Drilling Down Into the Hot Apartment Submarkets

Areas near Phoenix and Dallas are poised to perform well in 2022.

There are hot apartment markets such as Phoenix and Dallas projected to do well this year, but understanding the fundamentals in those areas’ key submarkets can prove even more valuable to investors and developers.

Much has been written about the scorching hot Phoenix market, for example. Greg Willett, Vice President of Marcus & Millichap’s Institutional Property Advisors (IPA) multifamily research, points more specifically to its nearby cities such as Tempe, Chandler, and Gilbert on the west side of metro Phoenix.

Development is the heaviest downtown and in West Valley suburbs such as Glendale, Ariz., according to Marcus & Millichap’s report. Net absorption surpasses 19,000 units, the highest annual total since at least 2000. Still, the record-setting wave of supply results in a slight vacancy increase to 2.8 percent.

Rent growth will settle from last year’s 21.9 percent gain but remain strong. The mean will jump to $1,630 per month in 2022, aligning with the 2016-2020 annual average growth rate.

More buyers pursue Class B and C assets Downtown and in North Phoenix. These may better align with the budgets of some renters in the area amid a wave of new modern facilities.

A Closer Look at Dallas

Likewise in the Dallas metro, Willett said nearby locations such as Frisco, Allen, and McKinney on the north side of metro Dallas were ones to watch.

Amid rapid population growth and household formation, assets in Dallas-Fort Worth are attractive to investors throughout the world, according to the report.

“The sizable field of buyers eager to acquire properties in the Metroplex is pushing up sale prices and compressing yields. From 2013 to 2020 the mean sale price increased by an average of more than 10 percent per year, a trajectory sustained in 2021.

“The average cap rate also dipped below 5 percent for the first time on record last year. Many buyers are following household formation trends to North Dallas suburbs, with deal velocity ramping up in locations beyond Interstate 635 like Carrollton, Frisco, and Garland.

“Areas that will receive the most new supply include Frisco, South Arlington-Mansfield, and Intown Dallas. Following a 190-basis-point drop in 2021, downward vacancy movement continues this year as net absorption exceeds new supply. The rate will fall to a two-plus decade low of 3.6 percent. It will be difficult to mirror the 12 percent gain from last year, but rent growth in 2022 will be the second-fastest in the past six years.”

The mean effective rate will reach $1,395 per month, Marcus & Millichap forecasted. Competition for assets in North Dallas suburbs, Downtown, and in the Mid-Cities will lead buyers to search farther out. Denton, McKinney, and Waxahachie may offer compelling prospects.

Willett added that key suburban job centers across the entire state of Florida continue to perform well.

Looking Elsewhere

“Performances lagged to some degree in most urban core settings across the country, but even the worst-performing neighborhoods generally made progress viewed relative to 2020 results,” Willett said. “By the end of 2021, the only places where rents had not fully recovered to pre-pandemic levels were in the San Francisco Bay area and select neighborhoods in metro New York.”

Marcus & Millichap this week released its full 2022 apartment market forecast, citing Orlando and Las Vegas as its best bets overall for 2022.

 

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Source: Drilling Down Into the Hot Apartment Submarkets

https://www.creconsult.net/market-trends/drilling-down-into-the-hot-apartment-submarkets/

Goldman Sachs Says Rent Increases Should Slow Down This Year

 

• The rent-price surge seen through 2021 likely peaked in the fourth quarter, Goldman Sachs said Tuesday.
• Shelter inflation gauges suggest price growth will start to slow faster by mid-2022, the bank added.
• The bank sees rent growth peaking at 5.1% in 2021 and slowing to 4.2% by the end of 2024.

Renters have been on a rollercoaster ride throughout the pandemic. That choppiness is cooling down soon, according to Goldman Sachs.

City rents have been on a tear. Prices were up 11.5% year-over-year in November, according to CoreLogic's Single-Family Rent Index, much higher than the 3.8% annual growth rate in November 2020 and marking the fastest inflation in at least 16 years. Popular pandemic moving destinations like Austin, Las Vegas, and Miami led the charge in 2021, and rents in major metro areas like New York City and San Francisco more recently roared back as people prepared to return to offices.

The surge raised concerns that the affordability crisis in the housing market could bleed into rentals. Yet early signs suggest the US is past peak rent inflation, and apartment prices should start to stabilize this year, Goldman analysts led by Jan Hatzius said in a Tuesday note.

Shelter inflation accelerated to an annualized rate of 5.1% in the fourth quarter, according to the Census Bureau. Trends in other inflation measures, however, show rent growth starting to ease through the end of last year. The Consumer Price Index's rent and owners-equivalent rent measures both decelerated in December. The gauges track prices of new and continuing leases, and it takes longer for the latter to follow price increases in the former. By modeling when the new leases saw the biggest price hikes, the economists estimate that the rent-price surge was the strongest in the fourth quarter and will fade moving forward.

The cooldown won't be quick. Shelter inflation will linger at a year-over-year pace of about 5% through the third quarter before dropping to 4.8% at the end of 2022, Goldman said. Price growth will continue to ease to 4.5% at the end of 2023 and to 4.2% at the end of the following year, the team added. The forecast offers new hope that the country's broader inflation problem will also improve. Rent growth is a "sticky" form of inflation, meaning prices are not likely to decline after soaring higher.

Persistently strong rent inflation is potentially a bigger problem for the economy than more temporary price increases for things like gasoline or food, as it could spark a new inflation crisis and the need for large-scale intervention. Goldman's outlook, then, assuages some concerns that the rent boom of 2021 would keep inflation stuck at its four-decade highs.

Still, risks exist on both sides of the bank's forecast. Rent inflation could accelerate again in 2022 if less of the bump from new-lease rents has made its way to renewals than expected, the team said. That would prolong the cycle and likely drive shelter inflation higher. Conversely, rent growth could drop even faster if most of the new-lease boost has already hit renewal inflation, the team said. Weaker underlying shelter-inflation trends could also drag on rent growth, they added.

For now, rent is still growing at its fastest rate since the financial crisis, according to BLS data. Even the weaker inflation rates forecasted by Goldman sit above the pre-pandemic trend, but after a year of skyrocketing shelter prices, the bank's projected peak offers some respite for those struggling to keep up.

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Source: Goldman Sachs Says Rent Increases Should Slow Down This Year

https://www.creconsult.net/market-trends/goldman-sachs-says-rent-increases-should-slow-down-this-year/

State of Commercial Real Estate 2022

 

On Tuesday, Feb. 15, eXp Commercial hosted a free virtual seminar in the eXp Commercial Campus metaverse featuring founder and president of Red Shoe Economics, KC Conway as the keynote speaker. The 60-minute "State of the Commercial Real Estate Industry" seminar is open to all eXp Commercial agents and other interested parties. 

With more than three decades of experience as an economist, Conway will provide industry research, data, analytics, and economic insight on the complex and changing commercial real estate market.

