Amid the uncertainty of the global pandemic, the multifamily sector has emerged as one of the most resilient asset classes in commercial real estate. Strong market fundamentals paired with a low cost of borrowing have maintained investment trends seen pre-pandemic.
- As in recent years, large portfolio sales represented a significant portion of transaction volume.
- Average price per suite increased 4.5% YoY to $286,443.
- Average cap rate compressed 19 bps to 3.32%.
- Average vacancy rate climbed to 3.4% with the largest disruption occurring in the downtown core – suburban locations were less adversely affected.
- Apartment rental rates increased 4.6% YoY while the average condominium rental rate decreased 9.7% YoY.