Market Trends

Real estate investors face significant tax changes for 2018. Discover how to capitalize on tax reform and how it could affect commercial real estate performance.

Chicagoland 2017 Closings: 332 Transactions Totaling $1.45 Billion

Sizing up a potential real estate investment is no easy task and there are a number of things investors must consider before closing a deal. Two of the most critical factors are the cap rate and the IRR or internal rate of return. There are some similarities between the two but it’s important to understand exactly what they measure and why they’re important.

Investor confidence in the stability of the multifamily sector this year remains strong, despite robust new supply levels and concerns regarding rising inflation and aggressive interest rate hikes.

                   Research Brief August 2017 HOUSING       Developing Trends   ■ Apartment construction appears likely to peak this year as more than 370,000 units are slated for delivery, up from 290,000 apartments in 2016....

Apartment investments will maintain a positive outlook in 2018 as the combination of steady job creation, healthy demographics and an accelerating pace of household formation sustains renter demand. The consistent ow of newly developed units, a top of mind consideration for many investors, increased competition for Class A apartment assets in cities with disproportionate deliveries. The effects of the additions tend to be concentrated, and the deliveries will wane in the coming year, supporting sound performance metrics in most markets. Class B and C workforce housing will continue to outperform as vacancies in these properties remain at historical lows, enabling owners to justify strong rent growth.