Dive Temporary:
- Two Texas metros led the nation in condo offers within the third quarter of 2022. Dallas posted essentially the most condo transactions for any metro space with $18.2 billion for the quarter, beating second-place Houston by about $6 billion, based on MSCI, a agency that gives instruments and companies for the worldwide funding neighborhood.
- Houston, with $11.8 billion in gross sales, held the second spot. The 2 Texas metros had been adopted by Atlanta ($11.4 billion), Phoenix ($10.8 billion) and Los Angeles ($7.7 billion).
- Manhattan, which jumped 17 spots to No. 7, posted $6 billion in gross sales, which is 3% off from its all-time excessive. It tallied 212% YOY particular person asset gross sales progress from the third quarter of 2021 to the third quarter of 2022. “This leap was not a case of traders instantly discovering Manhattan — the expansion in gross sales was a rebound after the pandemic pushed patrons to the sidelines,” MSCI stated within the report.
Dive Perception:
Out of the highest 25 U.S. condo markets, 16 set data for transactions in 2022’s third quarter, based on MSCI. The remaining 9 posted gross sales ranges inside 5% of their all-time excessive. MSCI famous that the deal quantity wasn’t only a results of the large Blackstone-American Campus Neighborhood merger. Seventeen metros would have handed their high-water mark primarily based on single-asset transactions and 4 extra had been inside 5% of their all-time excessive.
Markets with essentially the most condo gross sales in Q3
| Metropolis | Quantity (in billons) | YOY change |
| Dallas | $18.2 | 1% |
| Houston | $11.8 | 47% |
| Atlanta | $11.4 | -3% |
| Phoenix | $10.8 | -1% |
| Los Angeles | $7.7 | 14% |
SOURCE: MSCI
Miami-Dade County, Florida, posted value progress of 31.3% YOY, main the tempo amongst main metros, and a 147% improve in deal quantity. Lease progress is driving a lot of this value appreciation and deal quantity.
“South Florida has had a lot migration, and a number of these individuals are high-income. Brickell and Miami Seashore — the middle of Miami — was fairly inexpensive relative to New York, Los Angeles and San Francisco,” Max Sharkansky, managing companion of Trion Properties, a multifamily funding sponsor and private-equity actual property agency primarily based in West Hollywood, California, and Miami, instructed Multifamily Dive earlier this 12 months. “Now these rents have successfully doubled by means of COVID-19.”
Texas deal drivers
Dallas additionally stood out for claiming the highest spot for transaction quantity and posting one of many high markets — 24.5% — for value progress. Shakti C’Ganti, founder and CEO of Dallas-based condo proprietor and operator Ashland Greene, is a proponent of the world, the place he owns roughly 5,300 items.
“We’ve a very various employer base, and we’re not depending on one particular sector like oil and fuel or healthcare,” C’Ganti stated. “And we nonetheless have corporations which might be transferring right here. Goldman Sachs goes to be transferring right here. Caterpillar simply introduced a short time in the past that they’re transferring right here. So, we nonetheless have to accommodate all these staff.”
These job fundamentals have helped entice condo companies, like Magma Equities, into the Dallas-Fort Value space. The Manhattan Seashore, California-based agency, in its first three way partnership with Walker & Dunlop Funding Companions, just lately acquired two properties, totaling 820 items in Houston and the Fort Value submarket of Roanoke.
“We made a robust push to develop our portfolio in Texas,” Magma Director of Acquisitions Scott Ogilvie instructed Multifamily Dive. “Traditionally, Dallas and Fort Value have confirmed to be essentially the most resilient markets throughout financial headwinds. Plenty of that has to do with the quite a few demand drivers available in the market — company migration, robust faculty methods and variety among the many employment base, coupled with the truth that Texas is such a business-friendly atmosphere.”
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