MBA Releases 2Q Commercial/Multifamily DataBook

The Mortgage Bankers Association released its second-quarter 2016 Commercial/Multifamily DataBook today. 

The report summarizes major trends that developed during the quarter. Charts and tables provide historical information on commercial and multifamily real estate markets. 

MBA’s Commercial/Multifamily DataBook reported that: 
–At its September meeting, the Federal Open Market Committee concluded that the U.S. economy is doing well, but not well enough to raise short-term interest rates. Though some analysts cite commercial real estate cited as a reason Fed officials should consider moving sooner rather than later, the CRE market continues to show improving property fundamentals, rising property values, readily available mortgage capital and strong mortgage performance.

–Commercial real estate fundamentals generally improved during the quarter. Average vacancy rates held flat at 4.5 percent for apartments and 16 percent for office properties, and fell from 10 percent to 9.9 percent for retail properties.  On a year-over-year basis, average rents increased by 2.0 percent for retail, 2.9 percent for office and 4.1 percent for apartments.

–New construction activity continues to grow, with the value of construction put-in-place for selected property types up 11.7 percent between July 2015 and July 2016. The largest gains are in office, lodging and multifamily properties.  

–Multifamily permits and starts remain strong, and–with vacancy rates at levels that not seen since the mid-1980s–the number of multifamily units currently under construction is higher than at any point since the mid-1970s.

Click here to learn more of for a copy of this DataBook.