Multifamily Opportunities Hard to Find
By Kelsi Maree Borland via Globe St
Multifamily properties are selling at full prices in most markets with opportunities difficult to find, according to Ethan Penner, a commercial real estate expert known for founding CBRE’s capital partners and the former president of Kennedy Wilson. Penner is speaking on the Economics in Multifamily panel at the upcoming RealShare Apartments conference in Downtown Los Angeles on October 15 and 16. The panel, moderated by Richard Hollowell, managing director at CohnReznick Advisory Group, will examine the current multifamily market and discuss where we’re headed.
Although the multifamily market is tight with limited opportunities, Penner tells GlobeSt.com that the market is “still relatively attractive given the inability of many to own a home.” On the panel, he wants to discuss this very dichotomy. “I want to talk about how one can make money today while still protecting against the downside,” he says about the topics or trends he is itching to bring up with the other panelists.
In addition to limited opportunities, there are other challenges investors and developers are facing in the multifamily market. Penner notes the most significant of these challenges are stagnant personal income, rental rate increases and growth limits. Although these challenges are noteworthy, they aren’t getting worse. Penner explains that next year, the market will be “relatively unchanged from today.”