Why WDIP remains bullish on multifamily and industrial real estate

In a time when headlines focus on softening rents and elevated vacancies, it’s natural to ask: is now really a good time to invest in real estate?

At Walker & Dunlop Investment Partners (WDIP), we believe the answer is yes. In fact, we see today’s market as one filled with strategic opportunities for investors who are well-capitalized and focused on long-term value creation.

Supply is peaking—and demand is waiting

Some high-growth markets like Denver, Austin, and Nashville are seeing notable rental concessions in Class A multifamily buildings. In Q3 2025, the Class A vacancy rate was 10.9 percent, down from its peak of 11.8 percent in the past year. But the broader multifamily vacancy rate is healthier at 8.3 percent and poised to tighten further.

Why? Because new deliveries are dropping fast. Q3 brought 140,000 new units, a 25 percent decrease from the prior quarter, and Q4 is projected to deliver just 75,000. Meanwhile, the U.S. still faces a 3–4 million unit housing shortage. Demand isn’t going anywhere. In fact, it’s rising, fueled by record homeownership unaffordability and a first-time homebuyer age that’s now 38.

Industrial is following a similar trajectory

In the industrial sector, we’re seeing temporary pain as a wave of new supply hits the market. Q3 marked a ten-year high for vacancy at 7.5 percent, and availability in large logistics facilities is even higher at 11 percent. But for smaller, sub-250,000 SF buildings, vacancy remains low at 6.2 percent.

As with multifamily, construction starts in industrial are falling, and absorption is expected to outpace new deliveries between 2026 and 2029. This sets up a favorable long-term outlook.

WDIP's strategic approach: Focus, fundamentals, flexibility

At WDIP, we’ve leaned into equity acquisitions and bridge lending, targeting deals where market-level dislocation has created attractive entry points. We’re focused on areas where local supply/demand fundamentals are stronger than national averages and where value growth is more achievable.

We remain confident in our investment strategy because the tailwinds are real:

• Limited new construction ahead
• Strong demographic and structural demand
• Rising rental demand due to homeownership barriers
• Fed easing and improving capital markets

There are macro risks, from geopolitical instability to interest rate uncertainty, but the underlying fundamentals remain sound.

Looking ahead

For real estate investors, moments of uncertainty can be moments of opportunity. While not every deal is created equal, WDIP’s disciplined, data-driven approach positions us to identify value and drive performance through market cycles.

We’re not just reacting to market trends; we’re anticipating them.

Reach out to WDIP to explore investment opportunities designed for today's market and tomorrow’s returns.

^{This presentation is for informational purposes only. Nothing herein is an offer or solicitation for the purchase or sale of any security and may not be relied upon in connection therewith. Investment advisory services offered through Walker & Dunlop Investment Partners, Inc. (WDIP). Private real estate investments involve risk of loss; past performance is not indicative of future results. WDIP investment strategies are available only to sophisticated accredited investors. Any opinions and forward-looking statements that of the presenters are subject to change.}