Is the Real Estate Market Getting Worse? episode artwork

EPISODE · Jun 13, 2025 · 1H 2M

Is the Real Estate Market Getting Worse?

from The Gray Report Podcast · host Spencer Gray

The broader commercial real estate landscape could see further pricing volatility, especially as distress levels tick upward and financing challenges persist. Multifamily, however, remains more stable, but current, more modest rent growth trends could be a challenge for markets/regions still working through the historic wave of apartment development. Many investors are looking past the current environment into a potential under-supply of apartments in 2026, and the continued divergence among different regions and markets will reward investors who can find opportunity in this current uncertainty.Sources discussed in this episode:MSCI: “Early Warnings of CRE Price Problems” - https://www.msci.com/research-and-insights/blog-post/early-warnings-of-cre-price-problems Trepp: “Investment Yield Spreads: Commercial Real Estate as an Investment Class” - https://www.trepp.com/trepptalk/investment-yield-spreads-commercial-real-estate-as-an-investment-class Marcus & Millichap: “Emerging Cap Rate Spreads and Trends” - https://www.marcusmillichap.com/research/videos/emerging-cap-rate-spreads-and-trends CRED iQ: “CMBS Distress Rate Reaches 11% –Breaking a Streak of 3 Consecutive Reductions” - https://cred-iq.com/blog/2025/06/05/cmbs-distress-rate-reaches-11-breaking-a-streak-of-3-consecutive-reductions/ Yardi Matrix: “Another Month of Steady Rent Gains for Multifamily” - https://www.yardimatrix.com/publications/download/file/7359-MatrixMultifamilyNationalReport-May2025 Learn more about Gray Capital's Midwest Multifamily Fund: https://www.graycapitalllc.com/midwestDownload Gray Capital's latest report: ⁠https://www.graycapitalllc.com/midwest-report/⁠Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This podcast does not constitute professional financial advice and is for educational/entertainment purposes only. This podcast is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

The broader commercial real estate landscape could see further pricing volatility, especially as distress levels tick upward and financing challenges persist. Multifamily, however, remains more stable, but current, more modest rent growth trends could be a challenge for markets/regions still working through the historic wave of apartment development. Many investors are looking past the current environment into a potential under-supply of apartments in 2026, and the continued divergence among different regions and markets will reward investors who can find opportunity in this current uncertainty.Sources discussed in this episode:MSCI: “Early Warnings of CRE Price Problems” - https://www.msci.com/research-and-insights/blog-post/early-warnings-of-cre-price-problems Trepp: “Investment Yield Spreads: Commercial Real Estate as an Investment Class” - https://www.trepp.com/trepptalk/investment-yield-spreads-commercial-real-estate-as-an-investment-class Marcus & Millichap: “Emerging Cap Rate Spreads and Trends” - https://www.marcusmillichap.com/research/videos/emerging-cap-rate-spreads-and-trends CRED iQ: “CMBS Distress Rate Reaches 11% –Breaking a Streak of 3 Consecutive Reductions” - https://cred-iq.com/blog/2025/06/05/cmbs-distress-rate-reaches-11-breaking-a-streak-of-3-consecutive-reductions/ Yardi Matrix: “Another Month of Steady Rent Gains for Multifamily” - https://www.yardimatrix.com/publications/download/file/7359-MatrixMultifamilyNationalReport-May2025 Learn more about Gray Capital's Midwest Multifamily Fund: https://www.graycapitalllc.com/midwestDownload Gray Capital's latest report: ⁠https://www.graycapitalllc.com/midwest-report/⁠Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This podcast does not constitute professional financial advice and is for educational/entertainment purposes only. This podcast is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.

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Is the Real Estate Market Getting Worse?

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This episode was published on June 13, 2025.

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The broader commercial real estate landscape could see further pricing volatility, especially as distress levels tick upward and financing challenges persist. Multifamily, however, remains more stable, but current, more modest rent growth trends...

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