Joseph Pastora

Tampa, Dallas, Nashville, Charlotte, Orlando, Phoenix, Raleigh, Atlanta, Austin are the bottom markets for multifamily, with negative Year-over-Year Rent Growth averaging at -3%. Tampa saw a -1.5% decrease while Austin experienced a -6.5% loss in rents. The SMILE Strategy (Southeast to Southwest US Cities) is displaying fundamental weaknesses, emphasizing the attraction of easy and affordable construction for developers. With 4-5% growth rates in supply, these markets face challenges due to cheap costs and abundant infrastructure for suburban development. Unfortunately many of the large asset managers in the apartment space have bought into this strategy heavily and now have to wait out the excess supply to get back to growth. Crossbeam advocates a development strategy focusing on high barriers to entry and areas with higher gross margins. This approach drives rent through scarcity, highlighting the Rockies as a prime example with constrained land, complicated limited access to water, and a growing population. We would rather not have to "time the market", especially in low-cost, low-barrier markets that are prone to cyclical swings. Crossbeam's preference for building in high barrier locations like ski towns ensures lower risk, volatility, and better margins, ultimately leading to higher Net Operating Income. Generally in these hard to reach places you don't see the volatility of the boom and bust SMILE markets. The data underscores the importance of strategic market timing and development choices, shedding light on the benefits of focusing on high barrier, supply-constrained markets for long-term success. For Crossbeam this has the right focus on capital preservation and protection while maintaining the total return profile long term. Learn more about Crossbeam and their KB Mountain West Housing Strategies Fund at www.crossbeamcapital.com

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Listed REITs returned +2.1% this week, outperforming the market value weighted S&P by +255bp and the equal weighted S&P by +222bp. The sector has now risen five out of the past 6 weeks. Real estate was the 2nd best of the S&P sectors trailing only energy. Sixteen out of 18 subsectors were positive as cell towers (+4.9%), industrial (+4.4%), healthcare (+3.4%) and shopping centers (+3.4%) led while lodging (-0.7%), apartments (-0.6%), diversified (+0.1%) and specialty (+0.1%) lagged. While YTD returns stand at -4.3%, valuations have risen+6.4% since the YTD trough last month and are nearly 20% above the late October 2023 trough. Here's your pretty picture.

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Discover 2024 CRE Investment Trends📈🚀 In a recent CBRE Investor Intentions Survey, investors nationwide shared insights on the most attractive commercial real estate markets this year. At 90Ten, we specialize in uncovering prime investment opportunities. It’s no surprise that several of our target markets, including Dallas-Fort Worth, Austin, Miami, and Tampa-St. Pete, are among the top performers. These markets are projected to yield exceptional returns, positioning them as highly desirable destinations for investors in 2024. With strategic offices in both DFW and Tampa-St. Pete, we are positioned to capitalize on these lucrative opportunities. As the market continues to gain momentum throughout 2024, our investors will experience significant returns from our well-located investments in Texas and Florida. Source: @The Dallas Morning News https://lnkd.in/evwn3bY9 #PrivateEquity #RealEstateInvesting #MarketTrends

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How to Implement the STP Marketing Model in CRE in 6 Steps: https://lnkd.in/eTCTGV5X #CommercialRealEstate #STPmarketing #CREInnovation 

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Apartment REITs boost guidance after strong Q1! With job growth up & fewer renters leaving for homeownership, the outlook is positive. Renting remains more affordable than buying due to high interest rates. #REITs #Multifamily #CRE #Aspire #JobGrowth https://lnkd.in/ewBhxeY8

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The assessment of retail tenants by landlords encompasses various factors, from financial stability to industry dynamics. Here are three aspects of @Northmarq's Top 100: Tenant Expansion Trends Report: 1. Consumer preference for bargains amid economic pressures has led shoppers to seek value brands like Dollar General, Target and ALDI USA. 2. Convenience plays a pivotal role in today's retail landscape, exemplified by Wawa, Inc., and Chipotle Mexican Grill, which prioritize efficient service and accessibility through initiatives such as drive-throughs and mobile apps, aligning with evolving consumer preferences. 3. There's a growing emphasis on personal wellness among consumers, creating opportunities for retailers to offer health-centric products and services. Companies like Planet Fitness and Sprouts Farmers Market are strategically positioned to capitalize on this trend by expanding their presence and providing healthier alternatives, reflecting the evolving demands of health-conscious consumers. For additional insight, check out the breakdown on GlobeSt.com: https://lnkd.in/dPUdKj7D

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The #multifamily sector is experiencing several headwinds, including rising construction and operating expenses, a surge in new supply, rising borrowing costs and, in some cases, falling rental rates – but the outlook for 2024 may not be as black-and-white as it appears. Read more: https://lnkd.in/gSBWaxYA #CommercialRealEstate #CRE #RealEstateTrends

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Clozzits recently sat down with President Jim Monk to discuss multiple topics within the Multifamily space. 💡 Take a listen as he discusses the trends and challenges of multifamily industry interest rates. 📈📉 #multifamily #interestrates #multifamilyinsight

