Maxed Out: Renewal Rent Growth

Unveiling the Market's Secrets from Behind the Scenes

Author

Nuvo Capital
April 25, 2024

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"Much of the growth in income in 2023 came from higher rents on tenants renewing their leases, which lagged the growth in asking rents on new leases in recent years. However, renewal lease rates have almost caught up with asking rents, so that avenue of growth is close to being tapped out.”

-Paul Fiorilla, Director of Research at Yardi Matrix

Recent Multifamily Sales (Click to view details)

Recent Multifamily Loans (Click to view details)

Question: 

When overseeing construction management for a multifamily development, how do you navigate the complexities of project timelines, budget constraints, and quality control to ensure a successful and profitable outcome?

Answer: 

Overseeing construction management for a multifamily development demands a strategic approach. Develop a detailed project plan that includes realistic timelines and milestones. Regularly review and adjust the budget to accommodate unforeseen challenges while ensuring cost-effectiveness. Implement rigorous quality control measures, engaging with experienced contractors and conducting regular inspections. Foster open communication channels to address issues promptly and avoid delays. By proactively managing timelines, budgets, and quality, construction managers can ensure a successful and profitable outcome for multifamily developments.

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Each Dollar is Not The Same as Every Other Dollar

Diversification in the investments in your portfolio is a key strategy to long term success. But what about the dollars that make up your capital for investment, are they all the same? Join Pat for a discussion of the differences in your capital and how that feeds into your asset allocation strategy.

Quiz of The Week

In commercial real estate, what is an "Anchor Tenant"?

a. A tenant who specializes in marine-related businesses

b. A major tenant that attracts foot traffic and customers

c. A tenant who operates primarily online

sɹǝɯoʇsnɔ puɐ ɔᴉⅎⅎɐɹʇ ʇooⅎ sʇɔɐɹʇʇɐ ʇɐɥʇ ʇuɐuǝʇ ɹoɾɐɯ ∀ .q

Random Tip of the Week

🧹 Plan for Property Upkeep - Factor in ongoing maintenance and repairs when investing in multifamily properties. Regular upkeep ensures tenant satisfaction and prevents larger, costlier issues down the line. Allocate a portion of your budget for maintenance to maintain the property's value and minimize unexpected expenses.

Current Rates (Weekly Update)

10-Year Treasury - 4.60% (⬇️.06%)

Fed Funds Rate - 5.33% (0%)

1-Month Term SOFR - 5.31% (0%)

About Nuvo Capital Partners

Nuvo Capital Partners is a niche market-focused multifamily investment platform operating throughout the Southeastern United States. As a dedicated sponsor (General Partner), we specialize in institutional quality real estate investments within these regions. Our team comprises industry professionals with 25+ years of combined experience, ensuring expertise and market knowledge. We pride ourselves on offering a transparent investment process, providing our investors with access to high-quality real estate opportunities while upholding integrity throughout.

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