In today’s commercial real estate news, the largest public farmland REIT was formed in a merger, surveys show banks are tightening up on multifamily loans, and LA’s rents are likely to climb even higher in the next year.
Farmland Partners, Inc. and American Farmland Company have merged to form the largest farmland real estate investment trust in America, with around $400 million in investments. The REIT leases land to tenant farmers, spanning 144,000 acres among 16 states.
Banker continue to tighten the loans given out to commercial real estate investors. Of those surveyed, 33% said they’d cut back on loans given for multifamily units, while 25% said they’d done the same for construction projects. The trend is expected to carry on through 2017.
A report by real esatte firm Marcus & Millichap predicts Los Angeles’ rents will rise by more than 5% this year, placing it at the top of the list for multifamily units. The average $2,095 a month rent is created through a dip in vacancy rates, as well as inadequate construction to keep up with demand. The controversial Measure S, on the ballot soon, may increase rents even further.
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