IMN Middle-Market Multifamily Forum Recap: Multifamily Overview
Lobby CRE attended the IMN Middle-Market Multifamily Forum conference in Dallas, Texas. During the conference, Anne Hollander, CEO of Lobby CRE, moderated the “Multifamily Overview” panel discussion, which kicked off the conference.
We asked Anne for a brief recap of the conversation. Read ahead to learn about the multifamily trends the panelists reviewed during the session.
The Recalibration of CRE
During the conversation, the panelists discussed the recalibration of commercial real estate (CRE) happening today. There were questions about whether this recalibration is “normal” or unique (i.e not a recalibration at all). The panelists agreed that the dynamics we are seeing in the market today are characteristics of the end of the market cycle. Essentially, there are pieces of the dynamic that are happening as part of the “normal” recalibration of a market cycle. However, macroeconomic factors such as recent bank failures and tightening of credit lines could be indications of a “hard landing” in the commercial real estate market.
Multifamily Supply and Demand
With regards to multifamily supply and demand, the panelists agreed that brokers need to work better with their clients who are selling their properties. Today, many sellers operate as though it is still early 2022, where property valuations were high. But with interest rates constantly changing and skepticism around what buyers are willing to pay, brokers need to better manage their sellers’ expectations.
Multifamily transaction and deal flow have both decreased because of bid-ask spread and commercial real estate buyers and sellers waiting to see the outcomes of the market’s volatility. Until the Fed stops rising interest rates, some CRE experts don’t expect to see market stability any time soon.
Multifamily Predictions and Forecasts
The panelists debated whether multifamily is the smartest bet or the default bet. The panelists agreed that the answer is both. There are limited opportunities to invest in tangible assets, like real estate, with regard to a risk profile. As a result, multifamily also becomes the default investment option.
About Lobby CRE
Asset management software, like Lobby CRE, has revolutionized how multifamily firms access and use their operational and financial data. Operating as an all-in-one, cloud-based solution, Lobby CRE is designed to manage and optimize cashflow for faster returns to the Sponsor and Investors. Schedule a Lobby CRE demo today!