It is hardly a secret that transactions in all CRE assets have dropped significantly due to interest rate hikes, inflation hitting a 40-year high of 9.1% in June before slowing to 6.4% this past January and the threat of a recession.
This includes multifamily, the erstwhile darling asset class within the CRE community.
But Kris Mikkelsen, EVP of Investment Sales at Walker & Dunlop, is banking on apartment transaction activity to restart and grow in the second half. "The last time the market went through a significant repricing, it took approximately six quarters for transaction activity to get back to what most market participants would consider a historical pace of deal flow," he said in the company's new report on the asset class.
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