Huge REIT Redemptions: Will Multifamily Survive?

Investor capital flowing out of major real estate investment trusts like Blackstone's BREIT and Starwood's SREIT may cause some anxiety about the state of the multifamily market, but there is very little indication that these issues in the REIT space will have a meaningful impact on apartment asset prices. The issues affecting these REITs are the same ones driving the commercial real estate market as a whole: Interest rates have dampened investor demand and caused property values to moderate. Looking forward to 2023, multifamily fundamentals remain strong and Midwestern markets continue to attract positive attention from investors looking for stable, strong performance in the coming year.

Sources discussed in this episode:

The Wall Street Journal: “Investors Yank Money From Commercial-Property Funds, Pressuring Real-Estate Values”
https://www.wsj.com/articles/investors-yank-money-from-commercial-property-funds-pressuring-real-estate-values-11670293325

Financial Times: “How the gates closed on Blackstone’s runaway real estate vehicle” - https://www.ft.com/content/a0fcd0d2-bc25-467d-bded-d940fa628487

Yardi Matrix: “Year to End Strong for Multifamily” - https://www.yardimatrix.com/publications/download/file/3084-MatrixBulletin-MultifamilyForecast-November2022

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DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest.