Editors’ Weekly News Roundup March 25 – March 29
The multifamily sector ruled this past week as far as Connect CRE’s most-read stories were concerned. Topping the rankings for the week ending March 30 was a story derived from a Marcus & Millichap report on momentum in the apartment market nationwide.
Titled Handful of Metro Areas Stand Out for Apartment Performance, the story identified those metro areas. Surprisingly or not, four of the five metros cited by Marcus & Millichap were outside the Sunbelt states where much of the investment—and development—has occurred in the past few years.
Also focusing on multifamily from a big-picture perspective, Connect CRE’s second most-read story for the past week summarized a survey from the National Multifamily Housing Council (NMHC). The survey was NMHC’s quarterly gauge of development and construction activity, and respondents continued to report challenges in getting projects underway, let alone getting them done.
Apartment Developers Cite Economic Infeasibility as Stumbling Block was the headline for a story reporting that the majority of developers contend with issues ranging from a lack of construction financing to delays in completing projects. However, NMHC President Sharon Wilson Géno commented that there are also positive trends in the sector.
The multifamily theme extended to the week’s third most-read story, which enjoyed strong readership both in California and nationally. Apartment REIT Essex Property Trust took complete ownership of a 1,480-unit portfolio after a number of years of joint ownership; we reported this acquisition in Essex Property Trust Buys Out JV Partner for $505M. The portfolio is located across Essex’s home state of California as well as Washington State.
The week concluded with our fourth most-read story, derived from a survey of theAmerican Bankers Association’s Economic Advisory Committee. In Bank Economists See Soft Landing, Three Rate Cuts by Fed, we reported that the committee sees diminishing recession risks, moderating inflation and continuing robust gains in employment.
“Last year’s combination of resilient growth and moderating inflation is unusual historically and should be celebrated,” said Simona Mocuta, committee chair and chief economist at State Street Global Advisors. “The elements appear in place to extend a milder version of this in 2024, although we should not take this for granted.”
JPMorgan Chase is among the banks represented on the Economic Advisory Committee, and a story out of New York City rounded out Connect CRE’s top five strictly on the basis of readership in its own backyard. JPMorgan Chase Names Michelle Herrick Deputy Head of CRE reported the latest role for Herrick, previously the head of real estate banking at the financial services giant. She brings more than two decades’ experience to her new post, in which she will work alongside Al Brooks, JPMorgan’s head of commercial real estate.
In the latest edition of Weekender, we look at a property type that was considered moribund in the pandemic and a laggard in recovery even after brick-and-mortar retail as a whole made a strong comeback. That property type is malls, and a report from Placer.ai says the mall just might be rebounding.