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Wednesday, May 22, 2024

An In-Depth Discussion on The Capital Playbook Podcast: The Impact of Rising Interest Rates on Multifamily Real Estate

The 46th episode of The Capital Playbook Podcast, hosted by Charles Williams, Founder of Pioneer Realty Capital, is set to premiere on May 11, 2023, at 11:00 AM CST on YouTube. This episode will feature the return of special guest Tyler Bynum, Senior Associate at Worldwide Commercial.

The conversation between Williams and Bynum will explore the recent shifts in the commercial real estate market, particularly the impact of rising interest rates on the multifamily sector. The duo will discuss the challenges and strategies for both buyers and sellers in this evolving environment, promising to deliver valuable insights for multifamily owners, investors, and property managers navigating the current market scenario.

“In the current market, we’ve seen a change in conditions,” explains Charles Williams, “and we want to update our listeners on how markets are responding to the increasing interest rate.”

During the episode, Bynum elaborates on the state of the market, stating, “There’s no lack of buyers in the market right now. There are tons of people that want a deal, they want to get a deal done. But we’re seeing probably a 10% gap right now compared to what sellers are wanting to sell their property at and what buyers are willing to pay.”

The episode delves into factors contributing to this gap, including rising expenses like insurance costs, property taxes, and salaries, which are directly affecting the net operating income (NOI) of the properties. According to Bynum, these factors “almost have a bigger effect than interest rates right now.”

The podcast also addresses the potential impact of these trends on rental rates, which is a pressing concern for multifamily property owners. Bynum notes, “A lot of people are saying rents are going to kind of level off through this recession that we’re heading into. So, the rents aren’t going to grow as fast as they were.”

Williams adds, “If your expenses go up, rents got to go up. If your expenses go up, your mortgage payment goes up, how can rents go down?”

In the conversation, Charles Williams and Tyler Bynum not only dissect the current state of the multifamily real estate market but also offer strategies for both buyers and sellers to navigate these challenging times. This episode of The Capital Playbook Podcast offers valuable insights for anyone involved in the multifamily real estate sector.

Be sure to tune in to The Capital Playbook Podcast Episode 46 premiering on May 11, 2023, at 11:00 AM CST. Subscribe to the YouTube Channel to stay updated on all future episodes.

The Capital Playbook Podcast is a comprehensive guide to winning in commercial real estate. Hosted by Charles Williams, the owner and managing member of Pioneer Realty Capital, the show features industry experts sharing their insights and experience in the commercial real estate market, empowering listeners with the knowledge to make informed investment decisions.

For more information and sponsorship opportunities, visit the website and call Najaah Harris at 682-320-2590.

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