Northmarq’s latest report on the Build-to-Rent sector predicts uneven performance in 2023 due to increasing vacancy rates as deliveries outpace market absorption. The tight capital market is causing developers to focus on finishing existing projects while delaying new developments. However, the long-term outlook for the sector remains favorable as the labor market performs well and high single-family home prices deter potential first-time buyers. Renter demand is expected to support rent growth, despite a 35% premium on Build-to-Rent units compared to traditional apartments. Construction financing is becoming more challenging to obtain, particularly from regional banks, and investment activity has slowed. Phoenix leads the Build-to-Rent construction market with nearly 6,000 units in its pipeline.

A dam in the Russian-occupied part of Ukraine’s Kherson region has collapsed, causing extensive flooding in the town of Oleshky. The situation has prompted mass evacuations and led to accusations from Ukraine of Moscow committing an act of “ecocide.” The critical Nova Kakhovka dam supplies water to southeastern Ukraine and the Crimean peninsula, as well as the Zaporizhzhia nuclear plant. While no immediate nuclear safety risk has been reported, the dam’s collapse will likely affect the plant’s operations.

Maricopa County has introduced an automated service called Maricopa Title Alert that notifies subscribers when documents referencing specific names are filed with the recorder’s office. The free service requires registration with an active email address and names of individuals or businesses to monitor. However, the registered email address and names will become public record. Rose Law Group offers a service to register on behalf of clients for a small annual fee, maintaining anonymity while monitoring and providing action plans for registered names.

Houston’s commercial property market experienced a significant slump in Q1 2023, with sales dropping 74% compared to the same period last year. This decline reflects a nationwide trend due to increased interest rates and tighter lending standards. Office vacancies in Houston are at nearly 27%, with leasing down 29% in Q1 compared to the last three months of 2022. The recovery of the market and an increase in commercial property transactions will likely depend on the stabilization of interest rates.

Some US banks are looking to sell off property loans at a discount, even when borrowers are up to date on repayments, to reduce exposure to the unstable commercial real estate market. This follows multiple warnings that the asset class is the “next shoe to drop” after recent turmoil in the US regional banking industry. HSBC USA is in the process of selling hundreds of millions of dollars of commercial real estate loans, potentially at a discount, as part of an effort to wind down direct lending to US property developers.

The USDA is providing nearly $66M to improve access to jobs, healthcare, and infrastructure in Arizona’s historically underserved rural communities. The funding will support 17 projects, creating jobs, expanding businesses, and providing affordable housing, clean energy, and modern water and wastewater systems. This is part of a national $262M funding announcement for 68 projects across the US and Puerto Rico.

Phoenix’s housing market has rebounded and become an economic success story, with a fast-growing job market and economy. However, challenges such as dwindling water supplies and a rising homeless population remain. The market is stabilizing, with increasing inventory and potential for price cuts and sales incentives in 2023. Despite high demand, there is a risk in water supply for smaller subdivisions and rental properties. The rental vacancy rate is above the national average, allowing room for negotiation between tenants and landlords. Rising mortgage rates may deter potential buyers, while consumer sentiment remains cautious due to inflation concerns. Arizona’s foreclosure and delinquency rates remain low, and home sales may increase if prices continue to moderate. Builder confidence is up in the West Census Region, and the Architecture Billings Index indicates a faster recovery in commercial real estate construction compared to the national average.

Office Properties Income Trust has secured a $30.7 million loan for a federal government-occupied property in Hyattsville, Maryland, as part of its financial preparations for an upcoming merger.

Florida has become a prime destination for investors due to factors such as strong population growth, a tax-friendly environment, and a variety of investment options. The state’s commercial real estate attracts capital investments from both the US and global players, and its infrastructure, including ports and the Brightline high-speed train, has made it a crucial hub for trade. Additionally, South Florida has increasingly attracted technology companies and startups, while the restaurant and hospitality sectors have also experienced growth. Florida’s tax-friendly status and high rankings in areas such as innovation and job growth further contribute to its appeal for businesses and investors.