Team Smart had a blast and learned a ton at GlobeSt’s fantastic Multifamily Fall event!
Key trends to watch:
📈“The worst is behind us.”
General consensus is that the market has hit bottom and now is the time for opportunistic buying. One panelist said, “This is one of the most amazing times to buy that I’ve seen.”
🏛️“Capital is coming back.”
There has been a widening of lenders and more clarity in the market over the last 30 to 45 days. The caveat? Lending relationships are vitally important. Fannie and Freddie currently have a full pipeline. Banks are re-emerging, yet still prioritizing depository relationships. Equity is starting to pick up a bit. Right now, the debt fund market is winning the day.
🛫Runway in Institutional
U.S. pension funds have $35.6 trillion in asset allocations. Real estate is 4.4% of this. “It’s a good time to be an LP.”
💲“Rents are gonna rip”
2023-2024 has been a record time for deliveries, but little to no construction starts. This leads to a gap in supply that will positively affect rent growth for those who buy in time to benefit from the appreciation of the next 12-24 months.
⏰Residents Staying Longer
Decades ago, people rented an average of 2.2 years before purchasing a house. Today that average is 9-11 years. “The multifamily product we’re developing today is for residents that will stay longer. This means larger floor plans and killer amenities.”
🛋️Is the Living Room obsolete?
Some are being converted to bedrooms.
🛖ADU development is exploding in California.
💻Technology/automation/AI is a huge opportunity for increased efficiencies. Still, you can’t just rely on technology. There has to be judgment.
Special thanks to Natalie Dolce, who our own Jenn Quader was delighted to see and hug in person. Follow Natalie for amazing writing about #CommercialRealEstate and #Finance.
