CRE Horizons: Market Insights & Exclusive Offer for Developers

Dear CRE Enthusiasts,

We hope September has treated you well! This newsletter is packed with everything you need to stay ahead in a rapidly shifting market. We’re covering the latest in multifamily, retail, industrial, and office spaces—plus offering a sneak peek at what’s in store for Q4.

But first, we have some exciting news for you, the builders of tomorrow.

Special offer for Developers

Multifamily

The multifamily market seems to be stabilizing, with vacancy rates holding steady in Q2 and property values possibly hitting rock bottom. Demand's heating up as new construction cools down—talk about strong fundamentals—while rent growth is modest but still positive. And, oh, keep an eye on Texas: three of its cities made it to the top 10 metros for multifamily demand.

Retail

Lack of new supply keeps playing in retail landlords' favor, as high construction costs frustrate developers' plans. Demand is up, leasing rates are solid, and rent growth continues. Some markets to watch include Hartford, Colorado Springs, and Cleveland, which are showing strong performance.

Industrial

What about industrial? It doesn’t disappoint either. Yes, vacancy rates have reached 6.1%, and yes, an influx of new space is coming soon. Yet, demand is expected to remain strong in the long term and mortgage originations for industrial projects have even increased by 29%.?

Office

Is everything doom and gloom in the office sector? Well, distress is definitely on the rise, with nearly $67 billion in office loans at risk and 3.8% of all office property sales now identified as distressed. But there’s a glimmer of hope—some companies seem to be moving past their downsizing phase and might even expand their leased space in the near future.

Economic landscape

An interest rate cut might finally come soon as unemployment hits 4.3% and inflation hovers around 2%. Meanwhile, GDP growth has slowed, and consumer spending is weakening, adding pressure on the Federal Reserve to adjust monetary policy.

Market spotlights

Taking a bite out of The Big Apple is alluring once again as New York City leads the nation in job growth, experiences an uptick in leasing activity, and sees investment demand increase by 3.2% in Q2. The appeal? Distressed offices and redevelopment opportunities in prime locations.

This one is for all the developers out there looking for financial flexibility during the due diligence period: special interest rates on your Earnest Money Deposit financing, starting in the 4th month.

Yes, you heard—or rather read?—right. At Duckfund, we bring you this offer because we we want you to focus on that without putting a stranglehold on your liquidity or bearing the financial burden of immediate large capital commitments.

You’ll also have more time to secure the deal before approaching debt and equity providers.

The best part? No credit checks and no collateral requirement.

You apply in 2 minutes, we review and approve your application within 24 hours, and within 48 hours, we transfer the EMD to the escrow account.

From a $25K deposit to one worth millions, we’ll finance it and you get to enjoy a lower interest rate on your EMD from month four onwards.

And, oh, did we already say you can work on several development projects at the same time? Because you can…without tying up cash in earnest money. We have the funds available for the deposits of each of your deals.

Apply now or schedule a call to learn more about this offer on EMD financing.

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Overall market

The market is expected to see a boost in investor confidence due to rate cuts, although a cautious approach will likely linger for the rest of the year, and investment activity will remain subdued. Most investors will hold on to properties as they wait for clearer signs of a sustained economic recovery and more favorable market conditions.?

Multifamily

Demand is projected to stay strong as more people continue renting as a result of high home mortgages. Even if oversupply is anticipated, it will be met with considerable absorption, with Class B and C properties performing better than luxury apartments.

Retail

Retail will probably keep on experiencing steady tenant demand as new construction remains modest. That said, its performance will ultimately depend on broader economic conditions, including consumer spending, affecting overall retail sales and tenant stability.

Industrial

As the market stabilizes, an increase in vacancy rates might occur due to new deliveries while construction starts decelerates. Despite this, vacancy rates are expected to stay low, supporting continued rent growth.

Office

The office sector will continue facing high vacancy rates, though there may be a slight increase in investment in distressed properties and conversions, as well as concentrated lease activity in Class A properties and in the suburbs.

That’s a wrap! Thank you for checking out this month’s Duckfund newsletter.

We can’t wait to bring you more expert analysis, news, and trends this time next month.? Do not forget to check our Earnest Money Deposit Financing platform – Duckfund.com

Until then, happy investing!

Warm regards,

The Duckfund Team