Scarce inventory and mortgage rates topping 5% have combined with steep prices to yank sales activity back to where it was before the boom. April’s seasonally adjusted annual rate of 5.61 million was the lowest rate since June 2020.
Apartment rents have soared 58% in the Miami area over the past two years.
U.S. equity fund allocations to real estate, a guide for sentiment among professional money managers, have fallen to 2.4%, from 3.1% before the pandemic. Meanwhile, inflows into listed real-estate funds, a better proxy for attitudes among retail investors, are increasing.
Blackstone said it has reached a deal to buy PS Business for about $7.6 billion, including debt. PSB, a real-estate investment trust, owns and operates industrial and low-rise suburban offices and business parks, mostly in California, Miami, Texas and Northern Virginia. As of March 30, the company owned 96 properties with 4,900 tenants. The company’s portfolio also includes 800 residential units.
Warehouse rental rates increased 15.2% annually across the U.S. in Q1 of 2022.
Office building landlords are bracing for a record amount of U.S. office space that is hitting the market this year with leases for 243 million square feet of U.S. office space set to expire in 2022, a 40% increase since 2018.
The average mortgage rate on a 30-year home loan surged past 4% for the first time in three years in March.
