Demonstrating its economic preeminence, the state of Texas is home to more Fortune 500 headquarters than any other state in the U.S., according to the updated list released by Fortune in June 2023.
Demonstrating its economic preeminence, the state of Texas is home to more Fortune 500 headquarters than any other state in the U.S., according to the updated list released by Fortune in June 2023.
Analyzing the apartment market requires an examination of both supply and demand dynamics, with the anticipation of increased demand in our forecast period, particularly in Sun Belt markets.
To say a property falls “below replacement cost” refers to the idea that if that existing property were built from scratch today, it would be more expensive to develop given significantly higher construction costs, including land, building materials, labor, and permitting. Therefore, when acquiring a commercial property at a significant discount to replacement cost, investors can potentially be afforded a safety margin and a competitive edge, all else being equal.
Remote work is having an outsized impact on office real estate, bringing down rents and occupancy across most markets, according to Green Street Advisors – a decline which is expected to continue into the foreseeable future.
This increase in relatively high-income renters has been building for over a decade, which suggests these renters will likely continue to impact demand for multifamily products for at least the next two to three years, barring any drastic economic shifts.
During economic slowdowns and rising interest rate environments, commercial real estate (CRE) investors tend to refocus attention on distressed real estate opportunities, believing that such opportunities can offer more attractive pricing and the potential for higher returns.
The equity multiple is a metric central to real estate investment, as it succinctly defines how much return an investor might garner on their investment. In simple terms, “How much could I get back for every dollar I invest?”
Last week, the Bureau of Labor Statistics reported 236,000 jobs added to U.S. payrolls in March, which, while lower than economists had expected, is still indicative of the resilience of the labor market.
When considering what types of investment to add to a portfolio, different investors will have different tolerance levels for risk. While some might be willing to take additional risks in order to possibly garner a higher net return (value-add), others prefer a real estate risk profile on the lower end of the scale (core) and others might want something in between (core plus).
CONTI Capital’s approach to multifamily investment favors markets with flourishing industry clusters, as they tend to be associated with higher levels of productivity, innovation and a skilled workforce. Texas’ energy sector is one of the oldest industry clusters in the U.S., and although the oil and gas industry tends to move in line with oil prices, we believe the industry can be a critical component of a thriving regional economy.