How the OC plans to stay youthful, and why renters want to stay put
Apr 6, 2015
Here are the news stories you might have missed last week:
The New York Times: Office space is hard to find for Silicon Valley newcomers
The only thing higher than some tech firms’ valuations is the rent they pay. San Francisco’s office market is booming, and office rents are astronomical. Startups, already faced with the challenges of gaining notoriety and financial backing, are particularly burdened by these high rent rates, as they add one more obstacle to the already competitive tech-startup space. The city’s office vacancy rate has dropped to under 5 percent, which creates huge competition for tech firms vying for key locations. This demand has caused office rents per square foot to double from what they were five years ago. Read about the hunt for Silicon Valley office space at NYTimes.com.
Senior Housing News: Why rising interest rates won’t deter senior housing M&A
The senior housing sector only seems to be getting better with age. While there are concerns that rising interest rates will negatively impact cap rates and acquisitions in the senior housing market, experts don’t seem to be worried. The flow of capital into the sector will likely stabilize cap rates, and the flurry of merger and acquisition activity will likely continue, even with an interest rate hike. Small increases in cap rates, like a 25 basis-point jump, shouldn’t stop the top REITs from buying and selling at competitive levels, either. Find out more about interest rates, cap rates, and the senior housing segment at SeniorHousingNews.com.
GlobeSt.com: TOD, walkability can stop millennial exodus
Botox might not be enough to keep the OC young. Orange County is struggling to retain its millennial population, as young professionals are relocating to more diverse neighborhoods. But local officials might have come up with a solution: improving walkability and increasing transit-oriented development (TOD). A recent study paints a clear picture that young people are leaving the OC because they want to live in walkable neighborhoods that have easy access to public transit. But a push toward TOD needs wide community support if Orange Country wants to stay youthful. Read what local officials are saying about the future of the OC at GlobeSt.com.
National Real Estate Investor: Declining geographic mobility means lower turnover for U.S. multifamily
Homebodies are making multifamily investors very happy. Recent studies show that more people are renewing their leases, which is a good sign for multifamily property owners. Suppressed mobility rates are causing rents to climb and vacancy rates to dip throughout the country, which is saving property managers a ton on re-rental maintenance. But, a strengthening economy could cause people to relocate for new jobs, and therefore elevate mobility rates. Learn more about this trend at NREIOnline.com.