Market Trends

Trepp CRE CLO Research - CRE CLO Market Surges, Offering Investors Flexibility in A High Interest Rate Environment

November 22 2022

There are several factors that explain the rise of CRE CLOs in recent years, and they all center around loan structure. CRE CLO issuances are comprised of bridge loans that typically have 3-year terms with extension options built in if certain...

SVN Research - Economic Update - 11.18.2022

November 18 2022

As Americans sit down for this year’s Thanksgiving, it’s more than just after-dinner-waistlines experiencing uncomfortable inflation levels. According to a recent Chandan Economics analysis, the average price of turkey has increased a whopping...

SVN Research Economic Update - Nov. 4, 2022

November 04 2022

On November 2nd, the FOMC voted to increase the Federal Funds Rate by 75 bps for the fourth consecutive time, taking the benchmark interest rate to its highest since early 2008. The current Federal Funds Target Rate sits at 3.75%-4.00.

Trepp CMBS Research - CMBS Delinquency Rate Inches Up in October 2022, But Still Below 3%

November 03 2022

In October 2022, the Trepp CMBS Delinquency Rate moved up modestly. Whether this is the beginning of a turning point as a result of higher interest rates and a slowing US economy or just a momentary bump remains to be seen.

SVN Research - Economic Update - October 28, 2022

October 31 2022

Real GDP increased by an annual rate of 2.6%% in Q3 2022, according to the advanced estimate released by the Bureau of Economic Analysis (BEA). The increase follows two consecutive quarterly declines in Q1 and Q2, moderating some concerns that...

Marcus & Millichap - National Office Report - 4Q22

October 25 2022

Future of office space demand still evolving. The COVID-19 pandemic has fundamentally altered how many people interact with the office. The rapid, widespread adoption of remote work has now given way to a nuanced workplace return.

Marcus & Millichap - Cleveland Office Market Report - 4Q22

October 25 2022

Suburban demand supports metro’s national standing. Among major Midwest markets, Cleveland entered the second half of this year with the tightest vacancy rate.

Marcus & Millichap - Special Report - Industrial Outdoor Storage

October 21 2022

Specialized property emerging as industrial mainstay. Serving a mission-critical role for last-mile distributions, industrial outdoor storage, or IOS properties, have emerged as a highly in-demand subset of the broader industrial sector by tenants...

MSCI Capital Trends - US Big Picture - Q3 2022

October 19 2022

Deal volume fell for four quarters on a year-over-year basis at the start of the pandemic. A recovery began in 2021 which brought five quarters of growing deal volume.

MSCI Capital Trends - US Industrial - Q3 2022

October 19 2022

Deal volume fell for the industrial sector in the quarter, in line with all other property sectors. There are challenges to financing that are acting to bring deal volume down from record highs seen a year earlier.

MSCI Capital Trends - US Apartment - Q3 2022

October 19 2022

There are numerous qualities that investors like about the apartment sector and investment activity remained at elevated levels in the third quarter.

MSCI Capital Trends - US Retail - Q3 2022

October 19 2022

The retail sector swam against the current in the third quarter with signs of growth in investor interest even as other commercial property sectors posted falling deal volume.

MSCI Capital Trends - US Office - Q3 2022

October 19 2022

Two forces dragged down sales in the office market for the third quarter. Financing acquisitions became difficult thanks to a rising interest rate environment.

MSCI Capital Trends - US Hotel - Q3 2022

October 19 2022

Hotel deal volume fell in the third quarter despite trends in consumer activity that should spell good news for the sector. Every week last summer there were stories on the nightly news about airline delays as people began to travel again.

SVN Research - Economic Update 10.14.2022

October 14 2022

The Consumer Price Index (CPI) rose by 8.2% year-over-year through September and 0.4% month-overmonth, according to the Bureau of Labor Statistics. This month’s 40 basis point increase comes after just a 10-bps increase in August.

Trepp CMBS Research - Special Servicing Rate Rises for the Second Time in as Many Months; Office Sector Distress Materializing

October 13 2022

The Trepp CMBS Special Servicing Rate rose two basis points in September to 4.94% – slightly above the August print. Six months ago, the rate was 5.66%, and 12 months ago, the rate was 7.48%.

SVN Research - Special Report - ROLLING TO A STOP—HOW RECESSIONARY FORCES IMPACT CRE DEAL VOLUME

October 13 2022

Historically, seasonality has been a predictable characteristic of commercial real estate (CRE) transaction volume, which typically peaks in the fourth quarter of each year before normalizing again to start the next. However, heading into the...

Marcus & Millichap - Cleveland Retail Market Report - 3Q22

October 04 2022

Metro job count rises as retailers expand. Total employment in the accommodations and food services sector has accounted for roughly 45 percent of the positions added in the first eight months of 2022.

