The Northwood Group

Building Partner Investors

Market Reports


Utah Investment Snapshot – Q3 2012

October 22, 2012

We have just completed our analysis for the 3rd quarter of 2012.  Please click the link below to see the Q3 Utah Investment Snapshot:

Utah Investment Snapshot – Q3 2012

A few of the highlights from the report are as follows:

  • Cap Rates have remained relatively steady over the trailing 12 months with the exception of office properties which has seen a decline.
  • The total number of investment property transactions and total transaction volume in Utah has increased for the previous 3 years straight.
  • Multi-family properties are the most active segment followed by retail, industrial, and office.

Please feel free to contact me with any questions regarding the market information provided.

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Capital Market Review – October 8, 2012

October 17, 2012

Please see the following link for the Capital Market Review for the month of October 2012:

Interest rates remain low across the board with the lowest rates in the multi-family sector.  The 10-year treasury was up a bit due to the unexpected decline in unemployment.  Institutional buyer continue to lead the charge on commercial real estate investment purchasing high-quality assets both in major and more continually secondary markets.

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Capital Market Review – August 13, 2012

August 20, 2012

It is interesting to look at how interest rates have moved over the last couple of months.  Across the board rates have continued to drop since May.  Additional lenders have continued to come back into the market.  Underwriting remains strict but there are more sources of financing re-entering the market weekly.

One note in the report that caught my attention was the Fitch Ratings which project that $24 billion of US CMBS loans are set to mature over the next 12 months and of these loans 41% would be unable to refinance (without additional cash) based on Fitch’s defined stressed refinance parameter (DSCR of 1.25, rate of 8%  amortized over 30 years).

It will be important to watch over the coming year how many of these loans default and how many are able to be refinanced.

Please see the following link for the Capital Market Review for the month of August 2012:

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NAI West Mid-Year Market Report

July 31, 2012

NAI West recently completed its Mid-Year Market report detailing the state of the economy in Utah, and more specifically the state of Utah property investment.  A few of the highlights are below:

A few of the highlights of the market report are as follows:

  • Utah has the 3rd lowest unemployment rate in the US at 6%.
  • Just under $1 MM square feet of industrial spec space has been completed and most of it has been absorbed.
  • Overall office vacancy is down to 13.98% with Class A office space at 9.43%.
  • Positive retail absorption for the 3rd straight quarter.
  • Property investment market remains strong with volumes very similar to the first half of 2011.
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Capital Market Review – May 1, 2012

May 2, 2012

Please see the following link for the Capital Market Review for the month of May:

Capital Market Update 5-1-12

The Utah commercial real estate market continues to improve.  There has not been a significant amount of change from the previous update at the beginning of March.  Rates continue to be aggressive and more lenders are entering the market.  We are seeing many lenders considering longer amortization periods for quality projects.  We are also seeing many lenders competing for the “good” deals.  Lending is still difficult for projects that have a “thorn or two” on the rose, however things overall seem to continue to be improving in the capital markets.

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Utah Investment Snapshot – Q1 2012

April 16, 2012

Investment Properties Utah

We have just completed our analysis for the 1st quarter of 2012.  Please click the link below to see the Q1 Investment Snapshot for the Utah market:

A few of the highlights from the report are as follows:

  • Compared to Q1 2011, the total number of transactions is down but transaction volume is up.
  • Cap rates have remained relatively flat compared to 2011.

Please feel free to contact me for the full report or for information on Real Estate Investment.

Thanks, Brandon.

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Capital Market Review – March 1, 2012

March 5, 2012

With the volatility in the capital markets, I will be posting a monthly update on the current state of those markets.  The reports are provided by Metro Commercial Finance.  The link below contains a link to the Capital Market Report for the month of March.

A few of the highlights are as follows:

  • Lenders are slowly considering higher loans to value
  • Rates for quality projects remain in the low 5% range
  • We are starting to see availability of funds for development

The underlying theme is that capital is available for good projects and even for some more challenging projects depending upon buyer strength.  Underwriting remains stringent but deals are getting done and they are getting done at very attractive terms.

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