In a lot of instances, urban Class A apartment deals are facing a double whammy right now. Before the pandemic, there was a softness in some urban areas as construction deliveries rose.
Then, COVID hit. With office workers free to work from wherever they wanted, many have decided to leave urban core apartments in places like New York and San Francisco for cheaper housing with more space. "The markets that are going to struggle are very tourist-driven or the urban cores, like downtown San Francisco and downtown Manhattan," says Sam Isaacson, president of Walker & Dunlop Investment Partners. "It's going to be soft.
Even after a vaccine, Isaacson isn't convinced that things will go back to normal.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
