During the pandemic, demand seemingly fled urban markets in favor of the sprawling suburbs, but some investors are still seeing potential in CBD product. Denver-based EverWest, f or one, is bullish on the urban apartment market.

"Most urban multifamily markets are still feeling the impact of the pandemic, particularly for in-place rents, although the tide has started to turn. During the pandemic, most urban landlords had to lower rents and increase concessions to maintain occupancy," Tyler Williams, director of southeast acquisitions at EverWest, tells GlobeSt.com. However, even in this early stage of recovery we are already seeing rents reset to pre-pandemic levels and concessions begin to taper off."

Williams has also seen cap rates adjust this year. "We saw some suburban properties trading at lower cap rates than their urban counterparts, but are now seeing cap rate dynamics shift back to equilibrium," he says.