Half of the debt outstanding in the commercial real estate world, $2.0 trillion, is to multifamily properties. There’s no crisis in multifamily whatsoever today. Period. So, when headlines say there’s a crisis in commercial real estate debt, half of that debt is in multifamily.
The price gap between average apartment rents and the cost of owning a home in the Chicago metro area is widening, providing landlords with leverage to push rents even higher.
Average of the top competitive rates from eXp Commercial’s National Capital Markets Partner CommLoan from a database of 700+ commercial lenders as of 731/23
Average of the top competitive rates from eXp Commercial’s National Capital Markets Partner CommLoan from a database of 700+ commercial lenders as of 7/24/23
A number of market participants agree that multifamily sales activity is on the upswing despite the current low transaction numbers.
Running a commercial real estate asset on a day-to-day basis can be expensive. As such, it is important for operators to manage costs relative to rental income to ensure that the given property is profitable. From a management standpoint, costs can be grouped into two buckets: Operating Expenses (or “OpEx”) and Capital Expenses (or “CapEx”). While they are both categories of expenses, there are material differences between capital expenses and operating expenses.