Marcus & Millichap Releases 4th Quarter Apartment Research Market Report
Marcus & Millichap’s 4th Quarter Apartment Research Market Report has been released. Overall, the outlook of the Philadelphia apartment market remains bright as healthy economic factors continue to drive growth in the Philadelphia economy. The unemployment rate reached the lowest level since the recession, encouraging developers to accelerate the pace of construction. Tight market conditions have spurred steady and consistent rent growth, and both rent and occupancy rates are trending upward.
Click the link below to view the full report.
Is Now The Time?
One of the sharpest minds in the real estate business, and more specifically the apartment market, believes now is the time to sell: Sam Zell Edges Out of Apartments
The reality is that interest rates are going to rise, and the question is will the value of multifamily properties decrease as a result: Multifamily Prices Could Stall With Interest Rate Hike
Cap rates rise as interest rates rise, just as they have decreased as interest rates have dropped. The following chart illustrates the impact that a 50 bps increase in interest rates would have. In this example, we used an NOI of $500,000 and a cap rate of 6.5%. As you can see, a 50 bps increase in interest rates would result in a decline in value of nearly $550,000, which is more than 7% of the property value.
If you are considering selling in the next 2-3 years, now is the time to consider putting your property on the market in order to maximize value. Call us today at 215-531-7000 to discuss a strategy, and take advantage of our complimentary property valuation.
Complimentary Webcast Invitation: Current Apartment Trends
Apartments in Sixth Year of Performance Run: The Question Everyone Is Asking – What Inning Are We In?
Apartment performance has advanced for 22 quarters, matching the run of the 2000s – Can the trends continue? Join our panel of industry veterans for an informative complimentary webcast, as they translate emerging trends into apartment investment intelligence. Presented by John Sebree (VP/National Director of Marcus & Millichap’s National Multi Housing Group), William E. Hughes (Senior VP of Marcus & Millichap’s Capital Corporation), and John Chang (First VP of Marcus & Millichap’s Research Services).
Trends every apartment investor needs to know:
- Will rising international uncertainty and stock market volatility derail the economy?
- How will prospects of a Fed rate increase affect capital markets?
- Construction hit a new peak in 2015 – Will development pose a risk?
- Will the recovering housing market threaten apartment demand?
- Can positive demographic trends extend this cycle?
Register Today: This event is complimentary for Marcus & Millichap clients and colleagues. Click Here to Sign up for the Webcast.
Questions? Contact us at webcasts@marcusmillichap.com or call (925) 953-1735.
Marcus & Millichap Releases 3rd Quarter Apartment Research Market Report
Marcus & Millichap’s 3rd Quarter Apartment Research Market Report has been released. Overall, the outlook of the Philadelphia apartment market remains bright as rising employment fosters stable economic growth, which in turn is strengthening apartment operations. Total employment is on the cusp of recovering all the jobs lost during the recession. These favorable conditions are boosting demand for apartments and rapidly improving performance throughout the metro.
Click the link below to view the full report.
The Apartment Spotlight: Apartments Outperform in Second Quarter
Marcus & Millichap’s Research Services just released their Apartment Spotlight, detailing the first half of 2015. Some of the major talking points include:
- Steady job gains in the first half of 2015 generated robust demand for rental housing, while the modest rise in wages supported lease renewals.
- Growing demand drove U.S. apartment vacancy lower by 40 basis points to 4.1 percent in the second quarter, despite the most substantial pace of apartment construction in more than 20 years.
- The lengthy cycle of vacancy improvements and rent gains is supporting an elevated volume of activity among investors.
- The spread between the average cap rate of 5.5 percent and the 10-year U.S. Treasury remains relatively wide at 320 basis points, but continues to tighten as intense sales activity pushes down first-year return
View the full report below:
