John Chang is the Senior Vice President – National Research and Investor Relations – Marcus and Millichap and is a great economic analyst. He’s measured, thorough, disciplined and personable. I respect him greatly and pay attention to his observations. In speaking with institutional investors recently, Chang reports they believe pricing (all property classes) will continue to decline another 5% – 10%. The private guys, Chang says, are more optimistic and are looking five years down the road or so when they believe real estate fundamentals will be solid. Many private guys also believe interest rates will come down which makes buying now opportunistic. Chang notes each property class is different, with different influences affecting pricing, and location is, of course, always a determining factor. Bottom line for Chang: sharpen your pencil for the hold period and see how your investment may look in five years.

 

 

Svikhart & Associates, a Salt Lake City-based real estate services company, focuses on asset management, brokerage listings and sales, and all aspects of a multifamily investment. Specific diligence regards property operations and strategies to maximize asset performance and value. Additionally, the firm assists owners regarding economic, financial and market factors that impact returns on investment. The firm targets ‘Mid-Tier’ assets which it defines generally as 10-to-60-unit properties.

 

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