Trepp CMBS Research - CMBS Delinquency Rate Stays Strong in September 2022 as Broader Market Volatility Spikes

October 04 2022

In September 2022, the Trepp CMBS Delinquency Rate fell once again. For now, CMBS loan performance remains the model of steadiness even as volatility in the equity and foreign exchange markets spike and interest rates and lending spreads move...

SVN Research - Economic Update - September 30, 2022

October 04 2022

On September 21st, the FOMC voted to increase the Federal Funds Rate by 75 bps for third consecutive time to fight persistent US inflation. The current Federal Funds Target Rate sits at 3.00%-3.25%—its highest level since January 2008.

SVN Research - Economic Update 9/30/2022

September 30 2022

On September 21st, the FOMC voted to increase the Federal Funds Rate by 75 bps for third consecutive time to fight persistent US inflation. The current Federal Funds Target Rate sits at 3.00%-3.25%—its highest level since January 2008.

Trepp CMBS Research - Special Servicing Rate Rises for First Time Since 2020 in August; Potential Sign of What’s to Come?

September 08 2022

August CMBS data has the makings of an inflection point. After struggling during COVID, the current economic environment may have hampered what retail borrowers hoped would be a full recovery. This is the first time the rate has increased since...

Marcus & Millichap - Special Report - Capital Markets: Pay to Play

September 08 2022

Tightening Monetary Policy kicks off widening spreads by lenders. Since the first federal funds rate hike in March 2022, the capital markets have been disrupted, due to financial market volatility revolving around inflationary pressures and ...

Trepp CMBS Research - CMBS Delinquency Rate Cracks 3% Level in August 2022, Lowest Reading Since April 2020

September 06 2022

In August 2022, the Trepp CMBS Delinquency Rate fell below 3% for the first time since before the COVID-19 pandemic. It was a year ago that the benchmark dropped below 6% and six months since the rate fell below 4%.

Marcus & Millichap - National Report - Self Storage 3Q22

September 06 2022

Storage space demand sustains momentum, extends rent climb. The self-storage sector entered the second half of the year in a strong position, having accumulated additional renter demand during the most challenging period of the pandemic.

Trepp CRE Research - Ranking Top Secondary Metro Areas for CRE Investment in 2022: Managing Economic Uncertainty

August 31 2022

With 2022 winding to a close, the Trepp team created the 2022 edition of our annual report ranking the “Top Secondary Metro Areas for CRE Investment.” The year 2021 ended with level-breaking records of issuance in the CMBS market, and that pace...

SVN Research - 2022 Mid-Year Market Report

August 31 2022

Commercial real estate has continued to test its speed limit on the path to normalcy through mid-2022. Though coming off 2021 highs, price momentum in the sector has sustained throughout the first half of 2022, generally following deal volume...

SVN Research - Economic Update 8.26.2022

August 26 2022

Real gross domestic product (GDP) decreased at an annual rate of 0.6 percent in the second quarter of 2022, according to the BEA’s second estimate released on August 25th. The revision shows that the US economy contracted less than expected,...

MSCI Capital Trends - US Big Picture - July 2022

August 25 2022

Deal volume fell sharply in July but reading trends out of what gets reported during August is often challenging. Information flows slower at times based on calendar events such as public holidays that close government offices.

MSCI Capital Trends - US Apartment - July 2022

August 25 2022

Apartment deal activity is clearly decelerating, though the headline figures for July may not yet paint a complete picture of investor interest in the sector.

MSCI Capital Trends - US Retail - July 2022

August 25 2022

The retail property sector was the shining star for July, and it was not a case of being the least-worst performer. As investment activity pulled back for other sectors, property sales for retail grew.

MSCI Capital Trends - US Office - July 2022

August 25 2022

Nobody really likes to go to the office in July or August. This preference is not a function of the pandemic or any changing behaviors around the use of office space.

MSCI Capital Trends - US Hotel - July 2022

August 25 2022

People like to visit resorts and hotels in the summer, but fewer investors liked buying these assets in July. Deal activity decelerated in July and some of the declines will very likely be revised to a more favorable trend in September.

MSCI Capital Trends - US Industrial - July 2022

August 25 2022

Industrial deal activity is clearly decelerating, though the headline figures for July may not yet paint a complete picture of investor interest in the sector.

Trepp CRE Research - The Future of Ground Leases in Commercial Real Estate: Moonlighting the Numbers

August 24 2022

In Trepp's latest report, the team looks to capture underlying data and trends found in CRE securitizations that include a ground lease. A footnote to some of the largest commercial mortgage-backed securitizations, the ground lease has recently...

