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 was "on the road to value recovery."

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM Digital Member, you’ll receive:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.