Multi-Family Continues to Fire on All Cylinders

SubMktThumbs_MultiFam_Jul2016Overall, market fundamentals remained healthy. Investor activity has increased significantly in the first half of the year.

With 3,100 units delivered in 2015 and an estimated 3,900 units to be completed this year, at what point will supply outpace demand? The pipeline has close to 4,000 units so the question remains: How many of those will actually come to fruition? Builders will continue to follow the vacancy rate and rental rate trends.

In the past few years construction has been focused on the urban core. Now, over half of the development is slated to occur in the suburbs. The market has absorbed new construction and experienced rising rents, yet the vacancy rate has remained steady over the last five years.

Cushman & Wakefield/NorthMarq’s Robert Dulin shares his insight looking ahead to year-end, “The Minneapolis multi-family market is poised for another record breaking year. We expect the 2016 total sale volume to eclipse the $1 billion mark for the first time, depending on timing of closings. This velocity has been fueled by low interest rates, strong demand from local and national buyers and continued confidence in the Twin Cities market.”

For more details on the Twin Cities multi-family market, subscribe to the Compass Report.

Robert Dulin is an Associate with the Capital Markets Group.

Bites_Lo_MultiFamBe sure to follow our ongoing “Compass Bites” series on Twitter, LinkedIn and Facebook which offers bited-sized trends and insights stemming from the Compass Report.

Compass Video screenCheck out our short video on highlights from the recent Compass Report. To watch, visit Cushman & Wakefield/NorthMarq’s Vimeo or YouTube channels or visit the Compass website.

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