May SIG Insider: CRE News, Insights & Announcements

Whether you're a seasoned investor or just starting out, we're here to provide you with valuable information that will keep you informed and ahead of the game in the dynamic realm of commercial real estate.?You'll have the tools you need to identify emerging trends, evaluate potential risks, and uncover investment opportunities that others may overlook.?Let us be your trusted companion on your investment journey, helping you navigate the complexities of the market and unlocking the potential for success!

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CRE NEWS?THAT MATTERS

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IN THE SPOTLIGHT: OUR FAVORITE CRE ARTICLES

Building Hope: Affordable Housing Projects Rise to Meet Demand ???

The past two years have shown a significant slowdown in rent growth for luxury apartments, particularly in the Sun Belt. Despite healthy demand matching pre-pandemic levels, developers have added a substantial number of new units in Austin, keeping pressure on rent growth. Similar trends are noted in other markets, suggesting that the top end of the multifamily market may not stabilize until 2025 due to ongoing high levels of new unit completions.

Meanwhile, with a consistent demand for affordable housing, local governments and large corporations alike are responding to this growing need. Affordable housing plays a critical role in communities - offering stable, secure homes for those who might otherwise struggle to find suitable accommodation. While it may not always promise the highest return on investment, its impact on society and individuals cannot be overstated. This sector's importance is highlighted by efforts from various entities who are investing in affordable housing developments to address this pressing need. Large cities are looking to eliminate parking minimums and create space for future developments, increasing the accessibility of affordable housing. Amazon is pledging $2 billion in financing towards affordable housing developments to compensate for the “Amazon Effect'' (the rise in property values attributed to the presence of Amazon offices).

Despite the challenges in the luxury apartment market, the demand for affordable housing remains strong.??The financial bottom line isn't always visible on the properties themselves, but access to affordable housing has a profound impact on businesses in surrounding areas. Don’t overlook the humble abode; affordable housing is where the heart of the market beats.(CoStar News, Randyl Drummer)

Changing the Game, One Algorithm at a Time???

In real estate, the response to AI has been overwhelmingly positive, but there are also some real risks. On the productivity side, AI can streamline property valuations, help with maintenance scheduling and energy optimization, and even provide virtual property tours that are more immersive and informative. The technology has only been available at a large scale for slightly over a year and we are just scratching the surface on what it can do.

All of that being said, concerns exist regarding AI's impact and the level of protection that it provides. Substantial issues have come about in the legal realm due to “hallucinations” and fake citations, and there will be more as we move forward. Additionally, there are concerns about how fraudsters and scammers may be able to use AI to get their hands on down payments, earnest money deposits, and other wire transfers.

With today's rapidly evolving tech, being against AI is like trying to paddle upstream with a teaspoon — you're bound to get left behind. But, just like anything in this world, there has to be balance. The right technology paired with the right people is a powerful combination and the players will need to perfect that recipe as it relates to Artificial Intelligence. (CoStar News, Andria Cheng)

REAL ESTATE ROUND UP ??

More Graduates Prefer Gateway Cities Over Fastest-Growing Markets

• We've said it before and we'll say it again, don't overlook the small to mid-size markets.

Only in New York! Condos Inside Converted Parking Garage

• Not your mother's parking garage...

Why Marriott, Hilton and Hyatt Don't Own Nearly 99% of Their Hotels

• It's all in the name!

Foster's 'Star' to Grace Sunset Boulevard?

• Say what you will about the tumultuous state of office space right now, this development is pretty neat.

Coastal Living Can Be Costly, But It's Not Deterring All Buyers and Developers

• High tides and high prices, the wealthy are heading for the coasts.

MARKET REPORTS????

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