Soundview Insights

Happy New Year!

Multifamily real estate is on track to continue on the growth trend from 2021, but at less of a hectic pace, due to high levels of demand for multifamily housing coupled with strong economic growth conditions.

According to Freddie Mac's forecast, the growth in total origination volume is also expected to grow this year, at a rate between 5% and 10%

Rent growth will trend similarly, though it won't likely beat the record-breaking 10% we are expecting to see once all the 2021 end-of-year analyses are finished.

We're looking at a strong year ahead, and Soundview Commercial Capital is here to ride the highs with you. Click the link below to learn more about our services.

Though COVID-19 threw several real state classes into uncertain territory, one fact remains - people need a place to live. And now, that place to live is also, for many, a place to work, quarantine, shop, and more.

Record amounts of capital are being generated by multifamily properties, but with that influx comes the fear of the bubble bursting.

Here are some things to remember:

• Multifamily is the most liquid, most acceptable product type - this keeps pricing more stable than other real estate sectors
• Right now, people are aggressively underwriting, so any downward movement may see them putting cash into those deals in the future
• Though outlooks are strong, the peak may have already passed, which is something to think about as you navigate multifamily investments - remember the climate may look very different in two to three years when you go to refinance or start looking at aggressive upgrades to improve energy efficiency in the near future, because interest rates could start going up anytime.

For more on these and other insights, check out the link below.

Demand for industrial spaces has increased due to the massive number of e-commerce businesses that are working to keep up.

The national vacancy rate was measured at 4.1 percent at the end of Q3 in 2021, a decrease of 110 basis points year-over-year.

Supply chain shortages and rising transportation costs are making more and more businesses create plans that center on resilience, causing decision-makers to focus more heavily on those areas rather than real estate costs themselves.

Short-term warehouse solutions are popular temporarily, but the need for industrial space will likely shape storage and inventory strategies moving forward.

As for investments, this sector saw record sales in 2021, and this year looks to be impressive again.

For more on industrial sector outlook, click the link below.