In our latest roundup, apartment starts fell 15% year-on-year in September as construction output fell, office occupancy was unchanged and developers withdrew permits.
Developers withdrew permits for 398,000 apartments in buildings with five or more units, seasonally adjusted, down 17.4% year over year and down 10.8% from August 2024. (Leslie Shaver, Multifamily Dive) Construction input prices fell 0.9% in September. Two of the three energy subcategories declined, reflecting the overall stable trend in material prices over the past 12 months. (Sebastian Obando, Construction Dive) Construction stocks rebounded in September after a slump in late summer, thanks in part to the Federal Reserve’s interest rate cuts. (Joe Bousquin, Construction Dive) The split incentive gap, where landlords and developers pay for building energy efficiency improvements while tenants benefit from lower energy costs, remains a major barrier to building decarbonization. It has become. (Nish Amarnath, SmartCities Dive) The Fed began its rate cutting cycle in September, cutting the federal funds rate by 50 basis points for the first time since 2020, giving rate-sensitive sectors like commercial real estate a much-needed rate cut. positive momentum. (Paulina Rikos, CNBC) Despite all the attention that has been garnering from high-profile companies requiring people to return to the office, office usage has remained largely unchanged. (Michael Gerrity, World Property Journal) The commercial real estate sector is pivoting towards sustainability as demand for ESG reporting requirements increases. (Felicia Jackson, Forbes)
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