It looks like another strong year ahead for multi-family.
We at Res/Title do quite a bit of Commercial title insurance work throughout a number of markets nationwide. So we’d like to start things off this week with a salute to the rising multi-family market.
2021 started with more than a little uncertainty in the CRE world. For the first quarter of 2021, NAR’s Commercial Real Estate Market Trends and Outlook observed a decrease in acquisitions of large properties or portfolios ($2.5 million and up) of 28% percent among survey participants. However, the multi-family segment stood out from other CRE segments, and was credited by many for helping to stabilize the market in general. While 2020 wreaked havoc on most sectors of the Commercial world (not to mention the rest of the economy), especially with regards to retail and office space, several trends combined to make multi-family the strongest mover into 2021.
Many observers of the industry believe that will continue into 2022. Retail and office properties will likely continue to struggle a bit as businesses of all kinds continue their retreat into a WFH or online commerce world. But the need for shelter—be it single residential or multi-family—never goes out of style, especially as the pandemic lingers. Renting’s fewer barriers to entry, an uncertain economy and an extremely pricey, competitive residential market are all key factors unlikely to change for months, if not longer. It also appears a significant number of Americans are continuing the flight from the city to cheaper suburban rental property.
As the fallout from 2020 and the continuing uncertainty of a lingering pandemic continue into 2022, it would appear that multi-family property is the safest bet for investors and developers. We’ll continue to monitor the market and share our observations as new developments occur.
Also, don’t forget that, while title insurance may not be your first consideration when plotting a new multi-family or other CRE investment, a poor closing will leave a lasting impression. Res/Title delivers a more personalized settlement and closing experience than most national providers, and you’ll never see a cancellation fee from us. We also work hard to provide the resources you need for a quick and smooth settlement, such as our Commercial Rates Calculator (upfront, guaranteed fees) and a team of on-staff attorneys covering all of the attorney states. Learn more at res-title.com.
We welcome your feedback as to potential topics or even additional thoughts about what we’re discussing. Email firstname.lastname@example.org.