 

 

 

About KC Conway:

Economist and Futurist Kiernan “KC” Conway, CCIM, CRE, MAI is the mind trust behind Red Shoe Economics, LLC, an independent economic forecasting and consulting firm furthering KC’s mission as The Red Shoe Economist by providing organic research initiatives, reporting, and insights on the impact of Economics within the commercial real estate industry.  A proud graduate of Emory University with more than 30 years experience as a lender, credit officer, appraiser, instructor, and economist; KC is recognized for accurately forecasting real estate trends and ever-changing influences on markets all across the United States. With credentials from the CCIM Institute, Counselors of Real Estate, and the Appraisal Institute, KC currently serves as Chief Economist of the CCIM Institute and as an Independent Director for Monmouth REIT MNR. A gifted and prolific speaker KC has made more than 850 presentations to industry, regulatory and academic organizations in the last decade, and has been published in many national and regional newspapers and journals with frequent contributions to radio and television programming.

 

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https://www.creconsult.net/market-trends/state-of-commercial-real-estate-2022/

Not just a national surge Chicago area multifamily market soaring too

Last year was a particularly unique year for the real estate industry as it pertains to the residential trends and migration patterns left in the pandemic’s wake. With a majority of the corporate real estate sector opting to implement work-from-home or work-from-anywhere models in order to retain staff and reduce overhead, there was a significant surge throughout the country in workers relocating to more suburban areas.

This occurred for a variety of reasons, such as individuals seizing the opportunity to live farther away from their offices and others realizing the potential financial savings and change of scenery that suburban living can provide. From a health and wellness perspective, moving to areas with smaller populations appeared as a practical solution in terms of lowering the risk of virus transmissions as well as a way to reduce the sources of stress that often accompany urban life, such as noise pollution and smaller living spaces.

With the worst of the pandemic appearing to be behind us, these migration trends are beginning to shift once again. However, instead of an outright reversal of the exodus seen in 2020, the population has found a middle ground. Urban areas are seeing a surge in new residents while the suburbs continue to thrive. New York City, as an example, is seeing almost twice as many new residents compared to 2019 figures while Chicago’s urban market continues to be outpaced by the suburbs. The city of Chicago itself, however, continues to retain its title as the third most populous city in the United States despite 2020’s notable outbound migration.

Chicago in focus

The unique migration patterns in and out of the Chicago metropolitan area, have resulted in an incredibly diverse multifamily market landscape. The demand in this area mirrors the broader multifamily trends being seen throughout the entire country, with some residents continuing to demonstrate a heightened interest in the suburbs while others begin returning to the inner city.

This dichotomy is likely attributable in part to the vaccine and booster shots now being more widespread and available as well as businesses beginning to bring workers back into the office. Certain companies opting to continue using their WFA models or adopt hybrid strategies, however, present one possible explanation as to why the post-pandemic world is not simply snapping back to its 2019 landscape.

My firm Pensam has been consistently exercising its team’s market insights to meet this spectrum of demand. Over the past year, the firm has acquired four multifamily properties in Chicago and its surrounding suburbs as well as preferred equities and other transactions throughout Illinois and the rest of the country. This focus on the Chicago MSA is not by chance, as the area’s multifamily market activity over the past year has shown a clear interest in both urban areas and their surrounding suburbs. This interest has paved the way for firms like Pensam to execute deals inside of a particularly diverse pool.

Transactions across the spectrum

1900 at Canterfield, a 260-unit stabilized multifamily community in West Dundee, Illinois, acquired by Pensam in the summer of 2021, provides an example of the types of suburban properties that saw a surge in interest following the pandemic. 1900 at Canterfield contains 18 buildings across 23.6 acres, providing the suburban atmosphere, low density, and spacious design that city emigrants are seeking, but is located less than a mile from I-90, granting easy access to the Schaumburg job market.

The building’s amenities also include a clubhouse, outdoor lounge area, and swimming pool–amenities that today’s suburban residents are expecting to accompany the increased space available.

More recently, Pensam also acquired Lakeside Apartments in Wheaton and Aspen Place in Aurora, both Chicago suburbs. These two properties, containing 204 and 416 units respectively, demonstrate not only a high level of interest in the Chicago MSA but an interest that is continuing to grow. Combined with the firm’s latest acquisition, the 336-unit Butterfield Oaks in Aurora, Illinois, evidence points to this momentum carrying forward.

A promising 2022

Pensam’s strong focus on Chicago and its surrounding suburbs indicates that the firm is placing great confidence in the real estate industry’s continuing rebound from the pandemic, poising itself to keep both the urban and suburban multifamily markets in focus throughout 2022.

Against the backdrop of Pensam’s performance in the national multifamily market throughout last year, this is further evidence that the worst of the pandemic’s effects on the U.S. multifamily market are likely behind us. Going forward, all signs point to this sector continuing to improve in 2022 and lead the country to pre-pandemic levels of activity and beyond.

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Source: Not just a national surge Chicago area multifamily market soaring too

https://www.creconsult.net/market-trends/not-just-a-national-surge-chicago-area-multifamily-market-soaring-too/

The spotlight may be on Chicago’s single-family market but multifamily sector is also hot

 

While investors and homebuyers’ focus has been on Chicago’s soaring single-family market, multifamily properties in and around the city are also hot.

The trend is driven by migration patterns in Chicago as workers reassess their situations now that the availability of vaccines and booster shots makes living with Covid more manageable, according to an analysis by Hen Shoval, principal and director of Investment at Pensam Capital, a Miami-based real estate investment firm, in REjournals.

“The demand in this area mirrors the broader multifamily trends being seen throughout the entire country, with some residents continuing to demonstrate a heightened interest in the suburbs while others begin returning to the inner city,” said Shoval.

Chicago’s housing market is seeing record activity. The supply of suburban homes earlier in February fell below one month and realtors say sellers can expect $20,000 over asking price. The multifamily sector is setting records as well. A suburban multifamily complex in January sold for $73.5 million, a DuPage County record. 

Pensam is one such out-of-state buyer. It bought four multifamily properties around Chicago last year and expects activity to continue. Pensam bought a 260-unit stabilized multifamily community in West Dundee, Ill. last summer and more recently bought two properties in Aurora, Ill.

“Against the backdrop of Pensam’s performance in the national multifamily market throughout last year, this is further evidence that the worst of the pandemic’s effects on the U.S. multifamily market are likely behind us,” Shoval said. “Going forward, all signs point to this sector continuing to improve in 2022 and lead the country to pre-pandemic levels of activity and beyond.”

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Source: The spotlight may be on Chicago’s single-family market but multifamily sector is also hot

https://www.creconsult.net/market-trends/the-spotlight-may-be-on-chicagos-single-family-market-but-multifamily-sector-is-also-hot/

How a DST Can Rescue You from a Failed 1031 Exchange

As an astute investor, you know that long-term capital gains taxes can quickly eat away at the profits you make on your investments. Consequently, avoiding or at least deferring payment of these taxes for as long as possible is likely one of your main objectives.

