Philly Multifamily Still Rising
Integra Realty Resources Philly head Joe Pasquarella shared Q1 numbers with us, showing metro Philly multifamily vacancy at 3.2% (one of the lowest in the Northeast). Cap rates for multifamily have hit bottom as both buyers and sellers come to agreement on market dynamics, and so you are seeing transactions close, Joe notes. Also, multifamily rents continue to increase as vacancy continues to tighten. But IRR expects some slowing of rental growth as pent-up demand for single-family homes lights up. Our research indicates a buy now scenario for Class-A Philadelphia CBD, Joe says.