18B — February 28 - March 12, 2020 — Owners, Developers & Managers — M id A tlantic Real Estate Journal


O wners , D evelopers & M anagers

ashington, DC — Certain mar- ket conditions are Market tightness index reading of 48 was the highest January reading in five years NMHC January Quarterly survey indicates apartment conditions mixed W

with the paucity of available deals, some respondents also noted the negative impact of the new rent laws in New York,” said NMHC chief econo- mist Mark Obrinsky . Additionally, Market Tight- ness (48) slipped below the breakeven level (50). “Apart- ment markets showed some softening in line with the slower leasing in the winter months,” said Obrinsky. “Even so, the Market Tightness In- dex reading of 48 was the high- est January reading in five years, and slightly higher than the January average of 45 in the survey’s 21-year history.”

On the financing side, the survey results painted a much different picture. The Equity Financing (61) and Debt Fi- nancing (68) indexes signaled improving availability of capi- tal, coming in well above the breakeven level (50). The survey also included a question on zoning reforms. 36% of respondents indicated that they operate in a locality considering zoning changes, with 8% of those respondents stating that their jurisdiction has already taken action. Of respondents in localities dis- cussing revamped zoning reg- ulations, 44% have observed

strong community opposition. • The Market Tightness Index decreased from 54 to 48, indicating the first sign of looser market conditions since January 2019. Nearly one- quarter (23%) of respondents reported looser market condi- tions than three months prior, compared to 18%who reported tighter conditions. Over half (59%) of respondents felt that conditions were no different from last quarter. • The Sales Volume Index decreased from 46 to 43, with 28% of respondents report- ing lower sales volume than three months prior. Over half

(58%) of respondents regarded volume as unchanged, while a much smaller group – 14% of respondents – reported higher sales volume. The share of respondents indicating in- creased sales volume has not been this low for eleven quarters. • The Equity Financing In- dex rose from 55 to 61, mark- ing the ninth straight quarter of improving or unchanged conditions. 27% of respondents reported that equity financing was more available than in the three months prior, com- pared to only five percent who believed equity financing was less available. Meanwhile, the majority of respondents (58 percent) thought that condi- tions were unchanged in the equity market. • The Debt Financing In- dex decreased from 75 to 68, with 40% of respondents still reporting better conditions for debt financing compared to the three months prior, while only five percent felt that financing conditions were less favorable. This quarter, the largest share of respondents (45 %) felt there were unchanged conditions. About the Survey: The Jan- uary 2020 Quarterly Survey of Apartment Market Condi- tions was conducted January 21-28, 2020; 78 CEOs and other senior executives of apartment-related firms na- tionwide responded.  The evolution of sustainability on the business of real estate continued from page 14B a socially responsible supply chain. Lowest cost is no longer the defining feature in vendor selection—meeting environ- mental and social governance (ESG) criteria will weigh-in on purchase decisions. Work has evolved and isn’t just work anymore, it’s how people spend their time. Younger generations in the work force want to make an impact, and if a company doesn’t provide satisfaction be- yond a paycheck, then younger workers will look elsewhere possibly taking less pay for a more fulfilling job. The evolution of the business of real estate will impact more than just the real estate. Sam Shapiro, MBA, is the director of communica- tions & sustainability ini- tiatives for Able Services. 

l o o s e n i ng , according to the NMHC Qu a r t e r l y Su r v e y o f Apartment M a r k e t Conditions, c o n d u c t e d in January

Mark Obrinsky

2020. The Sales Volume In- dex slipped further below the breakeven level (50) to 43, in- dicating a continued softness in property sales. “This reflects some seasonal decline along

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