Most of the major commercial real estate sectors show gradually improving fundamentals and are easily absorbing the relatively small amount of new space that is coming online, with a full recovery already in the multifamily market, according to the National Association of Realtors® quarterly commercial real estate forecast.

It’s not secret that 2012 was a great year overall for landlords.  Generally speaking, occupancy rates dropped and rents increased with steady demand for apartments and rental housing.  Operating profit and CAP rates also continued to be bright spots, while values gained and loan rates remained low.  This is the time of the year when we see a lot of recaps and forecasts for the economy and there have been a slew of reports fo

The Fiscal Times published an article this week titled “10 Real Estate Trends To Watch in 2013”. The report is pretty sunny over all for the US housing market, predicting a rise in home values, an increase in first time home buyers and easier credit standards for mortgage.

The single family rental housing market in the US has always comprised a significant percentage of the over all rental housing market.  However, unlike the multifamily housing market, single family rentals have largely been the domain of the independent rental owner.  For decades individual real estate investors have tried their hand at being landlords by buying single family rental homes, but institutional investors and REITs have largely stayed away, instead choosing to invest in commercial real estate and apartment complexes. 

According to a forecast released last by the National Association of Realtors, 2013 will continue to be a “landlord’s market”.  The NAR expects multifamily vacancy rates to fall below 4% nationally in the coming year, down slightly from current levels.  Further, the organization apartment rents to increase at an accelerated rate.  As 2012 comes to a close, it is projected that rental housing rent levels will have

As we close out 2012 and look toward 2013 questions abound regarding the state of our economy, political environment, the “fiscal cliff” and the affects of Obamacare.  While there’s been a lot of speculation, spin and fear mongering, actual facts have largely been lost in a din of media and internet message board noise.

A recent report from Marcus & Millichap underscores paradigm shifts for commercial real estate.

The Multifamily Applicant Risk Index (MAR Index) Report indicates an increase in national renter credit quality and applicant pool quality for the second quarter 2012 and now includes renter trends. The third quarter MAR Index value decreased two points from the second quarter 2012 and increased two points from a year ago, indicating a modest increase in national renter credit quality and applicant pool quality.

Here is how Colorado performed in the second quarter compared to last year:
• Denver-Aurora-Broomfield, CO: 3Q12 MAR Index = 109

1. Know who is living in your apartments.

Fair housing is not just the law -- it’s also good business practice.
Fair housing compliance helps ensure that you have a wide application pool for your rental housing and that all applicants and tenants are treated equitably. The guidelines below offer common-sense policies and practices for fair housing.

Establishing policies,
procedure and rules

• Develop policies and procedures that are consistent with fair housing laws. Rental criteria should focus on whether an applicant will pay the rent, maintain the premises, and live in harmony with neighbors.