Trepp CRE Research - CPI “FYI”: A Deeper Dive Into The Geographic Variation of Growth Rates

August 17 2022

With the Fed raising its key interest rate by 75 basis points and the comments in the most recent Consumer Price Index (CPI) report, Trepp decided to analyze the geographic variation in rent growth rates and loan performance in the multifamily...

SVN Research - Economic Update 8.11.2022

August 12 2022

The Consumer Price Index (CPI) rose by 8.5% year-over-year through July, but remained flat from the month before, according to the Bureau of Labor Statistics. It was the first time that inflation hadn’t increased on a month-over-month basis ...

Trepp CMBS - Special Servicing Report: Low Distress in July 2022 Data Reinforces Economic Isolation of CMBS

August 11 2022

The Trepp CMBS Special Servicing Rate fell 12 basis points in July to 4.79%. Six months ago, the rate was 6.33% and 12 months ago, the rate was 8.14%.

2022 Midyear Hospitality - National Report

August 11 2022

Demand for hotel rooms takes on more familiar patterns this year. After persevering through incredible challenges in 2020 and 2021, the hospitality sector in the first half of 2022 more closely resembles that of the pre-health crisis period.

Trepp - 2022 CRE Sentiment Survey

August 10 2022

Between July 13 – August 1, 2022, Trepp polled our 20,000+ listeners, clients, and blog readers for their opinions on the near-term future of the commercial real estate (CRE) and commercial mortgage-backed securities (CMBS) markets.

Marcus & Millichap - Market Report Mid Year 2022 - Cleveland Positioned to Record More Visitations as Downtown Reopens and Events Return

August 04 2022

Cleveland athletic events drawing attendees. In the first half of the year, Cleveland’s hospitality industry witnessed a boost in visitations as it hosted the 2022 NBA All-Star Game.

Trepp CMBS Research - Trepp CMBS Delinquency Rate Resumes Decline in July 2022; Headline Number Hits Another Post-COVID Low

August 02 2022

After a rare uptick in June 2022, the Trepp CM BS Delinquency Rate resumed its two-year long decline.

SVN Research - Economic Update - July 29, 2022

August 01 2022

Real GDP declined by an annualized 0.9% in Q2 2022, according to the advanced estimate released by the Bureau of Economic Analysis (BEA). The decline follows a 1.6% annualized contraction in Q1, placing the US economy in a technical recession...

SVN Research - Emerging Trend Report - PULLING THE PUNCH BOWL: NAVIGATING CRE IN A TIGHTENING MONETARY ENVIRONMENT

July 28 2022

Many predicted a transitory price spike as fiscal stimulus made its way through the economy, boosting demand while global supply chains were still thawing. However, two years later, severe supply chain imbalances persist, worsened partly by ...

Demand Still Elevated in Second-Quarter; Vacancy Rate Likely at Cyclical Low as Development Pipeline Increases

July 26 2022

The World Bank, citing the war in Ukraine and persistent pandemic-related disruption, revised global growth forecasts down to 2.9% for 2022, much lower than its January forecast. The national industrial market is signaling a similar trajectory...

SVN Research - Economic Update 7.15.2022

July 15 2022

Despite rising capital costs and renewed recession fears, the US economy added 372k jobs in June, according to the latest employment numbers from the Bureau of Labor Statistics.

Marcus & Millichap - Industrial National Report - Midyear 2022

July 13 2022

Global trends place industrial sector in favorable position. Multiple factors are driving record demand for industrial space. Retail spending is elevated both at store and online, fueling the need for more distribution and logistics resources...

Trepp CMBS Research - Special Servicing Rate Improves in June 2022 but CRE Distress Rises Elsewhere

July 11 2022

The Trepp CMBS Special Servicing Rate fell 21 basis points in June to 4.91%. Six months ago, the rate was 6.75% and 12-months ago, the rate was 8.24%.

Marcus & Millichap - Cleveland Industrial Investment Forecast - Midyear 2022

July 08 2022

Net absorption triples from last year as development tapers. Cleveland will continue to close in on a full job recovery this year, bolstering retail sales. Consumer spending posted record numbers in 2021, fueling demand for distribution and ...

Trepp CMBS Research - Trepp CMBS Delinquency Rate Rises for Only Second Time in Two Years in June 2022 – Blip or Inflection Point?

July 06 2022

The Trepp CMBS delinquency rate posted a rare uptick in June 2022. The rate moved up just six basis points, and only time will tell if this is just a blip, or an inflection point triggered by higher borrowing costs for commercial real estate...

Trepp T-ALLR Research - Bank CRE Loan Performance: Delinquency Uptick, Office Erosion, Higher Interest Rates, Slower Originations in Q1 2022

July 01 2022

The overall commercial real estate (CRE) delinquency rate increased - albeit slightly - with the office sector as the main contributor to the increase.

