In the inaugural episode of The Brinkman Report, host Kevin Brinkman, founder and CEO of Brinkman Real Estate, welcomes Dan Metzger, the Chief Operating Officer and Chair of NYOP Colorado. They delve 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 begins with an overview of the current state of their portfolio, highlighting the normalization of operating expenses, particularly in real estate taxes and insurance, which continue to rise. Staffing challenges persist, but improvements in the labor market are noted, with wages stabilizing despite ongoing turnover issues.

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

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

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

As the episode wraps up, Kevin and Dan reflect on current investor sentiment amid geopolitical uncertainties and the importance of a long-term investment approach. They believe that now is an opportune time to seek out value in the market, particularly as they anticipate a shift towards recovery in the multifamily sector.

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