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Chase’s Greg Newman: Key Factors Impacting Multifamily Market Today
There are a multitude of complex factors on the horizon that could impact the multifamily sector. Greg Newman, Head of California Multifamily Lending for Chase, shares insights about how some of those current issues are expected to play out in the multifamily sector in our latest CRE Q&A. He recently provided an update on the market in light of current market conditions. Last year, we talked to Newman about what it takes to get multifamily deals completed, so it is interesting to compare today’s environment to what he saw at that time.
Q: How have lower interest rates impacted the California multifamily market?
A: Decreasing interest rates has helped accelerate refinancing requests. We’re seeing clients extend their fixed rate debt, adding liquidity to their balance sheets and recouping capital expenditure dollars. On the acquisition side, we’re seeing transaction velocity down slightly.
Q: Are you seeing clients adapt to changes in technology?
A: Yes, but in stages. Many larger clients have embraced technology, as their size and scale demand it in order to be competitive in today’s markets. We see the greatest change among younger generation. As the younger generation grows into the business, they naturally bring their comfort and ease of technology along. They’re more accustomed to a fast pace and continual changing environment.
Q: What factors in the next 1-2 years do you see impacting the real estate business?
A: Talk of recession is high on the list. In California we’re also hearing often about rent control and most recently a split tax roll. Many cities are writing and adopting ordinances today and many industry players are working at the state level to see what might happen as we near 2020.
For comments, questions or concerns, please contact Dennis Kaiser
- ◦Financing
