Speaking of inflation…. Inflation is almost certainly a supply side issue, not a demand side issue. Because of that, inflation might not be as persistent and should moderate more easily into mid-2023.
Look for CMBS rates to level out around 5% by the end of 2023. It’s up from the crazy low rates the fed championed the past many years but if you have been in the biz for as long as me, that’s a relatively healthy rate and deals will keep closing.
Lastly supply, like inflation, is going to continue to be an issue for housing of all types moving forward especially affordable/workforce, which is good news for apartment occupancy and gives credence to the “build it and they will come” crowd.
CRG continues to support our clients with construction solutions for all types of projects and as we have always done adjust to current market conditions to deliver ROI and value creation.
