insights Archives - Page 4 of 29 - Viewpoints

Sep 5, 2023

August Rental Activity Highlights

With soaring home prices and the peak rental season in full swing, renting has emerged as the contemporary alternative to buying. However, among the cities experiencing heightened listing activity, which ones are drawing the greatest attention from apartment seekers? According to research by RentCafe, Arlington, VA, retained its position as the most coveted city among renters for the month of August, maintaining its dominance from the previous month. Climbing three places from its July ranking of No. 5, Kansas City, MO, secures second spot. Minneapolis and Cincinnati, both situated in the Midwest, secure the third and fourth positions, respectively. Meanwhile, Denver secures the fifth position, marking a significant jump of six places since the previous month. The apartment listings in these cities garnered the highest engagement on RentCafe.com this month. This heightened engagement can be attributed to a combination of factors, including a substantial number of rental properties being saved to favorites, personalized search activity, limited unit availability, and a notably high volume of listing views overall.The Midwest significantly asserts its influence by securing ten out of the top 30 cities with the highest rental activity in August. A significant number of individuals are gravitating toward the Midwest, attracted by its affordable cost of living, expansive open spaces, and relaxed pace of life. The region is known for its friendly residents, economical land prices, and a tranquil lifestyle distinct from other parts of the United States, which has enticed a range of people to trade life on either Coast for the Midwest. The South follows closely with nine cities on the list. Concurrently, as the peak rental season unfolds, renters are shifting their apartment search focus towards suburban localities that provide convenient access to urban amenities. This shift has propelled Phoenix suburbs—Chandler, Gilbert, and Peoria—into the ranking as the freshest and most sought-after rental locations. Consequently, this month showcases the inclusion of seven Western cities in the roster of the nation's most desired renting destinations.However, the appeal of core urban living remains strong. In a remarkable advancement, New York City's Bronx ascends three places to occupy the No. 6 spot, edging ever closer to the top. Not to be overshadowed, Queens, the largest borough of NYC, follows suit, securing the No. 13 position this month—an impressive climb of six places from the prior month. Similarly, Philadelphia, Chicago, and Houston continue their sustained presence among the nation's premier cities for rental activity.Staying informed about the cities in the highest demand for renters is a crucial undertaking for investors. This knowledge empowers investors to make well-informed decisions that align with current market trends and capitalize on lucrative opportunities.

Aug 22, 2023

Best Places for Renters to Live in 2023

The primary contributor to the increasing cost of living for Americans are expenses associated with rent and mortgages, making it important to consider which cities offer the powerful combination of affordability and quality of life in 2023. It’s important to factor in a city’s apartment quality; local economy; employment opportunities, living expenses, traffic; schools, air quality, and natural amenities when making the difficult decision to plant roots in a new place. New data by RentCafe highlights where people living in the U.S. can get the most out of their renting experience in 2023. According to RentCafe, Southern states are the premier region for renters, claiming an impressive 36 out of the top 50 spots. This includes renowned rental hotspots like Miami and Orlando, FL, as well as lesser-known markets such as Plano, TX; Asheville, NC; and Birmingham, AL. Renters in this region have the luxury of choosing between the vibrant ambiance of a major city or the enchantment of a charming small town. Charleston, SC takes the No. 1 spot for Best Places to Live in 2023Charleston, South Carolina, the largest and oldest city in the state, secures the top spot in this year's ranking of the best cities for renters. This accolade is attributed to its optimal combination of apartment quality and cost of living, which ranks as the third-best in the country. Additionally, Charleston earns a commendable score in the local economy category. Notably, the city has gained recognition as a burgeoning tech hub with over 250 tech companies, positioning it fifth in terms of the local economy.Renters in Charleston can enjoy a suburban feel that offers the advantages of residing in a major city without compromising on factors like air quality or access to natural amenities. The data reveals that nearly half of the households in Charleston are occupied by renters. Furthermore, the average size of apartments in Charleston is significantly larger than the national average, measuring approximately 967 square feet. With a robust job growth rate of 5.9%, it is no surprise that Charleston claims the title of the best city for renters in 2023.Plano, Texas rises to the top in 2nd place Claiming the second spot on RentCafe’s list, Plano has recently gained recognition as the "City of Excellence." It garners high rankings in two key areas: the local economy, where it secures the second position, and quality of life, where it ranks sixth. Plano's distinguished reputation for fostering academic success makes it an ideal destination for families seeking a city with exceptional public schools. Furthermore, the city boasts excellent air quality and a significant proportion of high-end apartments, accounting for 78.2% of the housing stock. Additionally, Plano serves as the headquarters for several major corporations, including Bank of America, Hewlett Packard, FedEx, JCPenney, and Pepsi. Consequently, it exhibits one of the highest job growth rates nationwide, further enhancing its appeal.The Top 10 Places to Live in 2023 For commercial real estate investors, understanding the dynamics of the rental market and the best cities for renters in 2023 is crucial. With the rising cost of living, particularly in terms of rent and mortgages, it becomes essential to identify cities that offer a compelling blend of affordability and quality of life. As RentCafe's data shows, Southern states have emerged as the premier region for renters, occupying the majority of the top 50 spots. This presents a compelling case study for commercial real estate investors looking to tap into rental markets with strong potential.

