|While just one office building sold in the Chicago CBD in '09, the multifamily market sold a whopping 15 buildings over $7 million in the metropolitan area. CBRE's first VP of multi-housing (by definition, the man of the house) John Jaeger tells us Fannie and Freddie kept the industry moving.|
John's three-person team at CBRE buys and sells institutional-grade multifamily buildings nationwide. The team has closed more than $1 billion in transactions since 2007, including a 252-unit building in Highwood and a 250-unit building in St. Louis in '09. John says the main driver of the housing market is employment, since renters can afford a larger place or to live without a roommate if they have a job that pays well. The $40 billion lent out by Fannie and Freddie last year was what provided liquidity in the market for buyers and sellers, which should continue to be the case in 2010.
Can you all say, thanks echo boom? John tells us 70 million children of baby-boomers are at a prime age for renting, especially now that the condo market is distressed. He anticipates the multifamily market will pick up in a big way 2011-2015, when employment is back to normal levels and all the existing product is absorbed. Right now, he says, is a great time to buy a building to prepare for that potential boom, but not many owners are selling.