Home research company Northmarq National Build-to-Lease Team Releases Special Research Report for Growing Market Segment

Northmarq National Build-to-Lease Team Releases Special Research Report for Growing Market Segment


MINNEAPOLIS, October 18, 2021 / PRNewswire / – Northmarq, which is an industry leader in the growing rental construction market, has released its October 2021 special report, written by the company’s national Build-to-Rent team and the director of research Pete O’Neil. Directed by Jeff Erxleben, executive vice president / executive general manager, and Trevor Koskovich, President-Investment Sales, the group of 12 experts in debt, equity and investment sales, has completed more than $ 1.5 billion in the sale of individual homes for rent in the United States and has more than 15 active listings and assignments.

“While this type of property first appeared in Phoenix, we are now seeing activity across the country and have built an asset-driven team from start to finish. By combining finance and sales experts in the same team, we can deliver the best information to customers across the country, ”Koskovich said.

The second half report, released today, identifies three key trends:

  1. Funding continues to be more abundant for investors in this market. Early in the development cycle, institutional lenders and GSEs stayed away from this product, primarily because it was viewed as disjointed single-family homes leased without strict supervision.
  2. New markets appear each month in the development pipeline, with recent growth in the Carolinas and Dallas-Fort Worth. At DFW, 25 projects are underway and are expected to deliver over 3,000 homes over the next 18 months. In Charlotte, nearly twenty projects totaling more than 2,800 units are either under construction or in the planning phase in the Charlotte metropolitan region.
  3. Demand from tenants is the driving force behind this product, as occupancy rates approach 100% in almost all communities. This demand comes from older tenants looking for flexibility and young families looking for more space than a traditional apartment. For both types of tenants, the rising costs of ownership make leasing more and more attractive.

Billions of dollars in debt and equity fall into this investment category with new entrants entering the scene seemingly every month. “More and more traditional multi-family lenders, including GSEs, life insurance companies, traditional banks and private debt funds, are financing these properties. traction, ”Erxleben said.

See Northmarq report here.

SOURCE NorthMarq

Related links