EPISODE · Jan 1, 2026 · 3 MIN
Episode 9: Why Class B Beats Class A in 73% of Recessions
from Hot Not CRE · host Hot Not CRE
Welcome back to What's Hot & What's Not CRE — your daily pulse on commercial real estate in America.Today we're diving into multifamily asset classes — Class A, B, or C: which looks hottest for 2026?🔥 What's Hot — Class B Wins:Higher Cap Rates — 25-50 bps above Class A; value-add deals near 7%Affordability Crisis Driving Demand — Teachers, nurses, essential workers staying in workforce housingRecession Resilient — Outperforms in 73% of recessions; renters trade down from A to BTightest Vacancy — 3.1% in 2022, 6.1% decade average (500 bps tighter than Class A)Value-Add Upside — 15-25% utility savings from efficiency upgradesClass A Luxury Struggling — Vacancy above 10%; 2-3 months free rent concessionsClass C Limited Upside — Can reposition to "B+" but rent ceiling existsSun Belt Oversupply — Austin, Phoenix, Dallas new Class A competing hard❄️ What's Not:Takeaway: Class B multifamily offers the best risk-adjusted returns for 2026.Thanks for tuning in. See you tomorrow! Don't forget to Like, Share and Subscribe! Visit hotnotcre.com to learn more and subscribe to our newsletter.
What this episode covers
Welcome back to What's Hot & What's Not CRE — your daily pulse on commercial real estate in America.Today we're diving into multifamily asset classes — Class A, B, or C: which looks hottest for 2026?🔥 What's Hot — Class B Wins:Higher Cap Rates — 25-50 bps above Class A; value-add deals near 7%Affordability Crisis Driving Demand — Teachers, nurses, essential workers staying in workforce housingRecession Resilient — Outperforms in 73% of recessions; renters trade down from A to BTightest Vacancy — 3.1% in 2022, 6.1% decade average (500 bps tighter than Class A)Value-Add Upside — 15-25% utility savings from efficiency upgradesClass A Luxury Struggling — Vacancy above 10%; 2-3 months free rent concessionsClass C Limited Upside — Can reposition to "B+" but rent ceiling existsSun Belt Oversupply — Austin, Phoenix, Dallas new Class A competing hard❄️ What's Not:Takeaway: Class B multifamily offers the best risk-adjusted returns for 2026.Thanks for tuning in. See you tomorrow! Don't forget to Like, Share and Subscribe! Visit hotnotcre.com to learn more and subscribe to our newsletter.
NOW PLAYING
Episode 9: Why Class B Beats Class A in 73% of Recessions
No transcript for this episode yet
Similar Episodes
Sep 26, 2023 ·65m
Sep 26, 2023 ·66m
Sep 26, 2023 ·69m
Sep 26, 2023 ·64m
Sep 26, 2023 ·66m
Sep 26, 2023 ·61m