SVN Research - Economic Update 6.24.2022

June 24 2022

At its latest policy meeting on June 15th, the FOMC raised the Federal Funds rate by 75 bps to a range of 1.5%-1.75%, its steepest rate hike since 1994. The move follows a May inflation rate of 8.5%.

Marcus & Millichap - 2022 Cleveland Office Investment Forecast

June 23 2022

Developers plan for long-term expansion as demand recovery lags. While Cleveland is projected to continue job growth at a rate on par with some other regional metros, employment recovery still lags far behind the national average.

MSCI Capital Trends - Big Picture - May 2022

June 22 2022

The pace of growth for U.S. commercial property sales continued to taper in May, dropping to 3% from the double-digit growth recorded during what was a record-breaking first quarter.

MSCI Capital Trends - Industrial - May 2022

June 22 2022

Sales of industrial assets totaled $7.2b in May, falling 20% from the prior year and marking the second straight month of double-digit declines. Comparisons against the pre-pandemic average for the month show a return to those norms, with sales...

MSCI Capital Trends - Hotels - May 2022

June 22 2022

After falling April volume signaled a potential cooling in the hotel market, sales of hotel properties rebounded in May. The $3.1b in activity for the month represents a reversion to the average pace of May hotel activity as seen in the five...

MSCI Capital Trends - Apartments - May 2022

June 22 2022

The apartment sector has set yet another record with $21.5b in sales for the month, the highest level for any May. Volume was up 22% on May of 2021, which had set the previous high-water mark.

MSCI Capital Trends - Retail - May 2022

June 22 2022

Climbing 34% from the prior year, growth in the sale of retail assets was second only to hotels for the month of May. The double-digit growth was not a function of historically-low activity in the prior period.

MSCI Capital Trends - Office - May 2022

June 22 2022

The $5.1b in office transactions recorded in May represented another significant double-digit decline in volume from the prior year. At 34%, the drop was the largest decline in annual growth across all property types in the month.

Trepp - The Mid-Year 2022 From Commercial Real Estate Direct

June 13 2022

If one ever wanted a lesson in the differences between commercial real estate property types, the Covid-19 pandemic provided one. Hotel, retail and office properties were immediately and dramatically shuttered at its onset, all while apartments...

SVN Economic Research - 6.10.2022 Economic Update

June 10 2022

Consumer prices rose 8.6% year-over-year through May, according to the Bureau of Labor Statistics’ Consumer Price Index (CPI). May’s reading brings inflation back up to its forty-year high last reached in March, reversing what appeared to be...

Marcus & Millichap Research Brief - Self Storage

June 08 2022

Some pandemic-era demand drivers exhibit staying power. An abrupt switch by most traditionally office-using employers to remote schedules in 2020 translated to a sharp increase in demand for self-storage space as workers created their home offices...

Trepp CMBS Research - Special Servicing Rate Cures in May 2022 Despite Wider Market Volatility

June 07 2022

The Trepp CMBS Special Servicing Rate fell 18 basis points in May 2022 to 5.12%. Six months ago, the rate was 6.95%, and 12 months ago, the rate was 8.65%.

Trepp CMBS Research - Trepp CMBS Delinquency Rate Falls Sharply in May 2022 -Under 3% By Independence Day?

June 02 2022

The Trepp CMBS delinquency rate posted another large decline in May 2022. At the current improvement rate, the overall delinquency rate could fall below 3% in the coming months, a prospect that seemed unthinkable during the COVID-19 pandemic...

SVN Research - Economic Update - 5.27.2022

May 27 2022

The US National All-Property Price Index, which produces a weighted measure of commercial real estate prices, rose by 17.9% over the year ending April 2022, according to MSCI Real Capital Analytics (MSCI RCA). Month-over-month, prices rose 0...

Trepp CMBS Research - Single-Asset, Single-Borrower Deals Outpace Other CMBS Transactions; Industrial & Office Lead the Way

May 26 2022

Since 2021, single-asset, single-borrower (SASB) CMBS transactions have outpaced all other CMBS transaction types in terms of both issuance volume and quantity of loans. SASB loans have always been a fixture of the CM BS market, but for years...

Marcus & Millichap - 2022 US Retail Investment Forecast

May 26 2022

New household formations and the spending power they generate are driving factors in the Index rankings for 2022. Austin’s appeal as a relocation destination is supporting one of the fastest paces of retail sales growth in the nation, earning...

RCA MSCI - US Capital Trends - US Office - April 2022

May 25 2022

Office investment retracted in April after 13 months of double or triple-digit growth in sales volume. Some sort of pullback in growth should have been seen as the market was moving past the bounce back from the fear-induced lows of 2020.

