SUPPLY OF NEW APARTMENTS HITS 20-YEAR HIGH |
DEVELOPER PLANS FOR 3,200-ACRE MIXED-USE TEXAS BOOM TOWN |
GLOBAL LOGISTICS MARKET SEES BRIGHT FUTURE |
DATA CENTERS COULD SEE BOOST FROM INFRASTRUCTURE BILL |
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This page , left to right : Davel 5957 , Jeremy Woodhouse , Jarama , Kynny |
In 2H2020 and 1H2021 , approximately 363,000 new rental units were completed — representing the largest number of completions in a four-quarter stretch in at least 20 years — according to Marcus & Millichap ’ s 2021 midyear multifamily outlook . Dallas-Fort Worth saw the largest bump in supply , adding 27,700 apartments , with Houston ( 20,200 ) representing the only other metro area to top 20,000 units . Austin , Texas ; Washington , D . C .; New York ; Atlanta ; Phoenix ; and Charlotte , N . C ., also reported robust supply in the past four quarters ending in mid-2021 .
Other key findings in the report include :
• Vacancies in major downtown areas have started to decline after rising in 2020 . The vacancy rate peaked at 6.3 percent toward the end of 2020 , before declining to 5.2 percent in June 2021 .
• Rents are expected to increase to an average of $ 1,507 per month by the end of 2021 , a year-overyear increase of 6.8 percent .
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The housing market remains as hot as Dallas on an August afternoon . In response , Centurion American Development Group plans to build a 3,200- acre community in Celina , Texas , that will include 7,000 homes , 4,100 apartments , a 27-acre sports park , 24 acres of land for school development , and retail and commercial properties . The Legacy Hills project is a massive expansion for the town with a current population around 30,000 . Located just over 40 miles north of Dallas , Celina is a natural spot for commuters and those looking to move farther out from densely populated areas of Dallas-Fort Worth .
Celina is a modern boom town that has tripled in size from a population of 10,000 in 2010 . With the city issuing 1,672 building permits in the first half of 2021 , municipal officials may be reasonable in projecting an eventual buildout population of 378,000 . In addition to Legacy Hills , at least four other significant developments are planned for Celina in coming years .
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The U . S . industrial sector has been a bright spot in commercial real estate . The global logistics market is also in a relatively strong position , according to JLL ’ s “ The Future of Global Logistics Real Estate ” survey , which included a poll of 720 experts in 43 countries . Some 74 percent of respondents expect growth to top 5 percent in the next three years , with 28 percent of respondents expecting growth to top 20 percent in that time frame .
Despite the positive outlook for logistics and warehouse real estate , 43 percent of survey respondents identified limited availability of entitled land as a primary concern in meeting demand . Lack of available speculative buildings was another concern . Respondents from Northern ( 75 percent ) and Western Europe ( 46 percent ) were the most likely to agree that “ most occupiers are taking limited action on sustainability , but some are taking significant action ,” while East Asia ( 7 percent ) and Latin America ( 18 percent ) were the least likely to agree .
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In late July , the Senate passed a $ 1.2 trillion infrastructure bill that will have major consequences for commercial real estate , with data centers being one area that attracts increased attention . ( Note : The bipartisan legislation still needs to go through House reconciliation and could change , though many observers expect alterations to be relatively minor .) The Infrastructure Investment and Jobs Act includes $ 65 billion marked to support broadband deployment and adoption , which would boost demand for data centers across the country .
The bulk of the federal funds ($ 42 billion ) are a part of the Broadband Equity , Access , and Deployment Program , which would provide states with grants for the development of broadband infrastructure , mapping , and adoption . In simple terms , more people using the internet means greater need for data centers , which could prove a boon for commercial real estate professionals working in the specialty .
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