State of the US commercial real estate market Part I: Capital markets and multi-family residential

Altus Insights Podcast Series

Date: March 22, 2023

Recorded: March 7, 2023

Name of podcast: Altus Insights Podcast Series

Episode title and number: Episode 18 – State of the US commercial real estate market

Episode summary: Ray and Marlon sit down with Omar Eltorai, US Director of Research at Altus Group, to discuss the state of the US commercial real estate market and the differences and similarities with respect to the Canadian market. In the first of this 2-part series, we’ll focus on the Capital markets and multi-family housing.

Mentioned in this episode:

· Webinar: US state of the market – Managing risk in 2023

· Article: US commercial real estate market update – February 2023

· Article: California rent control – the unintended consequences

Panelists in this episode:

· Omar Eltorai is the Director of Research at Altus Group. With more than a decade of experience in the industry in investment management and financing roles, Omar's focus at Altus is on macro, capital and market trends affecting the US CRE market.

· Marlon Bray is the head of Altus Group's Ontario pre-construction and contract administration services as part of the Cost and Project Management team. With over 25 years of experience, specializing in budgeting, value optimization, and providing visibility on risk through the entire lifecycle from early due diligence through to completion. Marlon oversees a team that leads the way with cutting-edge estimating technology and data analytics, bringing a greater level of transparency, and added value to all projects he is involved with.

· Raymond Wong is the Vice President of Data Operations for Altus Group’s Data Solutions team. Overseeing 60+ researchers across Canada, Ray’s primary responsibility is to ensure data collection is all-encompassing, reliable and accurate and that it adheres to the Altus Group data governance guidelines. Ray works closely with internal and external clients to ensure the information meets their needs and is accurate and timely. He also regularly presents key market trends to clients and at industry events.

Key topics:

· 01:13 – Brief overview of how capital markets performed in 2022 and observations so far in 2023

· 04:34 – Are investors still motivated to buy?

· 06:39 – Are there many opportunists in the market?

· 08:42 – Any significant differences in risk across regions?

· 10:25 – Overall assessment of the US multi-residential market

· 13:23 – Addressing housing affordability

· 17:46 – Are there more private lenders entering the US market?

· 21:25 – What direction will pricing and cap rates go this year?

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