Banks Pumping More Capital Into The Multi-Family Market …
What has been obvious on the street for the last five years has now manifested itself in commercial real estate statistics, namely, investment in apartment buildings is thriving while investment in office buildings are waning.
Apartment buildings are now the top commercial real estate investment sector, dethroning office buildings, according to CoStar.
Demand for rental units has grown nation wide since 2008, when individuals and families started moving out of houses and back into rental units. This was often due to foreclosure, but also due to people readjusting their housing situation to new lower income circumstances.
Such is the increased demand for multi-family property that existing multi-family lenders are expanding their existing loan programs, and new lenders are entering the multi-family lending fray.
This is good for apartment investors, in that there will be more capital available to buy apartment buildings in 2013, and the increased competition among multi-family lenders means better terms and underwriting for investors.