Ben Rohr

According to a recent GlobeSt.com. article, cap rates for small #multifamily properties averaged 6.0% in Q3, staying below the six-year high but up 31 basis points year-over-year. The risk premium over the 10-year Treasury yield has returned to pre-pandemic norms, reflecting a shift toward stabilization. The report by Arbor points to improving pricing, cap rates, and credit conditions thanks to easing interest rates, strong rental demand, and strengthened government-sponsored lending. Institutional investors are signaling that #CRE pricing may have hit bottom, setting the stage for attractive opportunities in 2025. Southern California’s Class B/C multifamily market shows similar trends: cap rates stabilizing near cyclical lows and solid fundamentals driven by demand. https://lnkd.in/gW-zF35B

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NYC’s Department of City Planning recently sent out a survey to make industry voices known on the "City of Yes" proposal. The proposal aims to help build more affordable market rate housing while also giving property owners more flexibility on adapting their real estate to its highest and best use. If you're interested, message me for a copy of the survey. Submit your feedback to [email protected]. #AffordableHousing #RealEstate #NYCPlanning

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The multifamily real estate sector is experiencing a notable slowdown in new development starts due to economic pressures, particularly in Texas and the Southern and Western U.S. Rising construction costs, higher interest rates, and market saturation are squeezing profit margins, making new developments less attractive and prompting developers to scale back on new projects. The slowdown may lead to tighter rental housing supply in the future, potentially driving up rents, while also stabilizing markets that have experienced rapid expansion and overbuilding. This shift in strategy is creating unique opportunities for investors in the preferred equity and distressed acquisitions spaces. Click below to register for our Preferred Investor Club, and gain access to trending industry topics and Club Capital's current offerings. https://hubs.li/Q02zs9WH0 #PreferredEquity #CREInvestment #Multifamily #Housing

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This article was written in March. I don't think anything is better with respect to the NYC office market. If anything, it has become worse. I remember a time when I lived in NYC and I couldn't walk one block without seeing a Pax Deli on a corner and they couldn't even keep up with the demand from office workers. I know of deals being done where Class B office is being bought at 30% of replacement cost. What is the catalyst that will change all of this? Or will it never change and this is the new reality? https://lnkd.in/eGsyqSxK #NYCOfficeMarket #RealEstateTrends #CommercialRealEstate #NYCRealEstate #OfficeSpace #MarketAnalysis #ClassBOffice #RealEstateInvesting #UrbanDevelopment #PropertyMarket #NYCChanges #CommercialProperty #EconomicTrends #RealEstateNews #InvestmentOpportunities #CityLife #MarketShift #RealEstateChallenges #OfficeMarketTrends #NYCProperty

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The value of distressed assets in the #CRE marketplace continued to grow in the U.S. into Q3'24. Still, the ramp up is not as rapid as that seen following the GFC as there are different forces at play in the current market. Read more about the source of distress and a chart on comparisons to the GFC by my colleague Alexis Maltin here: http://ms.spr.ly/6049WR4GN MSCI Real Assets

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This is interesting development. Say half of these projects move forward to actual conversions and that each building has an average RBA of 200,000 that's 9.4 million square feet of office inventory removed from the supply / demand matrix. Now say that the occupancy of these buildings is 50% and they move elsewhere that absorbs 4.7 million square feet. So this would move the needle to the tune of 14.1 million square feet. It sounds like a lot of inventory being removed from the supply / demand matrix, but there is currently 97 million square feet available. So these conversions would lead to 14.5% less space available. The $64,000 question is, how do we reduce the available space by another 20-30 million square feet. The long and short answer IMHO is economic growth in NYC; which will lead to more businesses being formed and more demand for office space. Let me know if your firm needs help navigating their next office real estate transaction. Michael Adler 212-519-2046 #cre #commercial #commercialoffice #commercialrealestate #commercialofficebuilding #commercialdevelopment #commercialleasing #office #officebuilding #offices #officebuildings #officelease #officeleasing #tenant

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Read our latest summary of NYC Building Zoning changes.

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#CRE, Freddie Mac Multifamily, Fannie Mae Multifamily, U.S. Department of Housing and Urban Development friends, need quick answers to your Multifamily Agency/GSE finance questions? Tired of sifting through "The Guide" or Googling for product term sheets? Check out this custom #ChatGPT tool to help! This tool aims to democratize access to Multifamily Agency/GSE finance information. It can answer questions like, "What's the min DCR for a $3MM loan in Seattle?" or "At what % ownership does an LP have to be underwritten?". (Link in comments) #Multifamily #agency #AI #freddie #fannie #guide #lending #CRE

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🚨 #MarketMonday: Northern NJ Industrial Market Update – Q3 2024 🚨 Sublease availability is rising in the Northern New Jersey industrial market, providing both challenges and opportunities for occupiers. 📊 💼 Key Insights: Sublease Space Growth: With a significant uptick in sublease options, occupiers have more flexibility in finding space that fits their needs—often at lower rates than direct leases. Rent Trends: Many sublease offerings are priced below market rates, creating opportunities for cost savings. Occupier Opportunities: Subleases offer faster occupancy solutions for businesses needing immediate space, ideal for scaling or streamlining operations. Market Dynamics: As more companies release space, competition may increase for landlords, but it also opens doors for savvy businesses to secure advantageous terms. If you're navigating this evolving market, let's discuss how Savills can help you optimize your strategy and capitalize on these opportunities. 📈 #CommercialRealEstate #IndustrialMarket #Savills #Sublease #RealEstateTrends #NorthernNJ

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Property investment sales for the first quarter were the second lowest for NYC since at least 2015. Multiple factors have contributed to this year’s slow start, but stubbornly high interest rates seem to be the main culprit, according to multiple industry sources.

