State Of The Multifamily Market

October 13, 2022

Bisnow held their Annual Multifamily Conference earlier this month covering such topics as residential and affordable housing finance, development, preparing for economic uncertainty, multifamily property management and more. Barbara Montes CPM, CAPS, Managing Director of Caton Property Management and Fatina Sayegh, Manager of Professional Services at Caton Commercial Real Estate attended the event and summarized the general market sentiment in one statement, “Multifamily is still a stable investment, it’s just not getting the same yields as the last ten years.”

If you are one of the many investors who appreciate the positive returns of the multifamily asset, here are a few additional insights from the event:

  • Compared to 2021, developers are being more prudent and conservative up front in the underwriting for multifamily acquisitions/new development.
  • Three strategies investors are applying to overcome rising rates and inflation are 1) negotiating extra time to lock in rates during due diligence, 2) creative deal structures, and 3) assuming full debt.
  • Resident retention is tied directly to resident satisfaction and is a critical component of investment success. Developers feel that professional property management is no longer a luxury but a necessity.
  • The Suburban market is strong as renters continue to head out of the city and into suburban apartments with less amenities but higher-quality living space.

One clear viewpoint across the board is that most investors feel that professional property management is the best way to stay competitive and retain residents. To learn more about how professional property management services can add value to your property, contact us.

Send this to a friend