How Multifamily Properties Are Attracting Investors in a Sluggish Market
We’ve all witnessed the ripple effects of rising inflation and interest rates on various sectors, among them certain commercial real estate (CRE) investments. While the pressure is on for retail and office properties to catch up to pre-pandemic levels, one sector remains resilient: multifamily properties. That’s particularly true as interest rates drop — a trend the National Association of Home Builders and others expect to continue into 2025.
As borrowing costs become more affordable, we can expect investors to take a renewed interest in multifamily investments that promise higher returns. Deloitte research shows that, around the globe, CRE companies are indeed optimistic about the future of residential leasing, including multifamily properties.
Investors view multifamily properties as economically resilient, offering consistent returns even in sluggish markets. Meanwhile, families that aren’t quite ready to dip their toes in homeownership continue to strengthen the rental housing market.
For multifamily property owners looking to attract investors, now is the time to stand out from the competition. Read on for a few essential tips and tricks for gaining investors’ attention and capitalizing on the growing interest in multifamily investments.
Leverage Digital Marketing Strategies
One study showed that 61% of investors purchased properties they found online. So, the more you can create a strong online presence, the more likely you are to get in front of investors. As they conduct online searches, visit online communities or discussion forums, and browse social media, you’ll want to make sure your multifamily property appears prominently.
Some strategies to consider include:
● Paid ads: Multifamily property owners can generate high-quality traffic with paid search, remarketing, and display ads. When done right, these campaigns can generate a high return on investment, reaching investors as they search for new investment opportunities.
● Social media campaigns: Highlighting your property’s unique features, location, and amenities on social media platforms can help you generate interest with an engaged audience. By pairing your social media with ads targeting your investor audience, you can increase awareness, leads, and conversations that lead to new deals.
● Search engine optimization (SEO): SEO campaigns ensure that real estate investors find your website when searching online. Combining keyword strategy, on-site optimization, link-building, and other tactics can help multifamily properties appear higher in search engine results.
These are just a few possible digital marketing strategies to consider. Working with an expert can help you refine your approach and determine the best methods for your multifamily property.
Invest in a Professional, Lead-Generating Real Estate Website
Investing in digital marketing can help drive traffic to your website and enhance lead generation — provided you have a site worth visiting. A professionally designed real estate website optimized for search and mobile devices is essential for multifamily property owners looking to convert casual browsers into eager investors.
Your website needs to both showcase your commercial property and highlight the investment potential. Detailed property information, high-quality photography, financial projections, and interactive elements like virtual tours are all crucial for presenting a professional image and driving leads.
“A well-optimized, lead-generating website is one of the highest-ROI marketing tools for multifamily property owners,” says Nicole Wallach, Director of Marketing at inMotion Real Estate Media, which specializes in creating immersive, dynamic websites that capture investor interest. “Your website should not only showcase the property's investment value but also make it easy for investors to engage.”
Use Virtual Tours and Drone Photography
With advanced multimedia elements, you can showcase the best parts of your multifamily property online. Drone footage with aerial views, 3D floor plans, virtual tours, and other interactive experiences allow potential investors to evaluate your property from anywhere. This type of technology not only makes your property stand out online but also speeds up the decision-making process for investors.
Virtual tours are particularly effective for highlighting key selling points like renovation potential, unique features, existing amenities, and proximity to desirable locations. For owners looking to attract out-of-town or international investors, these immersive visuals can set them apart from competitors who rely on static images alone.
Host Virtual Investor Events and Webinars
Along with having a digital presence, property owners can further draw investor interest by engaging them in virtual events and webinars. These events can serve as virtual “open houses” that allow owners to prevent investment opportunities, answer questions, and establish rapport with prospective investors.
With digital events, owners can expand their reach and interact with investors around the globe, potentially securing capital more quickly.
Leverage Strategic Partnerships
Building a network of investment experts can help multifamily property owners tap into new capital opportunities. LinkedIn can be a great place to start building these relationships. From joining LinkedIn groups to making new connections, this professional social media platform offers numerous ways for owners to increase exposure.
Partnering with real estate investment firms or private equity groups can also help owners maintain a consistent flow of new leads looking for investment opportunities. Whether through co-investment opportunities or referrals, these partnerships can prove to be lucrative in the long term. Brokers and financial advisors can also be excellent allies.
Now Is the Perfect Time to Attract Investors
The CRE market has seen its fair share of ups and downs in the past few years. However, multifamily properties remain a safe, calculated investment that many investors are eager to bet on. Moreover, for many people, owning a home is more financially out of reach than ever, making renting a necessary solution that’s in high demand.
Multifamily owners have an opportunity to attract investors in this market, but it requires smart marketing tactics that go beyond the norm. By using digital marketing strategies, building a conversion-focused real estate website, leveraging modern technology, and forming strategic partnerships, these owners can continue getting investors’ attention and thriving for years to come.
