2023 Mid-Year National Report
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Berkadia Research compiles economic and market data to uncover trends that provide commercial real estate investors with forward-thinking insights to drive acquisition and disposition strategies and methods of financing.
2023 Mid-Year Themes:
The capital markets landscape continued to face headwinds through the first half of 2023. Market forces like deglobalization, the resurgence of on-shoring and near-shoring, demographic trends, and geopolitical concerns are all contributing to elevated and persistent inflation.
- U.S. seasonally adjusted nonfarm employment grew by an average of 316,000 new positions per month in the last year, outpacing the monthly average during the pre-pandemic growth cycle of approximately 186,700 hires. A competitive environment for workers contributed to a strong average salary increase of 5.6% annually through June 2023.
- Apartment operators reported positive net absorption during the first six months of 2023, a reversal from the second half of last year.
- Even so, net leasing activity trailed deliveries to contribute to occupancy dropping to 94.7% in the second quarter of 2023. Occupancy was on par with the pre-pandemic cycle average from 2010 to 2019.
- Apartment operators became more measured with rent increases in the last year. Rent advanced 4.0% since mid-2022, decelerating 16.9% from one year prior.
2023 Mid-Year Multifamily Reports:
Institutional & National Markets
Navigating Insurance Challenges in CRE Underwriting
Danielle Lombardo, Chair, Lockton’s Global Real Estate Practice, will offer her perspective into the significant tightening of the commercial real estate insurance market and the impact it’s had on premiums and coverage for multifamily investors.