Each week we bring you the best of what we’re reading in industry news & market trend commentary.
Emerging Markets for Hotel Investors
NREI – New markets for hotel investment are emerging, as high prices in first-tier cities are forcing many investors to consider secondary markets in search of better value. These secondary markets are generally characterized by high population growth, lower unemployment rates, and attractive real estate values. Cities such as Atlanta, Charlotte, Dallas, Indianapolis, Jacksonville, Kansas City, Orlando, Phoenix, Salt Lake City, and Tampa have seen real estate transactions spike within the last few years. Along with location, investors are continuing to explore a broader range of lodging establishments. Investors are now considering limited-service assets in cities such as Boise, Moab, Bloomington, and the Carolina coast.
BisNow – The U.S. multifamily sector has remained a steady target for investors during the current cycle. Institutional investors are allocating even greater portfolio share toward multifamily, and banks are aggressively competing to provide loans for apartment and condo projects. Gregory Bates, COO of GID – a firm that manages money for some of the world’s largest pension funds and sovereign wealth funds – said they remain bullish on the multifamily sector. This increase in demand comes as a result of the inverted yield curve. Institutional investors and pension funds are looking to multifamily real estate as a more stable sector than other portions of the economy, in the event of a downturn because of their additional source of monthly income, slow but steady appreciation and continued demand for housing spaces.
Curbed – The Urban Land Institute’s annual report identifies top 10 real estate trends for 2020 and markets to watch. This article touches on the housing affordability crisis, demand for co-working spaces, the millennial demographic migration to secondary suburban markets, and favorable senior housing investments. It also highlights growth in favoring large and mid-sized metros in the cities of Austin, Raleigh/Durham, Nashville, Charlotte, Boston, Dallas/Fort Worth, Orlando, Atlanta, Los Angeles, and Seattle. Smaller metros like Charleston South Carolina, Portland Oregon, and Indianapolis get honorable mention as the second wave of increasingly popular metros expected to attract new investment.