Commercial Real Estate News Wrap Up From Liberty SBF: September 8, 2016

September 8, 2016

The CMBS sector has begun to rebound in the second half of 2016, attracting investor attention amid the recovery. CMBS issuance in the first half of 2016 fell below expectations, attributed to an increase in volatility and worrying macroeconomic events, such as the Brexit. However, issuance has recently picked up, with $6.2 billion distributed in July, one of the most active months in the year. Manus Clancy, a senior managing director at Trepp LLC, attributes this recent rebound to tightening spreads, and tells National Real Estate Investor that, “[Trepp LLC] expects the last three months of 2016 to be very busy.”

The busiest apartment development submarket in the nation is the Uptown/South End submarket in Charlotte, NC, reaching a staggering growth rate of 107.7% since 2012. This astounding inventory expansion is in line with the general region, with the Southern United States seeing the highest volume of new apartment construction within the nation. Other rapidly increasing submarkets include the Frisco/Proper submarket in Dallas, the Central Nashville submarket in Nashville, and the Navy Yard/Capital South submarket in Washington, DC. Almost all submarkets seeing an increase in apartment development were located near some sort of public transportation with access to multiple major roadways to make it easy to get to major employment centers within the area.

According to a new report issued by CBRE, lending markets have gained strength and stability in the second quarter despite a volatile early 2016. Val Achtemeier, EVP at CBRE, in an interview with GlobeSt.com, attributes this change to the strength of fundamentals today of all property types in most markets. With domestic real estate feeling like a safe haven and lenders more comfortable with the returns they are achieving, Achtemeier expects lending volume to continue increasing for the foreseeable future. This increase is despite new regulatory hurdles that will come to play at year-end 2016, something that Achtemeier views as an opportunity to firm up debt transactions for both lenders and borrowers.

8+1 (That’s 9) Things You Need To Know

  1. U.S. malls are now experimenting with entertainment-focused tenants to raise revenue.
  2. REITs finally get a spotlight on the S&P 500
  3. NewMark Merrill CEO Sandy Sigal: The current retail climate is schizophrenic
  4. In office commercial real estate, millennials are the new headliners
  5. The commercial real estate risk pushing the Fed to raise rates
  6. Foreign investors still love U.S commercial real estate
  7. Paced by its industrials market, the Louisville, KY commercial real estate market is soaring
  8. CRE price growth and liquidity is holding steady amid robust deal activity
  9. The Jacksonville, FL economy is helping to drive a strong commercial real estate market