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CRE Magic Minute – Episode #2

We are still feeling the impact of the recession although it began in March of 2020, triggered by COVID-19.  After economic activity had collapsed at a record pace in Q2, it rebounded almost as sharply in Q3. By the fourth quarter, the pace of recovery had slowed some and performance was still not at pre-recession levels.  As 2020 unfolded, we saw a sharp increase in the amount of sublease space available in the office market. Compared to the end of 2019, with 62.6 MSF of sublease space on the market, the volume of such space had nearly doubled to 111.9 MSF only one year later—the largest amount of sublease space available since Q3 2003.  Asking rents are likely to decline in the next few quarters as owners face pressure from a rising volume of flex space. It is anticipated that it will be a couple of years before national rental rates begin to appreciate again in the aggregate.  





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CRE Magic Minute – Episode #1

The commercial real estate market continues to recover, but sales, leasing, and construction activity remain below year-ago levels. The recovery also remains uneven.  There is stronger investor interest for land, multifamily, and industrial properties than for hotels, retail, and office properties. On a year-over-year basis, sales declined by 1% in the fourth quarter of 2020 but they declined 5% in the second quarter. Leasing volume fell by 1% annually but 4% in the second quarter. Construction activity was down by 3% annually and 6% in the second quarter. The risk spread which are cap rates less 10-year T-bond, remain elevated at 6% compared to 4% prior to the pandemic.


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Real Estate Roundup!

May new home sales gain 2.2% from April

Sales of new single-family houses in May 2015 were at a seasonally adjusted annual rate of 546,000, which is up 2.2% from April, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. — From Housing Wire

3 ways to tame student loan debt and afford a mortgage

It’s no secret that student loans can make buying a home a challenge. But what exactly is the problem, and how can buyers overcome it? The problem is that student loans can be included in the buyer’s debt-to-income ratio, or DTI. — From Bankrate

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