The housing market will face major changes in the not-distant future which will (once again) reshape the urban and suburban housing market. Millennials are growing older while at the other end of the spectrum, seniors are getting no younger and the direction both are going will impact the housing market immensely – as well as investors. Several different generations will be moving both into (and out of) urban and suburban areas, and speculation is intense since investors' bottom line depends on getting it right.
Looking at some of the numbers posted in a recent article by National Real Estate Investor (NREI), you'd be hard pressed in some metro areas to be concerned about investing. Yet despite the large amount of permits issued for multifamily unit development, according to the NREI data, permitting levels are lower than peak levels of years past. Many large markets in the south did not make the cut for the “top ten” metro areas with the most permits issued, since their permitting has begun to slow following a previous boost in permits. The information collected looked at permits issued for the year ending this past July; it's also useful for those considering investing to see which markets are ramping up development and which may be slowing down.
There is a looming canyon between the demand for affordable multi-family and workforce housing and the supply; incentive programs are a necessary bridge across – helping real estate developers build and maintain properties they can offer to prospective tenants seeking safe, affordable housing options. We looked at a comprehensive report from 2015 as well as some current programs to see what challenges developers face as well as the potential solutions for landlords and tenants alike.
In our last blog, we wrote about fears that multi-family developers face, and one of those involved Class-C properties' affordability. Rental rates for these properties have hit a ceiling because most tenants' wages have been stuck on the same floor. With many tenants already shelling out their monthly maximum for housing, rental rates for Class-C properties may soon seem as stagnant as the tenants' wage growth has been. Yet, one employer recently announced that they plan to invest in their minimum-wage earning employees; a step that, if other employers follow suit, may have ramifications for housing down the road.
Apartment developers have had a good run for awhile now, but they have their share of worries to contend with. We came across a piece in one of our standard reads, National Real Estate Investor, about the top issues for developers (which you can read in its entirety here: We took a look at the main fears for those in the multi-family development industry, and while some of it is expected, other factors are more intriguing, like...
Private equity firms are facing new challenges as their industry changes with the times and the market drives acquisition prices higher and subsequent return percentages lower. We came across a recent piece in the IBJ about the current state of affairs for private equity firms, the amount of cash flowing in their industry, and how the cost of doing business (target acquisition) has been on the rise while returns haven't.
When there is a gap of cash flow for a commercial real estate investor there is a real need for financing - and mortgage lenders are stepping in to fill that gap with short-term bridge loans. There is a benefit to the bridge loan for both borrower and lender. The borrower receives the needed funds in the interim, and what's in it for the lender? National Real Estate Investor published an interview with the president of Inland Mortgage Capital in which he explains the need his company fills and how the bridge loan will be around for the long term.
When it comes to commercial real estate (CRE) investing, there are loads of different strategies and approaches out there, including (and we're not kidding) some based on tactics learned in Monopoly! A recent article in National Real Estate Investor we came across asserts that there are two main factors that will determine your CRE investment success. These elements of an investment may be simple and seem like common sense, but ignore them at your peril!
Apartment rent is on the rise in some cities, but stagnating or even falling in others...and not necessarily where you'd expect. In fact, there are some major urban markets where rental growth is either slowing or rent has even dropped, while in some smaller markets rent is skyrocketing past huge cities known for the high-cost of living. Where will renters catch a break and where will rent break the bank? It boils down to construction delivery and how close those smaller cities are to their big city counterparts...
The eastern corridor of Muncie stands to change dramatically from the early 1900s when it was owned by Indiana Steel and Wire. In 2015, it was purchased by Kitselman Pure Energy Park and the plans are underway to dramatically transform the property that has sat run-down and decrepit for many intervening years. The high price tag on the project will bring with it impressive improvements for the entire city; hopefully sparking further development by upgrading an area that was formerly down and out.
Carmel, Indiana is a city north of Indianapolis that is home to an impressive performing arts center and maybe best-known as “land of the traffic roundabouts.” Carmel Mayor Jim Brainard is relying heavily on city bonds and betting that by going deeper in debt that the city will come out ahead in the end. Bonds have paved the way for major improvements already, so what is next for this city near the state capitol – or are they extending too far?
The Amazon acquisition of Whole Foods is big for a lot of reasons: it could be a game-changer in the grocery industry, it's a smart play by Amazon, and Whole Foods needed the deal. Yet what does this massive merger mean beyond the grocery aisle – specifically for real estate investment? We looked into the big business deal on the block this week and how it might shake down for investors.
Many property owners who decide to take on the mantle of land-lord undertake this job not knowing the work load, stresses, and issues they may face. There can be many benefits to hiring an experienced property management company which can result in greater success for the would-be landlord and his/her rental properties...
There are different factors at work when it comes to resident retention. So what is it that determines who, where, and why leases get re-signed? We found some interesting data in this Forbes article and boiled down the basics. Across the country, with more renters re-signing their leases instead of deciding the grass may be greener somewhere else, there are a lot of variables.
Millennials are a demographic profiled for everything from their influence on current fashion trends to their effects on the workplace; however, understanding exactly how this group will impact the real estate market is still developing. Early on millennials seemed poised to become entrenched inhabitants in upscale urban apartments, but time is showing millennials may not be so different from older generations when it comes to housing trends.
Millennials are proficient in technology, highly educated, they challenge boundaries, they have the ability to multi-task and refuse to be complacent. This nontraditional generation is followed close by Gen Z whose core values are not that much different than those in Generation Y. Whether a company is hiring or marketing to these powerful generations traditional tactics are no longer effective. These generations have not only grown with the tech industry but have inspired the tech industry. This relationship creates new opportunities for companies to expand their definitions of marketing and become more creative.
The May employee spotlight shines on Tana Bell! She is the Leasing Consultant for Oakdale Square Apartments in Bloomington, Indiana. Tana brings 12 years of property management experience to BAM. BAM is excited to have such an amazing and dedicated professional joining the BAM Family. Learn More about Tana!
I went to Anderson University and majored in Finance. I have worked in public accounting for a few years and then moved on to the real estate world by working at Kite Realty Group and then RealAmerica Development. I love the energetic atmosphere here at BAM. It is one of the main things that drew me to the company. I also love that we can all be informed and working towards a common goal to help the company operate and grow as efficiently as possible.
“Customer relationship management is a necessity, but many platforms fall short.” The sheer wealth of choices in the CRM industry is a point of pain for many companies looking to start tracking their customer relationships. “There are nearly as many relationship management strategies in this industry as there are real estate professionals.” Several industry professionals have customized their own CRM systems by picking and choosing the aspects they like from several different sources. DIY combinations of Microsoft OneNote and Google products has alleviated some of the stress associated with navigating the minefield of CRM.
One bad online review can undo all the good you’ve done. Digital marketing strategy firm Convince & Convert insists that reputation management should be every company’s top marketing priority. “What people say about your company online has become the single most important reflection of your company’s quality, reliability, and skill.” Read on for tips on how to manage your company’s online reputation.
With more than 100 million daily users, Snapchat is quickly becoming one of the leading social media platforms.” As millennials are renting more and owning less than previous generations, the importance of connecting with this demographic cannot be understated. 8 billion Snapchat videos are watched daily and the average user spends roughly 30 minutes daily on the mobile app. The multifamily industry can utilize this platform as marketing tool to reach current and potential residents. Read the article to find out how.