In the inaugural episode of The Brinkman Report, host Kevin Brinkman, founder and CEO of Brinkman Real Estate, welcomed Dan Metzger, the Chief Operating Officer and Chair of NYOP Colorado. They delved into the multifamily investment landscape in the Intermountain West, focusing on both the short-term challenges and the promising midterm outlook for 2024.

The discussion began with an overview of the state of their portfolio at the time, highlighting the normalization of operating expenses, particularly in real estate taxes and insurance, which continued to rise. Staffing challenges persisted, but improvements in the labor market were noted, with wages stabilizing despite ongoing turnover issues.

As they looked ahead, Kevin and Dan explored the impact of interest rates on their investment strategy. While the market had been conservative regarding potential Fed rate cuts, Kevin shared his perspective on the timing of those cuts and the implications for their capital markets strategy. They also addressed the looming wall of maturities in 2024, with a significant amount of debt coming due, which they believed could create opportunities for motivated sellers.

Dan provided insights into occupancy rates and rental trends across their markets, noting the variability based on supply dynamics. They emphasized a focus on smaller markets that were less likely to be overbuilt, positioning themselves to capitalize on emerging opportunities.

The conversation also touched on significant demand drivers in the multifamily sector, including record levels of immigration and job growth in the Mountain West, which contributed to a housing shortage and increasing rental demand. They discussed the challenges posed by rising housing costs and the involvement of local governments in addressing affordability through policies that sometimes hindered new supply.

As the episode wrapped up, Kevin and Dan reflected on investor sentiment amid geopolitical uncertainties and the importance of a long-term investment approach. They believed that it was an opportune time to seek out value in the market, particularly as they anticipated a shift toward recovery in the multifamily sector.

Listeners were encouraged to subscribe to The Brinkman Report on Spotify or visit TheBrinkmanReport.com for more expert insights and market analysis in future episodes.