ELIZABETH N. THOMPSON, REAL ESTATE PARTNER
“I am seeing continued enthusiasm for existing multifamily assets – particularly those with a value-add opportunity. Although renovations are expensive, the improvement of an existing multifamily asset provides investors with potentially increased returns when compared to a core opportunity, and significantly less exposure to these risks when compared to a traditional development deal. California continues to be a desirable location for these investments, and we are seeing increased transaction activity in 2025.”
DEAN PAPPAS, REAL ESTATE PARTNER
“There is still a lot of interest in multifamily development (although the high interest rates and tariffs are starting to influence new development). Also, many of the alternative/specialty product types remain active, such as self-storage, senior living, and affordable housing, as well as industrial. Fluctuating interest rates along with political and economic uncertainty have certainly slowed transaction volume and development, but there seems to be significant capital on the sidelines waiting to be deployed. From the development perspective, demand is outpacing supply, so we expect a wave of significant transaction volume once things settle.”
MARSHALL BROZOST, REAL ESTATE PARTNER
“Economic uncertainty is causing real estate investors to focus on industry sectors that historically have shown resilience, such as for-rent housing, student housing, self-storage, and certain parts of the retail landscape, including necessity retail. Difficulty in underwriting for value add is resulting in some investors seeking out core and core-plus assets for a longer duration hold that yield current returns. While investors remain constructive on logistics opportunities, the current tariff environment has complicated the underwriting. Investors have the dry powder . . . but uncertainty is breeding caution.”
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