Multifamily residential properties can be a lucrative investment and provide a stable long-term income opportunity.
Properties range from a two-unit duplex to large apartment complexes with elaborate amenities and
services. Because renting is an attractive and affordable option for today’s mobile workforce, multifamily
properties are experiencing high demand.
Coldwell Banker Commercial® affiliated multifamily professionals are well-versed in the unique trends, opportunities and challenges that shape successful multifamily transactions.
The most common type of multifamily commercial property, apartments are wholly owned by one owner and individual units are rented to tenants. While apartments are sometimes called condos to appeal to a more affluent audience, true condominium buildings are owned jointly among the condo owners through the condominium association.
The simplest type of multifamily, a duplex is a building divided into two separate units. Similarly, a triplex includes three units, while a fourplex includes four. Each unit has its own private entrance. Units are often side by side but can also be stacked.
This detached structure includes multiple dwellings, often with a shared entry. Many multiplexes can appear from the street as a large single-family home.
Coldwell Banker Commercial affiliated professionals have access to
local, national and international market data and industry trends, which means you’ll have access to the
critical information you need to make informed decisions. With deep connections across the industry and in
local communities, your CBC advisor can open the door to potential investors and tenant, wherever they may
If you are selling a property, CBC professionals can help you maximize the value of your assets through property rehabilitation and marketing. When buying, they can assist you in making an informed acquisition decision and finding the right opportunity. For owners of multiple properties, CBC professionals can help evaluate your portfolio based on current market conditions and future trends for each specific location.
Look to the Coldwell Banker Commercial network to assist with all your industrial real estate needs. Our services include:
Acquisitions – CBC affiliated professionals can help with all your acquisition needs, from identifying your ideal investment to conducting physical and legal due diligence.
Consulting – Our experienced advisors can help you reach your growth goals with personalized solutions for multifamily owners and developers.
Dispositions – Your CBC affiliated professional will work with you to optimize properties before sale with strategic marketing and analysis.
Due Diligence/Feasibility Studies – We offer customized and comprehensive insights for buyers and owners.
Investment Analysis – We help clients make confident investments backed by in-depth evaluations and market research.
Market Surveys/Analysis – CBC affiliated professionals can help you find multifamily investments with expert research.
Property Management – Our advisors can work with you to identify opportunities to upgrade management and business technology systems for a better ROI.
Property Marketing Strategy – Your CBC professional can help you reach the ideal target audience with a creative marketing strategy.
Stay informed with the latest commercial real estate market reports,
trends and industry news from Coldwell Banker Commercial.
The U.S. is facing a potential loss of nearly 200,000 affordable housing units in the next five years as government protections expire for hundreds of rental properties, allowing landlords to set their own rents, highlighted by The Wall Street Journal. The main program used by the federal government to encourage developers to build affordable housing is a 30-year tax credit. However, specific agreements that assisted low-income renters are set to end, giving landlords the option to charge market rates for their units instead of continuing with the government program. Due to a period of high rent growth, many landlords are expected to raise rents significantly. Between early 2021 and the summer of 2022, asking rents for market-rate units increased by 25%, according to Apartment List, a rentals website. By 2027, up to 188,000 low-cost rental apartments funded by the government tax credit could convert to market rate, as reported by Moody's Analytics. Certain cities, such as Dallas, Chicago, and Houston, are at risk of losing a significant portion of their affordable housing. During the pandemic, a considerable number of affordable housing units vanished, with a decline of 400,000 apartments and rental homes for families in poverty between 2019 and 2021, according to the National Low Income Housing Coalition, which analyzed U.S. census data. Some of this loss was attributed to the expiration of tax credits, as mentioned by Moody's Analytics.Without longer affordability agreements or new subsidies, approximately 100,000 units of tax-credit housing could expire annually by 2033, according to Peter Lawrence, director of public policy and government. Rent increases following expiration can be substantial, as affordable housing rents are typically 38% below market rates on average, but after expiration, they rise to about the same level as market-rate properties of comparable quality and location, according to a study by Freddie Mac.This situation has left some long-term renters in difficult situations. The Wall Street Journal article shares the story of an 85-year-old renter in California who lives on a monthly income of $1,000 and has experienced minimal rent increases for nearly three decades. However, in 2021, the landlord opted out of the federal tax credit program, causing the rent to more than double, going up to as much as $1,300. Landlords have been major supporters of the tax credit program, and many have built large businesses by operating affordable housing. But without new subsidies or incentives, building owners will likely take advantage of the recent hot market and raise rents to meet the rising costs of maintenance, insurance, and property taxes. The solutions to this looming challenge will require cities and government agencies to work with landlords and developers to encourage investment into affordable housing projects, while simultaneously creating the incentives to do so. It is a complex situation that won’t easily be solved but without collaboration to address the need, it is clear that fewer options will be available. That doesn’t bode well for the future of many who are in desperate need and could end up without a safe and secure place to live.
