Metro New Jersey Chapter Fall Meeting

Topic 1: How connected are interest rates and multifamily cap rates? A look at multifamily cap rate trends during economic turbulence, 9:30 – 10:30 am

• Historical fed rate hikes and their impact on multifamily cap rates

• Cap rate trends over the past three years in each state/region

• Impact of interest rates on investment and transaction activity

• Disconnect between pace of changing interest rates and cap rates

• Connection to real estate liquidity and buyer pools

• Other macroeconomic factors including supply and demand, rent growth and vacancy, cost of operating expenses, demographic trends, and investor expectations

• Trend predictions

Topic 2: Solar development’s impact on adjacent residential and agricultural land values, 10:30 – 11:30 am

• Solar Development has skyrocketed over the past 10 years, and with the Inflation Reduction Act, more solar fields are being proposed and constructed than ever before

• This development tends to be predominate in rural and exurban areas, where the cost of land is low and agricultural land owners are excited about high land lease rates

• For the last 8 years, CohnReznick has studied solar development’s impact on adjacent residential and agricultural land values, using techniques and methodology direct from Randy Bell’s Real Estate Damages textbook

• CohnReznick has researched and analyzed several academic studies; called and interviewed nearly 100 assessors with solar in their counties; has developed specific studies in 17 states using paired sales analysis, before and after appreciation rate analysis and interviewed brokers who have sold real estate adjacent to operating solar farms