Institutional Buyers Want Multifamily Deals But Struggle to Make Them Work
TIAA has wanted to buy roughly $1 billion in multifamily assets over the past several years. Getting the numbers to work has been another matter. That gap between investment appetite and workable deals is keeping institutional capital on the sidelines, even as investors remain confident in the sector's long-term demand.
For buyers, uncertain Treasury yields make acquisitions difficult to underwrite. For sellers, a wide gap in pricing expectations makes bringing properties to market a difficult call. The result is a market in which institutions see reasons to invest but struggle to agree on terms.
Those trends dominated the opening panel at GlobeSt.'s Multifamily Owners Forum 2026 in San Diego. Moderated by Marc Renard, executive vice chair at Cushman & Wakefield, "Horizon Scanning: Unpacking the Institutional Landscape" brought together executives from BlackRock, TIAA and PGIM Real Estate to discuss what is holding up transactions—and what could get them moving.
Investment Appetite Meets Pricing Resistance
Chris Burk, managing director and portfolio manager at TIAA, said the firm has sought roughly $1 billion in multifamily acquisitions over the past several years but has struggled to make the economics work.
The challenge extends to the other side of the negotiating table. Rory Ingels, director of U.S. real estate asset management at BlackRock, said the wide bid-ask spread is limiting transactions as buyers and sellers struggle to agree on property values.
BlackRock has considered bringing assets to market but is proceeding cautiously. However, waiting for greater clarity could mean waiting a long time.
Sellers With Room To Wait
Not every owner faces the same pressure to transact. Philip Campbell, executive director at PGIM Real Estate, said the firm does not need to sell, giving it flexibility in deciding whether to bring properties to market.
That ability to wait helps explain why investment interest doesn't necessarily translate into deals. Buyers need pricing that supports their underwriting, while owners with no immediate need to sell can choose when to accept an offer.
The panelists' one-word descriptions captured their differing perspectives. Ingels called the market "volatile." Burk chose "uncertain." Campbell saw "opportunity."
Rate Uncertainty Complicates Deals
Interest rates remain a central obstacle to closing the pricing gap. Burk said acquisitions are difficult to underwrite when Treasury yields could rise further. Selling into a dislocated market presents its own challenges.
For institutions weighing both purchases and dispositions, that uncertainty complicates decisions in either direction. Panelists said greater stability in rates and investor expectations could help unlock transaction activity.
Housing Demand Supports The Long-Term Case
Despite the difficulty of making deals work today, panelists remained optimistic about multifamily's underlying demand.
Ingels pointed to people continuing to live with their parents as a potential source of future apartment demand. That prospect supports the sector's long-term appeal, even as financing and valuation challenges constrain investment.
The distinction is important for investors: Confidence in housing demand has not disappeared. The harder task is finding a price and financing assumptions that justify committing capital now.
Check back with GlobeSt.com for more from the Multifamily Fall Owners Forum.
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Source: GlobeSt/ALM