Land Lines- Week 38 Stats

Week-38-Land-Stats-blog

Land Lines – Week 38

 

Many of you have received the 2Q Newsletter in the mail, if you haven’t here is the link: http://joom.ag/H55b. Q3 will be mailed out later this fall, if you would like to receive a print version click 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 these 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.

 

Sincerely,

Brooke GlaittliLand Sales – 801-554-2332 – www.brookeg.com

 

Week 38 Land Stats

9/13/2014-9/20/2014: Salt Lake, Utah Counties and Davis Counties*

12 land parcels sold, 6 sold in week 37.

82 properties were put on the market, as compared to 42 in week 37.

 

YTD along the Wasatch Front**

4,620 single family building permits have been issued, there were 4,427 issued as of week 37.

42 duplex/ twin home permits have been issued, 42 had been issued by week 37.

102 apartment/ condo permits have been issued, 99 had been issued by week 37.

171 commercial permits have been issued (this number does not reflect all types of permits), 166 had been issued by week 37.

*Source WFRMLS               **Source Construction Monitor

Housing News

Economic activity in the United States rose less than expected in August, but was still consistent with the economy expanding at a moderate pace for the rest of this year, The Conference Board said on Friday.

The research organization’s monthly Leading Economic Index inched up 0.2 percent, after an upwardly revised 1.1 percent increase in July. Economists polled by Reuters predicted that the index would rise 0.4 percent after July’s earlier reported 0.9 percent increase. The slower-than-expected pace of growth last month, the report said, was driven by dismal applications for housing permits and new orders for non-defense capital goods.

Read the rest of the article here.

 

Recent UtahLandowners.com Headliners:

 

Monday’s Market Numbers

The Trepp survey for the week ended September 12 again showed average spreads coming in about 5 basis points, offsetting losses in recent weeks. It is a little like being on a see-saw—this week a small improvement, next week a little loss. The majority of analysts seem to agree with the Fed’s continued assurance that it is in control and knows what it is doing as dire predictions, at least for the moment, are few and far between. The first change in rates appears to have been pushed forward another quarter. The implied rate for ten-year, modestly leveraged commercial real estate mortgages was 4.0 percent, 64 basis points lower than year-end 2013. It remains a great time to be a borrower.

Asking Spreads over U.S. Ten-Year Treasury Bonds in Basis Points (Ten-year commercial and multifamily mortgage loans for properties with 50% to 59% loan-to-value ratios)
12/31/10 12/31/11 12/31/12 12/31/13 This week (9/12/14) Last week (9/5/14) Month earlier
 Office 214 210 210 162 141 146 146
 Retail 207 207 192 160 138 143 138
 Multifamily 188 202 182 157 137 140 136
 Industrial 201 205 191 159 137 140 137
 Averagespread 203 205 194 160 138 143 139
 10-yearTreasury 3.29% 2.88% 1.64% 3.04% 2.62% 2.42% 2.46%

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 about 5 basis points compared with the previous survey, dated June 10, as lenders continue to compete for business; the implied all-in cost ranges from 4.25 percent 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: +11.42%

Standard & Poor’s 500 Stock Index: +8.77%

NASD Composite Index (NASDAQ): +9.65%

Russell 2000: –1.44%

Morgan Stanley U.S. REIT Index: +9.95%

Year-to-Date Global CMBS Issuance (in $ billions as of 9/12/14)
2014 2013
U.S. $65.1 $60.5
Non-U.S. 1.9 8.5
Total $67.0 $69.0
Source: Commercial Mortgage Alert.