The CRE Resurgence Has Already Started

16/09/2024 56 min

Listen "The CRE Resurgence Has Already Started"

Episode Synopsis

With CPI showing continued declines in inflation this week and lower ten-year treasury yields foreshadowing an expected interest rate reduction from the Federal Reserve, investors continue to show more activity and interest in the CRE investment market, with multifamily properties specifically showing noticeable positive growth in property prices since the beginning of the year. Rents in the apartment sector will likely follow a similar trajectory as 2023, with seasonal trends pointing to slower rent growth through the end of the year, but investors are not blind to the prospects of the multifamily market and are acting on expectations of stronger performance as the surge in newly-built apartments wanes through the end of 2024 and into 2025.Sources discussed in this episode:Associated Press: “Police deny Venezuela gang has taken over rundown apartment complex in Denver suburb” https://apnews.com/article/venezuela-immigrants-aurora-colorado-police-37acd4e064347d51808cb244117ac21eCBS News: “Colorado law firm report claims Venezuelan gang has "stranglehold" on apartments, takeover began in 2023” - https://www.cbsnews.com/colorado/news/colorado-law-firm-report-claims-venezuelan-gang-stranglehold-apartments-takeover-began-2023/Bureau of Labor Statistics: “Consumer Price Index, August 2024” - https://www.bls.gov/news.release/cpi.nr0.htmColliers: Capital Markets Snapshot: “Major Investors Return to the Market” - https://www.colliers.com/en/research/nrep-uscm-capital-markets-us-snapshot-q2-2024MarketWatch: “Commercial real-estate investors are ready to get back in the market, says PGIM” - https://www.marketwatch.com/story/commercial-real-estate-investors-are-ready-to-get-back-in-the-market-says-pgim-dbd4fc06Green Street: “Commercial Property Price Index” - https://www.greenstreet.com/insights/CPPIApartment List: National Rent Report, August 2024 - https://www.apartmentlist.com/research/national-rent-dataYardi Matrix: “National Multifamily Report: August 2024” - https://www.yardimatrix.com/publications/download/file/6087-MatrixMultifamilyNationalReport-August2024RealPage: “U.S. Apartment Market Sees Negligible Change in August” - https://www.realpage.com/analytics/august-2024-data-update/For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.