Multifamily Still Rockin' and Rollin' at RealShare Apts.
Last week’s RealShare Apartments conference in Los Angeles was the place to be for multifamily investors, lenders and brokers. With almost 2,000 attendees, this was one of the best turnouts ever. Enthusiasm continues to be high for multifamily properties, despite signs of a returning single-family housing market. For example, while rent hikes could drive some of the best renters into home ownership, financing for homes is still a challenge as credit requirements are high so this will help sustain apartment demand.
The environmental and engineering due diligence industry has a unique “boots on the ground” perspective on the trends in the multifamily and commercial real estate markets. Our services, such as a Property Condition Report and Phase I Environmental Site Assessment, are typically called into play prior to acquisition or financing, so we can serve as a metric for what is going on in the market. A few trends we’ve seen lately include: large portfolios in the 2nd half of 2012; foreign and institutional investor activity in major markets like NYC and LA; REITs leading the way into secondary markets with others following; very active HUD lenders across the country; and of course busy Fannie Mae and Freddie Mac lenders as well.
Partner’s president Joe Derhake, PE noted some of these and other trends in an interview with GlobeStreet TV during RealShare, and they were also echoed by other panelists throughout the day.
The sentiment at RealShare Apartments seemed to be that 2013 will be another great year for multifamily, though one panelist noted that the best buying opportunities will be done by this spring. We look forward to a busy 1st quarter for multifamily due diligence, and hopefully a sustained demand throughout the year.
For MORE engineering insights on GlobeSt.com, check out Partner Engineering and Science, Inc.'s "Science of Real Estate" blog, which provides Thought Leadership positions on a variety of commercial real estate-related issues.
About Partner Engineering and Science, Inc.
Partner Engineering and Science, Inc. (Partner) is a full-service environmental and engineering consulting firm completing projects nationwide. We specialize in evaluating properties in connection with real estate transactions, development or management.