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 Newmanabout 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.
Dennis Kaiser is Vice President of Content and Public Relations for Connect Commercial Real Estate. Dennis is a communications leader with more than 30 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect’s client content operations and is involved in a range of initiatives ranging from content strategy, message development, copywriting, media relations, social media and content marketing services.
In his most recent corporate communications roles, he led a regional public relations effort across Southern California for CBRE, played a key marketing role on JLL’s national retail team, and was responsible for directing the global public relations effort at ValleyCrest, the nation’s largest commercial landscape services company.
In addition to his vast commercial real estate experience, Dennis has worked on communications and launch strategies for a number of residential projects such as Disney’s Celebration in Florida, Ritter Ranch in Palmdale California (7,200 homes, 22,000 acres), WaterColor in Florida and PremierGarage in Phoenix.
Dennis’s agency background included firms such as Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator.
Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements.
Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, BoyScouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and Thunderbirds Charities.