The multifamily industry survived the worst of the credit crunch, but executives must now cope with an even bigger hurdle: a sagging economy.
"Experienced and well-organized multifamily companies are still getting financing," says Stephen Blank, senior fellow for capital markets at the Urban Land Institute. "But the prospects of a recession will prompt lenders to be more demanding about leasing, management, and market need on new projects."
David Cardwell, vice president of capital markets and technology at the Washington, D.C.-based National Multi Housing Council, agrees that the industry has not been overly burdened by the credit squeeze, but he points to other looming concerns. These include: declining property values (a plus for those looking to acquire), rising energy costs, and steeper property taxes as local governments target commercial and multifamily to offset declining assessments on single-family homes.
As companies confront these challenges, Cardwell stresses a continued need to monitor costs and improve operations, and he sees plenty of evidence that companies are prepared to do just that. "From talks we've had with CIOs and operations executives," he says, "it appears that the industry intends to hold firm or even expand investments in technology in 2008."
Indeed, operations managers point to a raft of activities to streamline operat