Multifamily Sales to Pick Up Mid-2024

One reason is loan maturities, which will create transaction opportunities.

The predictions about commercial real estate’s recovery have not been pretty. CBRE, Cushman & Wakefield, and JLL all believe that any improvements will not become apparent until the second half of next year. Worse, CBRE anticipates that there will be a 5% drop in transactions next year due to rising Treasury yields that are making the cost of borrowing even more prohibitive. Meanwhile, BlackRock is forecasting that borrowing rates will remain at levels hovering around 5.5% for the foreseeable future.

But multifamily may escape this doom and gloom. Always the industry’s golden child, multifamily transactions are expected to pick up in mid-2024, according to Kelli Carhart, leader of multifamily capital markets for CBRE. These deals will be driven by an end to the Fed’s rate-hiking cycle and improved capital markets conditions, as well as loan maturities that will create transaction opportunities, she says.

We may be beginning to see signs of a gradual increase in transactions in this category. Deal volume decreased by 8.5% quarter over quarter in Q3, but that was 6% more than in Q1. Also, apartments accounted for the largest share of investment (34%) in Q3, which equaled Q2.

Still. Deal flow is down 38% from the average share between 2020 and 2022, and market-specific data for some locales reflects that.

For example, gateway cities such as New York, Boston, Washington, DC, Chicago, Los Angeles, and San Francisco tumbled 13% quarter-over-quarter. Meanwhile, Atlanta, Raleigh-Durham, Phoenix, and Dallas had the biggest quarterly gains.

Dallas-Fort Worth led all markets in investment volume over the past four quarters, accounting for 71% of the US total.

 

Source: Multifamily Sales to Pick Up Mid-2024

https://www.creconsult.net/market-trends/multifamily-sales-to-pick-up-mid-2024/

Just Sold 12-Unit Multifamily Property Aurora IL

[row] [col span__sm="12"]

Aurora, IL, November 9th, 2023 eXp Commercial (NASDAQ: EXPI)  the fastest-growing national commercial real estate brokerage firm, announced the sale of a 12-unit multifamily property located at 557-559 Ashland Ave. in Aurora, IL, for $1,395,000.

The property was exclusively listed and sold by Randolph Taylor CCIM Senior Associate and Commercial Real Estate Broker with the eXp Commercial Chicago office.

Randolph can be contacted at rtaylor@creconsult.net | (630) 474-6441

[/col] [/row] https://www.creconsult.net/company-news/just-sold-12-unit-multifamily-property-aurora-il/

NAR Chief Economist Says Commercial Real Estate Will Revitalize, Calls on Federal Reserve to Consider Cutting Interest Rates

ANAHEIM, Calif. (November 16, 2023) – Commercial property rates are expected to stabilize – aside from office space – and commercial real estate will revitalize, according to NAR Chief Economist Lawrence Yun.

Yun presented yesterday at the Commercial Economic Issues and Trends Forum at 2023 NAR NXT, The Realtor® Experience, in Anaheim, California, to discuss economic trends and issues affecting the commercial real estate industry.

"There's tremendous difficulty in the commercial real estate market with higher interest rates," Yun explained. Given roughly $3 trillion in commercial real estate loans, roughly $600 billion will come due for refinancing each year and at higher interest rates.

Yun explained that high interest rates are hindering borrowing and making refinancing costly. He also said the Federal Reserve's rate hikes have hurt small-sized banks.

The small-sized banks – community and local banks – have much larger exposure to commercial real estate," said Yun. So, if commercial real estate is wobbly, it's not going to hurt the big banks as much as the community banks.

He referenced changes in commercial loan lending standards, which made an already tight lending situation even tighter. Yun suggested the U.S. government's large budget deficit is also pressuring the rate increases.

"Commercial real estate transactions activity has been cut in half in two years. The condition for real estate deals is difficult. They simply don't want to sell at a lower price, so commercial deals are not happening, because sellers don't want to lower the price, and buyers aren't jumping in due to higher lending costs," Yun said.

He also explained that commercial property prices are falling below pre-Covid-19 pandemic levels and are set to decline further.

The 10-year Treasury Yield is currently at 4.5%," added Yun. Most buildings now are still overpriced in commercial real estate. Property owners have to readjust. Maybe it's better to get the deal done today rather than waiting until the future, when property values may be even lower.

Yun explained that rent growth is the strongest in the industrial space and weakest in the office space.

In terms of actual usage of office space, the utilization is simply not there," Yun said. Office net absorption is negative, so office space will see more rises in the official vacancy rate."

