Each Wednesday, The Wrap presents a compilation of recent noteworthy commercial real estate stories from a variety of publications. Below are links to five stories that caught our eyes in recent days:
Atlanta Market Fundamentals Continue to Drive Growth, Colliers
Key Excerpt:
“The Atlanta apartment market is continuing to thrive as a result of strong economic fundamentals. Growth in employment has increased the demand for more units, decreasing vacancy rates and fostering higher rent rates. While there is bifurcation between inner-perimeter submarkets and those submarkets outside the perimeter, the metro area is bene ting from a well-educated workforce and strong business community.”
Value-Add Projects Remain an Attractive Option for Multifamily Developers, By Bendix Anderson, NREIOnline
Key Excerpt:
“Older apartment buildings typically have much lower rents than new ones. Even after an extensive renovation increases those rents, older apartments typically rent for well below the price of the new, luxury towers that crowd many downtowns. Developers like Bell Partners and Waterton, another value-added developer based in Chicago, are making good business out of transforming class-B properties into class-B+.”
Goldman Says It’s Too Late to Chase the Booming Real Estate Sector, By Julie Verhage, Bloomberg
Key Excerpt:
“At the end of this month, Real Estate will separate from Financials to become its own sector in the S&P 500. While those stocks have outpaced the S&P 500 so far in 2016, analysts led by David Kostin at Goldman Sachs say there are a lot of challenges, and they are not recommending investors try to make up for the missed gains.”
New Multifamily Rental Share Remains Strong, Multifamily Executive
Key Excerpt:
“The average square footage of a multifamily unit started in the second quarter was 1,161, down from the post-recession watermark of 1,247 square feet.”
Economy Watch: Construction as Share of GDP Increases in Most States, By Dees Stribling, Multi-Housing News
Key Excerpt:
“Despite the energy slump, construction accounted for the highest percentage of state GDP in North Dakota at 7.6 percent in 2015, down from 7.7 percent in 2014. Hawaii’s construction industry made the second largest contribution to state GDP at 5.9 percent, with an increase of 0.5 percentage points from 2014, the largest year-over-year improvement of any state.”