Economic signals point to lower rates ahead
The last 12 months have been tough for commercial real estate investors. Many major markets have seen declining fundamentals and transition into the recession stage of the real estate cycle, as oversupply has driven vacancy, concessions, and declining rents. In the wake of higher interest rates and declining fundamentals, transaction volume remains at its lowest […]
HVAC Maintenance Costs Set to Impact Multifamily Investment Returns
We often write about macroeconomic factors impacting multifamily investments. This month, we want to highlight an important change to HVAC maintenance, that is going to increase operational costs across the multifamily industry. This is an example of how detailed knowledge of operations and maintenance is essential for investors and operators of multifamily properties, and how […]
Reading the Signals: What’s Really Pressuring the Multifamily Sector Right Now
We’re dealing with a pretty unusual mix of political, labor, and economic signals at the moment. It’s been a challenging environment to read, but a few key patterns are starting to emerge. Here’s a quick breakdown of the themes we’re watching most closely. Political Pressure Is Starting to Reshape Demand and Labor Immigration has been […]
Underwriting in an Uncertain World
A number of factors continue to make it difficult to underwrite with certainty and find value in the current market. The Fed kept rates flat this month, based on the notion that inflation has settled in the 2.4% to 2.9% range. However, the long end of the yield curve remains elevated at 5.%, and suggests […]