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Navigating Fannie Mae, Freddie Mac Small Balance Multifamily Loan Programs

Sarah Daniels — Tue, 06 Jan 2026 12:00:00 +0000

By Ann Atkinson, Regions Real Estate Capital Markets Most multifamily real estate owners need to finance or refinance their apartment community at some point. Many utilize the small balance multifamily loan programs available through Fannie Mae and Freddie Mac to do so. Understanding how lenders navigate each phase of the loan cycle can give owners a strategic advantage, especially in a time of elevated rate volatility. A significant amount of multifamily debt is maturing in 2026. Borrowers should not wait to refinance to avoid the concentrated competition later in the year when lenders are faced with refinancing demand. In addition, modest rent growth today offers refinancing upside; and finally, Fannie Mae and Freddie Mac have higher production caps in 2026 providing more runway for lending. The following overview, based on Regions Real Estate Capital Markets’ experience, outlines five key phases of the process, with helpful tips throughout: 1. Screening and Term Sheet Loan screening kicks off the relationship between borrower and lender. The lender’s production representative often conducts an introductory call with the borrower, who completes an application and provides due diligence items. Access a checklist of items to provide to Regions for screening here. Tip #1: Get all required (and…

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InterFace Panel: Tariffs Are a ‘Hot Potato’ When it Comes to Construction Costs

Kristin Harlow — Tue, 23 Dec 2025 13:35:00 +0000

ATLANTA — In today’s multifamily development world, architects, designers and general contractors do everything in their power to avoid the one thing they dread most — going back to a developer mid-project to ask for more money. These “uncomfortable moments,” as Lori Ann Dinkins, president and CEO of Mood Interior Design, called them, happen more often these days thanks to rising costs, tariffs and collaboration snafus. Dinkins led a panel of architects, interior designers and general contractors through a bevy of topics — good, bad and ugly — that define the current state of building and designing apartments at InterFace Conference Group’s Multifamily Southeast event. The event took place over the course of two days at the InterContinental Buckhead in Atlanta. Editor’s note: InterFace Conference Group, a division of France Media Inc., produces networking and educational conferences for commercial real estate executives. To sign up for email announcements about specific events, visit www.interfaceconferencegroup.com/subscribe. Residents and developers alike are taking a more practical, less playful approach when it comes to stylizing apartments. Gone are the days of “those huge show-stopper, Instagram-moment amenity spaces,” said Ian Hunter, regional director at Atlanta-based Dwell Design Studio. “They’re out. And they’re out for a couple of reasons. Not…

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InterFace Panel: Oversupply, Costs Remain Key Obstacles to Underwriting, Financing New Multifamily Projects

Taylor Williams — Thu, 18 Dec 2025 12:48:00 +0000

ATLANTA — Jason Nettles, managing director at Northmarq’s Atlanta office, is well-versed on the recent history of U.S. apartment deliveries, knowledge that came in handy for launching discussion among developers at the 16th annual InterFace Multifamily Southeast conference. Nettles moderated a panel of five regional developers, all of whom also share keen awareness of just how much new multifamily product U.S. markets — particularly those in the highly desirable Sun Belt regions — have added in recent years. In these areas, supply growth is both a dominant narrative on the surface of the multifamily development scene and an invisible hand that guides business decisions behind that scene. Massive blips in supply, whether positive or negative, impact key facets of underwriting, including rent growth assumptions and concessions, as well as financing terms on both the debt and equity sides of the capital markets. Those figures and assumptions must then be evaluated against hard costs of development, which as a rule do not decline over time, but rather grow at varying paces. Editor’s note: InterFace Conference Group, a division of France Media Inc., produces networking and educational conferences for commercial real estate executives. To sign up for email announcements about specific events, visit www.interfaceconferencegroup.com/subscribe. All…

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Built for Every Cycle: The Staying Power of Shallow Bay Industrial

