Lindy Chapman

"Apartment demand is picking up in the Dallas-Fort Worth region, with net absorption, or the change in occupied units, of about 20,200 units over the past year. That demand level translates to 2.3% of inventory, outpacing the U.S. share of 2.1% for the first time since 2022. The share has steadily risen over the past year and though improving, it is below the pre-pandemic average of about 3% reported from 2018 to 2019. It is a reflection of Dallas-Fort Worth's outperformance in demand thanks to nation-leading population growth and a steady supply of new apartments."

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TITO, Not Just a Great Texas Drink! Trash-In, Trash-Out! (TITO) We’ve been spending a lot of time looking through historical data and trying to use it to help us figure out what will happen in our future commercial real estate (CRE) markets. We are looking for past capital events that caused capital constraints in either all the (CRE) markets and product types or even looking at single product types in just a few or even one CRE market. We think if we can find that similarity, it will shed light on this current capital-constrained market and its issues. Once that is resolved, we believe we can better predict the bottom and then apply our more normal predictors of when the capital markets may recover. I’ll say more normal because since I’m a human, or so I’m told, and the past was full of humans doing human things with normal human emotions and drives, we current humans will more than likely repeat the same steps to start moving us back to more normal. Whew, that was a tough sentence! Capital transactions continue to slow. I suppose we really don’t know yet “how slow they’ll go”! Unlike the stock market, CRE usually doesn’t have a good year the year of such a tumultuous presidential election with high, stubborn inflation and a gang of politicians who don’t seem to be able to have passed or maybe not even taken an economic course. Of course there are still deals closing. Currently, most have deeply discounted pricing, users buying-in during the downturn, values moving along the interest rate curve, and sellers giving seller financing. With this considerable slowdown from the unprecedented transaction volume of the past decade or so and due to the “different” types of buyers buying the assets, we are having a bit of an issue with looking at the data with these shrunken sample sets. Therefore, in the sample sets of data we track, it is even more critical that the data you use is Accurate, Timely, Complete, and Correct (ATCC). Since there are fewer transactions, each transaction’s information is a more significant component of the sample set. Since I have been a collector and trader of comparable data nationally for several decades, it looks like the folks want to use the data they’ve collected to show value to their clients. Since there are very few transactions, they aren’t sharing that information as readily. This tends to be the case in all the downturns I’ve witnessed. ATCC information is a valuable commodity in times like we are experiencing. Now that there are so few transactions, the ones that are ATCC are extremely valuable to ownership, lenders, buyers, tenants, and their service partners. Basically, everyone in the CRE industry. You need to be sure you are getting ATCC when you pay for these expensive capital market comparables. Make sure you aren’t buying TITO!

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I did not know these stats. Interesting report. Build-to-Rent Boom: 2023 marked a record year for the build-to-rent sector, with a 75% increase in deliveries, totaling 27,500 homes. Sun Belt cities like Phoenix and Dallas are leading the charge, offering flexible living options for those seeking community without homeownership. Home prices and mortgage rates are on the rise, making this model even more attractive. Marina Market Challenges: Post-pandemic, marinas are navigating rough waters with limited new supply and full waitlists. Only 34 new marinas were added from 2023 to 2024, and environmental concerns are causing local governments to halt development. Owners of larger boats face particular difficulties finding suitable space. Check these trends The National Observer. #BusinessTrends #RealEstate #MarinaIndustry #realestatedevelopment #realestateinvesting #raisemasters30 #multifamilyinvesting #multifamilyrealestate #firsttimedeveloper

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