Aug 15, 2023

From Farm to Byte: The Convergence of Technology and Agriculture Real Estate

Late last year, the New York Times reported farmland values hit record highs. In 2022, cropland values increased by 12.4% nationwide, and Farmers National Company set a new record sales volume of $766 million, exceeding the previous record in 2021 of $750 million. While many asset classes in commercial real estate have weakened amidst the current economic instability, agriculture acreage is rising in demand among investors. And due to its finite availability, returns are expected to grow rapidly.In tandem with the post-pandemic economic conditions, the advent of new technologies shifted the way many farmers manage their land, in turn impacting the commercial real estate sector.Rise of Precision TechnologyOne of the most significant developments in recent years has been the use of precision agriculture technology. The global precision agriculture market is anticipated to expand at a compound annual growth rate (CAGR) of 13.40% between 2023-2028. This technology involves the use of sensors and other tools to collect data on soil, weather, and other factors that affect crop growth. Farmers can use this information to make more informed decisions about planting, fertilizing, and watering their crops. The result is more efficient and effective farming practices, leading to higher crop yields and greater profits.The use of precision agriculture technology has also led to changes in the way farmers manage their land. By collecting detailed data on soil quality, for example, farmers can identify areas of their fields that require more nutrients or water. This enables them to use these resources more efficiently, reducing the amount of land needed to produce the same amount of food – which can have major implications for land values and real estate activity.Use of DronesAnother significant development in agriculture technology is the use of drones, which are rising in use across commercial and small family-owned farms. Farmers can use drones with cameras and other sensors to monitor crop growth and identify areas needing attention. This technology allows farmers to identify problems early, such as pests or diseases, before they can spread and cause damage. It also enables farmers to assess the health of their crops more quickly and accurately, reducing the risk of crop loss.The use of drones has also had an impact on the real estate industry. With the ability to monitor crop growth more effectively, farmers can identify areas of their land that are not producing as well as they should be. This information can be used to make more informed decisions about whether to sell or lease the land, potentially leading to higher profits for the farmer and increased demand for real estate in the area.Artificial Intelligence’s ImpactThe use of artificial intelligence (AI) in agriculture is another area poised to significantly impact the industry. AI can be used to analyze vast amounts of data, including weather patterns, soil quality, and crop yields, to make predictions about future crop growth. This information can be used by farmers to make more informed decisions about planting and harvesting, reducing the risk of crop loss and increasing yields. Other possible applications of the technology may include the optimization of labor, early detection of pests and diseases, and better compliance with irrigation and fertilization regulations, per Forbes.The use of AI in agriculture also has the potential to lead to changes in the real estate industry. By providing more accurate predictions about crop yields and weather patterns, farmers can make better-informed decisions about land use. This could lead to an increase in demand for land that is suitable for certain types of crops, potentially leading to higher prices for real estate in these areas.Agriculture has been a critical sector of the economy for centuries, providing food and resources for human populations worldwide. Recent advancements in AgTech are significantly impacting the industry and demand for farmland, which experts believe isn’t changing anytime soon. According to Bloomberg, the rising values are believed to be part of “a decade-long trend.”

