Top Trends Across Cushman & Wakefield’s Multifamily Portfolio
As one of the nation’s largest third-party property managers, Cushman & Wakefield Asset Services has access to unique data and insights not available from third-party sources. This information is invaluable to our clients. Using this proprietary data, we will explore trends across our portfolio and what they may mean for the year ahead.
Multifamily fundamentals were seasonally soft in the fourth quarter, but beneath the headline moderation we’re seeing clearer stabilization, with Class A increasingly setting the pace. In our portfolio, higher quality assets have shown relatively stronger signals across fundamentals compared to Class B and C.
The Cushman & Wakefield Asset Services team manages over 144,000 units nationwide, making our team one of the largest third-party management providers in the country. This scale generates a wealth of data and analytics, which we share regularly through articles like this and our multifamily newsletter, Multifamily Digest. Because this data is proprietary to our clients, we do not share aggregate levels for most metrics. However, broader trends offer valuable insights into market performance.
Leasing Demand Improved Across the Funnel Into Yearend
Occupancy Is Firming, With Class A Leading
As discussed in the U.S. Multifamily MarketBeat, Class A has led the recovery across all classes. Occupancy largely held steady compared to a year prior, however Class A occupancies firmed 25 bps over the year. The trajectory for Class A is notable given the slew of deliveries over the past two years. However, income growth has doubled rent growth since 2023, and as such, renters are more qualified than ever. That’s resulted in filtering up, wherein renters trade up the quality spectrum as their leases come due.
Concession Pressure Is Easing
One reason renters had been moving up is the uptick in concession usage. While our overall concession amounts are much lower than RealPage’s national average of 10%, they did tick up through the fourth quarter before retreating in December. Class B still represents the lowest concession usage; however, Class A units saw the largest drop, falling by 40 bps in December, doubling the overall drop in concessions. As lease ups start to stabilize, concessions should pull back further, largely starting with the Class A market.
Trade Outs Are Stabilizing
Headline lease trade outs across the industry slowed through much of the fourth quarter, in line with overall asking rent growth as fears of an economic slowdown persuaded owners to prioritize occupancy over pushing rents. However, in December, the trend reversed course, at least in our portfolio. While new lease trade outs remain negative, they were less negative in December as compared to the prior two months, with Class A leading the charge. This was the first time that Class A had outperformed, reflective of stronger occupancy gains throughout 2025.
Renewals and overall lease trade outs followed a similar trend – across our portfolio, total trade outs were positive, led by Class A. As the year unfolds, stronger occupancy gains and demand trends should cement quality as a defining strategy in the year ahead.
With more than 144,000 units managed nationwide, the Cushman & Wakefield management team is constantly diving into the data gleaned from our boots-on-the-ground experience and expertise in operations. Looking at trends like these allows our clients to make smart decisions with their assets, monitor performance closely with a trusted management partner, as well as be predictive in their underwriting. We’re excited to see what the data shows us next quarter and look forward to sharing those insights.
