Interest Rate Increases Won’t Dampen Multifamily Demand

Gary Goodman is the SVP of acquisitions at Passco Cos.

Multifamily has held onto its crown this year as the most favored commercial asset class. Even rising interest rates and the length of the cycle—which is close to being the longest recovery in history—aren’t enough to dampen demand. This year, transaction volumes will likely exceed 2017 levels with strong investor appetite throughout the country. For now, investors are remaining net buyers for the foreseeable future.

“The fundamentals are still extremely strong, and even though interest rates have moved up, it really hasn’t damped the demand for multifamily,” Gary Goodman, SVP of acquisitions at Passco Companies, tells GlobeSt.com. “We continue to be very aggressive in buying properties, and I don’t see that changing anytime soon. There is no reason for this economy to be derailed at this point. Cycles typically end because of an event, and that is hard to know. Right now, the fundamentals are so compelling that we will continue to be investors.”