NNN Lease Market News
Multifamily Properties is Surging
Demand for multi-family properties one of the best-performing sectors of the commercial real estate market in recent years,is surging, due to a lack of inventory in the pipeline in combination with the lowest home-ownership rates in more than a decade, Bloomberg News reported.
Demand for multi-family properties one of the best-performing sectors of the commercial real estate market in recent years,is surging, due to a lack of inventory in the pipeline in combination with the lowest home-ownership rates in more than a decade, Bloomberg News reported.
Investors’ desire for multi-family properties has allowed lenders to recover an average of 75 percent of the value of defaulted mortgages tied to multifamily housing the highest recovery rate among all commercial property types, Bloomberg said. Some buyers are even paying full price for distressed properties, forgoing the foreclosure procedure entirely, in an effort to snap up the assets before other buyers.
Last year, residential rental properties were one of the most sought-after property types, with sales totaling $54 billion by one measure, up more than 50% from the prior year, according to Real Capital Analytics. Average apartment prices per unit, about $102,000 nationally, are near peak levels.
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