National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Apartment Sales Volume Scales New Annual Peak
Industrial may be the belle of the investment ball, but multifamily hit a new peak in 2018, according to NKF. U.S. sales volume for the year totaled $172.6 billion, representing 12.1% year-over-year growth and the highest annual total for multifamily on record.
Even as more than half the dollar volume came from non-major markets, where investors are pursuing value-add and higher yields, NKF says volume in major markets surged 24.8% Y-O-Y. Leading the way were increases of more than 40% in New York and San Francisco.
Nationally, cap rates decreased five basis points year-over-year to 5.4%. Yields between major markets and non-major markets continued to compress to near cyclical lows of 92 bps, according to NKF.
Annual effective rent growth increased 2.8% Y-O-Y. Las Vegas, Phoenix, Sacramento, Orlando and Tampa have experienced the strongest apartment rental growth in the U.S. over the past 12 months.
For comments, questions or concerns, please contact Paul Bubny
- ◦Sale/Acquisition
- ◦Sale/Acquisition