Rent growth is the strongest in the industrial field and weakest for offices, according to Yun. The office leasing net is negative, and retail leasing is also fizzling out. Even warehouse and industrial space leasing is low.

Yun discussed how the office vacancy rate is rising and will likely rise further. He flagged that big cities are seeing the highest rise in office vacancy rates: San Francisco followed by New York City and Los Angeles. He flagged that big cities are seeing the highest rise in office vacancy rates: San Francisco followed by New York City and Los Angeles.

"By an objective measure, the economy is strong," said Yun. "GDP growth is at 4.9%, but there are some worrying signs for the economy. First, businesses are not borrowing, because they're cutting back on spending. Second, good inventory – or products produced – is increasing, but goods are not being purchased. Thus, there's concern for future GDP."

Yun said unemployment rates are the highest in nearly two years and wage growth is the weakest it has been in two and a half years.

After explaining that monthly job gains are softening and diminishing each month, Yun stated, "The federal reserve is raising interest rates to tame inflation, but are they going to break the economy?

Yun compared the latest jobs numbers with pre-Covid-19 pandemic conditions. All states have record-high employment. Texas, Florida and Rocky Mountain states are in stronger condition.

Cross-border commercial real estate investment is down and in a weak condition right now, according to Yun. The top countries invested in the U.S. are Canada, Singapore and Japan, and Israel is popping up on this list.

Yun says the 2024 economic outlook depends on the Federal Reserve's policy, stating, "Data that came out yesterday shows much calmer inflation. The Federal Reserve should consider cutting interest rates as we go into early next year. Then the ongoing weakness will stop, and we will begin to see some revival."

Yun shared that community banks will be recapitalized a little better with interest rate cuts. Also, GDP growth will add to net leasing and investment sales.

Overall, commercial real estate will revitalize, with the exception of office space," Yun concluded.

 

Source: NAR Chief Economist Says Commercial Real Estate Will Revitalize, Calls on Federal Reserve to Consider Cutting Interest Rates

https://www.creconsult.net/market-trends/nar-chief-economist-says-commercial-real-estate-will-revitalize-calls-on-federal-reserve-to-consider-cutting-interest-rates/

eXp World Holdings Named to 2023 Deloitte Technology Fast 500™

Company Ranked 350th Fastest-Growing in North America

BELLINGHAM, Wash. — Nov. 20, 2023 —  eXp World Holdings, Inc. (Nasdaq: EXPI), the holding company for eXp Realty®, Virbela and SUCCESS® Enterprises, today announced it ranked No. 350 on the Deloitte Technology Fast 500™, citing its 369% revenue growth over last year.

Now in its 29th year, the Deloitte Technology Fast 500 provides a ranking of the fastest-growing technology, media, telecommunications, life sciences, fintech and energy tech companies — both public and private — in North America. Technology Fast 500 award winners are selected based on percentage fiscal year revenue growth from 2019 to 2022. eXp World Holdings previously ranked No. 232 in 2022.

“Technology is a driving force for us, enabling our agent-centric culture and rapid worldwide growth,” said Glenn Sanford, Founder, Chairman and CEO of eXp World Holdings. “Our unique metaverse platform and focus on innovation will continue to drive long-term growth and success for our agents.”

To be eligible for Technology Fast 500 recognition, companies must own proprietary intellectual property or technology that is sold to customers in products that contribute to a majority of the company’s operating revenues. Additionally, companies must be in business for a minimum of four years and be headquartered within North America.

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 largest independent real estate company in the world with more than 89,000 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, Dominican Republic, Greece, New Zealand, Chile, Poland and Dubai 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.

About Deloitte

Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world’s most admired brands, including nearly 90% of the Fortune 500® and more than 8,500 U.S.-based private companies. At Deloitte, we strive to live our purpose of making an impact that matters by creating trust and confidence in a more equitable society. We leverage our unique blend of business acumen, command of technology, and strategic technology alliances to advise our clients across industries as they build their future. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Bringing more than 175 years of service, our network of member firms spans more than 150 countries and territories. Learn how Deloitte’s approximately 457,000 people worldwide connect for impact at www.deloitte.com.

# # #

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms.

