{"id":1004129098,"date":"2015-10-12T06:34:40","date_gmt":"2015-10-12T14:34:40","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004129098"},"modified":"2022-12-08T19:15:15","modified_gmt":"2022-12-09T03:15:15","slug":"whats-next-for-multifamily-top-execs-weigh-in","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/whats-next-for-multifamily-top-execs-weigh-in\/","title":{"rendered":"What\u2019s Next for Multifamily? Top Execs Weigh In"},"content":{"rendered":"

By Paul Rosta, Executive Editor<\/em><\/p>\n

What do the next few years hold for multifamily investment, development and operations? A half-dozen CEOs tackled the question last week during Multifamily Executive\u2019s<\/em> 2015 conference in Las Vegas.<\/p>\n

For the most part, the leaders of a half-dozen public and private owner\/investor\/operators struck a tone of solid optimism about the state of the market. \u00a0\u201cWe\u2019ve waited for 25 years for this part of the cycle to arrive,\u201d said Tom Toomey, CEO of UDR Inc., during the Oct. 6 session. If the current market cycle is compared to the side of a mountain, Toomey said, \u201cWe\u2019re still in the foothills.\u201d<\/p>\n

\"From<\/a>

Multifamily CEOs discuss industry trends at MFE conference in Las Vegas. From left: MFE editor-in-chief Jerry Ascierto; James Butz, Jefferson Apartment Group; Mark Alfieri, Monogram Residential Trust; Sean Burton, CityView; Eric Bolton, MAA; Michael Schall, Essex Property Trust; Tom Toomey, UDR.<\/p><\/div>\n

MAA\u2019s Eric Bolton concurred. He cited the confluence of demand from Millennials and Baby Boomers, economic trends and capital markets. \u201cWe\u2019ve got forces at play that we\u2019ve not experienced in our careers,\u201d he said.<\/p>\n

Demand is emerging from two huge age groups: Empty-nesters of the Baby Boom generation, who are trading single family homes for rental apartments, as well as from the growing numbers of Millennials who are forming households but are delaying home ownership. As a result, Bolton said, \u201cWe\u2019ve got a new paradigm here. Every time we think we\u2019ve reached a plateau, it\u2019s a false plateau.\u201d<\/p>\n

Some notes of concern emerged from the generally optimistic picture. \u201cWe tend to be really careful in the secondary markets,\u201d explained James Butz, CEO of Jefferson Apartment Group, naming metro areas like Nashville, Memphis and Raleigh, N.C., as examples. The impact of falling oil prices on Houston is prompting executives to exercise restraint. \u201cHouston is showing some signs of softness, especially west Houston,\u201d reported Mark Alfieri, CEO of Monogram Residential Trust Inc. Originally a non-traded REIT sponsored by Behringer Harvard, Monogram Residential completed its transition to a fully integrated, self-managed REIT in July 2014.<\/p>\n

The CEOs also named several markets that they consider undersupplied. CityView\u2019s president, Sean Burton, named San Francisco, San Jose and Oakland, a burgeoning East Bay market that is in a position to benefit from San Francisco\u2019s notoriously tight market. Michael Schall, the CEO of Essex Property Trust, concurred. \u201cI\u2019d double down on the Silicon Valley,\u201d he said, adding: \u201cThere\u2019s no market we\u2019re in right now\u00a0 . . . where we expect supply to get ahead of demand.\u201d<\/p>\n

Cap rates also commanded attention. Noting that Class A and Class B cap rates differ by as little as 25 basis points in some markets, Toomey said, \u201cI\u2019m surprised at compression of the B\u2019s. It\u2019s too tight to the A\u2019s.\u201d Executives agreed that an influx of foreign capital searching for stable investment choices will likely keep squeezing cap rates. Citing the West Coast as an example, Schall pointed to a dearth of B product in the region\u2019s more attractive markets as a contributor to tight cap rates.<\/p>\n

