Brennen Degner Featured in Multi-Housing News on How Institutional Investors View Apartments Today
November 15, 2023
HOW INSTITUTIONAL INVESTORS VIEW APARTMENTS TODAY
By Brennen Degner
DB Capital’s Brennen Degner provides insights from CRE’s largest investors.
Navigating the multifamily real estate landscape through the discerning eyes of institutional players offers a varied spectrum of insights and evolving strategies. Our detailed analysis of feedback from over 30 prominent institutional joint venture partners sheds light on the contemporary narratives defining the market. What we found is that the majority of those surveyed have adjusted their yield objectives, to converge around a yield on cost above 6.75 percent. This shift arises from the perfect financial storm created by rising interest rates, unprecedented insurance premiums and other OpEx, and a tempering rental market. These elements together exert pressure on property valuations, necessitating investors to recalibrate and rethink their strategies.