Multifamily property management firms have experienced exceptional growth and success in the past year, despite the challenges posed by the pandemic. Overcoming restrictions and revitalizing their portfolios, these companies have achieved near record-high occupancy rates, especially in suburban areas and the Sun Belt, Midwest, and Southwest regions. Although properties in gateway markets had a slower recovery, they still showed significant growth as young individuals returned to urban cores across the country.
Inflation and increasing interest rates have made homeownership unattainable for many, further increasing the demand for multifamily properties. As opportunities continue to rise, having an established property management firm is crucial for maximizing returns.
A Stellar Year
Multifamily property management companies have truly excelled in the past year, surpassing pandemic-related challenges and reinvigorating their portfolios. This outstanding effort has resulted in nearly all-time high occupancy rates, particularly in suburban zones and the Sun Belt, Midwest, and Southwest regions. Although assets in gateway markets took longer to recover, they still demonstrated significant growth, driven by the return of young people to urban centers across the nation.
The demand for multifamily properties will continue to persist as homeownership becomes increasingly out of reach for the average household due to inflation and rising interest rates. In this scenario, partnering with an established property management firm becomes even more critical to maximize the growing opportunities.
This year's Top Multifamily Property Management Companies list features 50 firms, collectively managing approximately 3.05 million units. These participants have experienced an average portfolio growth of 10 percent between 2020 and 2021, expanding their footprints across different regions and asset types.
According to our survey, the overall occupancy rate of the respondents was 95 percent, a 2 percent increase from 2020. Thirty out of the 50 companies achieved occupancy rates of 95 percent or higher. Notably, four respondents boasted an overall occupancy rate of 98 percent or better: S.L. Nusbaum Realty Co. (98.03), Habitat America LLC (98), The Breeden Co. (98), and Burton Carol Management LLC (98).
Greystar, with just over 700,000 units under management in 2021, secured the top spot on our list for the second consecutive year. Lincoln Property Co. and Cushman & Wakefield maintained their positions, ranking second and third, respectively, with approximately 210,000 units and over 165,000 units under management.
Methodology
The ranking of the Top 50 Multifamily Property Management Companies of 2022 is based on self-reported data provided by the firms. A weighted formula was utilized, considering various factors such as total units under management, property operations (both owned and managed), and presence across different property sectors. This ranking aims to strike a balance between firm growth, market share, and property diversity. It is important to note that ranking factors go beyond the data presented here.
—Jen Mix, Senior Research Analyst, Yardi Matrix
Read the August 2022 issue of MHN.
Top 50 Multifamily Property Management Firms
Caption: Image source: Sanaulac.vn
