Many multifamily property owners will decide this year whether to stay in the market or sell.
Hurt by declining property values due to high vacancy rates, many multifamily property owners will decide this year whether to stay in the market or sell their properties, according to a report by Colliers International.
Owners are making less money because they have to keep rents flat in order to keep their remaining tenants.
“Property owners have to decide if it’s worth it for them to stay in the market in the long term or if it’s time to move away,” [Gary Winkler of Colliers International] said. “We will continue to see value loss into 2010. But cap rates are going up and will continue to do so. Owners must approach their properties with the knowledge that what you get by selling today is not what you’ll get tomorrow.”
For property management company Riverstone Residential Group, now is the time to compete in the Portland market. Steve Davis, vice president for Riverstone, said that though Portland multifamily properties remain attractive to buyers, there are not many loans expiring this year. He believes owners may wait to sell their buildings.
Read the full story at the Daily Journal of Commerce.
{biztweet}Portland multifamily property vacancy{/biztweet}
