The last three and a half years have been a whipsaw of a ride for the multifamily market. Following the surge in leasing demand during the pandemic, demand to own apartment buildings boomed, which drove transaction volume to record highs. Shortly thereafter, the Federal Reserve began raising interest rates to combat inflation that turned out not ...

It’s hard to know what apartment buildings are worth nowadays. With multifamily transaction volume at its lowest point in four years, comparable transactions, or “comps”, which are often used as a reference point to estimate value, are few and far between. The limited availability of comps increases the uncertainty of property valuation estimates. ...

Though the industrial market is softening compared to the pandemic days of double-digit rent growth and record-low vacancy, it is far from weak. Despite slowing rent growth and modestly rising vacancies, demand to lease industrial space remains strong, driven by long-term trends such as rising eCommerce sales, retailers’ need for modern logistics ...

The state of today’s industrial commercial real estate (CRE) can largely be explained as the result of pandemic-related aftershocks. During the pandemic, e-commerce sales soared as millions of stuck-at-home consumers turned to online retailers to purchase goods. Meanwhile, COVID-19 disrupted global supply chains, which made it more difficult for ...

Multifamily capitalization (cap) rates have now increased for three consecutive quarters, the first time since the Great Financial Crisis. This is a sign that investors are requiring higher yields today in order to purchase a property.

In times of economic uncertainty, people tend to stay put. After all, why take on new financial obligations, like an apartment lease, when the future is less certain? Today, though unemployment remains low, inflation remains high, and the recent slew of layoffs at tech companies has many worried about their own financial position. The recent, ...

Slowing demand to lease apartments is now reducing demand to own multifamily properties. Declining rent growth, as well as higher interest rates, has limited the prices that prospective buyers can afford to pay for a property, opening a gap in price expectations between buyers and sellers. As a result, multifamily transaction volumes in the fourth ...

Surging mortgage rates have suppressed demand for home purchases by reducing affordability, which has prevented many renters from transitioning to homeownership. As a result, rental demand has remained strong and real estate investor interest in multifamily properties has remained high. Multifamily transaction volume broke records in 2021, and ...

When inflation first began to surge in 2021, many believed it would be transitory. Inflation has remained stubbornly high, however, prompting the Federal Reserve to tighten monetary policy. In response, the yield on the 10-Year Treasury note has more than doubled, from 1.5 percent at the end of last year to nearly 3.5 percent in mid-June. The ...

In the initial stages of the pandemic, some sectors of the commercial real estate market suffered. As people shifted to working from home – avoiding travel, visiting retail stores, and dining in restaurants – prices for hotels, retail properties, office buildings and other property types where people traditionally gathered declined. However, as ...