Taylor Williams — Wed, 17 Dec 2025 12:51:00 +0000

By Cliff Booth, founder & chairman, Westmount Realty Capital Shallow bay industrial, often defined as product with suites between 2,000 and 30,000 square feet, has proven to be a resilient and attractive commercial real estate investment for the past four decades. Today, a combination of persistent tenant demand, flexible space configurations, favorable lease structures and limited new supply continues to drive investor interest in this subcategory of industrial product, including increased institutional capital flows. Shallow bay industrial remains a standout in commercial real estate portfolios — here’s why. Consistent Tenant Demand, Diversification Shallow bay industrial properties cater to a broad spectrum of users, ranging from local contractors and logistics providers to regional distributors and e-commerce firms. These tenants are drawn to highly functional suites that support frequent changes in business operations, from manufacturing to last-mile delivery. Research from JLL shows that over the past decade, the annual average leasing volume in the shallow bay category has been about 250 million square feet, evidencing stable demand through multiple economic cycles. The multi-tenant structure of shallow bay buildings reduces single-tenant risk and enhances asset stability. A project might host five to 50 tenants, with no single occupant accounting for more than 10 percent…

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BLS: U.S. Economy Adds 64,000 Jobs in November but Loses 105,000 in October

John Nelson — Tue, 16 Dec 2025 12:24:00 +0000

WASHINGTON, D.C. — The U.S. economy has added 64,000 non-farm payroll jobs in November and lost 105,000 jobs in October, according to the U.S. Bureau of Labor Statistics (BLS). The BLS included the October figures into the November report due to complications with the federal government shutdown, which lasted for 44 days in October and early November. The bureau, which also delayed the release of the consumer price index and producer price index in October, plans to release the December jobs report on Jan. 9, 2026. The November figure was higher than the 45,000 estimate from Dow Jones economists, according to CNBC. The news outlet also reported that the economists didn’t make an official estimate for the October report but were largely anticipating a drop in employment. In addition to the delayed report, the BLS also revised downward the employment figures for August, from a loss of 4,000 jobs to -26,000, and September, from 119,000 jobs to 108,000. The U.S. unemployment rate also ticked up 20 basis points from September to 4.6 percent in November, its highest level since September 2021. Federal government employment continued to decrease in November with a loss of 6,000 jobs. This follows a decline of…

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InterFace Panel: AI Has Infiltrated Multifamily Management Without Compromising Human Touch

Taylor Williams — Thu, 11 Dec 2025 12:59:00 +0000

By Taylor Williams DALLAS — Technological innovation has long been a cornerstone of managing and leasing multifamily properties, and that feature of the business has only been augmented in the era of artificial intelligence (AI). But for all the operational conveniences and efficiencies that AI potentially brings to the table, multifamily management has not yet reached the point of phasing out the human element. Almost immediately after the members of the leasing and management panel at the annual InterFace Multifamily Texas conference had introduced themselves, this fundamental premise of multifamily management was put forth to a crowd of several hundred real estate professionals — men and women who have built careers based on human relationships. The message to those at the conference, which took place in late September at the Westin Galleria Hotel in Dallas, seemed to be one of reassurance, that even as AI seemingly infiltrates every aspect of human life and threatens to void millions of jobs, the human principles that have long governed real estate transactions remain intact. At least for now. Editor’s note: InterFace Conference Group, a division of France Media Inc., produces networking and educational conferences for commercial real estate executives. To sign up for email announcements…

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InterFace Panel: Multifamily Operators Are Charting a Path from Oversupply to Opportunity in 2026