Marcus & Millichap - Cleveland Metro Area Retail - 2Q22

May 25 2022

Retailers expand suburban presence, reducing vacancy. Despite health crisis shocks across the nation’s retail sector, Cleveland’s vacancy rate recaptured the 4.7 percent 2019 benchmark entering the second quarter of 2022.

RCA MSCI - US Capital Trends - US Apartment - April 2022

May 25 2022

The headline figures for apartment investment in April are a bit misleading. Deal volume was up from a year ago, but only because of the impact of portfolio activity. The story on investment activity at the bedrock of the market – individual...

RCA MSCI - US Capital Trends - US Retail - April 2022

May 25 2022

Sales involving retail properties were a bright spot for commercial real estate investment in April. Deal volume was up from a year earlier for the sector, a situation not seen for most property types.

RCA MSCI - US Capital Trends - US Big Picture - April 2022

May 25 2022

Commercial property investment in the U.S. fell relative to last year in April after 13 months of significant growth in sales volume. Some sort of pullback in growth should not come as a surprise as the market has been moving beyond the recovery...

RCA MSCI - US Capital Trends - US Industrial - April 2022

May 25 2022

Industrial investment fell relative to last year in April after 13 months of double-digit or stronger growth in sales volume. Some sort of pullback in growth would not be surprising as the market moved past the bounce back from the fear-induced...

RCA MSCI - US Capital Trends - US Hotel - April 2022

May 25 2022

Hotel investment fell relative to last year in April after 13 months of double- to quadruple-digit growth rates in sales volume. Some sort of pullback in growth should not come as a surprise as the market has been moving beyond the recovery ...

Self-Storage Newsletter - Colliers Valuation & Advisory Services - National Self-Storage Insights | 2nd Quarter 2022

May 24 2022

The results are in, 2021 was one of the strongest years the storage industry has ever had! Over the last couple of years, we have been able to battle through the pandemic and the different variants, withstand the protests and riots, have a change...

Marcus & Millichap - U.S. Single-Tenant Net-Leased Retail National Report

May 23 2022

Economic tailwinds aid outlook for tangible retail. The single-tenant sector is at a junction as the second half of the year approaches. Despite inflation and rising fuel prices, during the early months of 2022 retail spending gains have been...

Spring 2022 Issue - Quarterly Data Review - Rising Interest Rates & Commercial Real Estate - What to Expect?

May 19 2022

On March 16, the U.S. Federal Reserve raised interest rates by a quarter-point, the first increase since 2018. The move was widely expected and had been communicated to markets well in advance.

Trepp CMBS Research - Multifamily Net Operating Income Growth Across the Country: Trepp’s Preliminary Findings

May 17 2022

Preliminary data show single-digit multifamily net operating income (NOI) growth, which may be a surprise when looking at the uptick in rent and the cost of living. The southeast and southwest regions outpaced the rest of the U.S. in terms of...

SVN Research - Economic Update 5.13.2022

May 13 2022

Consumer prices rose 8.3% year-over-year through April, according to the Bureau of Labor Statistics’ Consumer Price Index (CPI). April’s reading was the first reduction in annual inflation since August 2021, but price pressures remain near 40...

Trepp CMBS Research - Special Servicing Rate Drops in April 2022; Office Sector Posts Two-Year High

May 11 2022

The Trepp CM BS Special Servicing Rate fell 36 basis points in April to 5.30%. Six months ago, the rate was 7.17% and 12-months ago the rate was 9.02%.

Trepp CMBS Research - Trepp CMBS Delinquency Rate Continues to Fall in April 2022 Hotel Rate Again Shows Biggest Improvement

May 04 2022

The Trepp CMBS delinquency rate posted another sizable decline in April 2022, continuing a trend that started only a few months after the onset of COVID-19.

SVN Research - Economic Update - April 29, 2022

April 29 2022

Real GDP decreased by an annualized 1.4% during Q1 2022, down from Q4 2021’s revised figure of 6.9%. This is the first quarterly contraction in US economic growth since the early days of the COVID-19 pandemic in Q2 2020.

Marcus & Millichap Special Report - CAPITAL MARKETS: BACK TO THE FUTURE - April 2022

April 28 2022

Federal Reserve officially kicks off period of rising rates. On Wednesday, March 16, the Fed approved a 25-basis-point rate increase, the first since December 2018. While the hike was a bit of a reality check for commercial real estate owners...

The Best Job Markets Aren’t in the Biggest Cities

April 25 2022

The hottest job markets in America are in five different states, but they have a lot in common. They’re in midsize cities, all with a population under 2.3 million. They're in states with fairly low income taxes, or none at all. And their ...

