National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Berkadia’s Powerhouse Points to 2020 as “Year of Affordable Housing”
Berkadia has released results from its 2020 Outlook Powerhouse Poll, a survey of collected insights from over 150 of the brand’s commercial real estate leaders from 60 offices across the nation. The Powerhouse Poll is focused on assessing perspectives, and making some predictions on anticipated activity and opportunities for the year ahead.
The poll identified a consensus on the number one and two issues being affordable housing and serving the unique requirements of nontraditional investors, respectively. Strong deal volume is expected across the board in 2020, and increased use of technology is also expected to dominate the day-to-day world of commercial real estate.
According to Berkadia’s report summary, the company’s mortgage banking and investment sales experts are bullish on industry activity in the year ahead. This includes an expectation that interest rates and the upcoming presidential election will have the greatest effect on multifamily investing and financing in 2020.
When drilling down into what major trends impacting multifamily financing are on their radar this year, the Powerhouse results point to interest rates, the 2020 presidential election and GSE reform in that order. For trends impacting multifamily investment transactions, Berkadia’s survey ranked interest rates, the 2020 presidential election and debt underwriting as the top three factors. The obvious correlation being multifamily is going to get its more than fair-share of attention in 2020, with readily identifiable fundamentals and market demand fueling expectations of an an active year.
Notably, while acknowledging threats of a potential market slowdown on the horizon, investment sales brokers and mortgage bankers are confident that deal activity across the industry will remain strong in 2020. In fact, 92 percent of Berkadia professionals expect the capital available for deals in 2020 to increase or stay the same compared to 2019.
For comments, questions or concerns, please contact Chris Egger
- ◦Economy
- ◦People
- ◦Financing