For real estate investments, this usually means doing a 1031 exchange whereby you exchange your substantially appreciated real estate for other “like property,” placing your sale proceeds with a qualified intermediary (QI), also called an accommodator, who holds them until the exchange completes.

Failed 1031 Exchanges

One of the biggest downsides to 1031 exchanges, however, is that they don’t always complete. In fact, they often fail. Why? Because 1031s have many moving parts. Not only must you find “like property” to invest in, but you must also designate this replacement property within 45 days of your sale and close on the replacement property within 180 days. If you miss either deadline, 1031 fails, your sale proceeds revert to you, and you are immediately liable for payment of the capital gains tax on your sale.

DST Rescue

If you find yourself facing a potentially failed 1031 exchange, you likely are in a state bordering on panic. But what if you could rescue yourself and avoid immediate payment of your capital gains taxes? You can. The mechanism is called a Deferred Sales Trust. This legal, tested, and innovative option allows you to engage with Reef Point’s Estate Planning Team and its tax attorneys, who will create a DST specifically structured to accommodate your needs as well as your overall investment goals.

You then transfer your funds from your qualified intermediary-held funds into your new DST. In other words, the sale proceeds from your failed 1031 revert to the DST, not to you. You thus have no constructive receipt of them and consequently have no capital gains tax liability. Nor do you have any liability for depreciation recapture. The DST option also works as a rescue for a failed 721 exchange.

Additional Advantages

Your DST doesn’t just rescue you from a failed 1031 or 721 exchange, however. It gives you far greater investment flexibility because it allows you to acquire assets or financial instruments disallowed by 1031s and 721s. Nor does a DST involve strict time frames in which you must make and implement your investment decisions.

Finally, a DST does not limit you to “like-kind” property. In fact, it doesn’t limit you at all regarding what types of “prudent investments” your DST Trustee can make on your behalf. For instance, you can instruct your Trustee to invest in any of the following:

• Stocks
• Bonds
• Mutual funds
• Securities
• Annuities
• Real Estate Investment Trusts (REITs)
• Start or acquire a business

This extraordinary investment flexibility makes a DST an extremely useful tool, especially if you want to diversify your investment portfolio as part of your retirement planning strategy.

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Source: How a DST Can Rescue You from a Failed 1031 Exchange

https://www.creconsult.net/market-trends/how-a-dst-can-rescue-you-from-a-failed-1031-exchange/

Q1 State of CRE & Industry Outlook

Summary

Tune in on Wednesday, Feb 23 at 2 pm EST for a conversation about the current state of US commercial real estate markets and a look at key investment trends.

 

Experts from NYU Schack Institute of Real Estate, the Federal Reserve Bank of Atlanta, and CBRE will discuss recent macroeconomic and market data and the recovery outlook for multifamily, industrial, office, and retail properties as the 2022 kick-off. 

 

You'll learn about:

• How last quarter's macroeconomic, public, and private market data will impact your business
• Industry outlook for 2022 
• Economic recovery implications across property types and markets
• Data-backed areas of opportunity and risk for your business 

 

REGISTER

Speakers

Brian Bailey Subject Matter Expert, CRE Federal Reserve Bank of Atlanta

Bryan Doyle Managing Director, Capital Markets CBRE

Timothy Savage Professor NYU Schack Institute of Real Estate

Richard Kalvoda Senior EVP Altus Group

https://www.creconsult.net/market-trends/q1-state-of-cre-industry-outlook/

eXp World Holdings Reports Record Full-Year 2021 Revenue of $3.8 Billion

eXp World Holdings Reports Record Full-Year 2021 Revenue of $3.8 Billion

2021 Marks Highest Revenue and Profit Year in Company History, Driven by a 72% Increase in Agent Growth

Company Declares Cash Dividend for Q1 2022 of $0.04 per Share of Common Stock

BELLINGHAM, Wash., Feb. 24, 2022 (GLOBE NEWSWIRE) — eXp World Holdings, Inc. (Nasdaq: EXPI), (or the “Company”), the holding company for eXp Realty^®, Virbela and SUCCESS^® Enterprises, today announced financial results for the fourth quarter and full-year ended Dec. 31, 2021.

Fourth Quarter and Full-Year 2021 Financial Highlights as Compared to the Same Year-Ago Period:

• Revenue increased 110% to $3.8 billion in 2021 and increased 77% to $1.1 billion in the fourth quarter of 2021.
• Gross profit increased 85% to $296.0 million in 2021 and increased 65% to $83.1 million in the fourth quarter of 2021.
• Net income increased 162% to $81.2 million in 2021 and increased 101% to $15.5 million in the fourth quarter of 2021. An income tax provision benefit of $47.5 million and $14.2 million, respectively, is included in the full year and the fourth quarter 2021 net income.
• Earnings per diluted share increased 143% to $0.51 in 2021 and increased 100% to $0.10 per diluted share in the fourth quarter of 2021.
• Adjusted EBITDA (a non-GAAP financial measure) increased 35% to $78.0 million in 2021. Adjusted EBITDA was $13.1 million in the fourth quarter of 2021 compared to $16.6 million in the fourth quarter of 2020. Excluding a $10 million one-time legal settlement in the fourth quarter, adjusted EBITDA increased 52% to $88.0 million in 2021, and increased 39% to $23.1 million in the fourth quarter of 2021.
• As of Dec. 31, 2021, cash and cash equivalents totaled $108.2 million, compared to $100.1 million as of Dec. 31, 2020. The Company repurchased approximately $172.0 million of common stock during 2021.
• The Company paid a cash dividend for the fourth quarter of 2021 of $0.04 per share of common stock on Nov. 15, 2021. On Feb. 17, 2022, the Company’s Board of Directors declared a cash dividend of $0.04 per share of common stock for the first quarter of 2022 expected to be paid on March 31, 2022 to shareholders of record on March 11, 2022.

Management Commentary

“2021 was another year of tremendous growth for eXp, as our core focus on innovation enabled us to welcome nearly 30,000 new agents across six continents to eXp,” said Glenn Sanford, Founder, Chairman and CEO of eXp World Holdings. “As real estate professionals increasingly turn to technology-based solutions for productivity and collaboration, our cloud-based platform has given us a first-mover advantage to scale our brokerage at the fastest rate in the industry. We attract top agents that value freedom, compensation and community.”

“We evolved our robust suite of products and services last year as we made preparations to launch SUCCESS Lending, a synergistic mortgage solution that aims to provide greater efficiencies and clearer communication between agents and their customers. To deepen our commitment to developing and inspiring our community of real estate professionals, we launched SUCCESS Coaching, our new business that provides a results-driven approach to personal development. Looking ahead, we believe there is a significant opportunity to capture additional market share in the real estate and adjacent industries as people and companies adapt to a digital future. We will remain focused on fostering collaboration and building an unparalleled network of industry professionals around the world,” concluded Sanford.

