Land Lines – Week 36
Multifamily and commercial construction spending nationally is up significantly, Utah continues to see steady growth in both the residential and commercial sectors. The debate over Public Lands is still heated, we will continue to add articles to the website.
If you are planning to appeal your property taxes September 15th is the deadline for most counties, we have a post discussing appealing property taxes coming out tomorrow, be sure to read it.
Many of you have received the 2Q Newsletter in the mail, if you haven’t here is the link: http://joom.ag/H55b. We are preparing 3Q now, if you aren’t on the list to receive a print version and would like to subscribe here.
There have been several great articles on www.utahlandowners.com discussing landowner concerns, market updates and land news; I will put the headliners at the bottom of this post. Don’t forget to visit the website often for the latest articles and reports, you can also subscribe to the RSS feed.
Below the headliners are Monday’s Market Numbers courtesy of the Urban Land Institute, we will be adding this to the weekly Land Lines email and post.
If you or someone you know has been on the fence about selling their land, fall is a great time to start the process, marketing and selling a raw or papered land deal correctly takes time and experience. If you would like to schedule a meeting to discuss selling your property now or in the future please call, I look forward to speaking with you.
If you would like to receive the weekly land stats and headliners click here to subscribe. Past editions are available on the website under the Land Lines topic. Feel free to share with friends and associates.
Brooke Glaittli – Land Sales – 801-554-2332 – www.brookeg.com
Week 36 Land Stats
8/30/2014-9/5/2014: Salt Lake, Utah Counties and Davis Counties*
8 land parcels sold, 9 sold in week 35.
63 properties were put on the market, as compared to 32 in week 35.
YTD along the Wasatch Front**
4,271 single family building permits have been issued, there were 4,154 issued as of week 35.
42 duplex/ twin home permits have been issued, 38 had been issued by week 35.
97 apartment/ condo permits have been issued, 96 had been issued by week 35.
160 commercial permits have been issued (this number does not reflect all types of permits), 151 had been issued by week 35.
*Source WFRMLS **Source Construction Monitor
Eye On Housing
Existing home sales increased 2.4% in July, tallying the fourth consecutive month of increase. While the pace of existing home sales remains 4.3% below the July 2013 rate, the steady improvement for resales is positive news for the new home market because prospective repeat home buyers must sell their existing homes before buying a newly built residence.
The National Association of Realtors (NAR) reported July total existing home sales at a seasonally adjusted rate of 5.15 million units combined for single-family homes, townhomes, condominiums and co-ops, up from a downwardly revised 5.03 million units in June.
Read the complete article here.
Recent UtahLandowners.com Headliners:
- The Return of America’s Cities: Economic Rebound and the Future of America’s Urban Centers
- Community Support for landowners in Spring Glen
- Nevada county to send anti-federal message by horseback
- Multifamily Residential Construction Spending up 38.4% from One Year Ago
- Nonresidential Construction Spending Rebounds in July
- Debate over Utah’s public lands continues at 50th anniversary of Wilderness Act
Monday’s Market Numbers
The Trepp survey for the week ending August 22 showed average spreads literally unchanged. The implied rate for ten-year, modestly leveraged commercial real estate mortgages remained at 373 basis points, 81 basis points lower than at year-end 2013.
|Asking Spreads over U.S. Ten-Year Treasury Bonds in Basis Points (Ten-year commercial and multifamily mortgage loans for properties with 50 percent to 59 percent loan-to-value ratios)|
|12/31/10||12/31/11||12/31/12||12/31/13||This week (8/29/14)||Last week (8/22/14)||Month earlier|
The Cushman & Wakefield Equity, Debt, and Structured Finance Group’s monthly Capital Markets Update of commercial real estate mortgage spreads, dated August 7, showed spreads coming in approximately 5 basis points as compared with the prior survey (dated June 10) as lenders continue to compete for business; implied all-in cost ranges from 4.25 to 4.50 percent.
|Ten-Year Fixed-Rate Commercial Real Estate Mortgages (as of August 7, 2014)|
|Property||Maximumloan-to-value||Class A||Class B/C|
|Multifamily (agency)||75–80%||T +160||T +170|
|Multifamily (nonagency)||70–75%||T +155||T +160|
|Anchored retail||70–75%||T +175||T +185|
|Strip center||65–70%||T +175||T +185|
|Distribution/warehouse||65–70%||T +175||T +185|
|R&D/flex/industrial||65–70%||T +185||T +190|
|Office||65–75%||T +175||T +185|
|Full-service hotel||55–65%||T +235||T +255|
|Debt-service-coverage ratio assumed to be greater than 1.35 to 1.|
Year-to-Date Public Equity Capital Markets
Dow Jones Industrial Average: +3.38 percent
Standard & Poor’s 500 Stock Index: +8.62 percent
NASD Composite Index (NASDAQ): +9.73 percent
Russell 2000: +0.56 percent
Morgan Stanley U.S. REIT Index: +16.61 percent
|Year-to-Date Global CMBS Issuance(in $ billions as of 8/29/14)|
|Source: Commercial Mortgage Alert.|
Year-to-Date U.S. Treasury Yields
|U.S. Treasury Yields|