SAN DIEGO—The development pipeline will slow, and it will be a challenging year for absorption of class A apartments, said Jeff Adler, VP of Yardi Matrix, but it won't be the end of the world.
Adler served as a panelist at the recent NMHC Apartment Strategies Outlook Conference, where he said that he expects the value-add play to be good next year. “I am seeing that the class B value-add story will be a very strong story in places around where intellectual capital is maintained.” Overall, he said, “people are prepared for some challenges and are gearing up for battle.”
Jeanette Rice, Americas head of multifamily research at CBRE, said that if you are a short-term buyer and you need a good pop, you need to stay away from inner cities and the urban class A market for the time being. “I do have my favorite markets and a lot of west coast markets are outperforming. And I still like Seattle even with all the inventory.”
Rice also pointed to Sacramento, which she said “is leading the industry.” There are a lot of high growth markets like Atlanta where there is a lot of supply, but there is also strong demand, she said.
Rice also pointed to Phoenix being good and that Houston, which maybe being close to the bottom, it shouldn't be counted out. “It is a tough market.”
Adler added that Tampa and Miami will also do well next year.
Click here to read more from the team about deliveries in 2017, about inflation and where the pockets of pain might be.
Several economic factors have resulted in net positives for the multifamily sector and prices in core markets are at an all-time high. But just how long can the market continue on this trajectory? Join us at RealShare Apartments East on Feb. 28 and March 1 for insights on succeeding in the right markets as well as navigating and finding opportunities in the more challenging ones. Learn more.
SAN DIEGO—The development pipeline will slow, and it will be a challenging year for absorption of class A apartments, said Jeff Adler, VP of Yardi Matrix, but it won't be the end of the world.
Adler served as a panelist at the recent NMHC Apartment Strategies Outlook Conference, where he said that he expects the value-add play to be good next year. “I am seeing that the class B value-add story will be a very strong story in places around where intellectual capital is maintained.” Overall, he said, “people are prepared for some challenges and are gearing up for battle.”
Jeanette Rice, Americas head of multifamily research at CBRE, said that if you are a short-term buyer and you need a good pop, you need to stay away from inner cities and the urban class A market for the time being. “I do have my favorite markets and a lot of west coast markets are outperforming. And I still like Seattle even with all the inventory.”
Rice also pointed to Sacramento, which she said “is leading the industry.” There are a lot of high growth markets like Atlanta where there is a lot of supply, but there is also strong demand, she said.
Rice also pointed to Phoenix being good and that Houston, which maybe being close to the bottom, it shouldn't be counted out. “It is a tough market.”
Adler added that Tampa and Miami will also do well next year.
Click here to read more from the team about deliveries in 2017, about inflation and where the pockets of pain might be.
Several economic factors have resulted in net positives for the multifamily sector and prices in core markets are at an all-time high. But just how long can the market continue on this trajectory? Join us at RealShare Apartments East on Feb. 28 and March 1 for insights on succeeding in the right markets as well as navigating and finding opportunities in the more challenging ones. Learn more.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
