Most analysts are skeptical when it comes to the growth of commercial real estate in 2016. But contrary to belief, the multi-family properties are on pace for the second year of record investments.
In the first quarter of 2016, multi-family deal volumes reached a total of $37 billion. This number is almost exactly in line with the first quarter of 2015, which was a record year for multi-family investments at $161 billion.
Although, the multi-family property has seen record numbers so far in 2016, there has been some weakness at the upper price-end of that market. That being said, low to moderate income areas for these type of properties have seen little to no vacancies.
To further boost this market, Fannie Mae has announced that it has issued $12.6 billion of multi-family mortgage-backed securities, compared to first quarter of 2015’s $10.4 billion. This gives multi-family borrowers and lenders great access to liquidity.
For more information on multi-family investments for 2016 visit here.
