CBRE 2017 MULTIFAMILY CONFERENCE B E Y O N D T H E C Y C L E - - PowerPoint PPT Presentation

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Oct 05, 2022 142 likes •302 views

CBRE CAPITAL MARKETS CBRE 2017 MULTIFAMILY CONFERENCE B E Y O N D T H E C Y C L E SALES T REN DS: WH AT ARE T H EY T ELLI N G U S? C H R I S A K I N S CBRE B O B W H I T E Real Capital Analytics B R I A N M C A U L I F F E CBRE G I

SLIDE 1

CBRE CAPITAL MARKETS

CBRE 2017 MULTIFAMILY CONFERENCE B E Y O N D T H E C Y C L E

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C H R I S A K I N S

CBRE

B O B W H I T E

Real Capital Analytics

B R I A N M C A U L I F F E

CBRE

G I N O B A R R A

F a i r f i e l d

SALES T REN DS: WH AT ARE T H EY T ELLI N G U S?

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VOLUME SLOWS DRAMATICALLY IN Q’17

QUARTERLY US APARTMENT SALES TRENDS

100%
50%

0% 50% 100% 150% 200%

'02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 Year-Over-Year Change

25 50 75 100 125 150 175 200 225 250 275 300 $0 $10 $20 $30 $40 $50 $60

'02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

Billions

Individual Portfolio Entity Apartment Prices*

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3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5%

Q1 '15 Q2 Q3 Q4 Q1 '16 Q2 Q3 Q4 Q1 '17

Garden Avg Garden Prime Mid/High Avg Mid/High Prime

PRICING HOLDS DESPITE ADVERSE VOLUME AND INTEREST RATES

GARDEN VS MID/HIGHRISE

3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5%

Q1 '15 Q2 Q3 Q4 Q1 '16 Q2 Q3 Q4 Q1 '17

6MM Avg 6MM Prime NMM Avg NMM Prime

6 MAJOR METROS VS NON

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LIQUIDITY ACROSS ALL MARKETS

MOST ACTIVE APARTMENT MARKETS 2017

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BUYERS CHASING YIELD TO SECONDARY MARKETS

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STRONG INVESTOR DEMAND ACROSS CAPITAL SECTORS

COMPOSITION OF APARTMENT BUYERS

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WHAT IS THE PRIVATE SECTOR TELLING US?

50 100 150 200 250 300

$0 $2 $4 $6 $8 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

Billions

Private Sector Net Acquisitions Apartment Prices

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You can respond at PollEv.com/cbre2017 You can text CBRE2017 to 22333 once to join, then A, B, C or D to choose Polling

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Given what you just heard from Bob, do you believe the deal flow has been the more, less or the same as the first four months of 2016? A. More B. Same C. Less D. A lot less

You can respond at PollEv.com/cbre2017 You can text CBRE2017 to 22333 once to join, then A, B, C or D to choose

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Which is the primary reason for this decline? A. Strong current cash returns B. We’ve hit peak pricing, concern over rising cap rates C. Challenging investment environment leads to difficulty reinvesting capital D. Anticipated rise in interest rates

You can respond at PollEv.com/cbre2017 You can text CBRE2017 to 22333 once to join, then A, B, C or D to choose

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A trend in the real estate industry suggests the multifamily sector has seen their best days and future performance is less promising. A. Lots of upside, lots of threats. Unsure B. Market is stable; I am Neutral C. Lots of race left in that horse! I'm a net buyer D. Best days are behind us. I'm a net seller

You can respond at PollEv.com/cbre2017 You can text CBRE2017 to 22333 once to join, then A, B, C or D to choose

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Are you more of a seller or a buyer in 2017 and why? A. Net buyer B. Net seller C. Even D. Standing still

You can respond at PollEv.com/cbre2017 You can text CBRE2017 to 22333 once to join, then A, B, C or D to choose

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THANK YOU!

SLIDE 15