2019 Real Estate Outlook: What Can Investors Expect?

first_img  Print This Post Share Save Previous: Landlords Feel the Shutdown’s Strain Next: Spotlight on Single-Family Rentals Home / Daily Dose / 2019 Real Estate Outlook: What Can Investors Expect? The Best Markets For Residential Property Investors 2 days ago January 16, 2019 1,940 Views 2019 Global Alternatives Outlook 2019 Real Estate Market Investments JP Morgan Chase REITs 2019-01-16 Donna Joseph in Daily Dose, Featured, Market Studies, News Tagged with: 2019 Global Alternatives Outlook 2019 Real Estate Market Investments JP Morgan Chase REITs Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Donna Joseph is a Dallas-based writer who covers technology, HR best practices, and a mix of lifestyle topics. She is a seasoned PR professional with an extensive background in content creation and corporate communications. Joseph holds a B.A. in Sociology and M.A. in Mass Communication, both from the University of Bangalore, India. She is currently working on two books, both dealing with women-centric issues prevalent in oppressive as well as progressive societies. She can be reached at [email protected] Demand Propels Home Prices Upward 2 days ago Related Articlescenter_img Servicers Navigate the Post-Pandemic World 2 days ago 2019 Real Estate Outlook: What Can Investors Expect? Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Donna Joseph Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribe In its latest report titled, “2019 Global Alternatives Outlook,” JP Morgan Chase sheds light on global trends and opportunities in the real estate industry. The report indicated that several investors in the U.S. real estate market have “tilted their new allocations to value-added properties in the search for higher returns, reaching an inflection point.” The key driver of this shift is a considerable increase in construction costs for property improvement or development that is thinning the return premiums for construction risk—leading to a limited supply of new core properties. This has allowed some stabilized, fully leased core properties to sell below the now elevated cost of building new unleased assets, the report stated. According to the report, since early 2016, the income from leases of existing U.S. core assets has been growing at a faster annual rate (4 percent to 5 percent ) than core property values (2 percent to 3 percent), since early 2016. JP Morgan Chase anticipates the rising construction costs to help support the increase in rental incomes. As new properties have to charge higher rents to be viable in the face of rising construction costs, existing core properties are forecasted to raise rents with less risk of losing tenants. However, according to the report, the upward spike in construction cost is likely to limit new space available for lease—another positive for rent growth. It indicated a further upside in core rents and valuations, given the econ­omy and demand continue to hold up.Speaking of REITs, the report stated that volatility has returned to the equity markets including the REIT space. It pointed out that REIT equity is far more volatile than the value of its underlying real estate, on account of its varied investor base comprising ETFs, hedge funds as well as momentum players. JP Morgan Chase indicated that investors may want to consider investing throughout the REIT capital stack and buying the debt—approaches that will meaningfully reduce a REIT portfolio’s volatility and offset the leverage embedded in REIT equity. The report also suggests the use of liquidity and volatility of the REIT market to potentially enhance returns.“Even in a market that is largely priced to perfection, knowledge­able, experienced global investors with a broad toolbox can find a robust set of attractive real estate opportunities,” the report reads. At a macroeconomic level, the report highlighted that tighter labor markets and rising wages have begun pushing prices higher across the developed world, while weaker currencies and higher commodity prices have lifted inflation in emerging markets. U.S. economic growth is forecasted to average around 3 percent through the middle of 2019. Globally, core real estate returns have averaged just over 10.5 percent since late 2010, the report revealed. Valuations have been a significant driver of those returns, however, leaving much of the real estate market fairly priced. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days agolast_img read more

Steelers’ Hayward, Jets’ Smith fined for abusive language

first_imgPittsburgh Steelers defensive end Cameron Heyward (97) fends off Cleveland Browns wide receiver Greg Little after a fumble recovery in the fourth quarter of an NFL football game on Sunday, Nov. 24, 2013. (AP Photo/David Richard)NEW YORK (AP) – Geno Smith shouted a couple of mighty expensive expletives.The New York Jets quarterback was fined $12,000 by the NFL on Friday for cursing at a fan after the team’s game against Detroit last Sunday.Pittsburgh defensive lineman Cameron Heyward also got in trouble with his mouth, docked $22,050 for using abusive language toward an official during the Steelers’ loss to the Tampa Bay Buccaneers last Sunday.Smith was walking off the field following the 24-17 defeat when he glared at a heckler in the stands and yelled at him, twice using an expletive. The fine issued by the league was for unsportsmanlike conduct.The second-year quarterback immediately apologized after the game, but acknowledged during the week that he would likely be fined for his actions. Cleveland rookie quarterback Johnny Manziel received a similar fine from the league during the preseason for flipping his middle finger at Washington’s sideline.In this photo taken on Sunday, Sept. 28, 2014, New York Jets quarterback Geno Smith walks off the field after losing 24-17 to the Detroit Lions during an NFL football game in East Rutherford, N.J. Frustrated after a third straight loss and calls for his backup increasing, Smith was caught by a TV camera yelling an expletive at a heckler in the stands as he walked off the MetLife Stadium field following a 24-17 loss to the Detroit Lions on Sunday. (AP Photo/Kathy Willens, File)“Always be above the situation,” Smith said Wednesday. “Never let people get to you. Never let anyone’s words affect you in that manner. So I’ve just learned, and it’s something I’ve already known, but (I’ve) just got to handle those situations better.”Smith has declined to say what the fan said to him that set him off. Owner Woody Johnson said Thursday he was disappointed by Smith’s actions, saying they were “absolutely unacceptable.” But, he also was confident Smith would never again put himself in a similar situation.Coach Rex Ryan wouldn’t say whether Smith would face additional discipline from the team.“We’ll handle it the way we see appropriate,” Ryan said. “And again, when we’re ready to let you know what our decision is, we’ll let you know.”Houston’s J.J. Watt was fined $16,537 for roughing the passer against Buffalo. The star defensive end was called for penalties twice after hitting Bills quarterback EJ Manuel in the knee area.San Diego left tackle King Dunlap and Jacksonville defensive end Alan Branch were each fined $8,268 for their fight during the Chargers’ 33-14 win last Sunday.Chicago guard Kyle Long was also docked $8,268 for unnecessary roughness in the Bears’ loss to the Green Bay Packers.___AP NFL websites: www.pro32.ap.org and www.twitter.com/AP_NFLlast_img read more