Five policies from the Biden administration that could affect the multifamily housing industry
Although the 2020 election felt more like an election week than an election day, ultimately Joe Biden emerged as the new President of the United States. As the smoke has cleared on the election itself, attention has turned to President Biden’s administration. As private equity lenders, we are naturally examining what the new administration will mean for the real estate development market. Specifically, what will the new administration’s policies mean to a housing market that has shown strength despite an economy that has been heavily impacted by the pandemic?See full article
As major office submarkets in the city struggled to see gains, Northeast Atlanta remained strong, becoming one of two to close the year with an occupancy gain (108,344 square feet absorbed). Consistent with the Peachtree Corners and Duluth/Suwanee/Buford areas, year-over-year the submarket’s vacancy has remained relatively unchanged.
Charlotte’s Central Business District/Uptown submarket’s Class A products have a vacancy rate of 7.5 percent. Throughout 2020, available sublease space jumped by 90.1 percent, while in suburban submarkets it increased by 8.7 percent. The overall office vacancy rate jumped to 13.2 percent, primarily due to the increase in sublet space. While the rise in vacancies was partially due to COVID-19, most of the sublease vacancies were planned pre-COVID as companies readjusted their footprints.
In the final quarter of 2020, Orlando’s overall office vacancy jumped to 11.7 percent as tenants readjusted their needs. After the Great Financial Crisis in 2008, vacant sublease space was 3.0 percent of overall inventory; in 2020, it remained at 1.2 percent. Class A sublease vacancies increased to 11.1 percent and Class B jumped to 12.3 percent. In 2020, new additions to inventory totaled 493,000 square feet with 63 percent of that space leased. At the end of 2020, 320,800 square feet of new space was under construction.