LOS ANGELES—What will the big multifamily surprise be in 2015? “The level of absorption that will be seen,” said Tyler Anderson, vice chairman of CBRE.
“The elephant in the room is the pipeline that is coming…The singlefamily market really hasn't taken off,” Anderson said. “If we look back a year from now, we will be pleased with the level of absorption we will see.”
CBRE's Anderson joined other panelists on the senior brokerage session at RealShare Apartments 2014. More than 1,500 attendees signed up for the two-day event, produced by ALM's Real Estate Media Group, which also publishes Real Estate Forum and GlobeSt.com.
When moderator Stanford Jones, executive director, IPA, a division of Marcus & Millichap, asked panelists about concerns on the macro side that will affect valuation or “stall us out,” panelists said that “there is always a shock to the system and it will come again.”
Cindy Cooke, senior EVP at Colliers International, worries about “conflicts overseas and wars, which will always have an impact.” She also said, “I worry about the overall economy in other countries and how that affects the dollar, and how it affects our lending environment.”
For Dean Zander, senior partner at Berkadia, things like Ebola, data breaches, hacking, and more along those lines are worrisome. “There are always things to think about, but from that comes opportunity.”
When asked where the opportunities are as of now, CBRE's Anderson said “it is in buildings that still need renovations.”
Zander said that one should “buy value-add B and sell core.”
Cooke agreed that value-add space is “an awesome space to be in.”
Moderator Jones added that “when it is hard to believe how good it is, that is the time to take a very close look and be more astute to the specifics.”
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