In Case You Missed It: Week of July 30
U.S. Labor Market Earns ‘Gold Medal’; First Risk Retention Compliant CMBS Deal Put on Block; Manhattan’s Luxury Condo Glut; Freddie Mac’s Mid-Year Multifamily Market Outlook and More.
Economists React to the July Jobs Report: ‘The U.S. Labor Market Earned a Gold Medal’
The Wall Street Journal – August 5, 2016
“The U.S. labor market expanded at a solid pace for the second straight month in July. The economy added 255,000 jobs. The jobless rate was unchanged at 4.9%. Here’s how economists and analysts reacted to Friday’s report.”
First CMBS Deal Compliant with Risk Retention Put on Starting Block
Trepp – August 4, 2016
“The first CMBS conduit deal designed to comply with pending risk retention rules has been launched – four months before the rules go into effect. While the deal (Wells Fargo Commercial Mortgage Trust, 2016-BNK1) is expected to be warmly received by investors, its collateral pool possesses some of the most conservative credit characteristics seen in a conduit in years. Ultimately, the jury’s still out on how regulators will view it.”
Manhattan Luxury-Condo Glut Ends Developer Rush for Land Deals
Bloomberg – August 4, 2016
“Real estate investors bid up prices for Manhattan lots to records in recent years as they raced to build condominiums aimed at wealthy individuals, many of them foreigners seeking a haven to park cash. The soaring land values in turn fueled ever-higher prices for condos as developers sought to recoup their costs. Now, sales of high-end apartments have cooled as buyers from areas such as China and Brazil pull back amid slowing economic growth, a strengthening U.S. dollar and a prolonged slump in oil.”
Slow Growth Outlook: No Worries for Real Estate?
Commercial Property Executive – August 3, 2016
“Recent reports on a number of economic fronts–GDP growth, interest rates and Brexit, to name a few–have not been encouraging. Are these conditions a harbinger of the next downturn, or could they portend an extension of the “Goldilocks” economy that has been so good for commercial real estate?”
2016 Mid-Year Outlook: Where Are We Heading?
Freddie Mac Viewpoints — August 2, 2016
“By the end of 2015, the multifamily industry was closing out five years of an unprecedented run of success: rent growth was spectacular, demand was up and those factors spurred construction to hit pre-recession highs. During this period of strength, experts repeatedly predicted that each coming year would be the year of slowing down. Is 2016 the year?”
Understand Why There’s Not Enough Affordable Housing, With This Real Estate Game
Co.Exist – August 1, 2016
“Developers aren’t building enough to keep up with demand as the number of low-income households grows. This isn’t just because most developers would prefer to reap in profits with luxury apartments that can bring in the highest rents. As a simple new game explains, the math just doesn’t work. It’s literally unaffordable to build affordable housing.”