Throughout the event there seemed to be more caution than optimism with regards to the short-term outlook for multifamily. Executives are not buying into the fact that single-family's loss will be multifamily's gain...and rightfully so.
Hessam Nadji and Linwood Thompson presented the facts, highlighted the fundamentals and made clear that the long term outlook is extremely optimistic for those looking to invest.
Here are a few key takeaways:
* Future demand will remain strong due to a demographic tailwind
* The markets are, and will continue to be, supply constrained
* Urban demand is more reliable but continues to be costly
* Operations will remain healthy and support current investor demand and pricing
* Commercial Mortgage Delinquency Rate Remains Near Historic Lows
* Transaction velocity will resume in Q1 of 2008 and be up 10% for the year
* Economy/Job Market will remain slow through Q1 & Q2 of 2008 but avoid recession
* Excess of for sale product will be a problem concentrated in very specific markets
For more information please contact me and I can connect you with Linwood or Hessam from Marcus & Millichap. I also have a copy of their complete presentation from Thursday, October 4th.
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