Finance & Investment
Congress authorizes tax-free profits for investors in qualified opportunity funds.
A glut of liquidity in local capital markets is making life difficult for domestic and foreign investors alike.
The new ULI Real Estate Economic Forecast is taking a more bullish view on the U.S. economy—at least for the remainder of this year. As compared with the fall survey, key indicators such as gross domestic product (GDP) growth, jobs, and the Consumer Property Price Index (CPPI) all trended higher. But that boost may be short lived with growth tapering in 2019 and 2020.
While the latest Harvard University’s Joint Center for Housing Studies (JCHS) report on the state of rental housing in the United States. shows some positive signs for inventory, the overall trend persists that low- to moderate-income renters face significant cost burdens in most markets.
While the $1.5 trillion tax-cut bill passed by the U.S. House of Representatives is widely seen as beneficial for commercial real estate, one provision would eliminate a municipal financing tool that has been essential for housing, infrastructure, and industrial development investment for decades.
Commercial real estate lending markets remained on the upswing in Q3 2017 with rising equity prices, limited volatility, and tightening spreads, according to the latest research from CBRE.
According to a new report from CBRE, investment in the U.S. data center sector reached record levels in the first half of 2017. First half of 2017 investment totaled $18.2 billion, more than double that for all of 2016 (inclusive of all single asset, portfolio and entity-level/M&A transactions). At this pace, investment in the data center sector is on track to surpass the total for the three previous years combined.
Alternative, or nonbank, lenders are filling in gaps in the mortgage world where they find them, whether it be the result of increasing capital requirements for banks, consolidation in the banking sector, or a pullback by commercial mortgage–backed securities lenders. Last year alone, the five largest players in the sector collectively funded some $20 billion of interim loans. Plus, interest rate survey data from Trepp.
In a volatile year, the FTSE/NAREIT All REIT Index posted a modest total return of 9.3 percent in 2016, while the S&P 500 saw a total return of 12 percent. Real estate investment trusts (REITs) enjoyed a pleasant opening to the year, followed by a skittish second half as interest rate concerns applied downward pressure.
October share prices for REITS were lower month-over-month, and all sectors posted lower returns, except for infrastructure REITs which reported 18.3 percent in total returns for the year. Despite the decline in prices and performance, sector returns continue to surpass the S&P 500. Plus, interest rate survey data from Trepp.