Berkadia: 83% of Multifamily Investors Plan to Buy in 2025
Multifamily investors have been sidelined by high rates and market uncertainty, but a new Berkadia survey shows they’re gearing up for a buying spree in 2025.
Jordan B.
March 13, 2025
Together with
Good morning. Multifamily investors have been sidelined by high rates and market uncertainty, but a new Berkadia survey shows they’re gearing up for a buying spree in 2025.
Today’s issue is brought to you by AirGarage—America's fastest-growing parking management company.
Market Snapshot
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*Data as of 03/12/2024 market close.
Deals on the Horizon
Multifamily Investors Gear Up for a Buying Spree in 2025
After two years of stalled deals, multifamily investors are ready to re-enter the market.
Back in buying mode: A new survey from Berkadia, shared exclusively with Bisnow, found that 83% of multifamily investors plan to make acquisitions in 2025, while only 2% intend to shrink their portfolios. The shift signals growing confidence in the sector, which has been struggling with high interest rates and a flood of new supply.
Debt costs still a major hurdle: Financing remains a pain point, with 93% of investors saying it’s difficult to underwrite deals due to high debt costs. However, capital is still available—investors are simply waiting for the right moment to deploy it.
Zoom in: Many are closely watching the 10-year Treasury yield, which dipped to 4.2% this week. A further decline below 4.25% could help unlock more transactions.
Where the smart money is going: Core-plus assets are the top bet for 43% of investors, while 30% see the most upside in value-add properties. The Southeast remains the favored region for investment, followed by the Midwest—an area that was largely overlooked during the pandemic but is now attracting attention.
Bisnow / Berkadia
Sellers slowly accepting new reality: The pricing gap between buyers and sellers is narrowing as owners come to terms with the fact that valuations aren’t bouncing back anytime soon. Those who bought at peak prices in 2021 and 2022 may face difficult decisions, with lending institutions and borrowers needing to find common ground.
➥ THE TAKEAWAY
Looking ahead: After two years on ice, multifamily investors are done sitting on the sidelines. While high debt costs remain a hurdle, capital is ready to move—it's just a matter of timing. As pricing expectations adjust and the 10-year Treasury yield hovers at key levels, 2025 could mark the turning point from gridlock to a deal-making resurgence.
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*Disclosure: This is a paid advertisement. Please read the disclosure at the bottom of the newsletter.
✍️ Editor’s Picks
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Winning bid: The FDIC’s 2023 auction of Signature Bank’s $6B rent-regulated portfolio revealed a 36% gap between the winning bid and top offers.
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Soft jobs report: Unemployment is slowly ticking back up again as both consumer and investor sentiment drops amid stock market declines.
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Safe havens: REITs are standing out for steady dividends, with healthcare, AI, and strip mall-focused showing the most promise.
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Office challenges: Construction costs are dropping, but tariffs, labor shortages, and permitting delays continue to pose challenges, with the new office pipeline down 40% YoY.
🏘️ MULTIFAMILY
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Top market: Orlando’s apartment market is surging, with Kissimmee/Osceola County leading the charge thanks to rapid inventory growth and strong rental demand near major theme parks.
Major lawsuit: Wells Fargo (WFC) sued JPMorgan (JPM) over a $481M loan for Chetrit Group, accusing the bank of using inflated financials, resulting in significant investor losses.
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DC apartment concerns: Federal workforce layoffs by DOGE have sparked real uncertainty for Washington, DC apartment owners, but market diversification offers a silver lining.
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The DEI purge: The White House canceled millions in affordable housing contracts after reviewing nonprofit websites for DEI terms, impacting projects addressing homelessness and poverty.
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Condo bills: Florida legislators proposed condo bills to combat HOA fraud, ease structural integrity requirements, and lower financial burdens on condo owners, including new fraud investigations.
🏭 Industrial
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End of an era: Prologis (PLD) CEO Hamid Moghadam retires after transforming AMB Property into a $200B logistics powerhouse, pioneering global e-commerce and AI property strategies.
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Long Island record: Rechler Equity seeks over $200M for Hampton Business District, a 385K SF industrial park in Westhampton Beach, setting a potential record for Long Island sales.
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Bulk occupancies back: New bulk occupancies rose 1.5% in 2024, though average lease sizes shrank, with the West leading with 31% of total space.
🏬 RETAIL
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Maryland renovation: Federal Realty (FRT) plans a major overhaul of the Twinbrooke Shopping Centre, including upgraded design and new retail tenants, with work lasting 11 months.
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Changing hands: Empire Realty sold Bensalem Shopping Center in Pennsylvania for $20.1M to a private investor, with the property fully leased and anchored by Patel Brothers.
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Small-format stores: Kohls Corp (KSS) is exploring small-format stores, especially in rural parts of the country, as a way to address sagging sales.
🏢 OFFICE
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Leaving Silicon Valley: Unibail-Rodamco-Westfield plans to sell two office buildings near San Francisco’s Union Square, exploring redevelopment into housing with potential for a 365-foot tower.
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Loan extension: Tamares Group secured a four-year, $505M loan extension for 1500 Broadway in Times Square, prepping the property for new tenants after key departures like Disney.
A MESSAGE FROM NEUTRAL
Invest in The Midwest — A Hidden Gem of Multifamily
The Midwest multifamily sector is a quiet powerhouse. Madison and Milwaukee in Wisconsin consistently rank in the top 10 for rent growth and occupancy nationwide.
As insurers pull back from Florida, California, and the SunBelt due to extreme weather events, the Midwest offers a climate-resilient, stable alternative — with strong rental fundamentals and steady returns.
Visit Neutral to find high-performing multifamily real estate investment opportunities in Madison and Milwaukee. Or connect with our investor relations team [email protected] to learn more.
*Disclosure: This is a paid advertisement. Please read the disclosure at the bottom of the newsletter.
📈 CHART OF THE DAY
Delinquency rates for CRE loans surged to 1.57% in Q4, over 149% higher than recent lows in 2H22, and at the highest level in a decade.
Indeed, delinquent loans now add up to over $47B, nearly double the total 10 years ago.
Despite this, charge-offs have remained steady at 0.26%, showing that banks are still reluctant to write off bad loans.
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