Tuesday, December 1, 2009

Multifamily Brightest Commercial Real Estate Investment for 2010, Report Says

The nonprofit Urban Land Institute and PricewaterhouseCoopers LLP have released the report "Emerging Trends in Real Estate 2010." This 76 page report on commercial real estate includes these highlights:
  • Multifamily "is the only place with a hint of hope, because of demographic demand. Scarce construction sets the stage for a strong rebound in any economic turnaround. There could be a shortage of apartments by 2012.(p. 12)
  • Portland ranks among the top US markets to watch for multifamily investment.(p. 28)
  • Multifamily ranks as the top prospect for real estate investment in 2010 (p. 41)
  • Pent up demand grows for apartments. Twenty-somethings who moved back in out of necessity want out of parents homes as soon as employment prospects improve. This huge generation Y cohort of young adults should be avid renters as they delay marriage and kids to build careers. (p. 43)
  • On the supply side, the apartment development pipeline will run dry. (p.43)
  • Multifamily investments historically provide the best risk-adjusted returns among property types - and current market experience reinforces investor views of the sector's relative resiliency.  (p. 45)
Download the full report free.