“In 2021, we achieved a record $3.8 billion in revenue by focusing on our growing, global community of real estate agents,” said Jeff Whiteside, CFO and Chief Collaboration Officer of eXp World Holdings. “Our year-over-year increase in transaction volume proves that the eXp model is resonating with top-producing agents and our ability to maintain this momentum underscores the strength of our competitive position. Reinvesting incremental cash flows generated by our business in products, services and technologies that further enhances the eXp platform for agents remains a priority as we scale, both within our existing markets and globally.” Fourth Quarter and Full-Year 2021 Operational Highlights as Compared to the Same Year-Ago Period:

• Agents and brokers on the eXp Realty platform increased 72% to 71,137 as of Dec. 31, 2021.
• Real estate transactions closed increased 86% to 444,367 in 2021 and increased 52% to 125,029 in the fourth quarter of 2021.
• Real estate transaction volume increased 116% to $156.1 billion in 2021 and increased 82% to $44.9 billion in the fourth quarter of 2021.
• eXp Realty expanded into nine new international locations in 2021, including Puerto Rico, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama and Germany. In February 2022, the Company successfully launched in the Dominican Republic and announced plans to establish operations in Greece and New Zealand in the first quarter of 2022.
• SUCCESS^® Lending, LLC – a residential lending joint venture with Kind Lending, LLC – was established and SUCCESS Coaching™ – a coaching program for entrepreneurs and business professionals – was launched.
• eXp Realty ended 2021 with a global Net Promoter Score of 71, a measure of agent satisfaction as part of the Company’s intense focus on improving the agent experience.

Fourth Quarter and Full-Year 2021 Results – Virtual Fireside Chat

The Company will hold a virtual fireside chat and investor Q&A with eXp World Holdings Founder and CEO Glenn Sanford and CFO Jeff Whiteside on Thursday, Feb. 24, 2022 at 8:30 a.m. PT / 11:30 a.m. ET. The discussion will be moderated by Tom White, Managing Director and Senior Research Analyst at D.A. Davidson.

The investor Q&A is open to investors, current shareholders and anyone interested in learning more about eXp World Holdings and its companies.

Date: Thursday, Feb. 24, 2022 Time: 8:30 a.m. PT / 11:30 a.m. ET Location: EXPI Campus. Join at https://expworldholdings.com/contact/download/ Livestream: expworldholdings.com/events About eXp World Holdings, Inc. eXp World Holdings, Inc. (Nasdaq: EXPI) is the holding company for eXp Realty^®, Virbela and SUCCESS^® Enterprises.

eXp Realty is the fastest-growing real estate company in the world with more than 75,000 agents in the United States, Canada, the United Kingdom, Australia, South Africa, India, Mexico, Portugal, France, Puerto Rico, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama, Germany and the Dominican Republic and continues to scale internationally. As a publicly traded company, eXp World Holdings provides real estate professionals the unique opportunity to earn equity awards for production goals and contributions to overall company growth. eXp World Holdings and its businesses offer a full suite of brokerage and real estate tech solutions, including its innovative residential and commercial brokerage model, professional services, collaborative tools and personal development. The cloud-based brokerage is powered by Virbela, an immersive 3D platform that is deeply social and collaborative, enabling agents to be more connected and productive. SUCCESS^® Enterprises, anchored by SUCCESS^® magazine and its related media properties, was established in 1897 and is a leading personal and professional development brand and publication.

For more information, visit https://expworldholdings.com. Use of Non-GAAP Financial Measures To provide investors with additional information regarding our financial results, this press release includes references to Adjusted EBITDA, which is a non-U.S. GAAP financial measure and may be different than similarly titled measures used by other companies. It is presented to enhance investors’ overall understanding of the company’s financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP.

The company’s Adjusted EBITDA provides useful information about financial performance, enhances the overall understanding of past performance and future prospects, and allows for greater transparency with respect to a key metric used by management for financial and operational decision-making. Adjusted EBITDA helps identify underlying trends in the business that otherwise could be masked by the effect of the expenses that are excluded in Adjusted EBITDA. In particular, the company believes the exclusion of stock and stock option expenses, provides a useful supplemental measure in evaluating the performance of operations and provides better transparency into results of operations.

The company defines the non-U.S. GAAP financial measure of Adjusted EBITDA to mean net income (loss), excluding other income (expense), income tax benefit (expense), depreciation, amortization, impairment charges, stock-based compensation expense, and stock option expense. Adjusted EBITDA may assist investors in seeing financial performance through the eyes of management, and may provide an additional tool for investors to use in comparing core financial performance over multiple periods with other companies in the industry.

Adjusted EBITDA should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP. There are a number of limitations related to the use of Adjusted EBITDA compared to Net Income (Loss), the closest comparable U.S. GAAP measure. Some of these limitations are that:

• Adjusted EBITDA excludes stock-based compensation expense and stock option expense, which have been, and will continue to be for the foreseeable future, significant recurring expenses in the business and an important part of the compensation strategy; and
• Adjusted EBITDA excludes certain recurring, non-cash charges such as depreciation of fixed assets, amortization of acquired intangible assets, and impairment charges related to these long-lived assets, and, although these are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future.

Safe Harbor StatementThe statements contained herein may include statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Such forward-looking statements speak only as of the date hereof, and the company undertakes no obligation to revise or update them. These statements include, but are not limited to, statements about the continued growth of our agent and broker base; expansion of our residential real estate brokerage business into foreign markets; demand for remote working and distance learning solutions and virtual events; development of our commercial brokerage and our ability to attract commercial real estate brokers; and revenue growth and financial performance. Such statements are not guarantees of future performance. Important factors that may cause actual results to differ materially and adversely from those expressed in forward-looking statements include changes in business or other market conditions; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed from time to time in the company’s Securities and Exchange Commission filings, including but not limited to the most recently filed Quarterly Report on Form 10-Q and Annual Report on Form 10-K.Media Relations Contact: eXp World Holdings, Inc.

[email protected]

Investor Relations Contact: MZ Group – MZ North America [email protected]

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Source: eXp World Holdings Reports Record Full-Year 2021 Revenue of $3.8 Billion

https://www.creconsult.net/market-trends/exp-world-holdings-reports-record-full-year-2021-revenue-of-3-8-billion/

Q1 State of CRE & Industry Outlook [Video]

Summary

On Wednesday, Feb 23 at 2 pm EST a conversation about the current state of US commercial real estate markets and a look at key investment trends.

 

Experts from NYU Schack Institute of Real Estate, the Federal Reserve Bank of Atlanta, and CBRE will discussed recent macroeconomic and market data and the recovery outlook for multifamily, industrial, office, and retail properties as the 2022 kick-off. 