REAL CAPITAL ANALYTICS - CAPITAL TRENDS - US INDUSTRIAL - Q1 2022

April 22 2022

industrial property sales were up at double-digit rates in Q1’22 despite the interest rate spike in March. Transactions often close over periods measured in months, so the level of activity through March reflects sentiment for the sector from...

REAL CAPITAL ANALYTICS - CAPITAL TRENDS - US RETAIL - Q1 2022

April 22 2022

Sales of retail properties climbed relative to a year ago in Q1’22 despite the surge in interest rates in March. Commercial property sales are slower to finalize than transactions in the bond markets, with deal closing times measured in weeks...

Real Capital Analytics - Capital Trends - US Big Picture - Q1 2022

April 22 2022

Commercial property sales climbed at double-digit rates from a year ago in Q1’22 despite the uncertainty around war, interest rates and inflation. Closing a commercial property transaction is a process measured in months and weeks however, so...

Real Capital Analytics - Capital Trends - US Office - Q1 2022

April 22 2022

Sales volume in the office sector climbed relative to a year earlier in Q1’22 despite the interest rate spike in March. Deals in this market do not close instantly, with weeks needed for a transaction to finalize.

REAL CAPITAL ANALYTICS - CAPITAL TRENDS - US APARTMENTS - Q1 2022

April 22 2022

The interest rate spike in March had little visible impact on apartment sale activity in Q1’22, with volume up at double-digit rates from a year earlier. Transactions close over multiple weeks, so the level of activity through the end of March...

REAL CAPITAL ANALYTICS - CAPITAL TRENDS - US HOTELS - Q1 2022

April 22 2022

Hotel property sales climbed relative to a year earlier in Q1’22 despite the turmoil of war, interest rate increases and inflationary pressures. The timelines to measure the closing of hotel deals though are measured in weeks or months, so the...

Trepp CRE Research - MSA Snapshot: Tracking the Impact of Population Increases and Declines on Issuance Volumes Across Major CRE Property Types

April 21 2022

Over the past five years, metropolitan statistical areas (MSAs) that experienced an increase in population also saw significant increases in CMBS loan issuance. Areas that faced population declines did not report such large issuance volumes,...

SVN Research - Economic Update - April 15, 2022

April 15 2022

Consumer prices posted an 8.5% year-over-year increase through March, its fastest annual pace since December 1981, according to the Bureau of Labor Statistics. Month-over-month, prices rose 1.2%.

Marcus & Millichap - Cleveland Multifamily Market Report - 2Q22

April 15 2022

Net absorption surpasses deliveries for a fifth straight year. Almost 2,000 households will form in Cleveland this year — the highest increase since 2013. This growth, paired with elevated home prices, will expand the local renter pool and allow...

Trepp T-ALLR Research - CRE Loan Performance at Banks: Originations Up Sharply in Q4 2021, Concerns Over Higher Interest Rates & Future of Office Market

April 14 2022

Originations of commercial real estate (CRE) mortgages rebounded again to end the year, while delinquencies continued to trend down after a moderate rise in 2020. Industrial and multifamily are leading the way for loan originations, reflecting...

Marcus & Millichap - 1H22 Manufactured Home Communities

April 11 2022

Income stability fosters residential demand. The labor market has made significant strides toward recovery since the spring of 2020, notably brightening the economic outlook in the first half of 2022.

Trepp CMBS Research - Special Servicing Rate Falls Further in March; Malls Make Up Majority of Newly Transferred Balance

April 07 2022

The Trepp CMBS Special Servicing Rate fell 42 basis points in March to 5.66%. Six months ago, the Trepp special servicing rate was 7.48%, and 12 months ago the rate was 9.42%.

Trepp CMBS Research - Trepp CMBS Delinquency Rate Continues to Fall in March 2022 – Another Big Gain for Hotel Loans

April 05 2022

The recent increase in interest rates, commodity prices, and general volatility hasn’t had any noticeable performance in the CMBS market aside from some spread widening up and down the credit stack.

SVN Research - Economic Update 4.1.202

April 01 2022

The yields on the 5-year and 30-year US treasuries inverted on March 28th for the first time since 2006, raising fears of an upcoming recession.

Trepp CRE Research - Interest Rates and Commercial Real Estate - What to Expect?

March 31 2022

On March 16th, 2022, the U.S. Federal Reserve (Fed) raised interest rates by a quarter-point, the first increase since 2018 and likely not the last increase this year. The move was widely expected and had been communicated to markets well in...

SVN Research - Asset Class Report 2022 - Retail

March 25 2022

THE RETAIL SECTOR was already steeped in transformational shakeout prior to the pandemic, rightsizing to how shopping is done in an increasingly digital economy. In what has already been a decade-long process, most analysts thought it would ...

