October 1, 2026– Bloomfield Hills, MI
IPO is pleased to announce our 2026 multifamily investment sales for the 3rd Quarter of 2026. We closed on 29 multifamily properties in the Midwest, reflecting $82M in transactional volume. It has been a year of unexpected outcomes so far. The market correction is finally in full swing, with the prospect of lower interest rates nowhere in sight.
Interest rates are no longer expected to come down; instead, they have increased. For the first time in 3 years, the Fed raised rates at the September FOMC meeting. The 10-year treasury, a primary lending benchmark, is up nearly 150 basis points since the first quarter of 2026, climbing from 3.85% in April to 5.225% as of press time. This reality is leading many planned refinances to transition to sales because of the dreaded capital call required for a “cash-In” refinance.
Of IPO’s recent sales, many investors opted to meet the market and get equity back to redeploy, rather than continue holding an asset tied to an outcome that has remained elusive for the past three years: a meaningful decline in interest rates. Owners are recognizing that the upside of redeploying capital in a corrected market outweighs the downside of transacting below peak 2022 values that are no longer supported in today’s interest rate environment. This is healthy for the market, as pricing expectations continue to adjust to a higher interest rate environment.
- Q3 closed with 29 multifamily sales reflecting over $82M in transactional volume. This is a significant uptick from Q2, which posted 19 transactions and $58M in volume. Deal flow is accelerating due to macro-economic factors forcing decisions.
- IPO’s growing market share in the core Midwest multifamily markets solidifies us as the premier regional brokerage. Q3 sales were in Michigan, Ohio, Indiana, and Kentucky.
- Varied Asset Profile: Market-Rate, Affordable, Student & Senior. Our Affordable book of business is robust with dozens of transactions in the last few years for LIHTC, RD and HUD properties.
- Core Markets: Detroit, Lansing, Columbus, and Indianapolis continue to see steady market share and expansion by IPO. In a difficult market cycle, we are drastically outperforming our competitors.
The encouraging news is the continued underlying strength of multifamily fundamentals across the Midwest. With limited supply-side pressure to navigate, owners have been able to manage operational pressures from rising insurance, property tax, and labor costs. Healthy rent growth continues in most markets we serve due to limited or no new supply.
It has been nearly 5 years since interest rates were first raised after plummeting in response to COVID-19. It may take another 5 years to fully regain pricing in the markets we serve, given the near and long-term outlook for rate reductions. It will take years of rent growth to recover what was lost. However, we are at least halfway through the correction that was necessary for the industry to return to a more normalized environment with greater predictability. We are seeing and feeling greater acceptance of the “new market” with each day of trading, reflected in the increase in deal volume over the past two quarters. We expect this trend to continue and potentially accelerate modestly into 2027.
We enjoy sharing market information with our clients to add value. Our goal is to build partnerships that stand the test of time, deliver significant value for our clients, and in the process, create generational wealth. As 2026 draws to a close, and as you plan for 2027, contact us and let us know how we can help you with any important investment decisions. This is a market cycle of great opportunities for flexible capital.
Our team is seasoned and loyal. IPO has over 100 years of apartment brokerage experience under one roof. We do things differently than our competitors – the way we would want them done as an owner or investor. Let us show you the value we bring to the table; it all begins with a conversation. Call us to talk about your next deal. We love what we do, and we’d love to work with you.