Most multifamily owners know their rental income, occupancy, and mortgage payment.
Far fewer know their current Return on Equity (ROE).
And in today’s commercial real estate environment — with rising property values, changing interest rates, and compressed returns — that may be the most important number to understand.
I work with apartment owners across California’s Central Valley every week, and the same pattern comes up repeatedly:
The property is performing well.
The loan balance has steadily declined.
The asset has appreciated over time.
On paper, everything looks healthy.
But when I ask:
“What return are you earning on the equity currently tied up in the property?”
Most owners are not sure how to answer.
Not because they are poor operators. Because ROE is rarely discussed — even though it is one of the clearest indicators of whether your equity is still working efficiently.
What is Return on Equity (ROE) in Real Estate?
Return on Equity (ROE) measures the annual cash flow your property produces relative to the equity you currently have invested in it — not the equity you put in years ago, but what’s locked in today.
It answers a question every owner should be able to answer in one sentence: “If I sold this property today and reinvested the proceeds, would I do better, worse, or about the same?”
Unlike Cap Rate, which is a market metric tied to the property, ROE is a personal metric tied to you — your equity, your basis, your goals. Two owners can hold identical buildings on the same street with wildly different ROEs depending on:
That is why ROE becomes especially important for long-term multifamily owners.

Current Equity = today’s estimated market value minus the remaining loan balance and estimated closing costs.
Annual Cash Flow = Net Operating Income minus debt service, capital reserves, and any non-recurring items.
The math itself is relatively straightforward.
The strategy behind the number is where the conversation becomes important.
As values rise and loans pay down, equity grows — but the returns on that equity often don’t keep pace. Here’s a quick example of what that looks like:

Over time, many apartment owners experience significant appreciation while rents and cash flow grow more slowly.
As that happens, equity builds inside the property — sometimes faster than the property’s income performance.
That can create a situation where:
This is common throughout the Central Valley, especially with long-term ownership groups and legacy multifamily assets.
In many cases, owners are sitting on substantial equity while earning relatively modest returns on that equity position.
That does not automatically mean you should sell.
But it usually means the property deserves a closer review.
There is no universal “perfect” ROE.
The right number depends on:
That said, many stabilized multifamily assets generally fall into ranges like these:
Below ~4% ROE
Equity may be underperforming.
This often happens when appreciation has significantly outpaced income growth. Owners may benefit from evaluating refinance opportunities, operational improvements, or a potential 1031 exchange strategy.
~4%–8% ROE
Generally stable and reasonable.
Many long-term apartment owners fall within this range. The focus becomes optimizing debt, operations, tax strategy, and long-term planning.
Above ~8% ROE
Strong relative performance.
At this level, the conversation often shifts toward protecting the asset’s position, maintaining occupancy, and preserving long-term cash flow stability.
ROE drifts. Markets move, loan balances drop, life changes. The number you ran two years ago has almost certainly changed. There’s no single right cadence, but four moments are worth flagging:
Every 18–24 months
A regular cadence catches drift before it compounds into a missed window.
Before a refinance
Pulling cash out changes both sides of the equation. Model it before you sign anything.
At major life events
Retirement, partnership changes, estate planning, divorce — each one shifts what “good ROE” means for you.
At market inflection points
Significant rate moves, cap rate compression, or a comparable sale nearby — any of these can change the picture quickly.
At Visintainer Group, we work with multifamily owners throughout California’s Central Valley to evaluate how their equity is performing in today’s market.
