Huge Firms Like Blackstone Are Slowing Their SFR Purchases. They Won't Be Down For Long

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Much like the pandemic that triggered its mass adoption, remote work appears here to stay.

Add that to the similarly stubborn trend of housing becoming less affordable, and the change in work habits is narrowing the gap between gateway cities and secondary markets in the U.S.

A nationwide shortage of housing has pushed multifamily rents sky-high, and while rent growth has slowed down in recent months, the biggest headwind to the asset class may be tenants’ ability to pay rent. Meanwhile, the continued prevalence of remote work has caused thousands of companies to reduce their office footprints, leaving vacancy rates rising and rents flat.

Taken together, it marks the first time in decades that multifamily and office rents haven’t followed the same trend lines, according to a report from Moody’s Analytics.

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NEW YORK CITY — This week’s announcement of the biggest office deal of the year was welcome news for New York City’s office market, which has been battered by high availability and low occupancy.

Leases like KPMG's 15-year commitment in Manhattan West — the search for which kicked off in 2018, the company said — are a sign more large corporations are finally making decisions about how they want their offices to look long-term, and what it means for the size of their spaces, industry insiders told Bisnow this week.

“I do think the fog of war is lifting a little bit for most tenants,” Savills Vice Chairman Nick Farmakis said. “I think they’ve come to the conclusion of what they want to be, and I think that maybe the activity in the market is reflective of the fact that tenants have firmer direction than they really have at any time over the past couple of years.”

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Pamela Yang is relatively new to commercial real estate, having spent over 20 years in the investment management industry before joining The Bulfinch Cos. as its first-ever chief operating officer in January 2021. She said her experience running investment teams has made her well-suited to working in CRE.

"I have been loving this new arena and would not look back," Yang said.

She helps guide daily operations for Bulfinch, a Boston-based owner and developer with nearly $3B in assets. She also works closely with its financial reporting team and with the firm's ownership on corporate strategic planning. 

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