ALBUQUERQUE, NEW MEXICO (June 28, 2021) - Cynthia Meister, vice president of NorthMarq's Investment Sales Office, was recently featured in Western Real Estate Business' "Market Highlight" section. Meister shared her perspectives on who is investing, Albuquerque fundamentals performing strongly, and gridlock inside the regional multifamily market.
The red-hot Albuquerque apartment market is experiencing extremely high demand for investment properties, but it is an incredibly tight market. Owners are receiving a plenitude of bids for the limited number of assets for sale.
An abundance of capital is seeking to be deployed in Albuquerque's robust multifamily market, substantially driving up pricing and compressing cap rates. Since multifamily has outperformed many other commercial real estate asset classes during the pandemic, it is considered a lucrative investment, fueling investor demand and pouring new capital into an already competitive landscape.
Albuquerque is also seeing significant pent-up demand from the deal pause that occurred in 2020. Fewer deals came to market at the start of 2021 due to the uncertainty around COVID-19 and the rescheduling of the National Multi Housing Council (NMHC) Convention, the typical launch pad for many assets to the market. About six months into the pandemic, however, investors began aggressively looking to place capital in order to get returns, which started the velocity in the multifamily sector.