179: A “Year of Opportunity” to Come for Multifamily, Says CBRE’s Richard Barkham

On The Market

BiggerPockets

News, Investing, Business, Education

4.8 • 820 Ratings

🗓️ 15 January 2024

⏱️ 47 minutes

🔗️ Recording | iTunes | RSS

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Summary

Right now, many multifamily operators are scared. They’ve got debt due, higher vacancy rates than ever, and banks that could be coming for them at any second. And although a “soft landing” in the economy could help keep most multifamily operators from being foreclosed on—not everyone is safe. If you’re looking to invest in multifamily this year, there could be some big buying opportunities. To walk us through the state of the multifamily and commercial real estate market is CBRE’s Richard Barkham. Richard leads a team of six hundred research experts, all digging into the most up-to-date real estate data around. Today, Richard touches on the commercial real estate space, why prices AREN’T crashing, the sectors that will continue to struggle in 2024, and why the industry as a whole has remained so resilient, especially when no one expected it to be. We’ll also get into cap rate forecasts and how high they could get so prices finally come back down to earth. But that’s not all; Richard gives a rare take on why so many struggling multifamily investments DIDN’T get foreclosed on, whether or not the oversupply of multifamily could make trouble for residential buyers, and what will happen when the “wave” of multifamily construction hits. In This Episode We Cover: A 2024 commercial real estate update and whether or not a price crash is still on the table Rising vacancy rates and the commercial sectors that could get hit the hardest Cap rate expansion and whether or not we’ll see price cuts this year Why Richard sees 2024 as a “year of opportunity” for multifamily investors States with the most multifamily construction that could see price cuts spill over into residential “Distressed” multifamily investors and why we WON’T see a wave of foreclosures And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Forums BiggerPockets Agent BiggerPockets Bootcamps Join BiggerPockets for FREE On The Market Join the Future of Real Estate Investing with Fundrise Connect with Other Investors in the “On The Market” Forums Subscribe to The “On The Market” YouTube Channel Dave's BiggerPockets Profile Dave's Instagram Join the BiggerPockets Virtual Summit The “Doom Loop” That Could Crash Commercial Real Estate w/Richard Barkham Access CBRE’s Insights and Research Connect with Richard: Richard's CBRE's Profile Richard's LinkedIn Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-179 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hello, everyone and welcome to On the Market.
0:11.0	I'm your host, Dave Meyer.
0:13.8	And today we are bringing back one of our most popular guests of all time.
0:19.2	His name is Richard Barkham. And if you weren't around for his first
0:23.3	interview or just need or quick refresher, he is the executive director and global chief
0:29.7	economist of CBRE. If you aren't familiar with CBRE, in general, it's one of the biggest or
0:36.2	maybe even the biggest commercial
0:37.8	real estate company in the world. And so they do a ton of research into what's going on
0:43.7	into the commercial real estate markets. Now, I know not everyone who listens to the show
0:48.5	is interested in commercial real estate or is buying commercial real estate. But first of all, I think most
0:55.5	real estate investors start with residential and move towards commercial. So it's helpful to know
1:00.3	about it. But I also think a lot of the things that I'm planning to talk to Richard about have
1:05.6	parallels between the two markets, between residential and between commercial real estate.
1:10.7	Things like rent growth
1:11.9	and supply and demand of which markets are doing well don't perfectly align, but they often
1:17.3	have some overlaps that can be useful to basically any type of real estate investor. So I am
1:24.3	super excited to bring Richard on and he has great up-to-date information about the market that I think is going to be very helpful for you in planning your strategy in 2024.
1:35.4	I also want to mention one thing before we bring Richard on.
1:38.2	It's a new virtual summit.
1:40.2	It's hosted by me and a couple of your favorite other personalities and bigger pockets.
1:45.4	It's going from January 22nd to January 25th.
1:48.2	And the whole idea behind this is to help you develop your strategy and tactics that are going to work well for you in 2024.
	...

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