 

You’ll learn about:

• How last quarter’s macroeconomic, public, and private market data will impact your business
• Industry outlook for 2022 
• Economic recovery implications across property types and markets
• Data-backed areas of opportunity and risk for your business 

 

Speakers

Brian Bailey Subject Matter Expert, CRE Federal Reserve Bank of Atlanta

Bryan Doyle Managing Director, Capital Markets CBRE

Timothy Savage Professor NYU Schack Institute of Real Estate

Richard Kalvoda Senior EVP Altus Group

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https://www.creconsult.net/market-trends/q1-state-of-cre-industry-outlook-video/

Chicago Multifamily Investors Look Beyond City’s Strong Cash Flows

 

When it comes to cash flow, the Chicago multifamily is the king of the world. Or at least the country, with capitalization rates, a measure of rental income, well above the national average.

Yet, uneasy lies the head that wears the throne. Now, some investors see better room for growth in places like Phoenix and Salt Lake City, where rents have risen faster and more consistently, while Chicago may have peaked.

“We shifted a bit more to Phoenix because we see this huge opportunity,” Drew Breneman, founder, and CEO of Chicago-based multifamily firm Rise Invest said in an interview.

Cap rates, a measure of rental income after expenses divided by a property’s purchase price, are as high as 8 percent on some Chicago area properties, and half that elsewhere. The difference is growth potential.

“It’s not necessarily all about the cap rate being higher to attract investment,” Breneman said.

His company owns rentals in Chicago but has recently focused on acquisitions in markets like Phoenix where rents on some properties haven’t been raised in step with the surging market, he said.

“Rents are 15 percent to 40 percent below market there. You’re going to buy something at a 3.5 percent cap in Phoenix. I can make that almost a 5.5 percent cap pretty quick,” Breneman said.

It’s not a one-way street out of town for multifamily investors, though. Chicago’s brokers boast of the city’s healthy returns, and out-of-state buyers optimistic about entering northern Illinois’ multifamily market.

“We’re on a record-breaking pace with our team. We’re seeing no slowdown in interest. For every investor that says I’m pulling out, there are still 14, 15, 16 offers on properties that aren’t in the most attractive places,” said Tony Hardy, head of a Chicago Keller Williams multifamily team that brokered a $10.35 million sale of a 40-unit mixed-use building in Hyde Park last month, a neighborhood record price for a mixed-use property with fewer than 100 units, according to RE Journals.

High margins have helped the Chicago area’s multifamily market keep its hot streak alive to start the year, with multiple offers being made on rental and mixed-use properties. A rare Wrigleyville asset garnered a record price per unit in a sale The Real Deal reported last week.

Even Chicago investors sending capital outside Illinois concede the city still offers chances to make money on multifamily assets.

“What the brokers are saying is half-correct. It’s the third-largest city in the country. I believe Chicago and Illinois long-term will be successful because there is just too much critical mass here for them not to be,” Frank Campise, principal at Chicago-based JAB Real Estate, said in an interview.

Still, investors like Campise see chances to make more money elsewhere, as Chicago’s double-digit rent growth last year ended up getting outpaced by an even bigger rise for the national average.

Campise’s firm has also recently broadened its holdings from Chicago into Denver, Salt Lake City, and Phoenix markets where he said rent, jobs, and income increases have been more consistent than in Illinois, giving landlords more reasons to justify hiking prices when leases expire than they have in Chicago.

 

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Source: Chicago Multifamily Investors Look Beyond City’s Strong Cash Flows

https://www.creconsult.net/market-trends/chicago-multifamily-investors-look-beyond-citys-strong-cash-flows/

Affordability Ceilings Not Hit in Market-Rate Rentals

 

Here's yet another sign that -- at a macro level -- we aren't yet hitting affordability ceilings in market-rate rentals. Perhaps counterintuitively: As renewal rents increase, so does retention. Basic economics teaches us that renewal demand will drop once price becomes an obstacle. But that isn't happening yet. Rents for market-rate apartment households renewing their lease increased 10.5% in February 2022. At the same time, renters with expiring leases renewed their leases at the highest T-12 rate on record at 56.1%. How is that happening? Remember that property managers generally do not offer renewals to non-paying residents, and these numbers include only signed renewals. At the same time, rent collections have been steady. Incomes among renters are surging -- and much more than the BLS is showing for the broader U.S. population. Apartment renters tend to be younger and more likely to have dual-income households in roommate situations. Younger workers are in high demand right now given early retirements and decline in workforce participation among older adults. Incomes for renter households signing new leases surged 15.2% over the two-year period pre-COVID through end of 2021. A typical household in a market-rate apartment has annual income above $70,000 -- keeping rent-to-income ratios in the low- to mid-20% range. Of course, this pace of growth (both in income and rent) isn't sustainable forever... we just don't know how long it'll last. But with loss-to-lease still around 10% and vacancy remaining at record lows plus rising inflationary costs (especially property management salaries), we'll likely continue to see significant renewal increases through most of 2022.

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Source: https://www.linkedin.com/posts/jay-parsons-a7a6656_apartments-multifamily-rentals-activity-6906623220351696896-GwCh

https://www.creconsult.net/market-trends/affordability-ceilings-not-hit-in-market-rate-rentals/

New eXp Commercial Partner Helps Clients Increase Cash Flow and Reduce the Cost of Real Estate Ownership

 

New eXp Commercial Partner, O’Connor Tax Reduction Experts

helps our clients add value through subtraction

About O’Connor & Associates

O’Connor is the largest property tax consulting firm in the United States. O’Connor’s team of professionals possesses the resources and unparalleled market expertise in the areas of property tax, cost segregation, and commercial and residential real estate appraisals. The firm was founded in 1974 and employs more than 550 professionals worldwide.

The team at O'Connor is ready to help eXp Commercial Clients reduce the cost of property ownership and increase their cash flow.

• Residential Property Tax Reduction

Our clients can see a decrease in the cost of ownership when our expert tax consultants appeal their property tax assessments. O’Connor provides valuation intelligence and experience working through the assessor, appraisal review board, and judicial appeal process on behalf of our clients. We fight so you won’t have to, and only charge a fee when we reduce taxes. We aggressively protest every year to give you tax relief.

• Commercial Property Tax Reduction

Our established approach combined with our data aggregation, technology, and expert staff makes O’Connor the leading independent real estate tax services company in the United States. Our licensed tax agents can help you by filing appeals, reviewing financials, protesting over-assessed property values, and pursuing every legal avenue to protest and lower their taxes.

• Cost Segregation

O’Connor helps you increase cash flow by reducing their taxable income through cost segregation, a specialized and powerful tool that accurately allocates property components for federal income tax depreciation calculations. Our clients often save 10-20 times the cost of the study in tax savings. O’Connor will provide, at no charge and with no obligation, a preliminary analysis that will estimate the impact of cost segregation and resulting federal income tax savings.

• Commercial Appraisal

O’Connor’s appraisers gather and analyze data to make informed decisions about real estate values. You will receive honest opinions of value which financial institutions can rely on when making credit decisions. 

