Good morning, investors. In today’s commercial real estate news—the apartment vacancy rates are hovering around 4.3%, banks are scaling back on their lending, and the time for investing in medical buildings may be over.
Apartment Vacancy Rate “Wobbling,” But Not Rising
People are filling apartments as fast as they’re being built. Vacancy rates hover around 4.3%, similar to what it’s been the last few quarters.
Banks are Suddenly Scaling Back Lending, and Wall Street isn’t Sure What to Make of it
As of last week, banks had not increased lending to commercial and industrial developers for six months, the longest stretch of time since the recession. Consumer loans have also fallen, especially in the auto sector. So far, there’s no consensus on what this all means for the economy.
Past Peak: The Market for MOBs Is Slowing Down Amid Uncertainty
With the Affordable Care Act sitting indefinitely on the chopping block, many investors are beginning to question whether they should pull out of their medical building investments. While domestic investors move away from MOBs, foreign investors are moving toward senior housing.