Abby Cox — Tue, 09 Dec 2025 13:00:00 +0000

ATLANTA — The multifamily market in the Southeast still prevails as one of the nation’s most dynamic real estate ventures, but one aspect in particular is casting a dark shadow — the cultivation of oversupply in the region. When the demand for housing during and after the COVID pandemic increased, developers energetically responded with an aggressive building boom. However, when new supply began to outpace demand, vacancy crept up and concern for the market became more prominent. “We put shovels in the ground and started developing — and now we’re paying for that sin,” said Greg Mark, executive managing director at Cushman & Wakefield. “Across the board, we’re just not seeing the same kind of returns.” Mark’s comments came at the operations panel during the 2025 InterFace Multifamily Southeast conference, which was held at the InterContinental Buckhead in Atlanta. Co-hosted by France Media’s InterFace Conference Group and Multifamily & Affordable Housing Business magazine, the two-day event attracted a little more than 300 attendees. Ed Wolff, CEO of Dallas-based Aerwave, moderated the panel. Editor’s note: InterFace Conference Group, a division of France Media Inc., produces networking and educational conferences for commercial real estate executives. To sign up for email announcements about specific events, visit www.interfaceconferencegroup.com/subscribe. Karen Key, Southeast…

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Multifamily Sellers Continue to Hold Out for Peak Pricing, Says InterFace Panel

John Nelson — Fri, 05 Dec 2025 12:45:00 +0000

ATLANTA — For many multifamily professionals, 2025 is a year to forget. Paul Berry, president and chief operating officer of Mesa Capital Partners, said that U.S. multifamily investment sales are on track to close out the year at $125 billion, which represents a 25 percent decline from an average pre-COVID year and a little more than a third of 2021’s total (a torrid $354 billion). Andrew Zelman, senior vice president of Southeast investments at Boston-based GID Multifamily, said that owners are doing “everything they can to hold out for a profit.” Editor’s note: InterFace Conference Group, a division of France Media Inc., produces networking and educational conferences for commercial real estate executives. To sign up for email announcements about specific events, visit www.interfaceconferencegroup.com/subscribe. “As simplistic as this is, sellers will avoid transacting at less than peak values at any cost,” said Zelman, who added that owners are essentially kicking the can down the road by recapitalizing their assets or stopping and starting the marketing process if their pricing expectations aren’t being met. Zelman’s comments came during the opening panel on Tuesday, Dec. 2, at the 2025 InterFace Multifamily Southeast conference, which was held at the InterContinental Buckhead in Atlanta. Co-hosted…

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Sell Smarter, Not Harder: Where Workplace Design, Sales Performance Intersect

Taylor Williams — Thu, 04 Dec 2025 12:45:00 +0000

By Aron Schreier of Cresa and Gabe Hernandez of Design Republic Leaders often obsess over KPIs (key performance indicators) and will spend six figures on Salesforce licenses and sales training boot camps. But walk into most offices in 2025, and you’ll find sales teams working in spaces that actively undermine everything those investments are meant to achieve. Having spent careers straddling both worlds — commercial real estate and sales training — it’s easy to see how the right environments can create positive energy and how the wrong ones quietly drain it. Let’s review why space is perhaps the most strategic asset in all of sales. Space Drives Mindset Sales is a game of psychology as much as skill. Top performers need natural light that regulates energy throughout the day, sight lines that create productive visibility without surveillance and collision spaces where quick wins get celebrated spontaneously. These aren’t luxury amenities; they’re pieces of performance infrastructure. Contrast that with fluorescent-lit cubicle farms with tall, opaque barriers. These spaces don’t just fail to inspire — they actively communicate that energy should be contained. They set a tone that seeps into calls and meetings and ultimately erodes confidence over time. Your office layout either…

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In What Ways Is Student Housing a Different Animal Than Conventional Multifamily? InterFace Panel Weighs In

Kristin Harlow — Wed, 03 Dec 2025 13:30:00 +0000

ATLANTA — Andrew Layton, chief acquisition officer for Atlanta-based Student Quarters, knows that from a commercial real estate investment standpoint, the student housing sector possesses a key advantage: the relative permanence of many flagship universities nationally. “There is no risk of the University of Kentucky uprooting itself from Lexington and moving to Frankfort anytime soon. In the conventional multifamily world, neighborhoods come, neighborhoods go. What was hot yesterday may not be so hot today. What was cold yesterday may be the flaming new market tomorrow. That’s just not the case in what we do,” emphasized Layton, who leads the origination and underwriting efforts involving both the acquisition and development of student housing assets for the Student Quarters’ investors. “There’s a sense of permanence [surrounding these academic institutions], and if you can get on the ground and do your due diligence, you can figure out relatively easily where things work and where things don’t work in a student housing market.” Student Quarters owns and operates over 13,000 beds nationally, stretching east to west from Clemson, South Carolina, to Tempe, Arizona; and north to south from East Lansing, Michigan, to Tallahassee, Florida. The insights from Layton, who’s worked in the student housing…

