2010 Apartment Outlook

I reviewed the Marcus and Millichap 2010 Apartment Outlook today and wanted to share a few things that I took away regarding the fundamentals of Chicago Multifamily Real Estate and the outlooks for 2010....

• The researchers at M&M feel that investment activity has bottomed and we are in the beginning of a recovery.
• The midwest, including Chicago, was not battered as badly as other parts of the country in terms of employment loss and occupancy rates. Because of this Chicago multifamily real estate valuations were not hit as hard and therefore will not have steep rebound that may happen in other parts of the country.
• The valuations for Chicago in this report are right in line with Root Realty's opinion of where Cap Rates are in the Chicago Multi-Family sector.
• As a wrap up, Chicago multi-family fundamentals will be driven by employment growth and many experts are anticipating growth in 2010.