Week of 1/27/25 - 1/31/25

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News Wrap | January, 31st 2025
Weekly News Wrap | Presented by CBRE Multifamily
CBRE
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Introducing the Market Rent Calculator
CBRE's Market Rent Calculator
Navigating the PA, DE, & NJ multifamily markets just got easier.

This tool consolidates data from top industry sources, property websites, and direct insights gathered through conversations and trusted relationships with property management companies. By combining these diverse data points, the calculator delivers a highly accurate and up-to-date snapshot of each submarket's rental market.
CBRE Weekly Take: How Can Clients Improve Their Property’s Insurability?
Property Improvements

Upgrade Building Systems: Modernize plumbing, electrical, and HVAC systems to reduce the risk of failures.

Install Safety Features: Add fire alarms, sprinkler systems, and security cameras.

Improve Roofing and Drainage: Ensure the roof is in good condition and install proper drainage to prevent water damage.

Use Durable Materials: When renovating, use fire-resistant and weather-resistant materials.
Risk Mitigation

Implement Regular Maintenance: Proactively address maintenance issues to prevent small problems from becoming large claims.

Conduct Risk Assessments: Hire professionals to identify and mitigate potential hazards (e.g., mold, asbestos, or structural weaknesses).

Train Staff: Ensure property managers and maintenance staff are trained in safety protocols and emergency response.
Insurance Strategy

Shop Around: Work with an experienced insurance broker who specializes in multifamily properties to find the best rates and coverage.

Increase Deductibles: Opting for a higher deductible can lower premiums, but clients should ensure they can afford the out-of-pocket cost if a claim occurs.

Bundle Policies: Some insurers offer discounts for bundling property and liability coverage.

Consider Alternative Coverage: Explore options like captive insurance or self-insurance for larger portfolios.
Multi-Housing News
Gantry's Stephan Coste on the outlook for conditions, challenges and options in the capital markets.
Read More
GlobeSt
National median monthly rents were down $3 in January compared with a $7 dip in the same month last year.
Read More
GlobeSt
Four sectors had monthly changes of at least 40 basis points.
Read More
MultifamilyDive
Highlights for this month include a free data tool and a robot security guard.
Read More
Multi-Housing News
Sun Belt cities make up the bulk of this list with eight entries, according to Yardi Matrix.
Read More
GlobeSt
Core and value-add metrics outperformed expectations in the third quarter of 2024 and core asset IRR targets rose as underwriting stabilized in Q4. 
Read More
Multi-Housing News
Check out how the multifamily sector stacks up against other asset categories.
Read More
Yield Pro
The cost of insurance had been growing quickly for apartment properties since 2017. The most extreme increases in costs came during the period of rapid price inflation after the coronavirus pandemic.
Read More
Multi-Housing News
Year-over-year rent growth fell to 0.6 percent in December, reports Yardi Matrix.
Read More
Additional Resources
Multifamily Core Asset IRR Targets Rise as Underwriting Stabilizes
CBRE has reviewed a multifamily underwriting survey for 2024 Q4 of 18 different markets. It reported that underwriting assumptions for core and value-added multifamily properties were mostly unchanged. However, there was “substantial movement” in unlevered IRR targets for core assets, which increased.
Philadelphia’s multifamily investments show signs of recovery
Institutional players’ reentry signals a stabilizing market
Southern New Jersey’s apartment market hits a hot streak
Population gains and limited development have fostered a tight rental market
For more information, please contact:
Nick Murray
Senior Associate
CBRE | Capital Markets
T +1 301 586 7010
nick.murray@cbre.com
Spencer Yablon
Senior Vice President
CBRE | Capital Markets
C +1 215 266 6241
Spencer.Yablon@cbre.com
Brad Megay
Senior Associate
CBRE | Capital Markets
C (610) 310-9108 
brad.megay@cbre.com |
Pete Dilullo
Senior Vice President
CBRE | Capital Markets
C (484) 888-3660
Peter.Dilullo@cbre.com 
Mac Shea
Associate
CBRE | Capital Markets 
C (270) 780-4715
mac.shea@cbre.com 
Adrian Sam
Associate
CBRE | Capital Markets
C +1 267 738 2792
adrian.sam@cbre.com
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