week period ending June 11, the largest decrease in 13 months, the online real estate brokerage said.
Retail and wholesale originations of one- to four-family mortgages dropped sequentially in the first quarter, while home prices increased at a slower rate. The Federal Housing Finance Agency House Price Index growth slowed to 4.3% year over year. Retail originations fell 64.9% and wholesale originations dropped 60.5% year over year, according to an S&P Global