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Stars Are Aligned for Build-to-Rent Developers

Kristin Harlow — Tue, 02 Dec 2025 13:30:00 +0000

Higher rents and lower turnover are a few of the key advantages build-to-rent (BTR) properties have over traditional multifamily product, according to investors. Meanwhile, the sector continues to experience strong demand from tenants priced out of the housing market as well as renters by choice who prefer flexible, maintenance-free living. BTR units typically have all the perks of a single-family home — privacy, garages and yards — without the hassles of landscaping or property maintenance. “The BTR sector is experiencing significant growth because it addresses a genuine need in today’s housing market,” says Khrista Villegas, managing director of Material Capital Partners (MCP), a Charleston, South Carolina-based development and investment firm focused on BTR communities in the Southeast and Midwest. “Many prospective residents are moving away from traditional apartments, seeking the space, privacy and community feel of a single-family home without the commitment and burden of ownership. This trend is especially pronounced among millennials and Gen Z renters who value lifestyle flexibility, outdoor space and neighborhood connectivity — features that traditional apartments often lack,” explains Villegas. (Gen Z, the demographic cohort succeeding millennials, includes persons born between approximately 1997 and 2012.) Many millennials and Gen Zers are postponing family formation, but…

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Webinar: From Hype to Readiness — How Commercial Real Estate Firms Are Preparing for AI

Sarah Daniels — Mon, 24 Nov 2025 19:28:00 +0000

The November 18 France Media webinar “From Hype to Readiness — How Commercial Real Estate Firms Are Preparing for AI,” hosted by France Media and sponsored by Defease With Ease | Thirty Capital, offered a look at the realities of artificial intelligence (AI) within the industry. What can a year of AI use in commercial real estate tell us about implementation and tactics? Panelists touched on the limitations of general-purpose tools, as well as trending topics including safeguards, data privacy, accuracy and institutional control. For professionals engaged in commercial real estate, the session highlighted practical ways AI can elevate both day-to-day efficiency and organizational sophistication (especially if efforts are backed up by a unified library of proprietary portfolio data). Panelists discussed how purpose-built platforms can support underwriting, refinancing, internal reporting and ongoing asset optimization by using secure, updated data. The expert presenters gave concrete examples on how AI can act as an effort multiplier: it can strengthen accuracy, surface risks earlier and broaden the capabilities of team members. The included case study underscored real-world advantages, including improved reporting integrity, stronger oversight and better workflow automation. Register here to watch this brief webinar to gain helpful insights on integrating new technology…

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Forecast Survey: What’s Your Take on Commercial Real Estate in 2026?

John Nelson — Mon, 24 Nov 2025 12:55:00 +0000

The editors of REBusinessOnline.com are conducting a brief online survey to gauge market conditions in 2026, and we welcome your participation. The survey should only take a few minutes to complete. Questions range from property sectors that you are most bullish on heading into 2026 to trends in deal volume to your outlook for interest rates. The results of our 15th annual survey will be compiled and published in the January issues of our regional magazines. Conducting these surveys is part of our mission at France Media to provide readers with indispensable information, and we couldn’t do it without your help. To participate in our broker/agent survey, click here. To participate in our developer/owner/manager survey, click here. To participate in our lender/financial intermediary survey, click here. (Note: Please remember to click on “done” to properly submit the survey.)