Safe Harbor Statement

The 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. Examples of such forward-looking statements include, but are not limited to, the availability of incentive programs in international markets and the future value of financial incentive programs. Such forward-looking statements speak only as of the date hereof, and the company undertakes no obligation to revise or update them. 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:

Denise Garcia
[email protected]  

Source: eXp World Holdings Named to 2023 Deloitte Technology Fast 500™

https://www.creconsult.net/company-news/exp-world-holdings-named-to-2023-deloitte-technology-fast-500/

1120 E Ogden Ave

New Listing | Retail-Office For Sale Naperville IL
eXp Commercial is pleased to present to market 1120 E Ogden Avenue, a highly visible 10,860 square foot retail-office property on 1.26 acres in desirable affluent Naperville, Illinois, along the I-88 E-W corridor approximately 28 miles west of Chicago. The property is currently owner-occupied and will be fully vacated shortly after closing, with the seller seeking approximately 60 days of post-closing possession. Flexible B3 zoning allows for a number of retail and office uses, ideal for an investor, owner-user, or redevelopment of the property.
Listing Broker: Randolph Taylor | rtaylor@creconsult.net

https://www.creconsult.net/retail-office-for-sale-1120-e-ogden-ave-naperville-il-60563/

Grand Prairie 2nd

NEW LISTING: 4,408 SF Medical-Dental | Dallas-Fort Worth Market
eXp Commercial is pleased to present to the market a fully built-out, free-standing 4,408-square-foot medical/dental office building in Grand Prairie, Texas, centrally located 22 miles southwest of downtown Dallas and 26 miles southeast of downtown Fort Worth. Though the current use is for a dental office, the property is zoned PD267A (commercial development), allowing for a variety of medical and dental uses. The property is owner-occupied and will be vacated at closing, providing an ideal opportunity for another dental practice or any number of medical office users to utilize the property for their practice or an investor who works with medical office tenants to take advantage of an investment opportunity.
Listing Brokers:
Tyson Grona | tyson@tysongronagroup.com | 936.444.3635
Randolph Taylor | rtaylor@creconsult.net | 630.474.6441
https://properties.expcommercial.com/1253332-sale

Maximizing Your Multifamily Property's Sale Potential: A Comprehensive Preparation Guide

[row] [col span__sm="12"]

Maximizing Your Multifamily Property's Sale Potential: A Comprehensive Preparation Guide

Navigating the multifamily property sales landscape can be a complex endeavor, requiring careful planning, strategic execution, and expert guidance. To ensure a seamless and profitable sale, thorough preparation is essential. This comprehensive guide outlines the key steps involved in preparing your multifamily property for sale, empowering you to achieve its full market value.

Step 1: Assemble Essential Financial Documents

1. Rent Roll: A detailed rent roll provides potential buyers with a clear overview of the property's income stream. Include tenant names, unit numbers, monthly rents, lease terms, and any outstanding balances.

2. T12 Income and Expenses: This statement summarizes the property's financial performance for the past 12 months. It should include gross rental income, operating expenses, and net operating income (NOI).

3. Capital Improvement List: Document all significant capital improvements made to the property, such as renovations, upgrades, or new amenities. This demonstrates the property's well-maintained condition and future potential.

Step 2: Enhance Property Appeal

1. Curb Appeal: First impressions matter. Ensure the property's exterior is inviting and well-maintained. Address any visible issues, such as landscaping, walkways, and parking areas.

2. Interior Condition: Conduct a thorough inspection of all units and common areas. Address any maintenance concerns, including painting, lighting, and flooring repairs.

3. Vacant Units: Stage vacant units to showcase their potential. Consider decluttering, fresh paint, and minor cosmetic upgrades.

Step 3: Engage an Expert Commercial Real Estate Broker

1. Expertise: Seek a broker with a proven track record of success in multifamily property sales. Their expertise will guide you through the complexities of the market and maximize your sale price.

2. Market Insights: A knowledgeable broker will provide valuable insights into current market trends, comparable sales, and buyer preferences, ensuring your property is positioned competitively.

3. Negotiation Skills: An experienced broker will advocate for your best interests during negotiations, securing favorable terms and maximizing your return on investment.

Step 4: Prepare for Due Diligence

1. Organized Records: Maintain meticulous records of all financial documents, property information, and historical maintenance records. This will expedite the due diligence process and demonstrate your professionalism.

2. Transparency: Be forthcoming with all information about the property, including any known defects or potential issues. Transparency fosters trust with potential buyers and avoids surprises during due diligence.

3. Proactive Approach: Anticipate potential due diligence requests and prepare responses promptly. This demonstrates your preparedness and commitment to a smooth transaction.

By following these comprehensive preparation steps and enlisting the expertise of a reputable commercial real estate broker specializing in multifamily sales, you can position your property for a successful and profitable sale. Remember, thorough preparation, strategic positioning, and expert guidance are the keys to unlocking the full value of your multifamily investment.

[ux_html]

[/ux_html] [/col] [/row] https://www.creconsult.net/market-trends/maximizing-your-multifamily-propertys-sale-potential-a-comprehensive-preparation-guide/