Gray Report Newsletter: December 21, 2023

Bridge Loans and Soft Landings News of potential interest rate cuts continue to dominate the conversation, but unlike the stock market’s rally, discussion in the CRE markets is more guarded and cautious about the potential opportunities and relief that might come in 2024. While the coming year may not include a full-blown recession, most of…

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Interest Rates and Multifamily in 2024

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On the heels of a CPI report showing inflation on the slow decline, Federal Reserve Chairman Jerome Powell announced that the FOMC would keep the federal funds rate at its current level, with 3 rate cuts expected in 2024. Stock markets reacted with the typical enthusiasm associated with the hope of lower interest rates, and…

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Gray Report Newsletter: December 14, 2023

Federal Reserve: 3 Rate Cuts in 2024 On the heels of a CPI report showing inflation on the slow decline, Federal Reserve Chairman Jerome Powell announced that the FOMC would keep the federal funds rate at its current level, with 3 rate cuts expected in 2024. Stock markets reacted with the typical enthusiasm associated with…

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How Will Multifamily “Survive Until 2025”?

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There is little reason to expect that last-minute deals will buoy the low sales activity in the multifamily market in 2023, but investors should look for opportunities to emerge in 2024 as these persistent challenges change the calculation for property owners unable to “survive until 2025.”

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Gray Report Newsletter: December 7, 2023

Chill Sets in for Multifamily Borrowers With rent growth reports showing near-zero percent rent growth for the year, multifamily borrowers, investors, and operators face continuing challenges that will require active solutions rather than passively waiting for a more favorable interest rate environment. With the year-end approaching, apartment operators and asset managers will have a full…

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Gray Report Newsletter: November 30, 2023

Light at the End of the Tunnel Gets Brighter for Multifamily Continued updates on housing starts and permits shows multifamily construction starts down sharply even as single family construction continues to grow. The seasonal cooldown in rent growth is less pronounced than last year but remains a challenge for owners and operators continuing to deal…

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The Multifamily Market Adjustment Is Just Beginning

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With forecasts of greater supply and continued pressure from high interest rates, predictions that we are in the early moments of CRE valuation adjustment are gaining prominence, but expanded interest in non-bank lending is helping multifamily borrowers looking to resolve challenges related to increased borrowing costs.

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Gray Report Newsletter: November 23, 2023

Market Adjustment to “Higher for Longer” With forecasts of greater supply and continued pressure from high interest rates, predictions that we are in the early moments of CRE valuation adjustment are gaining prominence, but expanded interest in non-bank lending is helping multifamily borrowers looking to resolve challenges related to increased borrowing costs. Multifamily, the Nation,…

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A Paradigm Shift for Multifamily and CRE

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Stock markets rallied after this week’s CPI print showed lower inflation, but the path to lower interest rates may not be as quick or straightforward as some would hope. With continued low CRE property sales and a narrow cap rate-interest rate spread, investors looking for investment opportunities are turning to non-bank lending, preferred equity, and…

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