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.

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