SAN FRANCISCO-Commercial real estate is doing well in the face of a prolonged housing crisis, said Hessam Nadji, managing director of research and advisory services at Marcus & Millichap, during a recent appearance on CNBC’s Realty Check.
“US real estate investing has become a matter of not throwing out the baby with the bath water,” he said. Right now commercial real estate is still facing a solid recovery compared to its residential-asset counterparts.
Commercial real estate distress sales only account for 10% to 12% of overall transactions in the industry, compared to 25% to 30% in residential real estate.
Additionally, in commercial real estate, pricing has reached bottom and fundamentals are stabilizing, Nadji pointed out. Plus, people who would normally be buying houses right now are staying in apartments because they aren’t convinced the housing market has bottomed out.
Nadji does not see the changes in apartment fundamentals taking place in the near future, and there is also a limited supply of the assets right now, making them even more attractive. Click here to watch the full CNBC Realty Check video.
Video: How the Housing Crash Helps Apartments
SAN FRANCISCO-Problems in the housing market are beneficial for multifamily commercial real estate, according to Marcus & Millichaps Hessam Nadji.
MCLEAN, VA—“Property price and NOI growth continue to outperform their historical averages” in the majority of metro areas covered by Freddie Mac’s quarterly Apartment Investment Market Index, says VP Steve Guggenmos.
CHICAGO—With record absorption year to date, JLL reports a surge in data center development across the US, especially in hubs such as Northern Virginia.
DALLAS—Spirit Realty Capital Inc., a REIT that invests in single-tenant operationally essential real estate, has named Jackson Hsieh as president and chief operating officer, effective September 7, 2016.
Global investment in renewable energy development in 2015 was more than double that of coal- and gas-fired sources, and a whopping $2.3 trillion has been invested in renewables since 2004.