A Black Friday level of frenzy is currently taking place in the world of BFR financing. Listen in on the third episode of our three-part series on build-for-rent (BFR) where Joel Kirstein, Managing Director at Berkadia, breaks down the capital world’s obsession with the BFR space. Keep reading below for some of the episode’s key highlights.
- Land and entitlement risk is Joel’s number one concern because it’s the critical choke point in the BFR development process.
- Labor shortages are another concern. Almost every contractor is having a terrible time hiring skilled labor.
Oversupplied? Not yet.
- Currently, the only thing oversupplied is capital interested in BFR. There aren’t enough deals to go around, and we’re nowhere near oversupplying BFR housing.
- Long entitlement periods play a major role in preventing BFR oversupply.
A peak into the future
- More conservative capital sources are starting to step into the BFR space.
- Currently, BFR data is very fragmented. Aggregation of BFR data will be a game changer.
- Mergers & Acquisitions and institutional owner market share growth are inevitable.
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