He also expressed skepticism about the impact of interest rate hikes on cap rates. \u201c\u201dWe\u2019re talking about a quarter-point hike\u201d in 2015 \u201cand three moves in 2016,\u201d he said. \u201cIs that enough to move cap rates?\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Leading CEOs offer a robust outlook along with a few caveats. <\/p>\n","protected":false},"author":445,"featured_media":1004129130,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21782,21783,21742],"tags":[],"class_list":["post-1004129098","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-development","category-investment","category-latest"],"acf":[],"yoast_head":"\nWhat\u2019s Next for Multifamily? Top Execs Weigh In - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/whats-next-for-multifamily-top-execs-weigh-in\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What\u2019s Next for Multifamily? Top Execs Weigh In\" \/>\n<meta property=\"og:description\" content=\"Leading CEOs offer a robust outlook along with a few caveats.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/whats-next-for-multifamily-top-execs-weigh-in\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2015-10-12T14:34:40+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-09T03:15:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/10\/20151005_171124_resized-2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2656\" \/>\n\t<meta property=\"og:image:height\" content=\"1494\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Paul Rosta\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/whats-next-for-multifamily-top-execs-weigh-in\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/whats-next-for-multifamily-top-execs-weigh-in\\\/\"},\"author\":{\"name\":\"Paul Rosta\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/ed97e8245f278ce01a7b951f706152af\"},\"headline\":\"What\u2019s Next for Multifamily? Top Execs Weigh In\",\"datePublished\":\"2015-10-12T14:34:40+00:00\",\"dateModified\":\"2022-12-09T03:15:15+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/whats-next-for-multifamily-top-execs-weigh-in\\\/\"},\"wordCount\":566,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/whats-next-for-multifamily-top-execs-weigh-in\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2015\\\/10\\\/20151005_171124_resized-2.jpg\",\"articleSection\":[\"Development\",\"Investment\",\"News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/whats-next-for-multifamily-top-execs-weigh-in\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/whats-next-for-multifamily-top-execs-weigh-in\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/whats-next-for-multifamily-top-execs-weigh-in\\\/\",\"name\":\"What\u2019s Next for Multifamily? Top Execs Weigh In - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/whats-next-for-multifamily-top-execs-weigh-in\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/whats-next-for-multifamily-top-execs-weigh-in\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2015\\\/10\\\/20151005_171124_resized-2.jpg\",\"datePublished\":\"2015-10-12T14:34:40+00:00\",\"dateModified\":\"2022-12-09T03:15:15+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/ed97e8245f278ce01a7b951f706152af\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/whats-next-for-multifamily-top-execs-weigh-in\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/whats-next-for-multifamily-top-execs-weigh-in\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/whats-next-for-multifamily-top-execs-weigh-in\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2015\\\/10\\\/20151005_171124_resized-2.jpg\",\"contentUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2015\\\/10\\\/20151005_171124_resized-2.jpg\",\"width\":2656,\"height\":1494,\"caption\":\"From left: MFE editor-in-chief Jerry Ascierto; James Butz, Jefferson Apartment Group; Mark Alfieri, Mongram Residential Trust; Sean Burton, CityView; Eric Bolton, MAA; Michael Schall, Essex Property Trust; Tom Toomey, UDR.\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/whats-next-for-multifamily-top-execs-weigh-in\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"What\u2019s Next for Multifamily? Top Execs Weigh In\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#website\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/ed97e8245f278ce01a7b951f706152af\",\"name\":\"Paul Rosta\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/9c1c95e152828621b403b03a53198a2cb762882a74877838d5ccb2f54ebd769f?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/9c1c95e152828621b403b03a53198a2cb762882a74877838d5ccb2f54ebd769f?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/9c1c95e152828621b403b03a53198a2cb762882a74877838d5ccb2f54ebd769f?s=96&d=mm&r=g\",\"caption\":\"Paul Rosta\"},\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/author\\\/paul-rosta-2\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"What\u2019s Next for Multifamily? Top Execs Weigh In - Commercial Property Executive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/whats-next-for-multifamily-top-execs-weigh-in\/","og_locale":"en_US","og_type":"article","og_title":"What\u2019s Next for Multifamily? Top Execs Weigh In","og_description":"Leading CEOs offer a robust outlook along with a few caveats.","og_url":"https:\/\/www.commercialsearch.com\/news\/whats-next-for-multifamily-top-execs-weigh-in\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2015-10-12T14:34:40+00:00","article_modified_time":"2022-12-09T03:15:15+00:00","og_image":[{"width":2656,"height":1494,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/10\/20151005_171124_resized-2.jpg","type":"image\/jpeg"}],"author":"Paul Rosta","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.commercialsearch.com\/news\/whats-next-for-multifamily-top-execs-weigh-in\/#article","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/whats-next-for-multifamily-top-execs-weigh-in\/"},"author":{"name":"Paul Rosta","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/ed97e8245f278ce01a7b951f706152af"},"headline":"What\u2019s Next for Multifamily? Top Execs Weigh In","datePublished":"2015-10-12T14:34:40+00:00","dateModified":"2022-12-09T03:15:15+00:00","mainEntityOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/whats-next-for-multifamily-top-execs-weigh-in\/"},"wordCount":566,"commentCount":0,"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/whats-next-for-multifamily-top-execs-weigh-in\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/10\/20151005_171124_resized-2.jpg","articleSection":["Development","Investment","News"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.commercialsearch.com\/news\/whats-next-for-multifamily-top-execs-weigh-in\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/whats-next-for-multifamily-top-execs-weigh-in\/","url":"https:\/\/www.commercialsearch.com\/news\/whats-next-for-multifamily-top-execs-weigh-in\/","name":"What\u2019s Next for Multifamily? Top Execs Weigh In - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/whats-next-for-multifamily-top-execs-weigh-in\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/whats-next-for-multifamily-top-execs-weigh-in\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/10\/20151005_171124_resized-2.jpg","datePublished":"2015-10-12T14:34:40+00:00","dateModified":"2022-12-09T03:15:15+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/ed97e8245f278ce01a7b951f706152af"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/whats-next-for-multifamily-top-execs-weigh-in\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/whats-next-for-multifamily-top-execs-weigh-in\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/whats-next-for-multifamily-top-execs-weigh-in\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/10\/20151005_171124_resized-2.jpg","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/10\/20151005_171124_resized-2.jpg","width":2656,"height":1494,"caption":"From left: MFE editor-in-chief Jerry Ascierto; James Butz, Jefferson Apartment Group; Mark Alfieri, Mongram Residential Trust; Sean Burton, CityView; Eric Bolton, MAA; Michael Schall, Essex Property Trust; Tom Toomey, UDR."},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/whats-next-for-multifamily-top-execs-weigh-in\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"What\u2019s Next for Multifamily? Top Execs Weigh In"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/ed97e8245f278ce01a7b951f706152af","name":"Paul Rosta","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/9c1c95e152828621b403b03a53198a2cb762882a74877838d5ccb2f54ebd769f?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/9c1c95e152828621b403b03a53198a2cb762882a74877838d5ccb2f54ebd769f?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/9c1c95e152828621b403b03a53198a2cb762882a74877838d5ccb2f54ebd769f?s=96&d=mm&r=g","caption":"Paul Rosta"},"url":"https:\/\/www.commercialsearch.com\/news\/author\/paul-rosta-2\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/10\/20151005_171124_resized-2.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004129098","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/445"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004129098"}],"version-history":[{"count":1,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004129098\/revisions"}],"predecessor-version":[{"id":1004613267,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004129098\/revisions\/1004613267"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004129130"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004129098"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004129098"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004129098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}