Limon Net Lease Group

netnetnet

Q3 2021 Multifamily Market Report | Chicago Metro Area

by

Fundamentals Return to Pre-Pandemic Levels, Boosting Investment and Out-of-State Interest

  • Positive absorption resurfaces across all submarkets. Chicago recorded a recent spike in apartment demand that restored vacancy and rent metrics to levels last seen before the health crisis.
  • Epicenter of inventory growth shifts. For the first time since 2004, suburban deliveries exceed urban completions.

Investment Highlights

  • Chicago notched an 8 percent rise in deal flow over the trailing-12- month period ended in June, one of the largest gains among Midwest metros.
  • Average pricing fell 2 percent during the past year to $155,500 per unit, a figure that trailed the national mean by 9 percent.
  • Urban submarkets have accounted for two-thirds of all apartment transactions since last July, with trades most concentrated in North and South Lakefront neighborhoods.
  • Strong renter demand for suburban units has drawn more out-of-state investors to locales outside the CBD including North and Northwest Cook County.

* Forecast; ** Through 2Q
Sources: CoStar Group, Inc.; Real Capital Analytics; RealPage, Inc.

Download the Full Report Here

The information contained in this report was obtained from sources deemed to be reliable. Every effort was made to obtain accurate and complete information; however, no representation, warranty or guarantee, express or implied, may be made as to the accuracy or reliability of the information contained herein. Note: Metro-level employment growth is calculated based on the last month of the quarter/year. Sales data includes transactions sold for $1 million or greater unless otherwise noted. This is not intended to be a forecast of future events and this is not a guaranty regarding a future event. This is not intended to provide specific investment advice and should not be considered as investment advice. Sources: Marcus & Millichap Research Services; Bureau of Labor Statistics; CoStar Group, Inc.; Real Capital Analytics © Marcus & Millichap 2021 | www.MarcusMillichap.com

Q3 2021 Multifamily Market Report | Orlando Metro Area

by

Corporate Expansions Bolster Renter Demand; Construction Starts Tapering

  • Local employment and household growth support rental demand. Employment losses in the leisure and hospitality sector due to the pandemic negatively affected the performance of multifamily properties across the metro in 2020.
  • Deliveries approach record but may slow over the next few years. Orlando has consistently posted some of the strongest population and job growth figures in the nation, which prompted developers to build at a pace the metro has not seen in two decades.

Investment Highlights

  • Following a period of uncertainty, investment activity escalated in Orlando during the fourth quarter of 2020 and has since further accelerated.
  • The increase in Class A transactions over the last four quarters contributed to the average sale price per unit in Orlando climbing 2.2 percent to $158,400, while the average cap rate fell 20 basis points to 5.2 percent.
  • Increased competition for assets and compressing cap rates drew investor interest farther away from the CBD.

* Forecast; ** Through 2Q
Sources: CoStar Group, Inc.; Real Capital Analytics; RealPage, Inc.

Download the Full Report Here

The information contained in this report was obtained from sources deemed to be reliable. Every effort was made to obtain accurate and complete information; however, no representation, warranty or guarantee, express or implied, may be made as to the accuracy or reliability of the information contained herein. Note: Metro-level employment growth is calculated based on the last month of the quarter/year. Sales data includes transactions sold for $1 million or greater unless otherwise noted. This is not intended to be a forecast of future events and this is not a guaranty regarding a future event. This is not intended to provide specific investment advice and should not be considered as investment advice. Sources: Marcus & Millichap Research Services; Bureau of Labor Statistics; CoStar Group, Inc.; Real Capital Analytics © Marcus & Millichap 2021 | www.MarcusMillichap.com

Q3 2021 Multifamily Market Report | Dallas-Forth Worth Metro Area

by

Dallas Urban Core Posts Strongest Absorption in More Than 20 Years

  • Young adult migration stimulates downtown demand. Many firms are expanding their workforce in the Metroplex, luring young adults to accept jobs and relocate.
  • Positioning of development bodes well for absorption. Dallas-Fort Worth led all U.S. markets over the past year ended in June with the addition of nearly 27,700 units.

Investment Highlights

  • Deal flow has been consistently strong through the health crisis, as more out-of-state investors set their sights on Dallas-Fort Worth.
  • Class A properties traded more frequently during the past four quarters than in the previous year.
  • The suburb of Denton has been attracting more private buyers seeking lower-tier complexes.

* Forecast; ** Through 2Q
Sources: CoStar Group, Inc.; Real Capital Analytics; RealPage, Inc.

