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

Utah survives late rally, edges Oregon State 30-24

first_img Tags: Pac-12/Utah Utes Football Written by FacebookTwitterLinkedInEmailSALT LAKE CITY (AP) — Ty Jordan ran for a career-high 167 yards and a touchdown to help Utah survive a late rally and beat Oregon State 30-24 for its first win of the season.The Utes (1-2, 1-2 Pac-12) piled up 229 rushing yards overall to snap a two-game losing streak. Jake Bentley added 174 yards and a touchdown through the air to lead Utah.Chance Nolan threw for 202 yards and a touchdown and added 36 yards on the ground in his first career start. It wasn’t quite enough for the Beavers (2-3, 2-3 Pac-12) to overcome a sluggish start on offense. Associated Press December 6, 2020 /Sports News – Local Utah survives late rally, edges Oregon State 30-24last_img read more