The Federal Reserve recently raised the main interest rate by a quarter percentage point, following a pause in rate hikes last month. This continues the upward rate trend after a streak of 10 consecutive increases. Despite signs of slowing inflation, policymakers opted for a range between 5.25% to 5.5%, the highest level since 2001.

This decision aimed to tackle inflation, but is expected to impact multifamily assets, particularly those purchased at sub-5% cap rates in 2020 and 2021. The rate hike is concerning for properties with expiring interest rate caps, exposing them to potential negative cash flow.

Multifamily asset owners who acquired properties with low cap rates face uncertainties amidst continued rate hikes. As this scenario unfolds, the collaboration between stakeholders, including lenders and regulators, becomes vital to provide short-term relief and bridge the gap until conditions stabilize.

For expert guidance in navigating the complexities of interest rate changes and their implications on multifamily assets, contact the Soundview Commercial Capital team. Connect with us today to ensure your investment strategies remain resilient in the face of constantly changing economic dynamics.

In a recent poll conducted by MHN, industry players shared insights into their use of artificial intelligence (AI) in multifamily business operations. The results provide an authentic and nuanced perspective on the adoption of AI technologies within the industry. While the potential benefits of AI are undeniable, the findings reveal that a significant 37% of respondents have chosen to hold off on AI integrations.

One reason for this cautious approach is the frequency of errors and inaccuracies. A popular chatbot, ChatGPT, has even demonstrated "hallucinations" of misleading information in 15 to 20% of use cases. This highlights the importance of carefully assessing AI's reliability before widespread implementation.

The multifamily industry's hesitation to fully embrace AI can be seen as a strategic response. Professionals are mindful that they need to ensure that AI technologies are thoroughly tested before they become key parts of critical business functions.

Follow the link below to read the full article and results of the poll:

In the digital age, online reviews wield a significant influence on prospective residents and the success of multifamily communities. Traditionally, property managers have shied away from soliciting feedback due to concerns about negative reviews. However, ignoring the power of reviews leads to a missed opportunity with enhancing search rankings and attracting quality leads.

Not only do more reviews translate to improved search rankings, but they also guide leasing managers in identifying ideal renters from organic leads. By incorporating authentic customer feedback into marketing materials, including billboards, websites, and social media, property managers can harness the trust factor and align with prospects' preferences.

Learn more about online reputation management, including the best time to ask for reviews and how to include them in your marketing efforts by viewing the full article below:

Steve Enfield

Managing Director

1 (425) 736-2780

steve.enfield@SoundviewCC.com

Mike Cassell

Vice President

1 (503) 330-8323

mike@SoundviewCC.com