SVN Research - Asset Class Report 2022 - Industrial

March 25 2022

“All good things must come to an end,” said nobody in the Industrial sector in 2021. As the US economy continues to modernize and consumer behavior evolves, the Industrial sector has stood as a winner at every step along the way.

SVN Research - Asset Class Report 2022 - Multifamily

March 25 2022

Aside from “location, location, location,” the most cliché phrase in real estate may be “people will always need somewhere to live.” Its overuse is a symptom of its accuracy. The Multifamily sector had every excuse available to post a down year...

SVN Research - Asset Class Report 2022 - Office

March 25 2022

As the pandemic sent corporate America from boardrooms to bedrooms in 2020, long-held assumptions about productivity are now rightfully up for debate. On one side of the spectrum are those that argue that office spaces facilitate an agglomeration...

Marcus & Millichap - 2022 US Industrial Investment Forecast

March 23 2022

Southern California markets lead in the Index as Los Angeles, Orange County and Riverside-San Bernardino claim the first, second and fifth ranks respectively. A prodigious amount of imports, which must then be distributed both locally and across...

Marcus & Millichap - Special Report - Seniors Housing and Skilled Nursing

March 23 2022

Across the final six months of last year, more than 30,000 seniors housing units were absorbed, according to NIC Map® Data Service. This was a very impressive rebound after roughly 44,000 units were relinquished on a net basis during the four...

Lodging Analytics Research & Consulting - 1Q-2022 Market Intelligence Reports Release Presentation

March 22 2022

LARC believes its forecast accuracy should be transparent and offer a means for clients to alter inputs to key drivers, should they have differing assumptions.

Marcus & Millichap - 2022 North American Hospitality - National Investment Forecast

March 21 2022

Despite the substantial pandemic-driven disruptions of 2020, gross domestic product made a full recovery by the end of 2021. The economy is expected to grow by another 3 percent to 4 percent this year. More than $5 trillion of accumulated savings...

SVN Research - Economic Update 3.18.2022

March 18 2022

For the first time since 2018, The Federal Reserve’s policy-setting committee raised interest rates as they pivot away from recovery-focused accommodations towards a more aggressive fight against persistent domestic inflation.

Marcus & Millichap - Special Report - Implications of the invasion of Ukraine on commercial real estate

March 11 2022

The humanitarian, social and political crisis unfolding in Ukraine has begun to deliver some economic fallout in both global and United States markets. Oil prices have surged, the stock market moved into correction territory and a flight-to-...

Marcus & Millichap - 2022 U.S. Self-Storage Investment Forecast

March 09 2022

Self-storage operators saw record performance over the last two years as lifestyles adapted to the pandemic . To help investors adapt to and capitalize on the unprecedented climate, the 2022 Self-Storage Investment Forecast offers deep insight...

Trepp CMBS Research - Special Servicing Rate Falls in February; Office Sector Prevalent in New Transfers

March 08 2022

The Trepp CMBS Special Servicing Rate fell 25 basis points in February to 6.08%. Six months ago, the Special Servicing rate was 7.79%, and 12-months ago the rate was 9.60%.

Trepp CMBS - Delinquency Rate Cracks 4% Level, Hitting Another New Post-Pandemic Low in February 2022

March 04 2022

The Trepp CMBS delinquency rate continued its impressive decline in February 2022. The rate has now fallen in 19 of the last 20 months with only a brief uptick in late 2021.

Marcus & Millichap - 2022 US Office Investment Forecast Report

March 02 2022

Major markets in Texas and Florida claim many of the top spots in this year’s Index, led by Austin (#1) with strong residential appeal drawing employers. Raleigh (#4), Salt Lake City (#6), Nashville (#7) and Phoenix (#10) also rank highly for...

SVN Research - Economic Update 2.25.2022

February 25 2022

According to Real Capital Analytics’ Senior Director of EMEA Analytics, Tom Leahy, the spiraling conflict in Ukraine will most likely only have indirect effects on global commercial real estate conditions.

Real Capital Analytics - US Capital Trends - Big Picture, Retail, Industrial, Hotel, Apartment & Office

February 24 2022

Investment activity grew at a low double-digit pace in January after a blistering pace of deal activity in December. This change is not a sign of a market shutting down, in fact price growth continues to accelerate. The leading sectors for deal...

Trepp CRE Research - Despite Declining Retail Distress, Market Remains Cautious in 2022

February 22 2022

The retail market has been overwhelmed with massive disruption to the global supply chain caused by COVID-19. These disruption resulted in shortages of key components of manufacturing, ordering backlogs, and delays, all of which materialized...

Lodging Rebounded Ahead of 2022: Will Positive Delinquency, Issuance and Valuation Trends Continue?

February 17 2022

No commercial real estate (CRE) property type was as hard hit by the coronavirus pandemic as hotels. The sector is reliant on people’s ability to travel freely, and that was limited, and in some cases reduced to zero.

