In this episode of the Brinkman Report, host Kevin Brinkman welcomed Brady O’Donnell and Matt Vance from CBRE to discuss the current multifamily investment landscape in the Intermountain West. The conversation began with an exploration of the macroeconomic environment, including interest rates and debt markets, and their influence on multifamily transactions.

Matt shared insights from his background in multifamily research and his role at CBRE, highlighting the resilience of the multifamily sector. He noted that the consensus view among economists is a soft landing for the economy, with expectations of declining inflation and potential rate cuts from the Federal Reserve later this year.

Brady discussed his position in CBRE’s Debt and Structured Finance team, focusing on the financing options available for multifamily investments, particularly through agencies like Fannie Mae and Freddie Mac. The discussion included current trends in transaction volumes and the impact of interest rates on financing strategies.

The guests also addressed the challenges facing developers, such as rising construction costs and the necessity for higher return on costs. Both Brady and Matt emphasized the importance of understanding basis plays in the current market, as well as the potential for rent growth in the coming years.

As the episode concluded, both guests expressed optimism about the future of the multifamily sector, citing strong demand for housing and the need for new units across the country. They underscored that despite short-term challenges, the fundamentals driving the multifamily market remain robust.

Listeners were encouraged to tune in for more expert insights in the next episode.