Allen Matkins/UCLA Anderson: Multifamily Developers Continue Building Despite Challenges

San Diego Daily Transcript (March 10, 2023) Developers are managing to build multifamily properties and investors are managing to buy them despite high interest rates, material and labor costs, and supply chain challenges, according to a new Allen Matkins report. Marc Renard, Cushman & Wakefield's Global Capital Group executive vice chairman and executive managing director; and Spencer Kallick, an Allen Matkins partner, shared their views on the current multifamily environment. As part of the winter 2023 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey, Renard and Kallick explained how the California multifamily real estate market is being impacted by the current economy, identified regions that are "hot," and discussed impactful legislation that could benefit investors and developers alike. New deals are still "moving forward," according to Kallick. While he's not seeing a lot of people acquiring new property, they are working on getting existing plots entitled. "It doesn't take a lot of money to do this, and by having the processes completed, they will be the first ones ready to start when the next development cycle begins," the Allen Matkins attorney said. But because there's such great demand for multifamily housing in California, and a lack of supply, Kallick doesn't "see interest rates and inflation creating a huge impact in regard to entitlement and development for multifamily because the market is so hot right now." Read More (subscription required)