If you would like a complimentary Return on Equity analysis for your apartment property, we can help review:
The analysis is confidential, straightforward, and designed to help owners make more informed long-term decisions.
Blake Blackburn
Multifamily Investment Advisor
Agent DRE# 02171472
Here’s What You Need to Know
If you own rental property in California, a recent federal court case deserves your attention… not just to stay compliant, but to avoid potential class action exposure and costly settlements.
What Happened
In Van Cott v. Equity Residential, a federal court in the Northern District of California preliminarily approved a nearly $43 million class action settlement against Equity Residential, one of the largest apartment REITs in the country, over its standard late fee structure. The fee that was challenged was not unusual. Rather, it was a 5% late fee with a $50 minimum.
The court found this structure likely unlawful under California law.
This follows a related ruling in Munguia-Brown v. Equity Residential from April 2024, which addressed tenants who were charged the same fee dating back to 2010. Together, these two cases represent more than a decade of exposure for a practice that many owners consider routine.
Why This Matters for Central Valley Owners
California law limits late fees to a “reasonable estimate” of the landlord’s actual costs of collecting late rent, rather than allowing a flat penalty. In this case, the settlement valued Equity’s “actual costs” approximately $32 per late fee charge, which is the standard the court then applied.
If you are an apartment owner who has a late fee clause in your lease agreements, now is a good time to review it with your attorney. A fee that feels standard, or widely used, may not hold up if it isn’t tied to demonstrable, documented costs.
The Future Impact
This case is yet another signal of a regulatory environment continuing to shift toward stronger tenant protections, including the Tenant Protection Act’s rent caps, SB 567’s tightened no-fault eviction rules, and the one-month security deposit limit that took effect in 2025. Each of these individually is manageable. Taken together, they meaningfully change the operating calculus for rental housing owners in California.
The good news is that none of this makes Central Valley multifamily a bad investment. The fundamentals are still solid, vacancy remains low, and buyer demand for stabilized assets is real. However, it does make the details more important than ever: leases, fees, compliance documentation, and your positioning when it comes time to sell.
What I Recommend
Have a landlord-tenant attorney review your current lease, specifically your late fee clause, deposit language, and any no-fault termination provisions, before your next lease renewal cycle. This is a relatively low-cost step that could prevent a high-cost issue down the line.
As always, if you have questions about how the regulatory environment is affecting valuations or your options as an owner, I’m happy to talk through it.
Dustin Ilic, CCIM
Multi-Family Investment Advisor
Visintainer Group
CA License 01772625
I recently had the opportunity to join an outstanding panel at the 21st Annual Real Estate Forecast hosted by the Fresno County Economic Development Corporation. This annual event continues to bring together leaders across agriculture, industrial, multifamily, residential, retail, and office sectors to discuss the current state—and future direction—of real estate in Fresno County.
From my perspective in commercial investment, the conversation centered on market stabilization, shifting investor behavior, and where opportunity is beginning to re-emerge.
Where the Market Stands Today
Over the past three years, we’ve seen cap rates rise—translating to a decline in property values from the historic highs of 2022. However, what’s important today is not just where we are—but how the market is adjusting.
The pace of cap rate increases has slowed, signaling that volatility is easing and we may be entering a more stable phase of the cycle.
Interest rates have remained relatively consistent in the 6.00–6.50% range over the past two years. While elevated compared to prior cycles, consistency is something investors value—and that stability is helping bring capital back into the market.
The data tells this story clearly:

