Calvin Schnure

Commercial Real Estate Markets Have Settled in for the Long Haul

8/3/2017 | By Calvin Schnure

Commercial real estate markets appear to have settled in for the long haul. New supply and the growth of demand are roughly balanced in most property sectors, vacancy rates are stable and rents growing modestly. The latest data from CoStar on net absorption and completions during 2017:Q2 help alleviate earlier fears that a supply wave would flood the market. Instead, supply and demand appear closely matched—although the retail property and office markets did see a bit of an uptick in vacancy rates.

How Are Equity REITs Positioned for Higher Interest Rates?

1/5/2017 | By Calvin Schnure

How well are stock-exchange listed Equity REITs positioned for the interest rate environment ahead? The Federal Reserve’s recent increase in short-term interest rates has focused attention on debt and leverage positions among investors in commercial real estate, including among Equity REITs. Such attention is warranted, as some commercial real estate investors in the past have experienced financial distress due to high leverage, rising interest expense or low interest coverage ratios, especially during periods of rising interest rates.

Renter Nation? Rising Home Ownership Gives Some Competition to Multifamily REITs

11/2/2016 | By Calvin Schnure

The apartment market has been riding a wave of robust demand and rapidly rising rents for the past several years, pushing multifamily into the leading ranks of commercial real estate. Recently, however, there have been some signs of softening. Rent growth decelerated from its 2015 peak of nearly 6 percent, to a still-respectable 3.3 percent annual increase in the third quarter. Most analysts have pointed to a swell of new construction, which has steadily ramped up from its post-crisis lows and has been running slightly ahead of new demand.

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