Propmodo Daily

Greetings!

As we start a holiday week here in the U.S., it looks like there might be some news to celebrate. For those waiting for the Fed to lower interest rates (which is pretty much anyone in the real estate industry), there were positive signs from the Fed’s preferred indicator for inflation, the Personal Consumption Expenditure index, which came in at 2.6 percent year over year. The new number is getting close to the 2 percent Fed target and is down from 2.7 percent the last time it was measured.

Another sunny piece of news comes from the 2024 Stress Test Results, just released by the Federal Reserve. They have calculated that banks would be able to withstand a significant drop in commercial real estate prices. When they tested what a 40 percent drop in commercial real estate value would do to banks, they projected a loss of 8.8 percent. They concluded that “projected CRE losses, while significant at $77 billion, are not a notable driver of year-over-year changes in the stress test results.”

The good news has helped investor confidence, but there is still a long way to go. REITs are up over the past year but are still far from their highs in 2022. Despite the struggles of publicly traded real estate portfolios, some owners of niche assets still see value in going public. The world’s largest temperature-controlled real estate investment trust, Lineage, has filed for an IPO at a $30 billion valuation.

Indoor air quality standards have gained increased attention, especially in response to the COVID-19 pandemic. In a new article we discuss how the pandemics impact on the awareness and importance of indoor air quality continues to play a role in the eyes of tenants. From advanced technologies to regulatory proposals, we examine how improving IAQ not only reduces health risks but also boosts building performance and enhances tenant well-being in the post-pandemic era.

Also, this week in Propmodo Technology, we are exploring leasing and brokerage technology. With high interest rates and limited financing options reducing sales volumes, brokerages like JLL, CBRE, and Cushman & Wakefield are leveraging AI for data management and underwriting. While some partner with tech startups, others use established platforms like Microsoft Azure AI.

Curious about what to expect in the softening multifamily market in the second half of 2024? Sign up for our next Propmodo Live webinar on July 9th, where we will talk to experts from JLL, Defigo, and Veritas about how they plan to attract and retain residents in the changing multifamily landscape. We will explore how owners and managers can improve operational efficiencies while navigating a landscape of compliance hurdles and evolving technology.

Now, let's dig in!

The Push for Cleaner Indoor Air Continues in the Post-COVID Era

Indoor air quality (IAQ) standards have gained increased attention, especially in response to the COVID-19 pandemic. Drawing insights from the White House's IAQ summit and recent scientific calls for national standards, we explore the differences between outdoor and indoor air regulations. From advanced technologies to regulatory proposals, we examine how improving IAQ not only reduces health risks but also boosts building performance and enhances tenant well-being in the post-pandemic era.

More News

Insider Insights

🦙 Llama strong: Alpaca VC has closed on a third investment fund for $78 million and launched a private equity real estate fund.

🔪 Deal killer: Soaring property insurance costs are now starting to directly impact dealmaking in private real estate transactions.

Overheard

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Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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