2015 – A Record-Breaking Year for Multi-Family Properties
According to JLL, the total sales value of apartment building sales in 2015 was almost $139 billion. This was a 31% increase over 2014, when apartment building sales were at $106 billion. The last quarter of 2015 boasts the strongest gains of any quarter ever analyzed and recorded. Moreover, JLL predicts there will be even more growth in apartment building sales in 2016, though at a more moderate rate between 5% and 10%. As rents are going up and interest rates on commercial loans remain reasonable, the increase in apartment building sales does seem likely.
Personally, I did see a large increase in apartment building sales in 2015, particularly in Chicago – everything from 2-flats and up were flying off the shelves, so to speak! It also seemed to be a bit easier to get financing for apartment buildings last year than it has been in the past (although that could just be a reflection of any given buyer’s financials and experience). It looks like 2016 will be another good year for apartments, so if you’re in the market, keep your eyes open for the right opportunities!