In his latest Arbor Realty Trust video, Dr. Sam Chandan, a leading commercial real estate scholar, shares his insights into the findings of our latest Top Markets for Multifamily Investment Report, developed in partnership with Chandan Economics. The noted NYU professor outlines the market-level results of the Arbor-Chandan Opportunity Matrix, which spotlights multifamily markets that offer optimal value to commercial real estate investors.
Lending Activity Accelerates as Loan Maturities Reshape Cap Rates
Arbor Realty Trust’s Small Multifamily Investment Trends Report Q1 2026, developed in partnership with Chandan Economics, shows that lending activity in the sector increased for the second consecutive year amid a sharp increase in refinancings. Even with persistently high interest rates and rigorous underwriting standards, small multifamily entered the first quarter on steady footing.
Key Findings
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Small multifamily originations accelerated in the second half of 2025, rising more than 16% year-over-year, the second consecutive year of increase.
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Cap rates edged higher, driven primarily by refinancing activity.
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LTVs rebounded as credit underwriting conditions continued to normalize.