Though the rent gap between small and larger properties is shrinking for studio and one-bedroom units, new Census data shows that there are still substantial savings for larger units in smaller properties.
The multifamily market has arguably been the highest performing asset class of any over the last few years. Apartment rents have climbed 5% to 10% in some markets. Cap rates are at their lowest as investors have poured billions into owning these properties.
Here’s a quick look at the small balance multifamily finance and investment benchmarks for Q4 2016.
The most recent update from the Census Bureau indicates that the small multifamily rental market experienced a steeper year-over-year increase in rents compared to both larger properties and historical trends.
Did you miss Arbor on SiriusXM earlier this month? You can now stream the episode at your leisure.
Another Record Year for Small Multifamily Loans While small multifamily loan activity slowed in the fourth quarter, 2016 was a record breaking year with over $47.6B in lending activity. That’s up 6.1% from 2015’s previous high-water mark of $44.9B. Produced in conjunction with Chandan Economics and tailored specifically for the small multifamily investor, ALEX Chatter’s Q4 2016 Small Balance Multifamily Investment Trends Report examines current movement in: Origination Volume Cap Rates Debt Yields LTVs
How inflation impacts commercial real estate; marketing across generations; apartment starts and permits move in opposite directions; and more in this week’s multifamily news roundup.
Another Record Year for Small Multifamily Loans While small multifamily loan activity slowed in the fourth quarter, 2016 was a record breaking year with over $47.6B in lending activity. That’s up 6.1% from 2015’s previous high-water mark of $44.9B. Produced in conjunction with Chandan Economics and tailored specifically for the small multifamily investor, ALEX Chatter’s Q4 2016 Small Balance Multifamily Investment Trends Report examines current movement in: Origination Volume Cap Rates Debt Yields LTVs
