Multifamily and industrial markets show greater balance

By Raffaella Schnurr, Amalfi Capital

Amalfi Capital concentrates on the multifamily and industrial sectors and they feel more balanced today than they did a year ago. In 2025, the market was still working through a disconnect between buyer expectations and seller pricing, largely driven by rapid interest rate increases. Today, that gap has narrowed, and underwriting assumptions are more grounded in reality. Industrial fundamentals remain strong, though rent growth has normalized, while multifamily is stabilizing after a period of aggressive expansion. Transaction activity is still measured, but there is far greater clarity, allowing experienced operators to move forward with more confidence.

Interest rates continue to be the biggest source of uncertainty, particularly for leveraged acquisitions and new development. While we are cautiously factoring in the possibility of modest rate relief, we are not relying on it. Deals must perform in today’s environment, with conservative leverage and realistic exit assumptions. At the same time, construction costs, material & labor availability, and broader economic conditions continue to influence decision-making. As a result, discipline in underwriting and flexibility in execution remain essential across both asset classes.

Looking ahead, we continue to focus on operational efficiency, strategic growth, and disciplined expansion. In multifamily, that means prioritizing asset management and tenant retention, while in industrial, the emphasis is on well-located, functional properties tied to logistics demand. We’re also seeing early but meaningful impacts from AI, particularly in data analysis, leasing optimization, and logistics modeling. While New Jersey remains one of our key markets, Amalfi Capital continues to focus on the top 10–12 major MSAs across the country, targeting regions with strong population growth, job creation, and long-term demand drivers. We continue to see opportunities with overleveraged operators and in properties that were originally underwritten with excessive leverage, particularly during stronger market conditions when assumptions around rent growth, exit pricing, and debt costs were more aggressive. As those assumptions have reset, many of these assets are becoming readily available at meaningful discounts. Amalfi Capital is well positioned to pursue these opportunities, as we have the capital strength and operational expertise to step in, stabilize performance, and execute a disciplined turnaround strategy that creates long-term value.

About Amalfi Capital:

Amalfi Capital is a real estate equity firm founded in 2015 that is an investor in over 5 million square feet of property throughout the United States. Amalfi focuses on expanding its portfolio by partnering with highly experienced sponsors who are experts in their respective markets by investing in commercial & industrial assets that we believe are well positioned for above market returns over the long run. Our conservative approach combined with markets and properties that have historically high occupancy, such as our concentration on multi-family, industrial distribution & flex space facilities, has been a winning formula since our inception.

Raffaella Schnurr is the managing partner of Amalfi Capital.