Harris Williams’ Post

Cap rates are expected to trend lower in 2024 across all property sectors, a notable shift in sentiment from a year ago, according to a CBRE report. https://lnkd.in/gqH9f9xm Among the report’s key findings, are: --The average cap rate increased from 6.4% to 7.0% across multiple asset classes. --The largest cap rate increase was seen in Class C office properties in CBD locations, where the average increase was more than 100 basis points. In contrast, suburban office cap rate expansion was typically less than 50 basis points. --Cap rates for neighborhood retail assets showed the highest stability among all property types. --#Multifamily cap rates have risen more rapidly in cities such as Charlotte, N.C., and Orlando, Fla., where market conditions are weakening. --The Federal Reserve Board's plans to lower interest rates this year is helping fuel optimism in capital markets and should lead to increased deal flow this year. The report, based on a survey of 250 industry professionals, was highlighted in this highlighted by Commercial Property Executive. #capitalmarkets #multifamilyinvesting #multifamilyrealestate

Our Q2 2023 Financial Report is now published. A strong operational result driven by stable high occupancy rates and like-for-like rental growth of 5.6%. CEO Helge Krogsbøl comments: “Our Q2 results demonstrate our operational key priority to deliver durable NOI growth through maintaining high occupancy levels, inflation-linked rent increases, and disciplined cost control throughout the business. We mitigate financial risk by prioritising a robust liquidity position, and with our continued access to bank financing, we exert effective control over upcoming maturities in the coming years.”   Read the full report here: https://lnkd.in/drzhg__G

Sparking a revolution in transparency within the senior living sector, our Actual Rates Data Initiative is here to empower your decisions. Leverage our detailed senior housing market performance reports to assess your pricing strategy, understand rate differentials, and scrutinize leasing activities against both national and local benchmarks. Dive into a world of insights and schedule a session with one of our product experts today: https://okt.to/d1ZTcJ #ActualRates #NICMAPVision #SeniorLiving

Weak economic growth is likely to make 2024 a challenging year for real estate markets. However, falling interest rates will act as a counterbalance in boosting growth and contributing to a capital markets revival. Ruth Hollies, Senior Director of European Forecasting at CBRE, reveals the upside risk for 2024 in our latest European Real Estate Market Outlook report. Gain the latest insights: https://lnkd.in/d-wc7AEC

Check out residential sector strategist Zoe Kimmelman’s summary of Invitation Homes’ (NYSE: INVH) Q1 earnings call. Her key takeaways: INVH's Q1 earnings call solidified our investment thesis, highlighting the company's significant growth potential within the U.S. single-family rental market. Key insights from the call include the company's accelerating rent growth for both renewals and new leases, the addition of over 7,000 homes to its management portfolio, and strong financial liquidity. CEO Dallas Tanner emphasized INVH's commitment to growing the U.S. housing supply, stating, "So that's our goal, is to be part of that narrative, which would be to bring new supply into the market over and over and over. And we're not going to stop." Read the full summary:

We've seen a POWERFUL SHIFT in exit cap rates! Dive into this fresh analysis from CBRE Research - Prime Multifamily Cap Rates soar in Q3, thanks to steeper rates. Going-In vs. Exit Cap Rate Spreads 2021 spread: +75 bps 2023 spread: +15 bps Is it possible that this figure turns negative in the upcoming year? This is a KEY variable in any proforma. How are the other variables changing? At a 0.15% spread between going-in and exit cap Sponsors don't need to UW to hit massive NOI increases Like they did when their spread was 0.75% How are you underwriting exit cap rates? Drop it in the comments below. ---------------------------------------- Unlock perfect financing solutions for multifamily assets with my help.🔑 Follow me and hit the 🔔 for invaluable tips, every day. The postings on this site are my own and do not represent the positions, strategies or opinions of CBRE.