For all the challenges currently found in the residential market, Adam Perry, senior vice president, development and construction, at Cityview, says he's nonetheless pleased to be focused completely on multifamily.
"I'm very glad I don't work in the office sector. We've had bumps every 4 or 5 years, due to cost escalation, but it's been relatively stable," says Perry, who will be speaking on a panel entitled 'Lessons From the Trenches: The Full Scope of Multifamily Development' on October 17 as part of GlobeSt's Multifamily Fall 2023 conference in Los Angeles.
The situation is more complex lately, however. "We've got a triple threat going on right now. The Fed has raised interest rates, creating pressure. It's challenging working with the capital markets with interest rates up so significantly and cap rates also expanding. which means values go down," he says.
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