Multifamily Beats the OddsAnchin in the News November 18, 2020
While hotels, retail and offices sink, the multifamily sector is sailing along.
Rent collection has been largely steady despite high unemployment and early threats of rent strikes. Occupancy, too, has suffered less than expected except in dense areas and at the high end of the market, where tenants were more likely to relocate to a second home and new leases dwindled.
Commercial properties have lost revenue to lockdowns, reduced travel and online shopping, but people are using their residences more than ever. That has benefited the sector.
“For multifamily, these are peoples’ homes, and for many it’s become the place to work as well,” said Marc Wieder, co-leader of the real estate group at accounting firm Anchin. “It’s become even more important than before.”
Multifamily assets have not yet seen widespread distress. Firms whose portfolios are short on multifamily are looking to acquire more, and some are pondering converting nonperforming assets to apartments.
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