News & Opinions
The latest news and insights from Hanley Wood’s outspoken experts and key thought-leaders throughout the residential and commercial design and construction industry.
Brad Berton / APARTMENT FINANCE TODAY / August 19, 2013
We all knew the ultra-low mortgage rates seen over the last couple years wouldn’t last forever. Still, the recent rise of a full percentage point over a two-month period left even the steeliest of apartment professionals reaching for their Pepto-Bismol.
From early May to early July, the benchmark 10-year Treasury yield, against which lenders quote most fixed-rate loans, shot up more than 100 basis points (bps), from about 1.6 percent to more than 2.7 percent. Meanwhile, lender spreads—the amount a lender adds to the benchmark to produce a final interest rate—have also widened graduallyRead More
Joseph Batdorf, president and CEO, J Turner Research / MULTIFAMILY EXECUTIVE / August 5, 2013
When it comes to student housing in the United States, one thing is pretty much clear: the dorm days are over.
To satisfy both cost and quality-of-life concerns, most students have moved off campus into modernized student housing communities, and competition for their rent dollars hinges around several key factors: be close to school, build big apartments with lots of storage, and make sure residents have their own bathroom (even if they share a bedroom).
As revealed in “Gauging Student Living Preferences,” a survey of 7,095 graduate and undergraduate students prepared exclusivelyRead More
John Caulfield / MULTIFAMILY EXECUTIVE / June 20, 2013
Builders and developers benefit from rising competition among financing sources.
Banks are more readily opening their wallets again to provide debt financing for multifamily for-sale and rental projects. But some banks still view this space cautiously, as they see competition now coming from an expanding host of non-bank capital sources. Other banks, while eager lenders, nonetheless are watching for signs of overbuilding, particularly on the luxury side of the spectrum, and looking for clues of where rents might be headed.
“We are guardedly optimistic about this product type,”Read More
Les Shaver / MULTIFAMILY EXECUTIVE / June 11, 2013
In his more than two decades in the real estate business, Bob Faith, CEO of Charleston, S.C.–based Greystar Real Estate Partners, has ridden three different real estate cycles. In that time, he’s learned some valuable lessons. Most notably: When you’re developing apartments, timing is everything.
“Historically, if you look at your margins on projects as you go through [each] cycle, the highest margins are on the earliest deals,” says Faith, a Harvard MBA, who diligently studies past cycles for hints of future behavior. “As you get deeper into the cycle, margins get thinner andRead More
Carl Seville / GreenBuildingAdvisor / June 10, 2013
The number of multifamily buildings with green certifications is expanding rapidly
Recently, while doing research for a series of articles I am writing for Multifamily Executive Magazine, I ran across some interesting information on the multifamily construction industry and the increasing demand for green certified buildings. Affordable housing, much of which is multifamily, has been leading the way in green building for many years, much of this due to incentives tied to low income housing tax credits (LIHTC) that promote certified projects.
In recent years, due to the downturn inRead More