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Expect Yields on Multifamily Investments to Tighten Further
NREI – The multifamily sector is positioned for another strong year. The combination of strong fundamentals and low-interest rates make them a favorable asset. Falling yields on treasuries means cap rates can tighten a bit more while still offering an attractive spread. With so much competition to buy properties, investors are being much less selective and are looking to new, risky kinds of apartment investments where they can potentially earn higher yield. These sectors are expected to continue to benefit from growing interest stemming from new capital sources. Investors are also gaining interest in alternative multi-housing concepts, such as co-living and short-term rental business models.
FastCompany – Forecasted trends for 2020 show increased demand for flex and co-working office space. A recent report from CBRE found that most employees want to be able to see outside and seek to connect with nature beyond their desks. The survey solicited questions about workplace amenities, and how these elements impact their level of engagement with their job. 53% of the people polled said they valued natural light and views of nature most, well above other more common amenities.
AvisonYoung – Avison Young’s 2020 forecast report explores how investors are dealing with low inflation rates and the rebirth of retail; and how local community activism can play a role in influencing developers and landlords. Some of the trends forecasted for 2020 are increased demand for flex office space, socially responsible investing that makes an impact on communities, and the continued opportunity and challenges of cannabis real estate investing. Many of these trends EquityMultiple has incorporated into our investment offerings this past year, including Opportunity Zones, various coworking flex spaces, our first cannabis facility offering, and other assets that benefit from tailwinds emerging in 2020.