Trends & Insights
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Trends & Insights
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At Northmarq, we are committed to offering our clients the latest trends and expert analysis to power their decision making. Our MarketSnapshot suite of reports contains critical market data covering a variety of commercial real estate property sectors. In each report, you will find: Investment sales volume data Average cap rate information Buyer distribution analysis... and more! Single-Tenant Overall Market Single-Tenant Office Single-Tenant Industrial Single- Tenant Retail Multi-Tenant Retail
Tucson 3Q23 Multifamily Market Insights Report: Strong seasonal trends steady the local market
Highlights: Following a sluggish first half, the Tucson multifamily market posted an improving performance during the third quarter. The vacancy rate decreased, and rents maintained an upward trajectory. Vacancy tightened even as more units were delivered to the market. Area vacancy dipped 20 basis points during the third quarter to 7.9%, marking the first vacancy improvement since the third quarter of 2021. Year over year, the rate is up 160 basis points. Asking rents continued to trend higher, rising 1.2% during the third quarter to $1,196 per month. Area rents increased by 2.7% in the past year. Sales velocity accelerated in recent months, however, transaction volume year to date is still down 80% from levels posted in the same period last year. The median sales price thus far in 2023 is $116,000 per unit. Read the report, or contact our Phoenix office to learn more.
November 2, 2023
Washington, D.C. 3Q23 Multifamily Market Insights Report: Stable fundamentals supporting investment activity
Highlights: Multifamily property performance in the Washington, D.C., region was healthy during the third quarter. Vacancies remained tight, rents rose and investment transactions gained momentum. Vacancy ended the third quarter at 4.7%, matching the figure from midyear. Year over year, the rate has inched up 10 basis points, and area vacancies have generally remained within a tight band since 2021. Rents rose in the last three months, advancing 1.3% to $2,151 per month. During the past 12 months, rent growth has totaled 2%, with gains in the past two quarters offsetting earlier declines. After a very slow start to the year, transaction activity accelerated in recent months. Multifamily property sales in the third quarter rose 50% from totals posted in the second quarter. Year to date, the median price has reached $264,900 per unit, with cap rates ranging between 4.7% and 5.4%. Read the report, or learn more by engaging with our office in Washington, D.C.
October 24, 2023
Northmarq’s Charlotte office welcomes Amar Goli as managing director
CHARLOTTE, N.C. (Oct. 19, 2023) — Amar Goli has joined Northmarq’s Charlotte Investment Sales team as managing director. In his new role, he will continue to serve his clients in an investment sales advisory capacity and help expand Northmarq’s Commercial Investment Sales division in the Carolinas and Mid-Atlantic regions. Goli’s focus includes the disposition of investment properties with an emphasis on industrial and retail. He focuses on sale-leaseback transactions as well as new construction build-to-suit and speculative development properties. Goli serves regional developers and national clients, as well as industrial and retail tenants including automotive and restaurant franchisees. He also works with private equity firms across multiple industries, including industrial manufacturing, 3PL logistics and shipping, automotive, food processing, restaurant and retail. “I’m excited to join Northmarq, serve our great clients and help the company grow its commercial division,” said Goli. “Northmarq has tremendous resources and a great culture, and I know they will be at the top of the industry for many years to come.” Goli will work alongside Andrea Howard, regional managing director, and the Charlotte Debt + Equity and Multifamily Investment Sales teams. He will report to Jeff Cox, executive managing director based in Austin, Texas. “We are delighted to welcome Amar to Northmarq. He has amassed an impressive track record of investment sales advisory and has successfully launched and grown a substantial commercial investment sales office,” said Cox. “Clients and colleagues alike think highly of Amar as an advisor and builder. I look forward to locking arms with him as our team continues to grow Northmarq’s commercial presence to better serve our clients across the country." Goli brings more than 18 years of experience in the commercial real estate sector. He advises his clients on strategic long-term holds within their portfolios and has a strong background in 1031 exchanges of all deal sizes. Prior to joining Northmarq, he served as managing director of Industrial/Retail Transaction Services and Capital Markets at Sands Investment Group. In that role, he was responsible for the formation, growth and management of their Charlotte office. Earlier in his career, Goli was vice president at CBRE, as well as associate director of Retail and Office Net Leased Properties at Stan Johnson Company, which was acquired by Northmarq in October 2022. “Northmarq’s Debt + Equity platform, along with an award-winning Multifamily platform, are perfect complements to our institutional and private clients in the commercial investment sales sector,” Goli added. Goli holds a bachelor’s degree in economics from American University and is a member of International Council of Shopping Centers (ICSC), Urban Land Institute (ULI) and Commercial Real Estate Development Association (NAIOP).
