News and Events

Multifamily Rents Declined at Record Pace in Q3

via GlobeSt.com Job losses, combined with the expiration of unemployment benefits, may finally be taking its toll on the apartment market. After multifamily held up reasonably well in Q2, national asking and effective rents declined at a record pace in the third quarter, falling by 1.8% and 1.9%, respectively, according to Moody’s Analytics REIS. That is the largest quarterly decline since 1999 when the company began publishing quarterly data. Before 2020, the most significant decrease occurred in Q4 2001—right after 9/11. Read More..

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Small Apartment Pricing Improves in Q3

via GlobeSt.com Throughout the COVID-19 recession, it has been anticipated that smaller apartment owners would bear the brunt of the problems in the multifamily sector. If rent payments are late or units are empty, there are fewer apartments to spread that revenue loss over. Also, many tenants in smaller apartments are likely to have lost jobs in this recession. Read More..

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Voters Reject California’s Proposition 21

via GlobeSt.com Once again, California voters have decided not expanded rent control in the state. In Tuesday’s election, voters rejected Proposition 21. Had it passed, the measure would have allowed local jurisdictions to expand rent control or create new rent control laws on almost all housing types. It was widely opposed by the commercial real estate community as well as Governor Gavin Newsom. According to data from The Associated Press, the proposition received only 40% of the votes, although ballots are still being counted. Read More..

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Californians once again reject bid to expand rent control in the state

via latimes.com California voters have again decisively rejected a bid to expand rent control statewide. The failure of Proposition 21 means that, once again, landlord groups have convinced voters that stricter limits on rent hikes are not a solution to California’s housing affordability problems. A statewide ban on most new forms of rent control will remain in effect. Read More..

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L.A. Apartment Rents Down 6% Since the Start of the Pandemic

via GlobeSt.com

Apartment rents in Los Angeles have declined 6% since the start of the pandemic, according to research from Apartment List. In September alone, rents fell 1.1% in the market. While this is a significant decrease, Los Angeles ranked 11th in the US for its drop in rents.

“As the recession deepens and remote work settles in, many renters have new expectations for what they want out of a home,” Rob Warnock, research associate at Apartment List, tells GlobeSt.com. “Obviously there is a need for cheaper housing, but also a desire for more physical space that might inspire renters...

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Rent Payment Struggles Continue

via multihousingnews.com Recent reports detail a downward trend in residential rent collections as stakeholders seek solutions.

More than six months into the coronavirus pandemic, multifamily trade groups and advocates are worried about the cascading effects of falling rent payments.

While some reports have found that collections haven’t dropped as drastically as many had feared, numbers are still down from the same time last year. And with federal rent relief measures stalled in Congress, the expiration...

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Single-Tenant Net Lease Finds Stability Through Pandemic

via GlobeSt.com Single-tenant net lease properties are finding stability through the pandemic—making them a standout in the retail market. Investors are taking note. A new report from Colliers International forecasts that investment-grade triple-net tenants should produce higher leveraged returns for investors over the next several years, and investors are actively seeking and competing for these opportunities. These properties will remain particularly popular for 1031 exchange investors as well. As a result, Colliers is predicting cap rate compression in this market, although it will depend on the sector, location and the tenant quality. Read More..

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Apartment Rents Have Dropped in Nearly Half of the Top 100 Markets

via GlobeSt.com Rents are declining in markets across the country. A new national apartment rent report from the Apartment List shows that rents have declined in 41 of the top 100 markets in the country since the onset of the pandemic in March. San Francisco, New York and Seattle have seen the steepest decline in rental rates, with 17.8%, 11.6% and 9.9% drops in average rent, respectively. This has cleared all of the rent growth from the last year in those markets. Read More..

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100,000 Restaurants On Track to Close This Year

via GlobeSt.com At least 100,000 restaurants will close this year because of the pandemic, the National Restaurant Association recently predicted. Perhaps more surprising, the association also found that 60% of operators said their total operational costs, as a percent of sales, are higher than they were before COVID-19. Further, on average, restaurant operators say their staffing is just 71% of typical levels. Read More..

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Most Retailers Have Now Struck Agreements with Landlords on Back Rent

via GlobeSt.com Retailers have struggled to pay rent through the pandemic, and as a result, the retail market has been among the sectors with the lowest rent collections in the commercial real estate. In June, one-third of retail tenants had paid 75% of rent, but in July, that number doubled, with two-thirds of retailers paying only 65% of rent, according to a retail survey conducted by NRF and PJ Solomon. Read More..

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