Streit Lending’s Post

Apartment #REITs' Q1 results either met or surpassed expectations, with some even raising elements of their full-year guidance, as reported by GlobeSt.com. Despite supply driving a divergence in rent performance among major #multifamily REITs, the improving demand drivers and upswing in job growth are encouraging signs for the sector. https://lnkd.in/g7eiKUpC

The apparent paradox between the downturn in #multifamily confidence and the optimistic trajectory of Apartment #REITS' guidance epitomizes the multifaceted nature of the real estate sector. Highlighted in two articles from GlobeSt.com, titled “Multifamily Confidence Slide" and “Apartment REITS Increase Guidance," these conflicting headlines serve as a poignant reflection of the industry's complexity. John Francis Rodiles, National Sales Manager at The Mogharebi Group, “If you see conflicting headlines, the answer is often in the details.” We are seeing rent growth help cover increases in operational expenses for many multifamily owners. Concurrently, imminent refinancing will continue to pressure equity positions and bank balance sheets.   Check out the articles:  https://lnkd.in/g7eiKUpC   https://lnkd.in/gwx5yWxg

Apartment REITs boost guidance after strong Q1! With job growth up & fewer renters leaving for homeownership, the outlook is positive. Renting remains more affordable than buying due to high interest rates. #REITs #Multifamily #CRE #Aspire #JobGrowth https://lnkd.in/ewBhxeY8

The apparent paradox between the downturn in multifamily confidence and the optimistic trajectory of Apartment REITS' guidance epitomizes the multifaceted nature of the real estate sector. Highlighted in two articles from GlobeSt.com, titled “Multifamily Confidence Slide" and “Apartment REITS Increase Guidance," these conflicting headlines serve as a poignant reflection of the industry's complexity. If you see conflicting headlines, the answer is often in the details. We are seeing rent growth help cover increases in operational expenses for many multifamily owners. Concurrently, imminent refinancing will continue to pressure equity positions and bank balance sheets.   Check out the articles:  https://lnkd.in/gza98ptu   https://lnkd.in/gmtdRvUT

"Following a period of uncertainty and fluctuation exacerbated by the global pandemic, the rental market is showing signs of resilience and renewal. The return to positive rent growth underscores the gradual restoration of confidence among tenants and landlords alike, as economic conditions stabilize and consumer sentiment improves. Learn more: https://bit.ly/436qoxi #CRE #CRENews #Rent #RentalMarket"

This is very important information to understand if you are a Multifamily owner or investor. Public disclosures and statements by these companies provide a look under the hood of some of the best in our business. These companies are able to benefit from economies of scale on the expense side although they’re generally more exposed to new supply pressures on rents as their respective portfolios skew Class A. Pay attention to the fact that they are saying that NOI growth will be a struggle this year. #reits #multifamily

Facing a rent increase can be daunting, but it doesn't have to be. Here are some tips to help you navigate this situation: 1. Understand the Market: Research local rental rates to see if the increase is reasonable. 2. Negotiate: Don’t be afraid to negotiate. Highlight your good tenant history and ask for a smaller increase or additional amenities. 3. Long-term Leases: Consider signing a longer lease to lock in the current rate or negotiate a gradual increase. 4. Document Everything: Keep all communication in writing to ensure there are no misunderstandings. Have you successfully negotiated a rent increase before? Share your story with us! #RealEstate #RentIncrease #TenantTips #Negotiation Need help negotiating your rent? Contact me for expert advice!

Here’s a twist: Despite more housing options, renters are staying put a bit longer. 📊 Berkadia’s latest report shows job growth is strong, with 222,300 new positions each month, driving apartment leasing. We’ve already absorbed more units this year than last! 🚀 New units are popping up, especially in the Sun Belt, and occupancy remains solid at 94.2%. Effective rent is up 1.2%, but with 20% of units offering concessions, renters are finding deals. 💸 So, property managers, it’s all about balancing service and pricing. Move-ups are still happening, but renters are aiming higher if they move. Stay sharp and adapt! 🤓💪 #multifamily #realestatetrends #propertymanagement #marketupdate

Key takeaways from our latest Single-Family Rent Index: 📍 U.S. single-family rent prices were up by 2.4% year over year in August, the lowest rate of growth recorded since last fall. 📍 Detached rental prices rose by 2.3% from August 2023, compared with 2% for attached properties. 📍 High-end rental prices were up by 2.9% year over year in August, while low-end prices declined by -0.2%. Head over to our blog for the latest numbers and commentary from our team of experts: https://clgx.co/3Yym8pU

Commentary from CEOs on their earnings calls provides some of the most interesting insight available. It is quite time consuming to listen to them all and summarize them, which is why we are testing AI capabilities to make us more efficient. Kudos to Jesse McConnico Steve Basham Rick Palacios Jr. and Rebecca Kirby for producing a very insightful report that is helping us determine just how much multifamily construction is likely to fall this year. Rent growth is especially challenging too, with huge submarket differences and a lot of tenants paying below market rents from leases signed long ago.