Ten-X’s President Steven Jacobs and Vice President of Sales Brandon Lewe spoke to Benzinga about the recent developments in the multifamily sector—and how market conditions have impacted the platform’s criteria for properties.

“Multifamily has been propelled by tailwinds over the last few years, but external factors, such as continued interest rate hikes and reduced loan-to-value by lenders, have led to cap rate decompression and have prompted a reevaluation of the sector,” said Jacobs. “What we’re seeing on Ten-X is not that investors are backing away from investing, but they are being more conservative.”

Lewe adds, “Our highest volume as far as the number of deals is in retail. There’s a big disconnect right now for multifamily transactions regarding price. For us, a bad fit for our platform is when a client has an unrealistic expectation on price. This year we looked at and eventually turned away $4.2 billion of potential real estate deals. We provide the guidance, and sometimes both parties decide they’re too far apart and decide not to go forward, while sometimes the decision is mutual.”

Read the full article on Benzinga.