2018 U.S. Real Estate Market Outlook (Multifamily)

There have been some questions regarding economic downturns and the impact it would have on multifamily assets. I'd like to share the below synopsis from our latest report. Enjoy!

OFFICE, MULTIFAMILY: AGILE BY CAPITAL STRUCTURE "The best-performing markets of the current expansion include some that can be highly volatile in a downturn, such as Austin, Boston and San Francisco. But don’t panic in the event of a market pullback. Rather, make your capital structure bulletproof. This includes extending your existing debt to five years or more so you’re not subject to a liquidity crunch. It also involves active communication with your equity partners about what may be required during the downturn, including spending more money. Given the historic cyclicality of our industry, the best time to spend is during a downturn. Don’t pull back on spending and don’t jump the gun on selling in these great and dynamic markets. Create an agile debt and equity capital stack to best position your assets."

2018 Forecast reflects share of units currently under construction

Significant compression in the urban-core assets

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