Archive for CoStar

Aug
24

Strong Demand, Tight Supply Strengthen Case for New Apartment Development

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Investors continue to prefer U.S. apartment buildings over most commercial properties, even commercial office space, as total multifamily sales volume jumped nearly 80% in the second quarter over the same perioud last year.

Although still just a fraction of its mid-2007 peak, the nearly $15 billion in sales in the quarter brought total investment for the first half of 2011 to $24.5 billion, according to CoStar Group data.

The average per-unit price of apartment properties reached $88,500 in the quarter — the highest since the third quarter of 2008, said CoStar Global Strategist Michael Cohen during CoStar’s Mid-Year 2011 Multifamily Review & Forecast.

Meanwhile, strong renter demand continues to push down apartment vacancy rates and nudge up rents. With capitalization rates for existing properties seeing strong compression in some high-flying markets, larger multifamily developers have responded by starting to ramp up their development pipelines with new projects.

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Jul
26

CoStar: Hotels Rivaling Apartments As Targets for Investors

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A number of large multi-property hotel acquisitions in recent weeks by Hyatt Hotels, Pebblebrook Hotel Trust and Chatham Lodging Trust illustrate the rising appetite for hospitality investments, a quest that’s quickly spreading beyond REITs to other institutional and private investors.

What’s more, prospective buyers are trolling for more than just the top-quality inns and resorts on the U.S. coasts, now looking at deals in such large inland metros as Pittsburgh and Denver.

About $11.36 billion in U.S. hospitality properties traded hands in the first half of 2011, up 134% from $4.9 billion in the first half of last year and up eightfold from the market doldrums of first-half-2009, according to preliminary sales volume data from CoStar Group.

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Categories : National News
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