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AI-Driven Approach Powers the Next Phase of Commercial Real Estate Strategy

Sarah Daniels — Thu, 20 Nov 2025 12:00:00 +0000

Commercial real estate is in the middle of one of its biggest transitions. For years, the challenge was finding data. Now, the challenge is knowing what to do with it. Artificial intelligence (AI) is starting to change that. The conversation has shifted from if we should be using AI to how we can use it in a way that actually improves business outcomes. REBusinessOnline recently spoke with Rob Finlay, founder and CEO of Defease With Ease | Thirty Capital, and Trevor Albarran, VP of product at Lobby AI, about how AI is changing decision-making in commercial real estate (CRE), what early adopters have learned and what leaders should be focusing on next. REBusinessOnline (REBO): What’s the biggest opportunity facing CRE executives today? Rob Finlay: It depends on the context, but right now, AI is the most powerful tool a real estate executive can have in their arsenal. AI finally gives principals — the people paid to think — the space to actually do that. When I started in real estate, I was paid to do. But as my role evolved, my value shifted to thinking — being strategic, motivating teams, and making high-level decisions. AI amplifies that ability. It takes…

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Capital Returns as 2025 Signals a Market Reset

Sarah Daniels — Tue, 18 Nov 2025 12:00:00 +0000

By Patrick McGlohn, senior managing director, Berkadia After two years of caution and recalibration, capital is flowing back into commercial real estate. The bid-ask gap between buyers and sellers is narrowing, underwriting assumptions are stabilizing and both equity and debt investors are once again finding common ground. At Berkadia, we’re seeing equity move from the sidelines to the playing field, selectively, but decisively. Equity’s Comeback: Selective, but Strong Private equity and institutional investors are increasingly re-entering the market, with activity strongest in the “Smile States,” stretching from Northern Virginia to the western states and extending into major cities like Chicago. Much of the capital is chasing value-add and opportunistic plays rather than core, stabilized assets. Over the past couple of years, many equity investors would only touch preferred equity because of valuation uncertainty, but now we’re seeing common equity return in a meaningful way. The change reflects both greater pricing clarity and a collective sense that the bottom of the market cycle has passed. Navigating the Wall of Maturities The looming wall of debt maturities remains a defining storyline for 2025 and beyond. Nearly $950 billion in commercial mortgages matured in 2025 — roughly 20 percent of all outstanding commercial…

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Annual RevPAR for U.S. Hotel Sector Declines for First Time Since 2020, Says CoStar and Tourism Economics

John Nelson — Thu, 13 Nov 2025 13:06:44 +0000

ARLINGTON, VA. — Revenue per available room (RevPAR) was revised downward in the final performance projections for the U.S. hospitality sector in 2025, according to the latest forecast from CoStar Group and Tourism Economics, an Oxford Economics company. RevPAR is projected to finish the year at a decline of 0.4 percent (or negative 40 basis points) compared to a year ago. This would result in the first total-year decline since 2020 and only the second since 2009, both of which were years with major macroeconomic disruptions with the COVID-19 pandemic and Great Financial Crisis, respectively. CoStar and Tourism Economics also lowered occupancy projections to end the year at 62.3 percent, a decline from 63.1 percent at year-end 2024, while average daily rate (ADR) was held steady at +0.8 percent for the year. For 2026, occupancy is projected to decline by another 30 basis points, while ADR and RevPAR are projected to trend positive by 90 and 50 basis points, respectively (see chart). “We expect little change in the macroeconomic environment as unemployment and prices continue to rise,” says Amanda Hite, president of STR, a hospitality research firm owned by CoStar. “As a result, our hotel performance outlook for the remainder of…

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Quick-Service Restaurants Are Powering the Rise of the 15-Minute City

John Nelson — Tue, 11 Nov 2025 12:38:18 +0000

By Casey Smallwood of SRS Real Estate Partners The quick-service restaurant (QSR) industry is reshaping retail real estate by capitalizing on the “15-minute city” trend — a movement where people can access essentials within a short walk, bike ride or delivery window from home. This shift, fueled by evolving consumer behavior, urban densification and the rise of digital ordering, is pushing QSRs to prioritize hyper-local presence over traditional highway or regional ‘hubs. The result is a transformation in both real estate development and the metrics that define success in the foodservice sector. Embedding into daily life Hyper-localization is about placing restaurants within the flow of everyday life — close to where people live, work and socialize. Rather than clustering around big-box retail or commuter corridors, many brands now target neighborhood locations near apartment clusters, schools and small mixed-use developments. 7 Brew Coffee, a drive-thru-only brand, exemplifies this model. Its small footprint and fast service make it ideal for small lots and secondary intersection spots once overlooked by national tenants. These locations are now thriving due to residential growth and proximity to commuter paths. With minimal barriers to entry and an emphasis on quick-service, 7 Brew is establishing a strong local…

