Multi-family REITs are the investment haven of today. Tenant demand for multi-family units has been insatiable since the bursting of the single-family residential bubble, despite persistent macroeconomic headwinds. But according to a new report released last week by Fitch Ratings, what goes up does eventually have to come down—not only in physics but, apparently, in commercial real estate, as well.
“When you speak to anyone in commercial real estate right now, they are just unbelievably excited about multi-family (investments), from the financing side to the property fundamentals side, and they’re really euphoric,” said Britton Costa, associate director at Fitch Ratings. “There are some very significant growth expectations being dug into the current acquisition environment, and we think that if things are less positive than today, people’s minds can change very quickly, and people are very affected when something is (at its) best and then suddenly becomes worse.”
Read more...Winds of Change for M-F REITs | Commercial Property Executive
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