Rachel Parsons Parsons: “There are numerous buyersfor every transaction; the challenge is finding sellers.”

SAN DIEGO—Significant pent-up demand for apartments inSan Diego, which only transacts on average 18 trades a year over100 units, is creating a market where cap rates are among thelowest in the nation, CBRE VP investment properties,multifamily, Rachel Parsons tells GlobeSt.com. A recent report fromthe firm showed that, among stabilized class-A infill multifamilyassets, Los Angeles and San Diego were among the markets with thelowest cap rates in the nation at 4%.

The report also revealed that California leads the country withthe lowest suburban cap rates for multifamily. A shortage ofmultifamily housing, a growing economy and a largerenter population are all contributing to strong multifamilysupply/demand fundamentals. These strong economic and demographicfactors are fueling investor sentiment, which has driven cap ratesto record lows.

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Carrie Rossenfeld

Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.