Ariel Property Advisors’ President Shimon Shkury and Founding Partner Victor Sozio discuss how inflation and rising interest rates are affecting different segments of the multifamily market.
Although contract signings are continuing, the multifamily sector has become more turbulent in the last 60 days primarily because interest rate hikes are triggering renegotiations and repricing. This period of volatility has injected a sense of urgency in the market as investors seek to close deals and line up financing before additional increases. As rents have rebounded, Vic notes that he is seeing more of an appetite for luxury buildings than 18 months ago and that free market properties in good locations are a bright spot in the market today.
Ariel Property Advisors’ President Shimon Shkury and Founding Partner Victor Sozio discuss how inflation and rising interest rates are affecting different segments of the multifamily market.
Although contract signings are continuing, the multifamily sector has become more turbulent in the last 60 days primarily because interest rate hikes are triggering renegotiations and repricing. This period of volatility has injected a sense of urgency in the market as investors seek to close deals and line up financing before additional increases. As rents have rebounded, Vic notes that he is seeing more of an appetite for luxury buildings than 18 months ago and that free market properties in good locations are a bright spot in the market today.
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