October 19, 2023
Atlanta 2Q23 Multifamily Market Insights Report: Rents rebound at midyear, further gains likely
Highlights: The Atlanta multifamily market posted a solid performance during the second quarter, even as the pace of multifamily deliveries accelerated. The vacancy rate held steady, finishing the second quarter at 5.1%. Asking rents ticked higher for the first time since the third quarter of 2022. The vacancy rate remained at 5.1% during the second quarter following two consecutive quarters of increases. Year over year, area vacancy is up 60 basis points. Rent growth rebounded in recent months after declines in each of the preceding two quarters. Asking rents ticked higher by 0.5%, reaching $1,575 per month. Rents in Atlanta rose 1.2% during the past 12 months. While sales velocity has been consistent during the first six months of the year, transaction volume to this point in the year is down significantly from levels recorded in the same period of 2022. The median price thus far in 2023 is $153,800 per unit, down 24% from the 2022 price. Read the report, or engage with our Atlanta office to learn more.
October 17, 2023
Southern California 2Q23 Multifamily Market Insights Report: Rent growth resumes even as vacancies push higher
Highlights: Operating conditions in Southern California were mixed through the first half of 2023 as vacancy conditions ticked higher and asking rents rose. Developers remain active with projects totaling 37,475 units currently under construction throughout the region. Asking rents in Southern California trended higher during the second quarter; rents in the region rose 1.6% to $2,380 per month. Year over year, average rents are up 2.9%. Rent trends in Class A properties have been mixed. Class A asking rents in San Diego have posted healthy gains, but top-tier rents in the other Southern California markets have recorded minimal increases or modest declines during the past year. Overall vacancy conditions inched higher in recent months, rising 20 basis points during the second quarter to 3.8%. The current vacancy rate is also up 20 basis points year over year. Operating conditions in Class B and Class C properties remain very tight, with vacancy averaging about 2%. Class A vacancies reached 5.6% at midyear, with Los Angeles and San Diego having the highest rates. Fewer multifamily properties sold in Southern California during the second quarter than in the first three months of the year. Cap rates have edged higher in recent quarters, and prices have dipped. The median sales price year to date is $283,300 per unit, while most properties are selling with cap rates between 4% and 5.5%. Read the report, or engage with our Los Angeles, San Diego or Irvine offices.
October 17, 2023
St. Louis 2Q23 Multifamily Market Insights Report: Construction active but slower than 2022 pace
Highlights: Operating conditions in St. Louis were somewhat mixed during the second quarter as vacancy continued to tick higher while asking rents advanced. Developers remain active, although construction has lagged the pace recorded in 2022. Area vacancy rose 20 basis points in the second quarter, reaching 4.4%. The rate has trended higher in each of the past three quarters and is up 30 basis points year over year. Asking rents inched higher in recent months after a sluggish start to the year. Rents in St. Louis rose 0.5% during the second quarter to $1,179 per month. During the past 12 months, area rents increased by 5.5%. Transaction volume in the local multifamily investment market has remained limited to this point in 2023. Transaction totals are down 60% from one year ago, while the median price has dropped 9%. Read the report
October 9, 2023
Chicago 2Q23 Multifamily Market Insights Report: Investors continue to target Class A properties
Highlights: Property performance metrics in Chicago were mostly stable during the second quarter with the vacancy rate holding steady and asking rents ticking higher. The market should maintain its current trajectory through the end of 2023. Vacancy in the second quarter was 5%, identical to the rate in the first quarter. Year over year, local vacancy rose 20 basis points. During the past five years, the vacancy rate has remained in a tight range. Asking rents in Chicago inched higher during the second quarter, rising 0.2% to $1,830 per month. Average rents are up 4.7% from one year ago. The multifamily investment market in Chicago continued to slow during the second quarter while prices remained elevated from last year. A surge in the sale of Class A properties has caused the median sales price to spike to $250,200 per unit. Read the report
October 9, 2023
Minneapolis 2Q23 Multifamily Market Insights Report: Vacancy ticks lower at midyear
Highlights: The multifamily market in the Twin Cities improved gradually during the second quarter as vacancy conditions inched lower and apartment rents gained some ground. Developers are on track to deliver about 8,000 units in 2023, a dip from the elevated supply gains of the past two years. The local vacancy rate improved slightly during the second quarter, dipping 10 basis points to 5.2%. Year over year, the rate is up 100 basis points. Asking rents continued to trend higher, rising 1.2% in the second quarter to $1,510 per month. Area rents increased 3% during the past 12 months. Multifamily transaction activity in the Minneapolis-St. Paul market slowed during the first half of 2023. The median sales price to this point in the year is $110,900 per unit, while cap rates are averaging between 5.75% and 6.5%. Read the report
October 9, 2023