Aug 2, 2023

June Rental Activity: Midwest States are In-Demand

As home prices soar and the rental season reaches its peak, the desire to rent has become increasingly prominent, reflected in a surge in demand for apartments. According to RentCafe's research, certain cities are experiencing a significant uptick in listing activity and attracting considerable attention from prospective apartment hunters. June experienced a shift in popularity among renters, with the Midwest emerging as the most sought-after region, closely followed by the South. Notably, the South secures the highest number of spots in the June ranking, with a total of 12 cities. The Midwest closely trails with 10 cities, dominating the top four positions. Atlanta maintains its status as the highest-ranking city in the South for the third consecutive month, securing the seventh spot overall.Among these cities, Kansas City, MO, retains its position as the most desired city by renters in June, maintaining the top spot from the previous month. Overland Park, KS, located nearby, claims the second position, while Minneapolis ranks third. These cities experienced the highest engagement on RentCafe.com, as evidenced by the significant number of rental properties saved to favorites, personalized searches, limited availability of units, and overall high listing views.Nearly half of June's most sought-after top 30 cities are located in the South after six new locations in the region entered RentCafe's ranking. For example, North Carolina tech hub Charlotte made it to the 20th spot, while neighboring college town Greensboro is this month’s 30th most in-demand city for renters. Kansas City Takes the No. 1 Spot for JuneKansas City maintains a consistent reputation as a top-tier destination for living in the United States. This distinction is substantiated by various factors, including its expanding population, an abundance of employment opportunities, affordable cost of living, and a plethora of enjoyable activities to partake in. Additionally, residing in Kansas City grants convenient access to arguably the finest barbecue culinary experiences available. Additionally, Overland Park, the largest suburb of Kansas City, achieved a remarkable ascent in this month's rankings, climbing an impressive 78 spots to secure the second position. In June, Overland Park maintained a similar number of available apartments compared to the previous year. However, renters displayed a significant increase in engagement, with a 27% rise in listing views and a substantial 63% increase in saved personalized searches. Notably, the number of favorited apartments in the city experienced an astonishing nine-fold surge in comparison. For commercial real estate investors, this presents an opportunity to explore investment prospects in Kansas City and Overland Park's rental markets The significant climb in rankings and increased renter interest highlight the potential for strong returns on investment. Furthermore, the stable availability of apartments in the area, combined with the heightened renter engagement, suggests a healthy market with a strong demand-supply dynamic.

Jul 25, 2023

Here's Why Airbnb is Dominating Tourism and Hospitality

Airbnb has made a significant impact on the hospitality and tourism industry since its inception in 2008. However, due to the pandemic, global tourism experienced an unprecedented decline of 70 percent, leading to a significant transformation in the patterns and preferences in travel overall. As individuals gained greater freedom and adaptability once Covid restrictions lifted, their travel habits shifted, allowing for more flexible schedules, diverse destinations, and extended stays. Though many individuals returned to urban areas and popular international destinations following the pandemic, there is an enduring prevalence of distributed travel trends, which refers to a travel pattern or trend where tourists and travelers disperse themselves across a wider range of destinations rather than concentrating in a few popular or mainstream locations. Instead of flocking to major tourist hotspots, distributed travel encourages exploring lesser-known or off-the-beaten-path destinations, including smaller cities, small towns, and unique urban neighborhoods. It emphasizes a more diverse and balanced distribution of visitors, benefiting a broader range of destinations and fostering tourism growth beyond traditional hubs.Recently, Airbnb published data showcasing how their platform contributes to fostering sustainable, affordable, and immersive travel experiences. They achieve this by distributing guests and benefits not only within cities but also extending beyond overcrowded tourist hotspots. The focus is on emerging communities that are gaining popularity and may have limited or no hotel options available. Because Airbnb hosts are the primary- if not the only- providers of local accommodation and drivers of local tourism, they were able to provide housing for more than 44 million guests in areas where there are no hotels, which generated more than $10.5 billion in Host earnings. Thus, influencing guests to spend time and money in local bars, restaurants, tours, museums, and attractions in these smaller cities and towns. Based on Airbnb's data, roughly 65 percent of US Census tracts had Airbnb listings in 2022 but lacked any hotel presence. This indicates that guests have a significantly broader range of travel options when utilizing Airbnb, as compared to hotels, which are typically concentrated in more popular and heavily visited areas.It’s clear that one of Airbnb’s goals is to help support small cities and towns that may have flown under the radar when guests are booking trips. Airbnb firmly believes that their initiatives, resulting in guest expenditures within these areas, contribute to the development of significant microeconomies. Notably, since the onset of the pandemic, more than 2,100 cities and towns across the United States have welcomed their first Airbnb bookings. The report shows the “Top-booked US cities and towns with their first Airbnb booking in Q1 2023”, which include:

