Phoenix Multifamily Immune to Interest Rate Hikes?

Some investors might be nervous about interest rates or China, but not those looking to buy Phoenix multifamily. The market's too strong. That's why we're excited to present Bisnow's Phoenix Multifamily Boom event, beginning at 7:30am on Sept. 23 at the Hyatt Regency Scottsdale.

If interest rates begin to move—and few expect drastic increases by the Fed in the near term—demand for commercial borrowing, including but not limited to apartments, should continue to be strong for at least the near-term, Berkadia senior managing director Mark Forrester, who will be a speaker at the event, tells us.

For one thing, Mark says, interest rates will likely still be attractive from a historical standpoint, and they shouldn't significantly impact cap rates. Also, other investments—the stock market, overseas holdings, etc.—are still problematic, at least when compared to real estate. Besides, US job growth is quite positive.

More specifically in the Phoenix market, the strong fundamentals for apartments, and real estate generally, aren't in any danger any time soon because of demand from Millennials and Baby Boomers who want to be in apartments, Mark notes. At the same time, single-family development isn't nearly at historical averages, at least near-term. Finally, investing in Phoenix real estate is preferable to the lower cap rates that are characteristic of many other Western cities. Join us for Bisnow's Phoenix Multifamily Boom event, beginning at 7:30am on Sept. 23 at the Hyatt Regency Scottsdale. Sign up here.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's Phoenix Newsletters
Related Stories

With Occupancy Brimming, Investors Pile Into Bay Area Apartments

FBI Drops Investigation Into Financially Troubled StoryBuilt

GTIS Partners Rebrands As Brightshore Capital, Launches $250M Debt Platform

Dublin BTR Had A €1B Summer

Navigating The Phoenix Student Housing Boom At Bisnow's Event On Sept. 29

Sales Of Lower-End Apartments Surge In Philly As Landlords Face Financial Issues

Wu Proposes Tax Breaks To Jump-Start Stalled Housing Projects

Developer Seeks Permit For Denver Energy Center Conversion Project

Airbnb Launches $250M Fund To Invest In Affordable Housing

DFW Multifamily Distress Creates Opening For Investors As Development Slows

Security Tech Firm Plans Loudoun HQ Move: The D.C. Deal Sheet

Prolific South Florida Developer Nick Rojo Dies At 44