December 2021 INDEX
1. The Light is Shining Bright Again 2. The Collapse of Portland’s Suburban Housing Production 4. Real Market Values and the Pandemic 5. Submarket Vacancy Rates and Concessions 6. A Recap of 2021 and a Look Ahead 10. Regional Market Round-Ups 14. Federal Bills related to Housing in 2021 17. The Impact of COVID-19 on the Clark County economy 18. Jennifer Lyke Joins the HFO Team 19. Economic, Demographic, and Rental Apartment Market Trends 23. Washington State’s Multi-Family Housing Update 25. 2021 Tax Update
THE LIGHT IS SHINING BRIGHT AGAIN (CONTINUED FROM PAGE 1) multiple factors; Portland being in the national spotlight for various protests, political uncertainty, and the current regulations and taxes on housing providers (see Tax Update page 25). Yet the amount of capital looking for multifamily investment in the Portland market far exceeded estimates and more than made up for the capital passing on or leaving Portland. Because of this imbalance, existing owners can command favorable pricing and terms in the disposition of their multifamily assets. Favorable demographic and economic trends are factors driving investor demand in the Portland market. Low interest rates continue to drive interest in commercial real estate investing. With the retail and office markets in flux, institutional investors’ allocation for multifamily investments continues to grow. There is also a spill-over of investor demand to the tertiary markets outside of the Portland PMSA. The hunt for yield continues to drive acquisitions to smaller markets. This increased investor demand in the outlying areas has pushed pricing to levels not seen before—and cap rates to historic lows. The past 18 months have been challenging for many, and the lights sometimes dimmed on the multifamily investment market. However, in 2021 the lights shine bright even as we all try to work through the pandemic. Greg Frick – Greg is co-founder of HFO Real Estate Investment based in Portland, Oregon, and brings more than 30 years of multifamily investment sales and advisory experience.
26. Working with J.R. Johnson for Restoration and Repair Work 27. Oregon Economic Update: The Future is Bright 29. Oregon’s Delays on Distributing Rent Relief Funds Unites Landlords and Tenants in Frustration
The Collapse of Portland’s Suburban Housing Production
31. The latest in the Battle to Preserve 1031 Exchanges
By Gerard C.S. Mildner, Academic Director, PSU Center for Real Estate
32. CRE Financing Trends in Q4 2021
As downtown apartment rents declined during the pandemic, rents and prices in the suburbs have risen, particularly for single-family homes with an office and a backyard for children. Using the Case-Shiller index, Portland-area home prices have risen 10.6% in the past year and over 100% in the last decade.
23. Not all Condition Assessments are Created Equal
Prices in Portland now rival the most expensive housing in the country. In the last 20 years, Portland has been the 6th fastest appreciating market of the 20 metros in the index, along with Los Angeles, San Diego, San Francisco, Seattle, Miami, and Washington, DC. (continued next page) 2 HFO INVESTMENT REAL ESTATE • (503) 241.5541 • WWW.HFORE.COM