Chuck Corriere MBA
2015 was a great year for commercial investment property owners.
Properties backing commercial loans had an average net operating income growth (NOI) of 3.8%. The same loans in 2014 yielded 2.7% and less in 2013. The analysis was done by Wells Fargo based on 6,000 loans.
Wells Fargo predicts that if the current trend continues it will be the highest change since the financial crisis.
Multifamily News is Great too!
The CoStar Group looked at the year of 2015 NOI’s reported for multifamily loans which secure Freddie Mac and Fannie Mae. Fannie May loans backing over 98,000 MF units reported 2015 NOIs over 5.22% higher than 2014. It’s no wonder we have experienced so much sales activity in MF Sales in Tucson over the year 2015. Freddie Mac loans were 4.7% which is slightly lower but still nearly trip the NOI growth rate in 2014.
The Multi-Family Vacancy rates in Tucson were 7.2% which is the lowest vacancy rate since 2008.
See chart below…
My personal prediction for 2016 is a vacancy rate of 7.92% which is slightly higher than 2015 and still Awesome! BUT…look at the rental rates!
Occupancy and Rental Rates
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