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The Commercial Property Tax Rebellion

Taylor Williams — Thu, 06 Nov 2025 12:45:00 +0000

By Greg Hart, partner, Gray Winston & Hart PLLC The property tax system in the United States, which traces its roots to colonial America, has long been the life blood of local government finance. Used to fund schools, infrastructure and vital municipal services, it is also a system fraught with controversy and mounting calls for reform. Over the past decade, as assessments rose and local governments grappled with budgetary needs, a perfect storm has slowly but steadily been brewing. Rising home values, stagnant wages and shifting demographics have combined to disproportionately increase property tax bills for many families and small businesses. In many large metropolitan areas, annual increases have outpaced inflation. For commercial property owners, whose collective burden grows as communities cap valuations or otherwise shield segments of the residential tax base, many assessments still reflect bygone notions of revenue potential from properties that now struggle with obsolescence. As a result, the property tax burden on commercial and residential property owners alike continues to grow. Advocacy groups often decry examples of individuals forced to sell their homes due to unaffordable taxes and are calling for meaningful property tax reform. Taxation is a delicate balancing act, however. Each state is tasked…

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Northern Nevada Retail Market Gains Momentum Heading Into 2026

John Nelson — Wed, 05 Nov 2025 12:59:00 +0000

— By Sam Meredith of Colliers — After a slow and uncertain start to 2025, the retail market in Reno and Sparks is finally finding its stride. The first half of the year saw many tenants hit pause on leasing decisions as economic jitters made retailers cautious. By the third quarter, however, the mood had shifted. Leasing activity picked up noticeably, and tenants are now back in the market, actively looking for space. That momentum is expected to carry through the fourth quarter and into 2026, with healthy absorption on the horizon. This turnaround is backed by solid market indicators. Net absorption turned positive in the second quarter, while asking rents rose quarter over quarter. Vacancies nudged upward due to big-box closures, including three Big Lots and a Joann store early in the year, but the overall retail vacancy still sits at a manageable 5.4 percent. In fact, several submarkets, including North Valleys, Northwest Reno, South Reno and Southwest Reno, are reporting vacancy rates below 2 percent, showing strong demand in key areas. Retailers are clearly taking notice. Trader Joe’s, which once considered Northern Nevada a one-store market, has now opened two additional locations in Spanish Springs and South Reno.…

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What Developers Should Know About Repositioning Commercial Properties into AI-Ready Data Centers

Taylor Williams — Tue, 04 Nov 2025 12:41:00 +0000

By Felicia Santiago, architect, Gensler As artificial intelligence (AI) technologies evolve and scale, digital infrastructure must follow suit. While advocating for historic buildings to find new life via preservation as data centers is understandable, not every structure is well-suited for this type of repurposing. But this shouldn’t stop developers from overlooking two big opportunities for data center construction plays: revitalizing existing vacant properties as data centers and re-tooling legacy data centers for today’s AI needs. The beauty of adaptive reuse is that it theoretically preserves the existing fabric of community while incorporating modern infrastructure where it is needed — within the fabric of the community. Another opportunity to repurpose existing facilities into modern data centers involves potentially bypassing regulatory items that cause challenges and delays, such as rezoning, since these data centers would be grandfathered into that use. Legacy data centers — once the backbone of enterprise computing — are increasingly outdated and unable to support the energy intensity, cooling demands and density required by AI infrastructure. Rather than defaulting to new construction, there’s an urgent opportunity to recycle existing buildings. The sustainability practices of repurposed buildings should not be overlooked as the need for data centers continues to grow. …

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