Property Management News

With the large number of catastrophic loss events in recent years we have seen insurance companies leaving markets like Florida, and California, and the resulting higher cost of property insurance has become a big drain on NOI and property values for commercial real estate.  Given that property insurance premiums are increasing by as much as 300% in some markets, investors are struggling to determine whether the high cost of insurance is temporarily (and therefore creates a buying opportunity), or whether this is a systemic repricing of risk which will reset property values going forward. To better understand the dramatic increase in insurance costs we need to dive into the factors that... Read more

Researchers at Florida Atlantic University (FAU), Florida Gulf Coast University, and the University of Alabama have found that some markets may be more favorable to renters based on long-term pricing trends. Western states are seeing rental premiums decline or return close to historical trends, according to end of July data from the Waller, Weeks and Johnson Rental Index. Additionally, a few markets are trading at a slight discount relative to their historical trend as rent growth slows throughout the country. Suggesting that renters could score a slight bargain on the typical rental unit, the index reveals that the average rental in Boise, Idaho, is renting at a .04% discount relative to... Read more