Commercial occupancies reported to the International Council of Shopping Centers are averaging in the nineties. Retail spending remains strong. Consumer credit, while higher in dollar amounts, is in fact the least we have seen in recent years as a percentage of income. The income and employment levels of the population as a whole are the strongest in history, which in turn drives spending, and are the key indicators for the near term economy. This is good news for rental property owners without being bad news for builders.
Apartments have both permanent and bridge financing products available to fit almost any scenario.
Debt coverage ratios on even marginal properties are in the 1.15-1.25 range, certainly not an indication of overly tight money. Rents are rising faster now, due in part to rising residential mortgage rates, which are cooling home sales. Occupancies remain strong as a reflection of the record low unemployment rates we have enjoyed in the past several years. These are the fundamental demographics that control our industry. In short, if a deal is really a deal, it will make sense on these factors, and it can be funded and profited from, global financial hiccups and market swings aside.