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CRE- Navigating 2025

Navigating 2025: Strategies for Multifamily Success in a Challenging Market

We survived. As we turn the calendars to 2025, it’s important that we look at the reality of the year to come. 2025 looks to hold some new and interesting challenges for owners, investors, and brokers. With the 10-year treasury remaining elevated, the cost of debt having doubled since the “free money” days, and a tsunami-sized wave of loans coming due this year and next, multifamily owners in the southeast, especially those that took on floating debt, will soon be forced to make decisions that will dictate the future of their portfolios.
I opted out of NMHC as I felt like no one really knows which way we are heading. To be quite honest, we are doing a lot of BOVs that needed our attention. We seem to have more off market deals than ever before.
What Should Multifamily Owners Be Doing Right Now?

1. How can you collect more rent in a timely manner?

I recently sat down with an owner of a well-located property. Rents were late or unpaid, and evictions were slow. We brainstormed on how to collect rent and incentivize tenants to pay on time. If you’d like to explore these out-of-the-box strategies and what’s working for him, let’s talk.

2. Get Ahead of Loan Maturities

If you have debt coming due in the next 12-24 months, don’t wait until the last minute. Lenders are more risk-averse now, and refinancing isn’t as simple as it used to be. Consider restructuring debt, negotiating extensions, or exploring JV equity to bridge any gaps.

3. Rethink Pricing Expectations

Buyers are underwriting deals with much higher debt costs, which means yesterday’s valuations no longer apply. If you’re planning to sell, focus on real numbers, not past appraisals. The deals getting done are the ones where sellers are willing to meet the market.

4. Optimize Operations

With compressed margins, NOI growth has to come from actual operational improvements, not just market appreciation. This means tightening expense control, improving rent collection, and reducing turnover. Look at value-add strategies that don’t rely on heavy Capex but still drive revenue.

5. Consider Strategic Sales

If your asset isn’t performing, your debt is a problem, or you’re simply overleveraged, it might be time to sell while the market still has liquidity. South Carolina’s multifamily sector, especially in high-growth areas like Greenville, Charleston, and Columbia, is still attracting investors—just not at 2021 pricing.

The Outlook for South Carolina Multifamily

South Carolina remains one of the strongest multifamily markets in the country. Job growth, massive inbound migration, and a pro-business climate keep demand high—but the days of easy appreciation, fast rent growth, and cheap debt are gone. In this market, operators who understand today’s financing realities, realistic valuations, and how to drive NOI in a high-rate environment are the ones who will win.

The bottom line? You either adapt or get left behind. If you’re an owner, waiting around and hoping for rate cuts isn’t a strategy—now’s the time to make smart, proactive moves. If you’re a buyer, patience is key, but when the right opportunity comes, you need to be ready to move.
Navigating this market takes experience and the right team. Let’s talk.

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