To learn more:  CONTACT US

https://www.creconsult.net/market-trends/new-exp-commercial-partner-helps-clients-increase-cash-flow-and-reduce-the-cost-of-real-estate-ownership/

Medical Office - Surgical Center For Sale Roosevelt Rd Glen Ellyn

   

sold!

  1186 Roosevelt Rd Glen Ellyn, IL 60137

SOLD: $1,050,000

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Square Feet: 3805 Acres: 1.04 Built/Reno: 1983/2009 Occupancy: Vacant Type: Medical/Surgical

Investment Overview

Free-standing, fully built-out suburban Medical Office - Surgical Center property. The subject property is approximately 20 miles west of downtown Chicago on busy Roosevelt Road in Glen Ellyn, Illinois, DuPage County, seconds from the Interstate 355 tollway entrance and Interstates 88 and 294 interchanges for easy access by employees and patients.

Situated on a little over one acre, this 3,805-square foot, single-tenant medical office property is well suited for a number of uses including urgent care, surgical, plastic surgery, pain management, and general medical office. The current layout offers a reception and waiting room, two operating rooms, a recovery room, a lab, a clean room, a lead-lined x-ray room, five restrooms (one ADA compliant), two exam rooms, an administrative office, medical record storage, and oxygen storage.

The property is in excellent condition, gut renovated in 2009, a new roof installed in 2017, new HVAC, and a repaved parking lot in 2018. Current ownership performs regular monthly maintenance inspections, repairs, and replacements, as necessary.

Investment Highlights

• Excellent DuPage County Location on Busy Roosevelt Road Seconds from Interstate 355
• Free-Standing, Single-Tenant Fully Built-Out Medical Office / Surgical Facility
• Ideal for Urgent Care, Surgical and Medical Office Use
• Gut Renovation 2009, New Roof, Parking Lot and HVAC Done in 2017 and 2018
• Ideal Owner-Occupied, Investment or Redevelopment Opportunity

Map Overview

https://www.creconsult.net/listings/medical-office-surgical-center-for-sale-roosevelt-rd-glen-ellyn/

eXp Partner Enriched Data Provides a One-Stop Solution for Property Data

 

Researching and evaluating property data can be complicated and time-consuming across residential and commercial real estate. But thanks to eXp Enriched Data, eXp Realty agents now have a one-stop solution for all things connected to big data in residential and commercial real estate. 

With unprecedented access to 152 million U.S. commercial and residential property records, agents can help their clients make informed decisions, and ultimately grow their businesses. 

eXp Enriched Data Provides: 

• Market-Leading Data: property data, analytics, tax records, mortgage records, building permits, rent rolls, property financials, and owner information matched with unique algorithms and up to 10+ years of history and 1,300 lines of data. 
• Data Quality and Accuracy: daily updates as users input information into the platform. That data is then standardized, cleansed, scored, and optimized.
• More Than 10 Million Weekly Data Field Updates: more than 7 million residential and 3 million commercial data fields are updated each week.
• Seamless Data Flow: powerful and seamless data flow and analysis with the ability to instantaneously share. 

“We help eXp Realty agents save time by aggregating data on their behalf and providing them access to the most advanced applications to analyze properties nationally,” said Benjamin Greenberg, managing director of eXp Enriched Data. “eXp Enriched Data provides agents the ability to perform property valuation opinions with unprecedented speed for more than 152 million residential and commercial properties across the U.S.”

eXp Enriched Data Offers Three Applications:

• ERE (Enriched Real Estate): 32 million real-time commercial property records and guesstimate values
• CARS (Commercial Assessment Report System): commercial valuation application with ability to write commercial broker price opinions in minutes
• VAL (ResiValue): valuation application with the ability to write residential opinion of value in minutes 

VAL by eXp Enriched Data will launch nationally in the second quarter of 2022 and is currently available to agents in Texas. The program provides eXp Realty agents data sourced from public records and MLS IDX feeds and provides automation of adjustments, calculations, and final deliverable reports. It delivers a price opinion that is accepted by the Federal National Mortgage Association, relocation companies, and mortgage servicer companies. 

 

https://www.creconsult.net/market-trends/exp-partner-enriched-data-provides-a-one-stop-solution-for-property-data/

How to Invest in Real Estate As Recession Risks Rise Red Flags to Watch

 

• It's become consensus amongst investors and strategists that the economy will see a slowdown later this year.
• A hedge fund strategist lays out an area of the real estate market that's better protected from recession risks.
• He shares an indicator to watch that could signal a surge in housing defaults.

Within the space of a month, Peter Cecchini, the director of research at the $4.5 billion New York-based hedge fund Axonic Capital changed his outlook for stagflation, an environment where economic growth slows while inflation rises.

It went from not being on the table at all to an almost certainty as Russia's invasion of Ukraine induced a major energy shock, sending oil prices surging, and shifting the broad economic outlook for many countries.

"In history, whenever we see an energy shock that is this extreme, it results in significant slowdowns and or recessions within six months," Cecchini said in an interview with Insider.

Cecchini isn't alone in changing his outlook. Stagflation is becoming a consensus view amongst many strategists and investors. A number of experts have even gone so far as to predict a recession later this year.

"I looked at swaption vol, 2 year-10 years, and that's predicting a slowdown this year," Cecchini said. "So I don't know if it's an official recession this year, but especially given what's going on in Ukraine. I am in the slowdown camp in the second half of this year."

Even though the outlook for the economic environment is ominous, Cecchini is still making a surprising bet within the real estate sector, despite its well-known struggles in recessionary environments.

"You might have underlying factors in housing like population and household formation — the fundamentals might look good on that side — but if you're going to have quite a big rise in interest rates and quite a deep recession, your house prices are going to come off," Desmond Lachman, a senior fellow at the American Enterprise Institute, said in a recent interview with Insider. Median home prices have been on a tear since early 2020, rising over 27%, according to Federal Reserve data. This is leading many people to believe that the housing market is currently in a bubble.

Axonic Capital's specialty is leveraging structured credit strategies for clients. This can include real estate products like Mortgage-Backed Securities (MBS) and Collateralized Loan Obligations (CMOs).

According to the Financial Times, the firm made a name for itself "vacuuming up residential mortgage-backed securities at depressed prices after the 2008 financial crisis."

Investing in real estate in a slowdown

Investing in real estate in times of market stress is always a balancing act.

"The trade-off is always between the safety of the asset and the probability of default," Cecchini said.

However, multifamily housing remains an area of the market he believes that can still perform favorably.

"It's been one of my favorite sectors since long before I got to Axonic," Cecchini said. "I was positive on multifamily when I was the global strategist over at Cantor Fitzgerald, for example."

Multifamily is a type of housing where there are multiple separate housing units contained either within one residential building or several buildings within a complex. Cecchini lays out two reasons to like the sector of the real estate market:

1) Solid collateral value

Collateral value is the fair market value of the assets used to secure a loan.