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CRE DISTRESSED SALES • According to CoStar data, distressed sales as share of total transaction volume picked up in 2023, increasing 1.2 percentage points. Overall, distress sales are 4.7% of total CRE transactions, their highest level since 2016, although well below financial crisis peaks. • The increase is almost entirely driven by Office distress sales, which rose to roughly 9%, up 3 percentage points from 2022. Increasing vacancy rates, mixed with high interest rates and declining values, have put pressure on office properties, and borrowers that are struggling to refinance at maturity. • The increase in distressed sales largely reflects what’s happening within CRE debt. In 2023, the non-Agency CMBS non-performing rate increased by 1.21 percentage points, with 90% of the increase coming from Office deals. Both distress and default in office are coming at maturity, with 53% of the increase in the overall non-agency CMBS non-performing rate in 2023 due to Office maturity defaults. ➡ Act sooner than later! Learn how we can help you manage risks and opportunities in your CRE portfolio > https://lnkd.in/eS4rK5XD #distressedsales #cre #banks #lenders Joseph Biasi Christiane Figueiredo Mendes, MBA John Vecchione Travis Fisher Scott Bell Xiaojing Li

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A recent report from BuildingDesign Media, looking ahead to the second half of the year, shows the strength of the #multifamily sector despite some economic challenges. Among the key themes are: --Demand remains steady, but rising supply and financing issues are creating headwinds. --Growth is expected to slow in the coming months, but there will be regional variations based on economic conditions and supply factors. --The economy remains stable and job growth persists, but softening rent growth and occupancy rates are emerging. --And, of course, the industry is continuing to track inflation (which is now down to 3.3%) and interest rates. https://lnkd.in/g32By27V #multifamilydevelopment #multifamilyinvestment #apartments #apartmentliving

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Our Q1 2024 NCREIF ODCE index analysis reveals the latest market trends and breaks down market results by both sub-property type classification and geography. Read more: https://lnkd.in/gEEacKq4 #NCREIFODCE #CommercialRealEstate #CREMarketTrends

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“The senior housing industry has seen consistent improvement across key fundamentals over the last 11 quarters…we predict that in the second or third quarter of this year, we’ll be back to pre-pandemic occupancy levels. From a market standpoint, we’re looking ahead with optimism.” NIC’s Lisa McCracken spoke with Michael Bull, CCIM of America’s Commercial Real Estate Show with Bull Realty about industry pressures and headwinds impacting NIC’s positive 2024 forecast. Listen now: https://hubs.li/Q02vbkt_0

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Last week Chris Madden attended CBRE's 2024 Multifamily Summit in Austin, TX. He was joined by 650+ industry leaders to engage in insightful discussions on navigating challenges and seizing opportunities in the multifamily sector. Here are his key takeaways: - Market Resilience: Despite challenges like inflation and interest rate uncertainty, 40% of industry professionals plan to increase capital deployment, highlighting the sector's strength and resilience. - Supply Scarcity and Competition: The scarcity of available properties is making the market highly competitive, with a narrowing gap between buying and selling prices. This scarcity poses a challenge for investors looking to deploy capital effectively. - Need for Flexibility and Agility: Navigating market volatility requires adaptability, agility, and strategic adjustment of business plans. Confidence in asset quality and staying engaged are crucial for success in this ever-changing environment. #croataninvestments #CBREMultifamilySummit  #RealEstateInvestment #commercialrealestateinvesting #alternativeinvestments #alternativeinvesting #rentalhousingrealestate #multifamily #austin

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What can Brown do for you? Sorry, I couldn’t resist, but if you are in retail or real estate, the answer is A LOT. I’m a 25+ year #cre #research #analyst and #commercialeealestate #economist that has specialized in #retailreakestate for the better part of my career. After a long journey in corporate real estate, I reunited with early friends and mentors at @gallellirealestate where I have been able to rediscover my entrepreneurial roots and launch the most comprehensive retail and reference guide to chains ever created. Something I have long dreamed of sharing with the market . That dream is #thebrownbook If there was ever anything that built my reputation in retail research it was knowing that knowledge of tenant plans and financials and their importance to gauging #shoppingcenter and retail health. As well as informing my team. Hockey great Wayne Gretzky once explained his success, “I go where the puck is going, not where it’s been.” That’s the basis of @TheBrownBook. A tool that helps you go where the puck is going to be and not where it was, in the fastest moving industry of all—retail. Now I am able to share with you all the culmination of my life’s work. All of my data gathering methods, connections, knowledge and endlessly hard work inform the data in #thebrownbook, the ultimate reference guide to retail tenants. An indispensable tool for #landlords, #developers, #investors, #tenants and #retailers (to know what their competition is up to), #facilitesmanagers, #appraisers, #media, anyone that needs solid #businessdevelopment tools that wants to know which #chains are growing, shrinking, new to market (you might not even know), or emerging. And who to call. Please check out samples of what The Brown Book contains. The Brown Book is not a book. It’s actionable knowledge for #businessdevelopment. https://lnkd.in/gTN-9qWT

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Anjee Solanki sat down for an interview with CoStar News on-site at #ICSCLasVegas to discuss the future of consumer spending in America. In the interview with Tony Wilbert, Anjee shares her perspective on how higher wages will boost consumer spending throughout 2024, driving retail sales growth to slightly outpace last year. Discover Anjee's key insights in the full interview, available here: https://ow.ly/siZI50ROkp4

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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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