Category Archives: Rental Class

Tampa Apartments See Massive Rent Increase
If you live in the Tampa Bay metro area, you have experienced the vast increase in rents first-hand. Recently in The Tampa Tribune this story was featured in more detail.  Click the following link to read the full article: http://tbo.com/news/business/study-tampa-apartment-rent-increases-among-largest-in-us-20150414/?page=1 Have you experienced this trend yourself?...
Retail Rent Sees Global Growth
There is finally some good news in the land of retail rent. According to research conducted by CBRE, a real estate services and investment firm, global retail rent grew by 4% in 2013, and is expected to continue to rise in 2014, especially in popular markets. The growth seems to be a result of the lack of prime retail space available in some of the most expensive markets in the world, such as Hong Kong, Paris and New York. In 2013, a square foot of space cost US$4,333 per year in Hong Kong, US$3,150 in New York and US$1,426 in Paris. Additionally, there also appears to be a shortage of new retail development, which makes the fight for limited existing space even more competitive and costly. This is especially true in Hong Kong, where space in limited and demand is extremely high, especially among luxury retailers who...
There Goes the Neighborhood?
“We’ve seen the shift from the time we first moved in here from 2009 to now. The neighborhood is already declining.” 30-something mom and homeowner’s board member, Brooklyn, New York They block school buses and garbage trucks by parking on the narrow streets. Neighbors complain of hearing teenagers outside at all hours of the night. Fast food restaurant trash is seen strewn on the ground. What force could be causing this neighborhood devastation? Renters. “Homeowners are more likely than renters to do neighborhood maintenance, get involved with community groups and vote with greater frequency.” (Research paper, Edward Coulson, economics professor, Pennsylvania State University) Behemoth alternative real estate investment firms own thousands of rental properties in family neighborhoods. They believe that funneling money into properties that would otherwise be left vacant improves communities, boosts the quality of rental homes and affords moderate-to-higher-income families access to better quality schools. But these large landlord...
Crowdfunding Comes to Real Estate Investing
Today, individual real estate investors have more opportunity than ever to invest in income-producing property, thanks to a new rule  - The Jumpstart Our Business Startups Act of 2012 (The JOBS Act) – which ends an 80-year ban on “general solicitation”, allowing private firms and investment funds to broadly advertise securities offerings. Expect to see real estate sponsors giving it their all via the Internet, television, newspapers, and billboards…and, more importantly, keep your eyes and ears open to avoid getting swindled. What Spurred The JOBS Act? The JOBS Act came about as Congress pushed to promote crowdfunding as a means of raising capital. Crowdfunding is defined as the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet. Currently, The JOBS Act allows only for private placement issuers to sell to accredited investors. Accredited...
Homeowners Prejudiced Against The Growing League of Renters?
Ask almost any American which type of neighbor is ideal, and the answer can be reduced down to “people like us”. It is the impetus behind Italian neighborhoods, Polish neighborhoods, Jewish neighborhoods, and every other neighborhood defined by ethnicity. And while it’s no secret that people want to live with other people who are like them, it may be surprising to learn that, over the past three decades, “residential segregation” has increased, based on a study conducted by The Pew Center. The study also found that the share of U.S. middle class areas is down to 76% in 2010 from 80% in 1980, while the share of lower-income neighborhoods rose to 28% from 23%, and upper-income areas have doubled to 18% from 9%. The home ownership rate now hovers at 65%, the lowest since 1995, according to the Census Bureau. So what happens when millions of...
The Renter Nation: What’s Behind It?
“After going through what was the housing market's darkest hour, housing is now one of the most popular investments in America.” (StreetAuthority) During the recession, many homeowners found themselves facing some very tough decisions. Renting a home became a viable, albeit temporary, housing option. Or so Americans believed. However, some former homeowners have permanently embraced renting, along with those individuals who cannot yet purchase a home, or those who remain indecisive about home ownership. Along with these changing views of the rental lifestyle, real estate investors are loosening the strings on short sale and foreclosed homes in their portfolios, allowing more rental homes to flow into the market. Together, these forces have created a renter’s nation. Jeffrey Friedman, CEO of apartment REIT Associated Estates Realty, predicts that “of the 5.5 million new households (newlyweds, boomers, college grads) that will be formed between now and 2016, an estimated 3.8...
Four Years into the Real Estate Crisis – What is Driving the New Renter Class?
There are many factors that are driving the new renter class, but it can be broken down into forced pragmatism vs. the American dream.  Here are 5 factors that are driving rentals versus ownership: 1.  Real cost of home ownership: With no home price appreciation prospective buyers analyze all cost of ownership; property taxes, HOA dues, maintenance / repair costs. Notable: property taxes will be under pressure as municipalities look to raise rates to balance stressed budgets. Transaction costs; typically overlooked and take 10% off any arms length transaction - a price of mobility or cashing out. 2.  Demographic effects: Baby boomer households have begun the shift to empty nesters, downsizing, smaller vacation home buyers. Gen Y is growing pressing the need for entry level housing, this is an 80M- group whose job growth was 3x’s the national average in 2010 and the average house- hold size is declining...