New York multifamily market solidly back on track. This past July marked the three-year anniversary of New York City’s post-COVID-19 reopening and found multifamily vacancy at a historically low 1.8 percent. The lack of availability has facilitated consistent, if modest, rent growth, with the metro’s average effective rate up 8 percent in that same three-year span. The return of many quality of life factors to the city, as well as a broad labor market recovery,… Read More

Bloomberg Features Marcus & Millichap CEO Hessam Nadji The Forces Recalibrating The CRE Market Debunking the myth of an impending real estate collapse. CRE pricing reset helps clear the market – how deep will the discounts run? Calibrating the rise in investor activity unlocked by the Fed move. Quantifying bank exposure to CRE/office loans.    

Labor market flexes renewed strength. Following three straight monthly gains below 160,000 new jobs, national employment rose by 254,000 positions in September 2024 — the largest hike since March. That addition lowered unemployment to 4.1 percent, which is up 30 basis points from the same point in 2023 but down from the 4.3 percent peak in July, easing recession concerns. Employment gains spanned a wide range of sectors in September. Driven by accommodations and food services… Read More

Three major events followed the Fed rate cut – do they pose risk? Could the middle east conflict, port strike or hurricane reignite inflation? Key considerations for investors as a flock of Black Swans emerge  

CNBC Features Marcus & Millichap CEO Hessam Nadji Will Lower Interest Rates Curb Real Estate Distress? How is the Fed’s rate cut impacting investor activity and market liquidity? Will increased capital flows and transaction speed ease maturing debt pressure? Beyond the office sector, is commercial real estate seeing stronger investor demand? How will pent-up demand shape future transaction velocity in commercial real estate?    

More apartments were absorbed during the opening six months of 2024 than during the entirety of last year, keeping national vacancy unchanged over the first half. Rent growth remains below historic norms as the wave of new supply is elevating concession use in development-heavy markets. Nevertheless, barriers to becoming a first-time homeowner along with a cooling labor market are motivating tenants to renew leases, supporting rent growth in that category. Key Features Include: Insights into… Read More

Mortgage rate plunge fails to stoke buyer demand. Existing home sales decreased by 3.3 percent year over year in August 2024 to an eight-month low. That pullback transpired in the midst of substantial downward movement in the average 30-year fixed-rate mortgage. The gauge plummeted by 60 basis points year over year to 6.5 percent in August and slackened by an additional 40 basis points through mid-September. Even so, record-high home prices are maintaining historic homebuying barriers.… Read More

Why the 10-Year Treasury has been rising Wall Street’s interest rate predictions for the next year Why real estate investors are pursuing opportunities NOW      

A demographic trend that bodes well for CRE Why millennials will be key to the economic future The significant role Gen Z could play    

Decision kicks off greater reduction cycle. The Federal Open Market Committee (FOMC) slashed the the federal funds rate by 50 basis points during its September meeting, setting the lower bound at 4.75 percent. The first cut since March 2020, this decision reflects the Fed’s confidence that inflation is moving sustainably toward 2 percent and its intent to prevent further labor market softness. In August, headline CPI was up 2.5 percent annually, with unemployment sitting at 4.2… Read More