Multifamily Keeps on Building in 2017 - Capital One · Multifamily Keeps on Building in 2017...
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, . . r ” Commercial Real Estate Multifamily Keeps on Building in 2017 RealShare Apartments Conference 2016 Survey Results The Market Still Has Room to Grow Many real estate professionals anticipate steady growth in the multifamily market, according to a recent Capital One survey. The survey results suggest a healthy amount of participation in 2017, with more net buyers dominating the market. Capital One conducted the survey on October 19-20, 2016, during the RealShare Apartments Conference in Los Angeles, California. The percentages are based on 134 responses. 50% think the most important type of financing for their business will be acquisition loans. SOUND MULTIFAMILY MARKET This year’s survey paints a picture of a sound multifamily market that continues to exceed expectations for longevity. The worries about global uncertainty are understandable, but any changes we may experience are likely to be gradual. - Jeff Lee, EVP, Capital One Multifamily Finance, Head of Underwriting and Asset Management MORE WILL BE NET BUYERS “ Net-Buyers 2017 51% 2016 47% 2015 43% Net-Sellers 2017 20% 2016 18% 2015 14% Neither 2017 29% 2016 35% 2015 43% Although there are more net buyers than there were two years ago, there are also more net sellers. Investors seem more confident about their view of the market. WHAT KEEPS YOU UP AT NIGHT? 2017 2016 34% Global Uncertainty 28% 23% Continued NOI Growth 25% 23% Interest Rates Rising 25% 20% Overbuilding Apartments 22% GREATEST INCREASE IN VALUE 2017 2015 7% Generally, about the same 8% 25% Tertiary Markets 19% 27% Suburban Markets 23% 47% Urban Markets 44% Greg Reed, SVP, Capital One Multifamily Finance, thinks that demand will outstrip supply: “Strong demographic fundamentals with millennials continue to drive multifamily... and the market is not getting enough multifamily product built. You have an undersupply, along with strong tailwinds from the demand side.” Capital One® provides an array of financing solutions for all types of asset classes and organizations customized to the precise needs of our clients. We are a Fannie Mae DUS® lender, a Freddie Mac lender, and an FHA HUD lender. Plus, we offer balance sheet financing backed by the full strength of Capital One Commercial Banking. You can count on our team of multifamily mortgage makers to deliver multifamily financing smoothly, quickly and with certainty. https://www.capitalone.com/cre Products and services are offered by Capital One, N.A., NMLS ID 453156, Equal Housing Lender and Member FDIC. ©2017 Capital One. Capital One is a federally registered service mark. All rights reserved.
Transcript of Multifamily Keeps on Building in 2017 - Capital One · Multifamily Keeps on Building in 2017...
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Commercial Real Estate
Multifamily Keeps on Building in 2017
RealShare Apartments Conference 2016 Survey Results
The Market Still Has Room to Grow Many real estate professionals anticipate steady growth in the multifamily market, according to a recent Capital One survey. The survey results suggest a healthy amount of participation
in 2017, with more net buyers dominating the market.
Capital One conducted the survey on October 19-20, 2016, during the RealShare Apartments Conference in Los Angeles, California. The percentages are based on 134 responses.
50% think the most important type of financing for their
business will be acquisition loans.
SOUND MULTIFAMILY MARKET
This year’s survey paints a picture of a sound multifamily market that continues to exceed expectations for longevity. The worries about global uncertainty are
understandable, but any changes we may experience are likely to be gradual. - Jeff Lee, EVP, Capital One Multifamily Finance, Head of Underwriting and Asset Management
MORE WILL BE NET BUYERS
“
Net-Buyers 2017 51% 2016 47% 2015 43%
Net-Sellers 2017 20% 2016 18% 2015 14%
Neither 2017 29% 2016 35% 2015 43%
Although there are more net buyers than there were two years ago, there are also more net sellers. Investors seem more confident about their view of the market.
WHAT KEEPS YOU UP AT NIGHT?
2017 2016
34% Global Uncertainty 28% 23% Continued NOI Growth 25% 23% Interest Rates Rising 25%
20% Overbuilding Apartments 22% GREATEST INCREASE IN VALUE
2017 2015 7% Generally, about the same 8%
25% Tertiary Markets 19%
27% Suburban Markets 23%
47% Urban Markets 44%
Greg Reed, SVP, Capital One Multifamily Finance, thinksthat demand will outstrip supply:
“Strong demographic fundamentals with millennials continue to drive multifamily... and the market is not getting enough multifamily product built. You have an undersupply,
along with strong tailwinds from the demand side.”
Capital One® provides an array of financing solutions for all types of asset classes and organizations customized to the precise needs of our clients. We are a Fannie Mae DUS® lender,a Freddie Mac lender, and an FHA HUD lender. Plus, we offer balance sheet financing backed by the full strength of Capital One Commercial Banking. You can count on our team of multifamily mortgage makers to deliver multifamily financing smoothly, quickly and with certainty.
https://www.capitalone.com/cre
Products and services are offered by Capital One, N.A., NMLS ID 453156, Equal Housing Lender and Member FDIC.
©2017 Capital One. Capital One is a federally registered service mark. All rights reserved.
