Whatever else you can say about 2015, it was without a doubt a very big year for the U.S. commercial real estate industry. Here we look back at some of the biggest deals and trends that happened in the past 12 months.
10. New Investors Rush Into Student Housing
New investors have piled into the market for student housing properties—driving property prices and the volume of deals up and driving capitalization rates down. The new student housing buyers include private equity funds and institutional investors, which are becoming much more likely to bid for student housing properties.
9. What the Bond Market Tells Us About Real Estate Prices
There is a correlation between the bond market and commercial real estate, and that could mean that there are some definite changes ahead.
The changes in BBB and BB rated bonds are most relevant to the real estate market. To that point, the low investment grade BBB and high non-investment grade BB bonds saw yields rise in the fall.
8. The Rise of Micro-Unit Apartments
Manhattan Micro-Loft, New York (Specht Harpman Architects)
7. The Walgreens/Rite Aid Merger
Justin Sullivan/Getty Images
6. Private Equity Pours Money Into Self-Storage Deals
5. Five Ways 2015 Looked a Lot Like 2007
Sylwia Kapuscinski/Getty Images
Cult classic Back to the Future II came amusingly close to calling the winner of this year’s World Series with its bet on the Chicago Cubs for October 2015, but it didn’t delve too much into the world of real estate investment. Maybe it should have—many industry pros surely felt like they entered a time-warp.
4. Multifamily Investors Bid in Secondary, Tertiary Markets
Investors are finally buying apartment properties in big numbers in smaller cities and towns. “There’s been a dramatic increase in the number of offers for properties in secondary and tertiary markets,” says John Sebree, director of Marcus & Millichap's National Multi Housing Group. “It’s been moving in this direction for some time—now it’s moving at a faster pace.”
3. The Seniors Housing Sector Remains a Hot Play
2. Continued CRE Brokerage Consolidation
1. Blackstone Buys Seemingly Everything.