May
18

JLL: Q1 2016 Apartment Market’s Strongest First Quarter Ever

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JLL-OG-Logo-180x110JLL’s latest research indicates the multifamily sector’s first quarter of 2016 was the strongest first quarter ever recorded, with figures reaching $34.5 billion.

The power of private equity is one reason multifamily is continuing its more than six-year boom period. The investor group accounted for more than $8.2 billion in activity during the first quarter, more than doubling comparable activity from the first half of 2015. Suburban, garden-style properties are the primary target of the group.

“Private equity in particular has demonstrated an appetite for suburban, garden-style assets, and it largely boils down to a play for yield and the strategy to diversify investments,” David Williams, JLL’s leader of multifamily capital markets, told MHN.

“Compared to CBD product, suburban, garden-style assets deliver higher yields and often have lower rents, which mirror renters’ preference toward more affordable rents,” he said. “In addition, the REITs have been net sellers of their older suburban assets evidenced by an increase in portfolio activity which has tripled year-over-year. The suburban value-add play on the transit corridors and in the best school districts are highly sought after by renters [who] are being priced out of the core.”

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