Jul 18, 2023

Record-Breaking Number of New Build-to-Rent Homes Are Hitting the Market

The effects of inflation are being felt across the country – especially by those wanting to buy a home. With consumer prices rising, home prices soaring, and rising interest rates, saving money to buy a home and being able to afford one is becoming increasingly challenging. Additionally, economic uncertainty and the turmoil in the real estate market are making consumers hesitant to make such significant financial commitments. Therefore, build-to-rent homes present an excellent choice for individuals who value the flexibility of renting, as it eliminates the responsibilities and expenses associated with maintenance while providing the comfort and privacy typically found in a house. According to data by RentCafe, developers are building new single-family rentals at a rapid rate. 2022 witnessed a remarkable milestone in the housing sector, with a record-breaking completion of 14,541 new homes, marking a substantial 47% increase compared to 2021. The surge in the build-to-rent (BTR) trend can be attributed to the lasting impacts of the pandemic, such as the adoption of social distancing measures and remote work models. With 44,700 new BTR homes under construction across the nation, a staggering 97% occupancy level, (which is even higher than the 95% occupancy for apartments), it’s clear that this trend will only continue to rise in popularity. As explained by RentCafe, cities like Phoenix and Dallas have emerged as key hubs for rental homes, while Charlotte, NC; Atlanta, and Little Rock, AR, have experienced significant growth in single-family rentals over the past five years. In 2022, the construction of single-family homes for rent reached an unprecedented milestone, with over 14,500 completed houses, making it the strongest year on record. Additionally, in eight out of the top ten metropolitan areas for build-to-rent, the number of newly opened rental homes in 2022 reached its highest level in a decade. Notably, over the past two years, the scale and density of projects increased, with an average of approximately 130 units per property. Furthermore, the average size of each home also experienced growth, measuring 1,361 square feet in 2022, a 2.6% increase compared to the previous year.As demonstrated in the graph above, Dallas emerged as the leading metropolitan area in terms of the highest number of completed single-family rentals in 2022, with nearly 2,800 homes. This figure represents a remarkable 10-year peak in the city. Notably, the number of build-to-rent homes that became available in the Dallas metro last year was more than five times greater than the 500 units completed just a year prior. Following Dallas, Phoenix takes the second spot on the list, with over 1,500 build-to-rent homes being completed in 2022. This number represents a 9% decrease compared to the previous year. Atlanta secures the third position, with over 800 single-family homes for rent completed in 2022, marking a significant milestone that hasn't been reached in the past decade.As the popularity of build-to-rent (BTR) homes continues to soar, it will be fascinating to observe which cities seize the opportunity to construct and expand new single-family rental properties, considering the surging demand. Notably, prominent figures such as Elon Musk and Jeff Bezos have recognized the potential and are investing in single-family homes, as their value is expected to appreciate over time due to the increasing popularity and necessity of such properties. The attraction of single-family build-to-rent (BTR) communities for institutional investors is due to the housing shortage and the fact that these communities function similarly to multifamily properties. Investors find them appealing due to their remarkable lease renewal rates and the broad appeal they hold for a diverse range of renters. Additionally, consumers favor these communities as they often feature high-quality properties that provide a single-family residence experience.

