In today’s commercial real estate news, investors excited about Dodd-Frank’s repeal should wait to celebrate, student housing is popular but hard to get a loan for, and several large firms are selling more commercial real estate than buying.
Investors excited about President Trump rolling back Dodd-Frank should tame their expectations. The regulatory bill has become deeply entangled in Wall Street over the last several years. Congress Democrats will certainly fight the roll back. Trump’s appointees also have yet to be approved as the head of the agencies responsible for cutting back the regulations.
Demand for student housing is sky high, but builders are having difficulty obtaining loans. Developers expect to deliver 47,000 new student housing beds for the upcoming college year in Fall. According to data from Axiometrics, 30% of these had already been leased by December.
Last year, several large firms sold more commercial real estate than they invested in. Total commercial sales volume fell by $58.3 billion in the first half of 2016, an 11% reduction. Rising interest rates and a fear of oversupply reducing potential profits are encouraging firms to divest.