Interested in the Boston multifamily market and how it is changing? Our multifamily specialist, Bobby Quinn, answered a few questions for us about what he sees as he works with investment clients each day. What do you think?
What shift in the market did you see in 2014?
2014 saw a continued inflow of capital from all over the country and the world. As a result, more new apartment buildings went into the ground than I have ever seen before. There was also continued depression in cap rates and prices kept going up. The demand was as strong as ever and supply is still constricted.
Do you think this will follow into 2015 or what will change?
I think that conditions have to change a bit in 2015. Demand will continue to outpace supply, but savvy sellers have to realize that we are going to see interest rate appreciation in the near future and, if they are thinking of cashing out, we are at or near the optimal time to do it. We are working with buyers all over the Boston area who are looking for properties and are linking these sellers with these buyers daily.
What are you most excited about in the Boston multifamily market in 2015?
I am most excited about the opportunity I see in small to mid rise building’s as I think that the high end luxury building market is going to be sluggish as so much inventory came on line in the past year. These buildings are all competing for the same tenant base, (which I spoke about in an article a month ago). Charlesgate Multifamily focuses mostly on brownstones and 10-20 unit buildings which, in my opinion, attract a different consumer, and will not face as much competition as the larger luxury buildings.