DALLAS—Overall, the multifamily market couldn't have been more active last year. Development and funding were aplenty in many areas of the metro.
Is the outlook for this year expected to be much of the same or will there be bumps in the road? In this exclusive, Brian O'Boyle, vice chairman, ARA Newmark, recently discussed the trends and submarkets to watch, investor evolution and perhaps some surprises in store for the multifamily market in 2018.
GlobeSt.com: What market/debt market shifts should investors watch in 2018?
O'Boyle: The outlook is very positive. Rent increases will moderate. New starts will be harder to justify with increased construction costs. Equity is plentiful and most institutional players have a lot of equity to place. There appears to be an abundance of long-term debt available and we are starting to see some of the regional banks loosen up on construction loans.
GlobeSt.com: What will surprise people this year and why?
O'Boyle: We'll continue to see record-setting pricing of $300,000-plus per unit for wrap product in some infill locations.
GlobeSt.com: How will the region's investor mix evolve in 2018?
O'Boyle: Several newly formed companies have raised significant capital and are making a definite impact on the market. Keep an eye on the impact of these groups adding to mix and an influx of foreign capital.
GlobeSt.com: Which submarkets and dark horses are ones to watch?
O'Boyle: Overall, Dallas/Fort Worth is seen as one of the global gateways and will continue to attract a lot of investor capital due thanks to tax-friendly policies, robust job growth, good school districts and inventory growth outpacing national average. The high-rise market is one to watch. We may see a few bumps in the road in the short term, but long term, the market will be fine.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
