ULI Biz Barometer: Apartment building invesment sales vaulted last month, bouyed otherwise sagging #CRE sector.

The Urban Land Institute’s April Real Estate Business Barometer reports that apartment building investment sales were strong enough to pull the entire sector up from last month’s slump while CRE prices are at four year highs.  Condominium sales are also at a 5-1/2 year high with strongly increasing prices.

Apartment Building Investment and Commercial Property Sales April 2013

“Overall, 65 percent of the key Continue reading ULI Biz Barometer: Apartment building invesment sales vaulted last month, bouyed otherwise sagging #CRE sector.

Back To The Future: A Brief History of Apartment Building Design

Mike Scott of Dupre+Scott Apartment Advisors gives a tour through the last hundred years or so of apartment building design. Plus ça change….

In the accompanying article (here) Mike talks with builders and developers about current trends in apartment design and amenities. Interestingly many of these changes provide a competitive advantage to Continue reading Back To The Future: A Brief History of Apartment Building Design

Latest Commercial RE and Apartment Building Investment Cycle Charts Posted by Glenn Mueller PhD.

…. “Only six markets advanced their position on the [Dividend Capital Apartment Market] cycle chart.” Once again with the notable exception of Seattle who has left in the basement of the cycle despite overwhelming evidence that it has moved well up in the cycle by his own definition. See my post from last quarter detailing the definitions and why Seattle’s apartment building investment cycle location according to Dr. Mueller is incorrect here. For other cities have a look and let me know if your markets are accurately placed:

Apartment Building Investmet Cycle Chart Q4 2012

Is it a Seattle thing? Is he the Brent Musburger of commercial real estate? Continue reading Latest Commercial RE and Apartment Building Investment Cycle Charts Posted by Glenn Mueller PhD.

Apartment Building Permits Rise to Long-term Average while Vacancy Index Remains Low

In their latest apartment building permitting report Axiometrics says: “permitting increased 44.3% or 84,308 units from the January 2012 figure of 274,640 units.” This is very near the long term average of 280,000 units, see the chart:

Apartment Building Investment New Construction Permits

Note that single family permits are still Continue reading Apartment Building Permits Rise to Long-term Average while Vacancy Index Remains Low

Apartments 2080: The future of apartments or just channeling the Jetsons? Infographic via MHN Property Management

Multihousing News yesterday posted an infographic called Apartment Living in 2080 suggesting what features might be standard in urban units sixty-seven years in the future. Some cool ideas but there was something familiar about it….

Apartment Building Standard Features in 2080
Click on the image for the full graphic

Oh that’s right, I’ve seen that TV show before!

Jetsons Space Age Apartment

Just one question: When’s my flying car going to get here?

SOMA (Survey of Market Absorption of Apartments) charted by apartment type from the Census Bureau

The NAHB was out with their weekly Eye on Housing report and this week’s edition took a look at the Q3 SOMA data from the Census Bureau. SOMA stands for Survey of Market Absorption of Apartments and overall things are looking pretty positive for developers. One interesting chart they had showed the types of properties that were being built since 2005:

Apartment Building Investment since 2005 by type

Condos and co-op deliveries are Continue reading SOMA (Survey of Market Absorption of Apartments) charted by apartment type from the Census Bureau

Apartment Building Investment Cycle Analysis via Dividend Capital. Can this be right?

Dividend Capital’s Q3 Market Cycle Monitor Report is out and naturally I looked at the apartment building investment cycle chart first. Specifically these days I’m looking to see where the author, Glenn R. Mueller Ph.D. has placed the Seattle market in the cycle.

US Q3 apartment building investment cycle analysis from Dividend Capital

In this latest report you can see that it is listed at position 2 with only Norfolk listed lower at position 1. What does position 2 signify? According to the good Doctor, position 2 lies in the Phase 1 – Recovery Quadrant defined as having “No New Construction” and position 2 specifically having “Negative Rental Growth”. But how can this be? Continue reading Apartment Building Investment Cycle Analysis via Dividend Capital. Can this be right?

Some perspective on New Apartment Building Unit Starts: Census Bureau’s stats charted by the NAHB

The NAHB is out this morning with a chart that gives some perspective on apartment building investment starts. The Census Bureau reported 285,000 unit starts in October for 5+ unit buildings. At that rate it looks like we’re just returning to what was a sustainable level of starts in the ’97-’06 period.

Apartment Building Investment Starts Returning to Sustainable Level
Census Bureau data plotted by the NAHB

While developers tend to overshoot the sustainable level (which is where the apartment building investment cycle comes from) the hope is that Continue reading Some perspective on New Apartment Building Unit Starts: Census Bureau’s stats charted by the NAHB

ULI: Seattle most attractive market for Apartment Building Investment but there are 36,000 units just completed, under way or in the pipeline.

Two quick links- you decide. From the Seattle Times: Urban Land Institute finds Seattle among most attractive real-estate markets and from Dupre + Scott ( The leading Seattle area apartment market research firm): Apartment development pipeline (video)

When I see this:

Seattle apartment building investment market: 36,000 new units

What’s not to like about the Seattle and Portland Apartment Building Investment Markets?

“Even compared to a healthy and expanding nationwide market, multifamily in the Pacific Northwest is seeing exceptionally strong gains. A growing renter population and accelerating job growth have helped solidify cities like Portland and Seattle as cornerstones of the apartment industry, and the positive trends show no sign of letting up.” So begins a glowing report in the latest digital edition of MHN Magazine (On page 22). What’s not to like about an article like that, especially one with a cover shot as beautiful as the one in this article? Below is just a portion of it and Photoshopped or not it is something to behold.

The glowing words and photos are accompanied with a pretty good looking chart too, showing the declining vacancy and rising rents in those two markets as well: Continue reading What’s not to like about the Seattle and Portland Apartment Building Investment Markets?