Jul 5, 2023

The Impact of Climate Change on Insurance Costs & Real Estate

There have been constant warnings of severe weather conditions, natural disaster footage on the news, and a growing number of weather-related property losses, throughout the years. In fact, the U.S. has sustained 348 weather and climate disasters since 1980 where overall damages/costs reached or exceeded $1 billion (including CPI adjustment to 2023). The total cost of these 348 events exceeds $2.5 trillion, according to research by the National Centers for Environmental Information. The real impact of climate-related events can be felt in every aspect of the real estate market, including rising insurance costs, prices, and major declines in popularity amongst specific regions. Higher temperatures lead to more extreme weather conditions and an increase in large-scale catastrophes, like massive hurricanes, wildfires, storms, and flooding. Understandably, the costs and conditions of properties are becoming more difficult to manage and thus, putting more pressure on the real estate market on a yearly basis. Furthermore, the number of weather-related catastrophes in the US is growing consistently. In 2022 alone, there were 18 natural disasters in the U.S. that resulted in at least $1 billion in total economic loss. According to Yardi Matrix, insured natural disasters topped $100 billion since 2017 – meaning that insurers’ models are not likely able to keep pace with the growing frequency and severity of catastrophes because of climate change. The cost of repairing properties from weather-related events and the increase in construction costs due to inflation, labor, and supply-chain chains, to name a few, are important factors to consider, as well. Insurance Rates in High-Risk States States like Florida and Texas are considered high climate-risk states because they are constantly hit the hardest by storms, hurricanes, freezing temperatures, and so on. Insurance rates are increasing across the nation, but some insurers in high-risk states are increasing rates by 45-100% or avoiding the area altogether. According to research by Yardi Matrix, not only are insurance costs increasing overall, but insurers are covering less wind limit on replacement costs with large increases in deductibles, new exclusions for damages such as mold or flood endorsements, and limits on payouts. Climate Change & Its Impact on Property Owners As explained by Forbes, temperature increases also have a direct impact on the costs of managing a rental property. It's projected that more tenants will rely on electricity to run fans and AC systems to stay cool. Coupled with a significant increase in water usage, these trends place a higher burden on the electrical grid and city resources. It’s important for property owners to note that they will pay an increased cost for those utilities along with their tenants. The more demand for these resources, the more expensive they become. The rising costs to insure properties is another factor contributing to potential delinquencies. When insurance is inexpensive there’s less burden for an owner, but as rates escalate, it can create hardships for some owners. Some in the industry are seeking reform of insurance requirements by lenders, while other solutions may involve the industry utilizing modeled loss since using a risk model basis rather than insured value would likely benefit property owners. Ultimately, it requires property owners to manage the costs of business while keeping an eye on the weather.

Coldwell Banker Commercial Top 2-Elite Event

Jun 27, 2023

Ro-cham-beau: The 2023 Elite Top Two Event Recap

Who would have thought Newport, Rhode Island, Rock-Paper-Scissors, and leadership would have so much in common? That’s where Rochambeau comes in.First, Marshal Jean-Baptiste Donatien de Vimeur, comte de Rochambeau, landed in Newport, Rhode Island during the Revolutionary War and marched with his troops to meet with General George Washington and the Marquis de Lafayette to help win the Independence of the United States. Ro-Sham-Bo happens to be another name for the famed game “Rock-Paper-Scissor,” as Rochambeau allegedly played the game during the American Revolutionary War. It was a fitting game Josh Best, director of learning for Coldwell Banker Commercial, to have our Top Two professionals and Elite company leaders play as both a team-building exercise and a way to better acquaint everyone with each other. This year, we hosted 18 first-timers, and the most Top Two women in our recorded history! The event kicked off with a welcome reception at the historic Hotel Viking located atop downtown Newport’s Historic Hill neighborhood that opened almost a century ago. This is where old friends greeted each other, and newcomers received a warm welcome. The day included a quick history of Newport followed by words from Dan Spiegel, senior vice president and managing director of Coldwell Banker Commercial, as well as team-building, networking, and Leadership Workshop Part 1 sessions. The afternoon was reserved for our network members and their guests to join smaller group activities that gave them a feel for Newport and allowed for deeper connections to be made. We began the second day with new CBCWorldwide.com website updates and a sneak peek of some new functionality soon to come. Then, we had a continuation of the learning workshops. Even after the sessions concluded our top brokers continued learning from each other and building connections. After an afternoon that allowed our guests the opportunity to explore beautiful Newport a bit more, we celebrated all of their success with an incredible reception at the International Tennis Hall of Fame, where they preserve and promote the history of tennis and celebrate its champions. A perfect place to celebrate our champions. While we finalize the next picture-perfect location, it was apparent that this trip was inspiring, where we heard many saying they need to close a few more deals to ensure they come back next year.