Numerous office buildings remain largely vacant. The once rapid growth of apartment rent has decelerated and is even declining in certain areas. However, within the struggling commercial real estate industry, there is a rare positive aspect seen in housing aimed at college students attending popular universities.The rental rates for student housing are anticipated to increase due to limited availability and substantial demand at various colleges, particularly those prestigious research universities and schools affiliated with the top five highest-earning athletic conferences in U.S. college football. Nonetheless, as overall college enrollment experiences a decline, there are heightened risks for student housing, particularly in smaller colleges with less renown and diminishing enrollment, as highlighted by The Wall Street Journal.Despite the increase in mortgage rates over the past year, sales of student housing properties reached an all-time high of $22.9 billion in 2022. In contrast, the growth in multifamily rents is showing signs of cooling down from the double-digit surges observed in the previous year, with an increase of 2.3% over the 12 months ending in May 2023, as reported by RealPage. Meanwhile, student housing rents are experiencing growth at a rate of approximately 9%, according to RealPage.The COVID-19 pandemic served as a unique test for the resilience of student housing in challenging markets. Despite expectations of a downturn in 2020, occupancy rates remained stable, even during the peak of online learning. Students displayed a desire to move closer to their college campuses, even when attending classes virtually, instead of staying with their parents. The uncertainty surrounding the return to on-campus learning had a dampening effect on rental rates until the latter half of 2021, at which point they began to rise again. The combination of bustling campuses and increasing rental rates contributed to the record sales observed last year.It is predicted that sales of student housing properties this year will likely not reach the levels seen in 2022, partly due to the pent-up demand that drove sales in the previous year. While the values of student housing properties, like other commercial real estate types, have been affected by higher borrowing costs, the decline in value has been comparatively moderate. This is attributed to the robust growth in rent and sustained occupancy rates. Industry experts, including Blackstone, have expressed confidence in the enduring strength of this sector, stating that it has proven resilient over time and is likely to remain a positive prospect in the future. Blackstone backed this up by acquiring American Campus Communities for $12.8 billion. While the market is challenging right now, it’s interesting to note the steadiness and success of student housing despite the market’s current volatility. Additionally, supply constraints resulting from a lack of available sites at certain schools will further empower landlords to continue raising rental rates.
With soaring home prices and the peak rental season in full swing, renting has emerged as the contemporary alternative to buying. However, among the cities experiencing heightened listing activity, which ones are drawing the greatest attention from apartment seekers? According to research by RentCafe, Arlington, VA, retained its position as the most coveted city among renters for the month of August, maintaining its dominance from the previous month. Climbing three places from its July ranking of No. 5, Kansas City, MO, secures second spot. Minneapolis and Cincinnati, both situated in the Midwest, secure the third and fourth positions, respectively. Meanwhile, Denver secures the fifth position, marking a significant jump of six places since the previous month. The apartment listings in these cities garnered the highest engagement on RentCafe.com this month. This heightened engagement can be attributed to a combination of factors, including a substantial number of rental properties being saved to favorites, personalized search activity, limited unit availability, and a notably high volume of listing views overall.The Midwest significantly asserts its influence by securing ten out of the top 30 cities with the highest rental activity in August. A significant number of individuals are gravitating toward the Midwest, attracted by its affordable cost of living, expansive open spaces, and relaxed pace of life. The region is known for its friendly residents, economical land prices, and a tranquil lifestyle distinct from other parts of the United States, which has enticed a range of people to trade life on either Coast for the Midwest. The South follows closely with nine cities on the list. Concurrently, as the peak rental season unfolds, renters are shifting their apartment search focus towards suburban localities that provide convenient access to urban amenities. This shift has propelled Phoenix suburbs—Chandler, Gilbert, and Peoria—into the ranking as the freshest and most sought-after rental locations. Consequently, this month showcases the inclusion of seven Western cities in the roster of the nation's most desired renting destinations.However, the appeal of core urban living remains strong. In a remarkable advancement, New York City's Bronx ascends three places to occupy the No. 6 spot, edging ever closer to the top. Not to be overshadowed, Queens, the largest borough of NYC, follows suit, securing the No. 13 position this month—an impressive climb of six places from the prior month. Similarly, Philadelphia, Chicago, and Houston continue their sustained presence among the nation's premier cities for rental activity.Staying informed about the cities in the highest demand for renters is a crucial undertaking for investors. This knowledge empowers investors to make well-informed decisions that align with current market trends and capitalize on lucrative opportunities.
Hospitality properties require specialized understanding of both real estate and operations. Coldwell Banker Commercial affiliated hospitality professionals offer experience in hospitality occupancy, real estate, and valuation and will help you find the right space for your goals.
Coldwell Banker Commercial affiliated professionals' industry knowledge makes us well-positioned to match you perfectly with your ideal commercial properties.
Whether your business needs to lease or sublease office space or acquire or sell an office building, Coldwell Banker Commercial affiliated professionals can develop a customized solution tailored to your specific goals.
Coldwell Banker Commercial affiliated professionals who specialize in retail can help owners maximize the value of their property prior sale through recommended upgrades, rehabilitation, market repositioning and helping secure anchor tenants.
Coldwell Banker Commercial affiliated professionals can help to navigate the complexities of a distressed property transaction by providing expertise and guidance to both buyers and sellers to help mitigate risks and maximize returns.
With their extensive network and market knowledge, CBC affiliated professionals can help facilitate a smooth and successful transaction for an agricultural property.
When you work with a Coldwell Banker Commercial affiliated professional who specializes in land, you will receive valuable guidance on available properties with insights into the market, upcoming projects, local zoning and restrictions that could impact your investment.