Intelligent Investment
Unlocking Opportunities: Multifamily Investment Perspectives
December 17, 2025 5 Minute Watch
Summary
Join the Conversation
President, Multifamily, Capital Markets
- Transaction Volume Outlook
Despite a recent slowdown in demand and rental growth, transaction activity continues. Some sellers are accelerating timelines to take advantage of current market conditions. - Cap Rate Stability
Year-to-date cap rates have been stable, and this trend should continue in 2026. While slower rent growth could pressure near-term NOI, capital coming off the sidelines could keep cap rates largely steady. - Underwriting Assumptions
Buyers are underwriting rent growth at 3–3.5% over a typical five-year hold, with exit cap rates generally flat or up 25 basis points. Competitive offers often come from private buyers focused on quality real estate and opportunities to purchase at a discount to replacement costs. - Core Capital Return
Core capital is expected to return in 2026, supported by improved fund performance and lower redemption queues. However, challenges remain, limiting how aggressively core investors will participate for now.
Related
- Service
Multifamily
Unlock the potential of your residential real estate with expert investment, financing, valuation, due diligence and design strategies.
- Service
Capital Markets
Gain insights and strategies to unlock value, drive returns and enhance outcomes for real estate investments in all geographies and across all asset classes.
- Brief | Intelligent Investment
Multifamily Buyer Sentiment Improves in Q3
October 22, 2025 3 Minute Read
Buyer sentiment for core and value-add multifamily assets improved in Q3, while underwriting assumptions mostly held steady, according to CBRE’s Q3 Multifamily ...