Apartments and multifamily have long been the investment darling of commercial real estate. And, according to a recent report from Real Capital Markets (RMC), the sector continues to be in pretty good shape from a buying/selling perspective. In its “Multifamily Investor Sentiment Report,” RMC interviewed multifamily professionals across the spectrum, and reported the following:

• Steady employment continues to boost multifamily growth. This is especially the case when it comes to the tech industry in many core and secondary markets.
• There is plenty of capital chasing deals – upwards of $250 billion.
• Gateway and core markets are back as viable investments.

The news isn’t 100% rosy, however. Most industry experts, as well as just under 70% of those surveyed for the report, indicated that interest rates are a concern for the sector. The market has already absorbed 12-18 months of increases, and spreads are thin. Additionally, while value-add is still a hot commodity, fierce competition is creating pricing increases.

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