Episode 9: Why Class B Beats Class A in 73% of Recessions

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.