The TreppWire Podcast: A Commercial Real Estate Show 275. Weak JOLTS Report, Marginal Rent Growth, & More Loans Transferred to Special Servicing
Sep 5, 2024
This week, the focus is on the weaker-than-expected JOLTS report and its market implications. Major apartment REITs report a modest rent growth of 1.82% in Q2 2024. The discussion delves into multifamily loans shifting to special servicing, detailing recent cases in Cincinnati and Indianapolis. Additionally, the office segment faces challenges, with notable loan declines and value reductions in superregional malls. Tune in for insights on these pressing industry trends!
AI Snips
Chapters
Transcript
Episode notes
Economic Outlook
- Equities had a rocky start to the third quarter, with concerns about an economic contraction fueled by weak ISM manufacturing and JOLTS reports.
- Bond yields decreased, indicating a flight to safety.
Global Economic Factors
- When the Fed starts cutting rates, expect dollar and commodity weakness.
- Global factors will likely cause market disruptions later this year.
REIT Rent Growth
- Major apartment REITs experienced marginal rent growth in Q2 2024, averaging 1.82% year-over-year and 0.62% quarter-over-quarter.
- These REITs own a small portion of total US apartment units (2.3%), mostly larger complexes, while two-thirds of the market comprises smaller properties.