2008 Small Multifamily Investment Property Outlook

Notes from the CCIM/IREM 2008 economic forecast meeting.

What we had 1 and 2 years ago is gone. This is obvious for most sectors of the national real estate market and the Greater Phoenix real estate market. During that period small as well as large apartment complexes for sale received multiple offers, Cap rates hovered at 5% on pro-forma numbers and most everyone was happy.

Now as we head into 2008 not only have sales gone down but cap rates have inched up as well, though the market is still good.

The apartment market in Phoenix MSA is much slower with many properties languishing on the market, there are still multiple offers but as the panel pointed out, they are more varied with increased due diligence and longer escrow times.

Vacancy rates in the Phoenix MSA are reported to be approximately 10% though the real number is 2-4 points higher and may be as high as 15%.

Small Investment Apartment Buildings Outlook for 2008