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Top Landlords Under Pressure in Sunbelt Boom
New apartments in cities like Atlanta are reducing profits for major property owners. US banks plan to sell CRE loans at a discount, despite borrowers being current on repayments, due to market concerns. Airbnb is suing New York City for removing numerous listings following new regulations on short-term rentals.
A Double-Edged Sword for Banks
With banks experiencing reduced revenues in Q1, the question arises: could increased commercial real estate lending be the solution to their balance sheet challenges? Meanwhile, private equity firms are poised to seize opportunities in the distressed CRE market.
Commercial Property's Great Reset
Real estate markets are grappling with multiple challenges, leading to a major reset across all property sectors. What sets this time apart from previous cycles? Meanwhile, Greystar has introduced a fresh workforce housing brand, and the build-to-rent (BTR) sector is witnessing remarkable growth, poised to break records this year.
ULI Predicts Pain Until 2024, Growth by 2025
The Urban Land Institute predicts positive long-term GDP growth and CRE volumes by 2025, but transactions are expected to fall 50% below 2021 levels for now. Developer Related Cos. unveils a $10B plan for a Hudson Yards casino and office complex. Meanwhile, America's urban cores are facing a severe crisis as the pandemic continues to impact office workers' return and property values.
Diverging Sale Prices: Large vs. Small Properties
The April 2023 CoStar Commercial Repeat Sale Indices (CCRSI) data reveals a growing divergence in the commercial real estate market, with multifamily leading the decline. Miami's commercial real estate market is experiencing a significant downturn, with an 80% plunge in Q1 sales volume, primarily driven by office deals.
Cash Crunch Threatens Apartment Landlords' $47B Loans
Multifamily landlords, once benefiting from pandemic rent growth, now face soaring costs and profit challenges. Texas, known for affordability, grapples with a housing crisis, attracting attention from neighboring states. Amid economic uncertainty, real estate investment firms proceed cautiously.
ICSC: Retail is 2023 CRE’s Golden Child
Attendees at ICSC Las Vegas expressed optimism for the retail sector. Jeff Gural won the NY's Flatiron Building bid, resolving the previous auction drama. Meanwhile, downtown LA's office distress indicates the upcoming challenges for cities nationwide.