Much news about multifamily has been about the difficulties in the asset class. A new report from CBRE Research raises an interesting comparison to the office segment — a differentiation in performance by property subclass.
CBRE said that metrics for both core and value-add multifamily "improved across the board" after the Federal Reserve cut the federal funds rate by 50 basis points in mid-September. Without more details, that has to be taken on some faith as it left very little time in the quarter, which ended September 30, to show an improvement after the fact. Investors, buyers, and sellers could also have been anticipating the reduction.
Whatever the ultimate causation, the two classes did measurably better, which CBRE said meant the market — at least those parts — had finally made it past "protracted stabilization" and were "on the road to value recovery."
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