Don't Get Too Comfortable: Texas, The Darling Of U.S. Multifamily, Sees Rent Growth Slow, Absorption Dip

Rents have begun to stabilize in Dallas-Fort Worth and in the state's other metros after reaching historic highs in 2021.

Explosive job growth, more people moving to Texas and a worsening affordability crisis in the for-purchase market created unprecedented demand for apartments in DFW since the beginning of the pandemic.

Owners, saddled with their own heightened expenses, began charging more per unit, causing rent growth to hit nearly 19% last year, far exceeding the long-term average of 6%, ApartmentData.com President Bruce McClenny said. 

“That’s three years of average rent growth pushed through in one year,” he said. “You just can’t expect that to continue — it’s going to settle back down.”A reversion to the mean is already apparent in the numbers. Rent growth in DFW averaged 11.7% over the three-month period ending Aug.…

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Federal EV Charging Funds Could Boost Overlooked Property Type: Gas Stations

When Bertha Benz made the world’s first road trip in an automobile 134 years ago, one of the tricky points of the voyage was finding a place to refuel. Luckily, chemists at the pharmacy carried ligroin, a lab solvent made of petroleum, which propelled Benz and her children on their 110-mile trip in Carl Benz’s grand invention.

Electric vehicle proponents hope the rollout of the $5B National Electric Vehicle Infrastructure program will make it a little easier for EV drivers in the U.S. to charge than it was for Benz to refuel in 1888 Germany. 

And like during the Benz road trip, EV drivers should soon get an assist from an existing property type — this time, gas stations, which experts said could get a boost in business with the installation of chargers.

Decades ago, gas stations simply sold gas before eventually incorporating convenience offerings, car washes, food, ATMs and lottery sales, said NRC Realty & Capital Advisors Executive Managing Director Evan Gladstone, whose company represents sellers of convenience stores and gas stations.All of those additions have made the properties more appealing as an investment,…

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Opportunistic Investors Awaiting A Wave Of Office 'Value Destruction'

Owners of older office buildings across the U.S. are facing hard times ahead as financing deals get more difficult — and opportunistic buyers are lying in wait.

“I really haven't invested in office in the last 14 years,” PGIM Real Estate Global Chief Operating Officer and Head of U.S. Equity Cathy Marcus said at Bisnow’s National Finance Summit last week. “I think that in the next year or two, it'll be a heck of a lot more interesting than it has been for a really long time.”

Last week, the Federal Reserve introduced its third consecutive interest rate increase of 75 basis points in response to persistent inflation, with Chairman Jerome Powell promising that the Fed would continue to "act aggressively" to bring inflation down. The latest hike brings the current interest rate over 3% — making the cost…

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