Jun 21, 2023

The Most In-Demand Cities in the US

Renting has bloomed as a preferred option over buying due to soaring home prices and the start of the spring season, leading to a surge in apartment seekers. The CBC team is taking a closer look at which cities are experiencing the most rental activity and capturing the attention of potential renters. Last month, Atlanta emerged as the most desirable city for renters, followed by Kansas City, MO, and Albuquerque, NM, according to research by RentCafe. These cities witnessed significant engagement and interest in regard to apartment listings, with a high number of rentals being saved as favorites, personalized searches being conducted and overall elevated listing views.These three cities share common attributes that contribute to their appeal. They provide a balanced combination of affordability, employment opportunities, and entertainment choices that attract a wide range of renters. Detroit has made its mark ranking as fourth on the list of Most In-Demand Cities in the U.S., demonstrating signs of revitalization and growth. Lastly, Manhattan maintains its position as a perennial favorite among renters, despite the high cost of living, securing the fifth spot in the rankings.Atlanta is Hot Amongst RentersIn April, Atlanta emerged as the most coveted city among renters, experiencing a remarkable level of rental activity on RentCafe.com. Potential renters in Atlanta displayed a notable increase in interest, as they added twice as many listings to their favorites compared to the previous year. Moreover, rental listings in Atlanta attracted substantial traffic and recorded high rates of saved searches on RentCafe.com, propelling this city to the pinnacle of the rankings. Atlanta offers a multitude of job opportunities, with numerous companies expanding or relocating there. In fact, Atlanta secured the eighth position nationwide for office leasing activity in 2022, reflecting its growing prominence. Additionally, Atlanta has consistently established itself as one of the top tech towns in the country in recent years, further enhancing its appeal to renters.Kansas Popularity is GrowingKansas City secured the second position among the most sought-after cities in April for renting on RentCafe.com. KCMO experienced a remarkable surge, climbing an impressive 27 spots from the previous month's ranking. This significant jump is due to renters favoriting listings six times more than the previous year, while the number of page views for Kansas City listings ranks among the highest in the United States. Moreover, potential renters in Kansas City exhibited an 87% increase in personalized searches on RentCafe.com compared to one year ago. Renters are drawn to Kansas City due to its more affordable housing options and cost of living in comparison to other cities. Like Atlanta, the presence of enticing new tech job opportunities also adds to its appeal.New Mexico Climbing the Ranks  Albuquerque, New Mexico, secured the third spot as one of the most sought-after rental locations in April, demonstrating a vibrant and active rental market. The number of rental listings in Albuquerque that were added to favorites experienced a notable increase, seven times higher compared to the previous year. Additionally, there was a significant surge in listing views, with a 66% increase compared to one year ago, marking the highest growth among all the cities included in RentCafe’s research. The rising popularity of the area propelled Albuquerque to climb an impressive 19 positions in the top 30 rankings within one month. There are multiple factors that attract potential renters, including the plethora of readily available outdoor activities and the thriving entertainment industry. As we discussed throughout the article, potential renters were most drawn to housing options in Atlanta, Kansas City, and New Mexico last month. We saw Alburquerque, New Mexico, and Kansas City climb the ranks as a top US cities for rental activity in April. Now that we’ve taken a closer look at these different cities and their various appealing factors for renters, are you surprised at the top 3 spots?

Apr 11, 2023

Recap of the 2023 Coldwell Banker Commercial® Global Conference

The 2023 Coldwell Banker Commercial® Global Conference was an incredible event where attendees had the chance to brush up on their commercial real estate knowledge and skills, brush elbows with professionals from all over the country, and have some fun, too. X CBC professionals and guests attended the three-day conference in Chicago’s Swissotel Hotel from March 28-30, 2023. The conference featured world-class industry and CBC speakers, learning breakout sessions, networking opportunities and more.