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Price discovery in the NYC multifamily market continues to unfold. The Related Companies just sold 442 Lorimer St. in Williamsburg to Palladium Property Group at a price point that really puts the current market shift into perspective - $222,222 per unit across its 54 units. When this asset last sold in 2016, it traded at $550,459 per unit. That's a decrease of over 50% in one of Brooklyn's most desirable neighborhoods. But there's more to consider here. The actual adjustment in values from recent market peaks is likely even more significant than what we're seeing in this sale-to-sale comparison. Those who understand and adapt to these market conditions - whether they're buying, selling, or advising - will find opportunities as this cycle plays out. This is what price discovery looks like in real time.

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Buying real estate in New York City has always been an adventure, a complex puzzle where timing, market knowledge, and a wise negotiation strategy are critical. With some of the highest property prices in the world and fierce competition for space, even seasoned buyers can find the process daunting. Enter the buyer’s advocate, also known as a buyer’s agent, a role that has become indispensable for many navigating the city’s multifaceted real estate market. In this article, we’ll explore what a buyer’s advocate does and why their role is increasingly vital in helping prospective buyers achieve their homeownership dreams in a city that never stops moving. Additionally, we’ll address the significant shifts in commission structures that buyers and sellers must be aware of.

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🌟New Episode Alert!🌟 Join us on The Stash Cast as we dive deep into the world of real estate development with T.J. Ackermann​, CEO of TJ Ackermann Company! 🚀 From his family's early beginnings in Cincinnati to leading major development projects, TJ shares his incredible journey, valuable insights, and the secrets to his success. 🎧 Don't miss this episode filled with inspiring stories and practical advice for anyone in the real estate industry! 🔗 Listen now: https://lnkd.in/gev48PHk #StashCast #RealEstate #Development #Podcast #TJAckermann #PropertyDevelopment #RealEstateInsights #Cincinnati

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Here's our U.S. real estate team's update to the proposed changes to zoning regulations in New York City that are intended to spur the production of affordable housing, commonly referred to as "City of Yes". It's a quick and easy read: https://lnkd.in/eZMmiWhS #RealEstate #Zoning #AffordableHousing #Investment #Development #Regulation

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Once a symbol of ambition and prosperity, New York City’s housing market is now grappling with significant challenges. According to a 2024 report by Miller Samuel and Douglas Elliman, Manhattan apartment sales decreased by 12.2% year-over-year in the second quarter, with 2,609 transactions recorded—significantly below the decade average. Meanwhile, the luxury market has also faced a downturn, with properties priced over $5 million seeing a 19% drop in sales. Notably, high-end properties priced at $10 million and above have experienced a price correction, further emphasizing the current struggles of this once-resilient sector. https://lnkd.in/eJwrJDg3 #realestate #nyc #housing #politics #home

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Last month a NYC multifamily property sold for half of what it was listed for in 2022. Are opportunities coming back to NYC? . . . . . . Check out a short case study of a distressed multifamily asset, where I spell out the benefits of investing NYC multifamily right now. $4.85m sale price on $700k gross and $300k net income, with a path to $1.0m gross. https://lnkd.in/e2yWbn2p

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It is time to retire all “Return to” concepts. If your Return has not yet happened, it probably is not going to. #CRE https://lnkd.in/ePGWN2xf The world is now mostly two years beyond the end of almost all COVID-era restrictions. A "New Normal" has been established through intentional action or unintentional patterns forming. Headlines that continue to talk about Return to Office or Return to Work (with Amazon causing the most recent ruckus) are missing the point about how people work. It is past the opportunity for the carrot or stick, and time to accept where things are. Every week I see someone new going on about RTO, RTW, or the definition of Hybrid. The unstated context of these conversations is always "not enough people are in the office often enough." The fear about productivity and control has not disappeared in our new normal. As a collective, most organizations have not spent as much time teaching how to manage in a hybrid world as we spent talking about how important the concept was going to be in 2021 and 2022. It is therefore not an option now to point the finger at managers struggling with how people work today. Humans are creatures of habit. When we find an effective rhythm, we will put effort into sticking to that rhythm. From an office standpoint, that means that quite a lot of people have built up a multi-year rhythm that does not have them in an office every single week, let alone three days a week. But somehow, most companies have maintained or improved their pre-COVID productivity (as measured by profits or revenue per employee or total compensation). There are few top-level indicators that the current ways of working are not effective, yet the fear from managers continues. Some of that fear may be due to a growing idea that there is a need for fewer managers and more trust. If people can work effectively without a manager over their shoulders in the office, does the entire concept of how management works need reconsideration? Therefore, some of this fear is less about productivity and more about job protection. There are valid questions to ask about how work should be getting done in our new post-COVID world, but the questions are not about returning to the office.

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