SVN Research - Economic Update 2.11.2022

February 11 2022

After a large swath of investors sat on the sidelines in 2020, last year proved to be the most active year for commercial real estate sales on record. According to Real Capital Analytics, $808.7 billion of U.S. CRE assets changed hands in 2021—...

Trepp CMBS Research - Special Servicing Rate Falls in January 2022 As Large Lodging Loans Cure

February 09 2022

The Trepp CMBS Special Servicing Rate fell 42 basis points in January to 6.33%. One year ago, the US special servicing rate was 9.71%.

January Job Creation Highlights Recovery in Key Commercial Property Types

February 09 2022

Employers tackling labor shortage in new year. The job market continued to recover in the opening month of 2022 as 467,000 jobs were created. While unemployment also rose, the labor force participation rate improved by 30 basis points to 62....

Lee & Associates - Industrial Market Overview - Q4 2021

February 07 2022

Cleveland's Industrial Market remained strong and stable during the 4th Quarter of 2021. The market's vacancy rate increased slightly to 5.0% due to the 1.37 million square feet of product that was delivered.

Lee & Associates - Office Market Overview - Q4 2021

February 07 2022

As the COVID 19 Pandemic drags on due to the Omicron Variant, the Cleveland Office Markets continue to lag behind in activity, occupancy, and rental rates. Much of the market's struggles are tied to tenants delaying decisions and limited office...

Trepp CMBS Research - Delinquency Rate Hits New Post-Pandemic Low in January 2022

February 04 2022

The Trepp CMBS delinquency rate resumed its decline in January 2022 after a one-month pause in December 2021. In December, the rate increased for the first time since June 2020. Prior to the rise, the rate had fallen for 17 consecutive months...

Marcus & Millichap - Research Brief - Housing Market January 2022

February 01 2022

Mortgage rates surge to a pandemic-era high. Following a steady but mild ascent at the end of last year, the growth trajectory of the 30-year mortgage rate became much more extreme in January.

Trepp CMBS Research - CMBS Issuance Explodes in 2021, Hits Levels Not Seen in 14 Years

February 01 2022

The private-label CMBS market came back to life with a vengeance in 2021. Total domestic issuance reached $109.12 billion, a whopping 95% more than was issued in the pandemic-interrupted prior year.

SVN Research - Economic Update 1.28.2022

January 28 2022

Real GDP, which measures inflation-adjusted economic growth, increased at an annualized rate of 6.9% in Q4 2021, according to the advanced estimate released by the Bureau of Economic Analysis on January 27th. Q4’s reading is 4.6% above the Q3...

Trepp Research - Benchmarking Cap Rates and Prepayment Penalties in the Multifamily Sector

January 25 2022

A total of 2,398 Freddie Mac, Fannie Mae, CMBS, and CRE CLOs multifamily loans in Trepp’s dataset were paid off prior to their maturity date.

SVN Research - Ecomonic Update 1.21.2022

January 21 2022

The Consumer Price Index (CPI) rose by 7.0% year-over-year in December, its highest increase in almost four decades. CPI climbed by 0.5% month over-month in December on a seasonally adjusted basis, 30 basis points lower than November’s 0.8% ...

Trepp - Bank CRE Loan Performance: Originations Up, Delinquencies Down but Still Signs of Pandemic in Q3 2021

January 19 2022

Originations of commercial real estate (CRE) mortgages rebounded in the third quarter, while delinquencies continue to trend down after a moderate rise in 2020. At a high level, conditions seem good in commercial real estate lending, however...

Marcus & Millichap - 2022 Multifamily - National Investment Forecast

January 19 2022

Nation-leading rates of job creation and household formation place Orlando and Las Vegas at the top of the U.S. National Multifamily Index for 2022. Robust in-migration also positions other major Southwest and Florida metros near the top of ...

Trepp CMBS - Another Month of Falling Special Servicing Rates Despite a Notable Uptick in Office Loan Transfers

January 10 2022

The Trepp CMBS Special Servicing Rate fell 20 basis points in December to 6.75% despite an uptick in the number of office loans sent to the special servicer.

Trepp CMBS Research - Rare Uptick in CMBS Delinquency Rate to Close 2021, New Office Delinquencies Push Rate Higher

January 05 2022

The Trepp CMBS delinquency rate increased for the first time in 18 months in December 2021. After two huge increases in May and June 2020, the rate fell for 17 consecutive months.

SVN Research - Economic Update 1-3-2022

January 03 2022

National home price growth has receded from its peak but continues to be strong, registering a 19.1% year-over-year increase in October, the latest month of data available from the S&P CoreLogic CaseShiller Home Price Index. Annual increases...