July 25, 2017 Comments Off on Trepp Reports Tepid Multifamily Issuance, Transaction Volume Views: 902 California News, Top California

Trepp Reports Tepid Multifamily Issuance, Transaction Volume

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The U.S. multifamily market experienced tepid issuance and transaction volume in 2017 year-to-date, as peak levels of new supply slated for this year continue to be a concern. According to the latest research from Trepp, the markets with the highest number of units in the pipeline include top-tier and major markets, such as Los Angeles, New York, Dallas, Houston, Atlanta, Washington D.C., Seattle, Denver and Austin.

Developers are expected to bring 371,000 new units to market in 2017, a 30-year high, notes Marcus & Millichap. Despite new supply, experts believe occupancy levels will be able to keep pace and remain at healthy levels.

Still, cap rates are trending lower and that’s dampened deal volume, which indicates rising prices and investor uncertainty.

Private-label issuance for multifamily CMBS loans in Q2 2017 came in at $888.4 million, compared to $500.9 million for the first quarter. The issuance level for the first half of 2017 is still down 42.5%, compared to the first half of 2016.

Read more at Trepp

Read more at Marcus & Millichap

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