Shafiq Hirani CCIMReal Estate Advisor, REMAX Distinctive · Real Estate Advisor at RE/MAX Distinctive Commercial | Washington, DC | Your Guide To Profitable Real Estate Ventures

Unlock Real Estate Value: Beat Flat Rents & Prepare for Market Shift! #shorts

19 Jul 2026 · 2 min

Watch on YouTube

1:30

In this short, Shafiq Hirani CCIM advises owners of small multifamily properties (10‑40 units) that serve working‑family renters. He explains that these assets compete in a different market segment than large luxury complexes offering aggressive rent concessions, because their target renters cannot afford homeownership and remain in demand. With rent growth flat, he argues the only reliable way to boost property value is through NOI optimization by cutting expenses—rebidding vendor contracts, recovering utility costs, addressing deferred maintenance that drives turnover, and tightening overall operations. He also highlights a macro trend: construction starts are sharply declining, reducing the oversupply pipeline. Forecasts from Yardi Matrix suggest completions will keep falling through 2027, leading to a market rebalance. Owners who improve expenses now and position their finances will be positioned to capture rent growth once supply constraints ease.

Chapters

If you own a 10, 20, or 40-unit building serving working families, your building is not competing with the new 300-unit luxury complex that is offering 2 months free rent to fill up. You are serving a different renter in a different price bracket with a different set of needs, and that renter is not going anywhere because, as we have discussed, homeownership is out of reach for most of them. Second, when rent growth is flat, NOI optimization becomes the only reliable way to increase your building's value. If you cannot raise rents aggressively, the path to a stronger NOI runs through the expense side. Rebidding vendor contracts, recovering utility costs, fixing deferred maintenance that drives turnover, and tightening your operations. These are the dollars that still move your valuation even when the rent line is flat. The last piece of this report is actually the most important for owners thinking 12 to 24 months ahead. Construction starts are already falling sharply. The supply pipeline that caused this oversupply is drying up. Yardi Matrix expects supply pressures to continue until completions decline in 2027, and then the market rebalances. That means the owners who tighten their buildings now who get rents to market, clean up expenses, and position their financials for the next cycle are the ones who will capture the rent growth when supply finally clears.