CMF Newslinks Archive

“The office sector and commercial real estate in general are not immune to the effects of globalization and technological innovation. The world is transitioning into a more distributed, automated and digital economy, which impacts how occupiers conduct business and think about their workplaces. This transition may have profound implications on the role and intrinsic value of property.”–Avison Young Chair and CEO Mark Rose.

“Imposing the National Flood Insurance Program structure which was designed for “one borrower, one home, one policy” on commercial and multifamily transactions is difficult for borrowers and lenders. The current limit of $500,000 for commercial and multifamily properties is insufficient based on the value of many of the properties in question.”–From a Mortgage Action Alliance “Call to Action” about re-authorizing the National Flood Insurance Program, which is set to expire on September 30.

“Multiple factors came into play to drive commercial mortgage investment returns in the second quarter. Differences in treasury yields, a decrease in term premiums for shorter mortgages and the continued decline in credit spreads all contributed to the second-quarter Giliberto-Levy Index results.”–John B. Levy & Co. President John Levy.

“In a year when tax reform is on the menu, lawmakers should consider repealing the Foreign Investment in Real Property Tax Act to unlock billions of dollars for potential investment in U.S. real estate.”–Transwestern Chief Investment Officer Tom McNearney.

“Borrowing and lending backed by commercial and multifamily properties has been strong the first half of this year.” –MBA Vice President of Commercial Real Estate Research Jamie Woodwell.

“With May as the exception, we have now seen a decrease in [hotel] room construction totals in three of the last four months.”–Bobby Bowers, Senior Vice President of Operations with STR, Hendersonville, Tenn.

“The office market remained in equilibrium during the second quarter with supply and demand roughly in balance.”–CBRE Americas Chief Economist Jeffrey Havsy.

“The commercial construction cycle has matured and current spending levels have already exceeded the peak reported in 2008.”–Fitch U.S. Building and Materials Handbook.

“A substantial rise in mortgage rates over the first quarter of 2017 was the main driver of declining Apartment Investment Market Index values in all the markets tracked, including nationally. Annually, AIMI has also seen declines, but largely due to increases in multifamily property prices that have outpaced the growth in rents.”–Freddie Mac Multifamily Research and Modeling Vice President Steve Guggenmos

“As property investors increasingly focus on fast-growing ‘18-hour’ cities, both major and secondary markets are experiencing accelerated growth rates. As a result, commercial mortgage-backed securities deals feature a growing volume of loans against properties in those markets.”–Trepp Senior Managing Director Manus Clancy.