Multifamily Industry Expects Strong 2011
Multi Housing News (MHNonline) 11-29-2010
Apartment Market at Tipping Point
Colorado Springs Business Journal 2-4-2011
Distressed Debt Investors Prefer Real Estate in 2011
CRE Sales Deal Volume Returning to “Normal Levels”
CoStar Group 1-5-2011
Colorado Exceeded Only by Texas as 2010 Relocation Target
Apartment Operators Regain Pricing Power as Vacancy Recedes to 10-Year Low
Marcus & Millichap 2011 Annual Report (Denver)
As you can see, apartments are the current darling of the commercial real estate world in the United States. The major factors in this trend include a huge number of 18-34 year olds forming their own households, continued high number of residential foreclosures, general population growth via births and immigration, and a lack of any significant apartment developments completed recently or in the pipeline.
In addition, REITs have apparently stopped waiting for the predicted wave of distressed deals and are scooping up Class A properties in high-barrier-to-entry markets such as Washington, D.C., New York City and San Francisco. Since they’re buying in the 5-5.5 cap rate range, it’s apparent they believe in these purchases as long-term holds. Insurance companies, dormant in the field for the last few years, are also returning to the market as both buyers and lenders.
All this has combined to make the next few years perhaps the best time to buy apartments we will see in our lifetimes.
- Forecast: O.C. rents to soar 4.5% in ’11 (lansner.ocregister.com)
- Housing Woes Fuel Apartment Surge (online.wsj.com)