10 Key Takeaways from the Matthews Publication
The Matthews Publication contains insightful articles that intersect information and innovation. Each piece is sourced from credible sources and sets out to educate brokers and investors. Matthews™ prides itself on being a reliable and revolutionized brokerage firm, and this publication’s content further perpetuates that image. Read more to see the top 10 things you can learn from this issue of the publication.
Understanding Capital Markets & Industry Trends For 2024
Commercial real estate’s capital markets significantly shifted in 2023, and the outlook for CRE is at a critical juncture. The prospect of a sustained 5% or higher 10-year Treasury yields on cap rates and capital values has raised questions about the resilience of CRE in the face of increased borrowing costs. This economic landscape is compounded by lowered growth expectations for investment rate volumes in 2024, suggesting a need for stakeholders to recalibrate strategies in response to evolving market conditions. Click here to read the article from the Matthews Publication.
Multifamily Supply Challenges
Multifamily development continues to make headlines, and several markets are reporting a supply pipeline that outpaces demand. Interest rates are expected to start decreasing in mid-2024 as the Fed’s inflation target of 2.0% is expected to be met over the next few months. Until the interest rates fall, commercial real estate will stay in a down market, multifamily included. Click here to read the article from the Matthews Publication.
How Economic Conditions Shape Self-Storage
In the face of a challenging market, Matthews™ remains optimistic regarding the self-storage sector thanks to its inherent resilience. However, it is undeniable that the self-storage industry is feeling the effects of the broader economy. The state of the overall economy and geopolitical conditions can significantly impact self-storage owners by influencing customers’ demand for their services, the competitive landscape for acquisitions, pricing power, and the financial stability of their customer base.
State of the Industrial Market + 2024 Trends
Over the last few years, the U.S. industrial segment has become one of investors’ most sought-after product types. However, given the current economic climate, the market is settling into what could be one of the sector’s more challenging times as interest rates are to remain ‘higher for longer’ and absorption decelerates. With this in mind, top trends within the asset class include moderating e-commerce, nearshoring, office to industrial, decelerating rent growth, and industrial outdoor storage. Click here to view the article from the Matthews Publication.
How Multi-Tenant Velocity Has Been Impacted By Interest Rates
Despite the fluctuations in the ever-evolving landscape of multi-tenant retail, the sector has exhibited resilience, finding solid ground with sustained strength in retail sales and responding positively to investors. The article highlights the intriguing trajectory of multi-tenant velocity by exploring transaction patterns and contextualizing them with economic and industry shifts, unraveling the relationship between multi-tenant transactions and the fluctuations in the 10-year Treasury.
The Key To Apartment Investment Success
The phrase “location, location” is a frequent saying in the real estate industry, and it’s valuable advice, especially when investing in apartment properties. The asset’s location plays a substantial role in establishing its worth, demand, value-increased potential, investment performance, and more. The article dives into popular location factors to consider, the best cities for renters, and more.
Retail Market Performance
Since the pandemic, retail has demonstrated notable growth, attributed to consistent demand, adaptive strategies, a notable reduction in store closures, and limited new supply. This report dives into why retail is in high demand and why retail fundamentals are expected to remain balanced. Click here to view the article in the Matthews Publication.
The Options Available for Borrowers in the Current Apartment Market
Over the past couple of months, higher market interest rates have affected the multifamily market with several negative outcomes. The increased cost of capital has inhibited multifamily sales as sellers and buyers find risk-adjusted return price discovery due to increasing leverage costs. As this market cycle evolves, investors await stabilization within the capital markets. Click here to view the article in the Matthews Publication.
The Repurposing of Malls
Once the cornerstone of the American retail experience, shopping mall fundamentals have shifted. They began their decline pre-pandemic, and the onslaught of COVID-19 exacerbated the sector’s challenges even further. This year will be difficult as interest rates remain elevated, but there are opportunities. Owners and developers must continue to innovate. This article dives into how the great American shopping mall is undergoing metamorphosis. Developers are transforming its exterior and consumers are proclaiming a new purpose.
Navigating the Inflation Landscape
Inflation is a hot topic of discussion. A historic series of rate hikes by the Federal Reserve Open Market Committee have produced economic stagnation. Learn about the three inflationary measures that accurately depict the market. These include the Consumer Price Index (CPI), Core CPI, and Shelter Costs. Explore how new data proves that there is light at the end of the tunnel.
