The Offerd Market Outlook

There is no way to sugarcoat how challenging the last two years have been in the multifamily sector. It has been a perfect storm of adversities. From soaring interest rates, which have collapsed property values, to runaway inflation driving up expenses, and an unexpected insurance crisis, to a massive supply of new construction that has depressed and, in many markets, reversed rent growth. The only bright spot is that the underlying economy has remained strong with full employment and robust wage growth.

However, the past is behind us. Like most real estate practitioners, we are inherently optimistic. We are putting the last two years behind us and looking forward to a future where the Federal Reserve begins to lower rates and the multifamily market starts to stabilize. While we may not see a market like 2021 again in our careers, we believe a return to the conditions of the late 2010s is possible within the next 12 to 24 months. There is enormous pent-up demand on both the buying and selling sides, and the industry is eager to resume normal operations. Leading, well-capitalized groups like Blackstone and KKR have recently reentered the market with substantial multibillion-dollar investments, which bodes well for the near future.

With a Federal Reserve rate cut now looking imminent by the September meeting, or possibly even sooner, and with a tumultuous election cycle nearing its final stages, we can now see some light at the end of the tunnel we have been stuck in for the past two years. At Offerd, as we begin to feel the market's unlocking, we are making significant moves to position the company for the next upward cycle. We are investing heavily in our technology applications to better serve sellers in more innovative ways than currently available, and we are dramatically expanding both our investment sales team and capital markets team. These investments demonstrate our commitment to the multifamily market’s anticipated rebound and will position Offerd as a leading player in the years to come.