Multifamily Owners Pursue Portfolio Savings While Taking a Harder Look at New Deals
Institutional multifamily owners are looking for better returns inside the properties they already own, using portfolio-wide cost savings and operational improvements as volatile interest rates complicate decisions about buying, selling and financing assets.
At PGIM Real Estate, that includes initiatives as granular as Wi-Fi services and utility audits. The gains may be modest at any one property, but applying them across a portfolio can meaningfully improve performance, said Philip Campbell, executive director at the firm.
That focus on existing assets is running alongside a more selective approach to new investments. Executives from PGIM, BlackRock and TIAA described how they are balancing immediate operating improvements with longer-term opportunities during the opening panel on day two of GlobeSt.'s Multifamily Owners Forum 2026.
Finding Savings Across The Portfolio
The discussion focused on how institutional investors are adapting their portfolios as market uncertainty makes investment decisions harder. Marc Renard, executive vice chair at Cushman & Wakefield, moderated the panel.
For PGIM, Campbell said the priority is identifying initiatives that can improve margins across multiple properties. Wi-Fi services and utility audits are examples of programs whose cumulative benefits can exceed their individual contributions.
Rory Ingels, director of U.S. real estate asset management at BlackRock, likewise emphasized the importance of working on what owners can control. He said long-term investors can use this period to improve operations and strengthen their assets' performance while waiting for more favorable market conditions.
Raising The Bar For New Investments
Focusing on existing properties does not mean new investment has stopped. But investors are becoming more selective about where they commit capital.
Campbell said projects to which PGIM previously committed continue to deliver, even as the firm takes a more measured approach to new deals. It is also considering markets that may be new to its investment strategy.
He expressed greater optimism about emerging opportunities, particularly as changing market conditions influence future supply. The approach combines caution about current commitments with a willingness to consider investments outside the firm's established markets.
Looking Beyond Multifamily For Demand
For TIAA, diversification remains central to investment decisions. Chris Burk, managing director and portfolio manager, said the firm favors asset classes with geographic diversity and favorable long-term demand drivers.
Alongside multifamily, TIAA is focused on industrial, retail, data centers and senior housing. Burk identified housing affordability challenges as a key factor driving multifamily demand.
Still, favorable market characteristics do not eliminate the need for caution. He said even markets with barriers to new development require careful consideration.
Weighing Debt Costs Against Flexibility
Interest rate uncertainty is also shaping financing decisions. Burk said TIAA is not necessarily extending debt maturities because longer-term financing has become more expensive.
Greater stability in Treasury yields would help investors make more confident decisions about acquisitions and dispositions, he said. Until then, financing costs remain a constraint on transactions.
The panelists' responses to that uncertainty centered on actions they can take now: improving property operations, scrutinizing new commitments and positioning portfolios for future opportunities. Rather than relying on a more predictable market to improve performance, they are working to strengthen the assets they already hold.
Check back with GlobeSt.com for more from the Multifamily Owners Summit.
Lender Pressure Creates Openings for Multifamily Buyers
Multifamily Owners Turn to Operating Savings to Protect Income
Multifamily Discounts Draw Buyers, But Return Targets Hold Back Capital
Multifamily Buyers Find Openings as Lenders Press Owners to Sell
Institutional Buyers Want Multifamily Deals But Struggle to Make Them Work
Source: GlobeSt/ALM