Cecchini looks to home price appreciation for an understanding of multifamily housing collateral value.

Home price appreciation is up around 20% year-over-year, Cecchini said. Since home price appreciation leads multifamily rent appreciation by 12 to 18 months, he expects that rents and value for workforce housing and higher-end housing. This will continue to build the collateral value.

Workforce housing is typically programs targeted at households that earn too much to qualify for traditional affordable housing subsidies. During an October 2021 conference, the managing partner and chief investment officer of Axonic, Clayton DeGiacinto described workforce housing as a defensive sector through 2015 to 2020.

However, he noted that COVID-19 tested this thesis, as rental demand and rental prices decreased for the class A properties, while it went up for the class B properties, which are properties with fewer luxury amenities.

2) Anchoring of cap rates

The capitalization rate is the rate of return that is expected to be generated by a real estate investment. It is often used in the comparison of real estate investment opportunities. "The relationship between cap rates and 10-year yields is very strong," Cecchini said.

Cecchini loathes making year-end predictions but does see the 10-year reaching between 225 to 250 basis points.

"What happens at that level of interest rates is that it spooks equity markets, and then as equity markets get spooked and people sell their equities they buy the long end of the Treasury curve," Cecchini said. "So it keeps rates from running away."

This will help anchor cap rates, Cecchini said. Higher cap rates will have a more significant impact on property valuations.

Default risk

With real estate, there's always the risk of default, especially in challenging economic environments.

Just as home price appreciation is a good leading indicator for multi-family housing, investors might also want to keep an eye out for when defaults start rolling in.

He said that during the financial crisis in 2008 defaults on car payments were a leading indicator of housing defaults. Since people often need their car to get to work, it was a clear sign of difficult times, soon followed by property defaults. Though in the financial crisis, generally, people wanted to pay the mortgage if they could, Cecchini said.

"One of the things that we saw is for those that couldn't and who were evicted from their homes, it was a horrible situation and it garnered a public policy response," Cecchini said. "We don't foresee that sort of thing happening again and generally speaking, multifamily, in particular, should hold up well from a cap rates perspective."

In a January 25 note, Cecchini highlighted that even if rent delinquencies should rise, landlords should still have a sufficient cushion to refinance and meet debt obligations.

"Investors properly positioned in a securitization structure should have a comfortable margin of safety," said Cecchini in the note.

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Source: How to Invest in Real Estate As Recession Risks Rise Red Flags to Watch

https://www.creconsult.net/market-trends/how-to-invest-in-real-estate-as-recession-risks-rise-red-flags-to-watch/

New Listing! 21 Unit Multifamily Property For Sale 8.5% Cap Rate

New Listing! 21 Unit Multifamily Property 8.5% Cap Rate 1231 N Galena Ave | Dixon, IL 61021 Mostly Renovated Units, 95% Occupancy $995K, 8.5% Cap Rate. 17.26% Cash-on-Cash Showings Thursday, March 24th, 11 AM-1 PM Only https://www.creconsult.net/listings-2/1231-n-galena-ave-dixon-il-61021-21-unit-multifamily-property-for-sale-8-5-cap-rate/

New Listing! 21 Unit Multifamily Property For Sale 8.5% Cap Rate

21-Units, Mostly Renovated, 95% Occupancy $995K, 8.5% Cap Rate. 17,26% Cash-on-Cash Showings Thursday, March 24th, 11 AM-1 PM Only

Growing Renter Confidence Fueling Hot Market to Start 2022

 

Entering the third year of rental market disruptions caused by the pandemic, Avail (part of Realtor.com®) surveyed independent landlords and renters across the country to find out how they’re faring. Our data revealed moving trends, insight into rent payments and evictions, and how landlords plan to financially recoup and adapt their renting policies for a post-pandemic era.

Based on our data, these six trends will shape the independent rental market in the beginning of 2022.

1. Nearly Half of Renters Plan to Move This Year, But Most Will Continue to Rent

Our survey showed that while renters are moving, most of them will continue to rent their homes — even in a competitive rental market that’s expected to continue into 2022, driven by a demand for rental housing and a decrease in homebuyer sentiment due to high mortgage rates and home prices.

Almost half of renters surveyed (45.9%) reported that they plan to move residences within the next 12 months, with another quarter (24.6%) unsure about their moving plans. Of those that said they will be moving, more than half (51.8%) plan to rent their next residence, while nearly one-quarter (23.8%) plan to buy their next residence. Over half (52.9%) of renters who plan to move to a new rental indicated they do not have enough savings for a down payment on a home, while 40.0% said they don’t believe they would qualify for a mortgage.

2. Renter Confidence Has Grown Dramatically 

Our last survey in September 2021 showed that 42.7% of renters had missed at least one rent payment since the start of the pandemic — up from the 30.8% who had missed a payment in May 2021. New data, however, indicates more positive rent payment trends. Four out of five renters (82.4%) said they have not missed any rent payments over the past 12 months. Of renters who have missed a rent payment over the past 12 months, around one-third (32.6%) indicate that they had missed just one payment.

Looking forward, more than three-quarters of renters surveyed (76.6%) do not believe that they will miss a rent payment in the next three months. The share of renters who do not believe they will miss a rent payment in the next three months has grown dramatically over the past year. In our February 2021 survey, just 15.2% of renters did not believe they would miss a rent payment over the next three months.

3. More Landlords Plan on Raising the Rent Than Selling Their Properties

As landlords attempt to offset missed rent payments caused by the pandemic, many predicted that they would either raise rent or sell to recoup pandemic losses. According to our data, more landlords plan to raise the rent in at least one of their rental properties (65.1%) than sell at least one of their rentals (16.2%) in the next 12 months. The majority of landlords surveyed estimate that they will raise rent by between 5% and 10%, increases that reflect a hot rental market and rent surges seen in 2021.

Of the landlords planning to sell at least one rental property, more than half (55.1%) indicate that the desire to cash in on the increased value of their property is a factor in deciding to sell. Around a quarter of these landlords indicated no longer wanting to be a landlord (25.7%) or difficulty collecting rent from tenants (23%) as factors in their decision to sell.

4. The Majority of Landlords Have Not Sought an Eviction

As eviction moratoriums were lifted in 2021 and renters were still struggling to make payments, it was unclear how many renters may be evicted from their residences. However, our data shows that the majority of landlords (82.3%) have not initiated eviction proceedings against any of their tenants in the past 12 months, and more than three-quarters of landlords (77.5%) are not considering encouraging a tenant to vacate a property within the next three months.

Renters have echoed this sentiment, with 94.7% reporting that they had not had eviction proceedings brought against them by a landlord in the past 12 months. Other methods of encouraging a renter to vacate a unit were also rarely reported: Just 5.1% of renters mutually agreed to terminate their lease, and another 5.1% had a landlord refuse to renew their lease.

