Operational expenses, including the increasing cost of insurance, will continue to have a major impact on the multifamily industry over the next year, according to Colliers’ 2025 Outlook for commercial real estate. Insurance has been a sticking point for the past couple of years. Deals are being repriced as rates fluctuate, and some buyers are walking away from hard deposits, said the firm.
“There are ways to mitigate insurance cost increases through scale, but with 2024’s active hurricane season, these expenses will remain front of mind for buyers and sellers alike,” said the report.
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