Searching for Stability Ongoing Disruptions to the Global Supply Chain will Impact Commercial Real Estate

But opportunities are available across various sectors.

Everyone is feeling the pinch of the supply chain disruption, whether they are walking by empty store shelves or waiting weeks for a part in a much-needed auto repair. For commercial real estate professionals, that supply chain disruption is creating both challenges and opportunities.

The big question is just how long supply chain disruptions will last — and views from experts are mixed, with estimates ranging from 12 months to more than three years. Although the cargo ships stacked up outside the ports of Los Angeles and Long Beach have become symbolic of the supply chain crisis, problems with the movement of goods go beyond a single bottleneck. “We have had structural things that were happening before COVID-19 that were heading us toward supply chain disruption,” says K.C. Conway, CCIM, MAI, CRE, chief economist of the CCIM Institute and principal and co-founder of Red Shoe Economics.

The pandemic also highlighted the dependence the U.S. has on imports from Asia and the dominant role China plays in the global world of manufacturing. “When China shut down, effectively because of COVID-19, that was the traffic accident on the 405 that backed everything up,” says Richard Thompson, international director, Supply Chain & Logistics Solutions, Americas at JLL. Even after they cleared the wreckage and started to reopen, there was a bullwhip effect on the rest of the world, he adds, as demand disruptions traveled throughout the supply chain, from end-user to manufacturer. Global supply chains are still dealing with the enormous ripple effects, including large queues of ships at the ports. Click to read more at

Colliers Q1 2022 | Houston Multifamily Market Report

Key Takeaways
  • Occupancy remained at 91.5%
  • Absorption dropped by more than half over the quarter
  • Average rents rose over the year and over the quarter
  • The quarterly median sales price and cap rates dropped

Houston Highlights

Demand for multifamily housing slowed between quarters recording only 1,708 units of net absorption compared to 4,098 the previous quarter. The average monthly rent for multifamily units increased 2.0% over the quarter from $1,188 per month in Q4 2021 to $1,212 per month in Q1 2022. There are over 13,000 units under construction and another 32,800 units are proposed. Occupancy remained steady over the quarter at 91.5% and increased over the year from 88.8% in Q1 2021 to 91.5% in Q1 2022. Click to read more at

As Texas Home Values Skyrocket, State Officials Wrestle with How to Slow Property Tax Increases

DALLAS — As Texas’ exploding real estate market dramatically drives up home values, homeowners are getting sticker shock after receiving notice of their properties’ new appraised values — which help determine how much they pay in property taxes.

The growth rate of home values in the state’s major metropolitan areas has surged by double digits. In Harris County, the state’s most populous county, residential values have risen between 15% and 30%, according to Roland Altinger, the county’s chief appraiser.

In Bexar County, the median value of a home appreciated nearly 25% to $265,540.

And in Travis County, where the state’s housing crunch has been most apparent, the median home value has skyrocketed — climbing more than 50% since last year to $632,208.

“We have never seen anything like this,” said Marya Crigler, chief appraiser at the Travis County Appraisal District. “This is unprecedented for us in Travis County. And I think that same unprecedented appreciation is being seen statewide.” Click to read more at

Keyway Secures Funding to Buy Property from a Little Business Operator and Lease it Back to Them–TechCrunch

Keyway, a startup that buys residence from small and medium-sized company homeowners and then leases it back again to them, has secured $70 million in financial debt funding on the heels of a $15 million fairness elevate.

Started in September 2020, the New York-based corporation – which was beforehand named Unlock – stated it employs details science to “determine, underwrite and shut transactions 10x more quickly than incumbents.” It describes itself as a “managed market.”

Keyway’s very first merchandise is a sale-leaseback giving for organization house owners. The corporation purchases an owner’s creating and then signs a long-term contract with him/her. CEO and co-founder Matias Recchia mentioned this lets the organization house owners to cost-free up capital to grow their business enterprise whilst remaining in the similar spot. Click to read more at

Class Action Embroils Wells Fargo Commercial Real Estate Underwriting Practices

A judge is set to rule on the bank’s motion to dismiss the complaint, which names the company, ex-CEO Tim Sloan and former CFO John Shrewsberry among the defendants.

A federal judge is poised to rule on Wells Fargo’s motion to dismiss a suit that alleges the bank routinely made risky commercial real estate loans using improperly inflated underwriting metrics in the years leading up to and into the pandemic that left the company and its shareholders vulnerable to losses in 2020.

The suit spotlights the minefield that CFOs and financial executives have navigated as they grappled with soaring real estate losses early in the pandemic amid broader scrutiny of mortgage underwriting practices. It also comes as an unrelated civil investigation is proceeding into allegations that the Trump Organization inflated property values to secure favorable terms on loans it was applying for or trying to modify.

The pleading alleges Wells Fargo had loose underwriting practices that were part of a strategy designed to win borrowers and grow its commercial real estate business, according to an amended complaint filed Aug. 31. At the same time, the class action alleges the practices contradicted assurances from bank executives that it used conservative and disciplined underwriting standards. Click to read more at

As Apartment Rents Rise, is an Affordability Crisis Looming?

How have rising apartment rents made life more challenging for tenants? The latest research from the National Association of REALTORS found that renters are spending a lot more of their household income on rent this year than they were in 2021.

How much more? According to the association, in January of 2022, renters earning the household median income for their area were spending 29.7% of their income to lease a typical apartment unit. That is up from 24.8% in January of 2021.

The association reported that January marked the eighth month in a row where rent growth has reached double digits for apartments with up to two bedrooms. That pushes the median apartment rent in the 50 largest metro areas of the country to $1,789, according to’s Monthly Rental Report.

The challenge, then, becomes affordability. How many renters won’t be able to afford apartment units as monthly rents continue to rise?

In January, renters earning the median household income in 15 of the top 50 metro areas in the United States were already spending more than 30% of this household income on rent.

This is important. Generally, economists say that households should spend no more than 30% of their income on housing costs. HUD defines cost-burdened households as those that pay more than 30% of their income for housing, including utilities. Households that pay more than 50% of their incomes on housing costs are defined as severe cost-burdened households by HUD.

In January, the Miami-Fort Lauderdale-Palm Beach, Florida, area ranked as the least affordable rental market in the United States. The National Association of REALTORS said that renters earning the median household income for this area would spend 59% of this income on a typical apartment of up to two bedrooms here.

The most affordable rental city among the top 50 largest in the United States in January was in the Midwest, Kansas City. Here, renters earning the median area income were spending just 20% of their income on a typical apartment with zero to two bedrooms.

St. Louis ranked as the fourth most affordable city for renters, with those earning the household median income spending 22.3% of their income on a typical apartment unit, while in the Indianapolis area, that figure stood at 22.8%, good for fifth on the list.

Two other Midwest cities made the most affordable list: Louisville, where renters earning the median area income spent 23.1% of this income on a typical apartment unit; and Minneapolis-St. Paul, where that figure was the same.