Looking forward, more than a third of landlords (36.1%) indicate that just one month of missed rent would trigger them to push for eviction. An additional 51.4% indicate they would push for eviction after two or three months of missed rent. On the other hand, more than 70% of renters believe that just one or two months of missed rent payments would trigger their landlord to push for eviction, and the vast majority of renters (96.7%) believe that six or fewer months of missed rent payments would trigger their landlord to push for eviction.

5. Awareness of Emergency Rental Assistance Has Stagnated 

Previous Avail surveys have exposed a lack of awareness and understanding of eligibility around emergency rental assistance (ERA) programs. In our September 2021 survey, more than half of renters (62.8%) and landlords (56.9%) were unsure of whether or not they were eligible for ERA programs, with just 56% of renters and 78.1% of landlords aware that rent assistance programs even existed.

New data indicates that awareness around these programs has not increased. Only 51.3% of renters and 70.5% of landlords said they are aware of emergency rental assistance programs created to help renters and landlords during COVID-19 — a small drop in awareness among both groups.

Among the renters who are aware of emergency rental assistance programs, just 1 in 5 renters (21.2%) believe they are eligible to receive emergency rental assistance to cover missed rent payments.

Nearly half of landlords (46.1%) are unsure if they are eligible for emergency rental assistance to cover their tenant’s missed rent payments, while 3 in 10 (30.2%) do not believe they are eligible for emergency rental assistance.

6. Many Landlords Are Tightening Their Tenant Screening Practices

After disruptions and financial losses caused by missed rent payments due to the pandemic, 40% of landlords indicated that their applicant screening method had become more stringent over the past 12 months. Nearly 6 in 10 landlords (58%) said their screening practices had remained the same. When landlords screen tenants, the most commonly-reported methods were using income and job history (89.3%), interviews with applicants (84.3%), and rental history and evictions (82.4%) to screen rental applicants. Of this information, landlords indicated that previous eviction (54.6%) and level of income (52.9%) are the two most important factors when screening applicants.

More than 4 in 10 landlords (44.2%) indicate that they allow applicants to explain any negative information in their tenant screening report. When it comes to rejecting tenant applications, most landlords (53.1%) reported that they reject less than half of applicants based on tenant screening information.

Renter Data: Renter Experience, Building Sizes, and Average Monthly Rent

• More than a quarter of renters surveyed (27.7%) reported that they have been a renter for less than a year, while nearly half of renters have been renting for less than three years (48.8%) and almost a quarter have been renting for more than 10 years (23.3%).
• Three-quarters of renters live in properties with four units or less (66.4%), and nearly 1 in 10 renters live in properties with more than 100 units.
• The average rent paid by renters surveyed was $1,388 per month. Median rent was $1,253 per month.
• Nearly 7 in 10 renters (69.6%) finance their monthly rental payments through regular employment; More than 1 in 10 renters (13%) receive government aid or assistance, are finding new employment or sources of income (12.7%), or are using savings (11%) to finance their rental payments.

Landlord Data: Landlord Experience, Property Sizes, and Mortgages

• More than half of landlords (51.3%) surveyed indicate they’ve been a landlord for more than 10 years, while two-thirds (67.6%) have been landlords for more than five years.
• More than 7 in 10 landlords own either one (32.1%) or two-to-four properties (38.8%).
• More than 6 in 10 landlords own one-unit properties, while 4 in 10 landlords (40.6%) own two-to-four unit properties.
• 7 in 10 landlords (70.6%) own at least one rental property that has a mortgage.

Research Methodology

The Avail quarterly landlord and renter survey was conducted nationwide between January 13th, 2022, and January 25th, 2022. Approximately 1,156 landlords and 2,163 renters were surveyed. The margin of error for landlords is estimated at ±2.9% and ±2.1% for renters.

Avail regularly conducts rental market research to understand the needs of independent landlords and their renters. To stay up to date with rental market trends, news, and current research, join our special reports mailing list.

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Source: Growing Renter Confidence Fueling Hot Market to Start 2022

https://www.creconsult.net/market-trends/growing-renter-confidence-fueling-hot-market-to-start-2022/

Free NCREA Introduction to Commercial Real Estate Training Course

 

Are you interested in learning more about Commercial Real Estate? eXp University is in collaboration with NCREA, The National Commercial Real Estate Association to present the Introduction to Commercial Real Estate Training Course on March 28-30th. This 3-day virtual training course, valued at $600, is offered for FREE through eXp! You do not have to be an eXp Agent to attend the training. This event is open to EVERYONE!

About the NCREA

The National Commercial Real Estate Association (NCREA) is a leader in commercial real estate training, coaching, and consultation. It was founded by Michael Simpson and has helped thousands of real estate agents, brokers, investors, and associations receive the training and coaching to navigate commercial transactions and build a successful career. Their programs are designed exclusively for residential, commercial, and resimercial agents.

This 3-day training event is geared towards those at the beginning of their career in commercial real estate. Agents who attend all 3 days of training and pass the test will receive the NCREA designation.

What You’ll Learn

• Commercial real estate fundamentals
• How to prospect and stand out
• The NCREA patented GRID system, a lead generation program

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Are you interested in joining exp commercial?

Become an Agent

Enjoy more earning potential, more networking opportunities, more flexibility, and more access to the latest tools and technology when you become an eXp Commercial broker.  

CONTACT US

 

No Desk Fees, Royalty Fees, or Franchise Fees

Commission & Caps

• 80/20 Commission Split
• $20,000 cap
• After that earn a 100% commission for the remainder of the anniversary year

$250 capped transaction fee. Once capped transaction fees total $5000, the agent qualifies for ICON status. The transaction fee remains at $250 per transaction.

Standard Costs

• $250/month tech/cloud fee
• $250 broker review
• $100 management risk

$250 Monthly cloud brokerage fee includes Reonomy national access, Buildout Elite CRM,  Marketing Center Listing Syndication. and skySlope Transaction Management.

 

CONTACT US

 

Equity Opportunities

Agents can become shareholders at eXp commercial. NASDAQ: EXPI

 

Sustainable Equity Plan

• Earn Shares on your first transaction
• Earn shares when you fully cap
• Earn shares when an agent you sponsor closes their first transaction

 

Icon Agent Award

• Up to $20,000 in stock upon the achievement of certain production and cultural goals within your anniversary year

 

Agent Equity Program

• Enroll to be paid 5% of every transaction commission with stock at a 10% discount

 

CRE TOOLS/BENEFITS BROUGHT TO YOU BY eXp COMMERCIAL

included in $250 monthly fee:

ENTIRE DEAL CYCLE

PROPERTY INTELLIGENCE

MARKETING AUTOMATION

23M PROPERTY RECORDS

LEGAL TEMPLATES

TRANSACTION MANAGEMENT

 

CONTACT US

 

https://www.creconsult.net/market-trends/free-ncrea-introduction-to-commercial-real-estate-training-course/