SAN DIEGO—Some markets have a significant number of multifamily units under construction but can the momentum continue? Surrounding our MBA/CREF coverage here in San Diego, we caught up with Eric Enloe, managing director of JLL's valuation and advisory services, to learn more on the subject.

GlobeSt.com: While multifamily volumes were slightly down in 2017 year-over-year, the sector still saw more transaction volume than any other sector for the third year in a row. How is all of this activity effecting valuations of multifamily assets in the U.S.?

Eric Enloe: There continues to be tremendous interest in multifamily product across the US, which is driving values across the board. Many long term investors view multifamily as the safest or most secure of the four property types and as a result investment interest continues to be robust. We're also still seeing a large cohort of what we call “renters by choice,” those who could afford to buy but are still renting for a multitude of reasons. We're also seeing corporations steadily moving their headquarters to central business district locations in an attempt to lure more millennial talent. This is fueling more demand in urban cores across the country, and that persistent demand has proved to be a boon for multifamily owners and investors. Additionally, international buyers continue to be a factor in the market dynamics for gateway cities.