Download the Full Report Here

The information contained in this report was obtained from sources deemed to be reliable. Every effort was made to obtain accurate and complete information; however, no representation, warranty or guarantee, express or implied, may be made as to the accuracy or reliability of the information contained herein. Note: Metro-level employment growth is calculated based on the last month of the quarter/year. Sales data includes transactions sold for $1 million or greater unless otherwise noted. This is not intended to be a forecast of future events and this is not a guaranty regarding a future event. This is not intended to provide specific investment advice and should not be considered as investment advice. Sources: Marcus & Millichap Research Services; Bureau of Labor Statistics; CoStar Group, Inc.; Real Capital Analytics © Marcus & Millichap 2021 | www.MarcusMillichap.com

Q3 2021 Multifamily Market Report | Houston Metro Area

by

High-Quality Suburban Rentals Attracting Residents Priced Out of Homeownership

  • Affordability gap doubles that of the U.S. The metro’s median single-family home price surged 19 percent during the past year as migration to the market accelerated.
  • Northwest portion of Inner Loop to be tested by supply influx. The Greater Heights/Washington Avenue submarket is an area of active development, which could apply pressure to fundamentals.

Investment Highlights

  • The number of trades during the past 12 months ended in June was about the same as the previous year, though the average sale price advanced 9 percent to roughly $122,000 per unit.
  • North Houston near the George Bush Intercontinental Airport and the Greenspoint area recorded stronger deal flow over the past four quarters.
  • Upper-tier apartments have been changing hands most frequently in north and northwest suburbs including Cypress and Spring, where average pricing on Class A/B properties has been $140,000 per unit.
  • Within the Inner Loop investors are focusing on Class C apartments, favoring neighborhoods that appeal to young adults.

* Forecast; ** Through 2Q
Sources: CoStar Group, Inc.; Real Capital Analytics; RealPage, Inc.

Download the Full Report Here

The information contained in this report was obtained from sources deemed to be reliable. Every effort was made to obtain accurate and complete information; however, no representation, warranty or guarantee, express or implied, may be made as to the accuracy or reliability of the information contained herein. Note: Metro-level employment growth is calculated based on the last month of the quarter/year. Sales data includes transactions sold for $1 million or greater unless otherwise noted. This is not intended to be a forecast of future events and this is not a guaranty regarding a future event. This is not intended to provide specific investment advice and should not be considered as investment advice. Sources: Marcus & Millichap Research Services; Bureau of Labor Statistics; CoStar Group, Inc.; Real Capital Analytics © Marcus & Millichap 2021 | www.MarcusMillichap.com

Q3 2021 Multifamily Market Report | NYC Metro

by

Manhattan Renters Returning After Year Away; Construction Keeps Pressure on Class A Units

  • Metro exiting challenging period. While fewer people left New York on a net basis in 2020 than in any of the previous three years, many residents did relocate out of Manhattan.
  • Outer boroughs performing well, construction a concern. Most submarkets outside Manhattan posted sub-3 percent vacancy in June, with some areas such as Southeast Brooklyn and Ditmas Park-Flatbush staying under 2 percent.

Investment Highlights

  • The number of properties that changed hands in the first six months of 2021 was up by about 9 percent from the second half of 2020.
  • Over the 12-month period ending in June properties traded at an average per unit price of $339,900, down 3 percent from the 2018 peak.
  • Sales activity was up across all five boroughs over the past four quarters, with the largest jump occurring in Queens.
  • Manhattan buyers targeted the Upper West Side most often, with numerous century-old properties with fewer than 20 units.

* Forecast; ** Through 2Q
Sources: CoStar Group, Inc.; Real Capital Analytics; RealPage, Inc.

Download the Full Report Here

The information contained in this report was obtained from sources deemed to be reliable. Every effort was made to obtain accurate and complete information; however, no representation, warranty or guarantee, express or implied, may be made as to the accuracy or reliability of the information contained herein. Note: Metro-level employment growth is calculated based on the last month of the quarter/year. Sales data includes transactions sold for $1 million or greater unless otherwise noted. This is not intended to be a forecast of future events and this is not a guaranty regarding a future event. This is not intended to provide specific investment advice and should not be considered as investment advice. Sources: Marcus & Millichap Research Services; Bureau of Labor Statistics; CoStar Group, Inc.; Real Capital Analytics © Marcus & Millichap 2021 | www.MarcusMillichap.com