Overall, materials prices keep rising faster than inflation. But what’s worse is that prices for individual construction materials are unpredictable from month to month. The price of lumber and diesel fuel has fallen sharply, for now. But new policies from the U.S. government continue to jolt the markets, from possible sanctions on oil producing countries like Venezuela to government tariffs on imported steel.
Anecdotally, some investors continue to voice frustrations about stiff competition to acquire assets. However, respondent views on the available supply of net lease properties on the for-sale market remain consistent with prior years. In all, 35 percent said current inventory reflects the right amount, while 22 percent believe it is too little and 17 percent think too much.
We’ll be watching the Fed’s decisions closely, but economic fundamentals remain strong and our confidence in production opportunities across the market persists. Seventy-seven percent of Berkadia professionals expect deal size in the multifamily industry to either stay the same or increase in 2019, when compared to 2018. If this year is anything like last, we’re headed down a pretty good path.
Non-profit health care systems have about $600 billion in real estate they might dispose of, according to Senior Housing News. Amazon has become a desired mall tenant, reports the Wall Street Journal. These are among today’s must reads from around the commercial real estate industry.
