The real estate recovery since the end of the recession in 2009 has rippled across the market, from land to industrial, single family, and office. However, there has been a particular and significant leader in this rising tide that has lifted all boats: multifamily.
As the housing recession pushed a wave of owners into renters, multifamily was there with projects to meet the pressing demand. In the process, lenders, brokers, builders and developers have reaped impressive returns while changing the dynamics of the Arizona commercial market.
As the following pages reveal, this multifamily renaissance cuts across all segments of real estate – class “A,” “B,” and “C” – with transactions in 2012 of 100 units or more accounting for 32, 28 and 40 percent respectively of sales. Liquidity is flowing to developers large and small, and despite government sponsored entities – Freddie Mac and Fannie Mae pulling back multifamily funding by 10 percent in 2013 – the developers, brokers and lenders in the sphere see a more than ample supply of capital for making deals.
This broad multifamily inertia has involved the industry’s most dynamic players and their signatures mark the Greater Phoenix Metropolitan landscape.
Whether the subject is the unveiling of a new style of Class “A” developments to Phoenix by Mark-Taylor and P.B. Bell, the strategic insight and specialization on multifamily by top brokers from Marcus & Millichap, or the continuous upscale developments driving greater rents from Scottsdale to Chandler by high-powered deals brokered by teams at Cushman and Wakefield, the opportunities in multifamily are significant and booming.
The experts in this sector agree more units will be built this year than last year, and that trend will play out into 2014 and 2015. The common denominator for the companies and individuals in multifamily leadership is an ability to meet consumer demand by utilizing unique strategies inside their respective niches.