While cap rates have climbed, the rate of increase is moderating—pointing toward a potential stabilization in pricing. At the same time, we’re seeing sales volume begin to recover, an early indicator of renewed investor confidence.
Market Validation from the Field
This trend isn’t just theoretical—it’s playing out in real time.
In an interview with GV Wire, I shared how investors have adapted to today’s interest rate environment and are actively identifying opportunities as pricing resets.
GV Wire – Fresno County EDC Real Estate Forecast 2026
Even with broader economic headwinds, investors are recognizing that markets like Fresno offer relative stability and value compared to more volatile, high-cost regions.
Momentum Backed by Real Data
The numbers reinforce what we’re seeing across the market:
Transaction activity further highlights the market’s rebound:

After a dip in activity, the sharp increase in transactions signals that buyers and sellers are finding alignment again—an important indicator of a functioning, healthy market.
We’re also seeing strong competition on individual assets. A recent example is the Cedar Tree Shopping Center, which received seven offers from both local and national buyers—demonstrating the depth of demand returning to the Central Valley.
Why Investors Are Turning to the Valley
Investors today are looking beyond traditional “core” markets and focusing on regions that offer stronger fundamentals and better relative value.
Fresno continues to stand out because of:
At the same time, lenders are becoming more active. Many institutions are increasing their allocations toward real estate, creating more competition among lenders and improving financing availability.
Strategy Matters More Than Ever
One of the most important takeaways I shared during the panel is that strategy must be intentional.
Every client conversation starts with understanding their position:
Even holding a property is a decision—and it should be evaluated annually.
I often compare real estate to stocks: investors regularly assess performance and reallocate capital. Commercial real estate should be approached with that same level of discipline.
Preparing Assets for Today’s Buyers
In today’s market, preparation plays a critical role in maximizing value.
Key strategies include:
The more clarity and confidence you provide upfront, the stronger your position becomes during negotiations—and the less risk of deal disruption.
Capital Markets: A Shift Beneath the Surface
Another key dynamic shaping today’s market is the lending environment.
We’re seeing:
Even with relatively stable treasury benchmarks, this increased competition is beginning to compress spreads—creating more favorable borrowing conditions for investors.
Asset preferences remain consistent:
Final Thoughts
The Fresno County real estate market is no longer paused—it’s evolving.
We’re seeing:
As both pricing trends and transaction data illustrate, the market is entering a more balanced—and increasingly investable—phase of the cycle.
For those who remain proactive and strategic, this environment presents real opportunity.
The market is rewarding those who adapt—not those who wait.
Visintainer Group, a leading commercial real estate brokerage and advisory firm based in Fresno, California, proudly announced that it has surpassed $1 billion in total investment sales volume, marking a significant milestone for the firm. In 2022, Visintainer Group eclipsed $500 million in commercial real estate investment sales.
Specializing in commercial, multifamily, and 1031 exchange real estate solutions, Visintainer Group has successfully advised clients on the acquisition, disposition, and exchange of more than 250 properties across 18 states, reflecting both the firm’s deep Central Valley roots and established national footprint.
“This milestone is a reflection of the trust our clients place in us and the consistency of our team’s execution,” said Brett Visintainer, CCIM, Principal of Visintainer Group. “Since day one, our focus has been on delivering strategic, client-first solutions that help investors grow and preserve wealth through real estate. Reaching $1 billion is meaningful, but what matters most is how we got here—through relationships, discipline, and results.”
While the firm maintains a strong presence in California’s Central Valley, its reach extends well beyond the region. Leveraging a robust national network of brokers, owners, and developers, Visintainer Group has facilitated a substantial volume of off-market and out-of-state transactions, creating unique opportunities for clients seeking diversification and access to high-quality investment assets.
“Our growth has been intentional,” added Visintainer. “We’ve built a platform that combines local market expertise with national connectivity, allowing us to uncover opportunities others simply don’t see. As we look ahead, we remain focused on expanding our capabilities, strengthening our relationships, and continuing to deliver best-in-class advisory services to our clients.”
The firm’s success is driven by its comprehensive approach to investment real estate, including tailored acquisition and disposition strategies, 1031 exchange advisory, and a proprietary database of buyers, sellers, and investment opportunities—exclusively developed and curated in-house by Visintainer Group.
As interest rates have increased, multifamily owners across the Central Valley—and nationwide—are facing a new reality: loan maturities that no longer support the existing property economics.
What worked at a 2.9% interest rate often doesn’t work at 6%.
This shift is forcing owners to make critical decisions:
Understanding the right path requires more than a quick decision—it requires a clear, data-driven strategy.
A local multifamily owner approached Visintainer Group regarding an upcoming loan maturity on their property.
The challenge was straightforward—but significant.
Their existing loan carried an interest rate of 2.9%. With current market conditions, refinancing would push their new debt closer to 6%, creating a gap where the property’s income could no longer fully support the new debt service.
Rather than rushing into a refinance that would strain performance, Visintainer Group worked with the owner to evaluate all available options.
After analyzing the asset, debt structure, and current market conditions, we guided the owner through a strategic repositioning plan.
This included:
The result was a transition into a more sustainable position—one that aligned with today’s financing environment while protecting long-term investment goals.
This scenario is becoming increasingly common.
Many owners who secured historically low interest rates are now approaching maturities in a higher-rate environment. Without proper planning, this can lead to:
The key is to evaluate your options early—before the loan maturity forces a decision.
If you have a loan maturing in the next 12–24 months, now is the time to understand your position.
A proactive, data-driven approach can uncover opportunities that may not be obvious—and help you avoid reactive decisions that limit your options.
Connect with Blake Blackburn to evaluate your current property, debt structure, and potential next steps.
TIGHT VACANCY AND RISING RENTS: WHAT IT MEANS FOR OWNERS
Retail vacancy rates across the Central Valley have steadily declined over the past decade. In 2015, the average vacancy rate sat at 6.13%. As of Q1 2025, that number has dropped to just 4.63%—a 150 basis point improvement. For commercial retail property owners, this environment presents a clear advantage: strong rent growth potential, higher tenant demand, and upward pressure on asset values.
WHAT’S DRIVING THESE TRENDS?
• High Construction Costs
Construction costs remain elevated with no relief in sight. According to Trading Economics, as of March 2025, lumber prices reached their highest levels since the pandemic. Labor shortages and inflation across materials have made ground-up development increasingly expensive.
• High Borrowing Costs
With interest rates climbing steadily over the past three years, financing new construction has become less attractive—further stalling developer activity and limiting new inventory in the market.
• Rent Growth Lags Behind Construction Costs
Although rents have risen across existing properties, they haven’t increased fast enough to support the economics of new construction. This gap is making new development financially nonviable in many cases—locking in a supply-constrained environment that benefits current owners.

WHY IT MATTERS TO YOU
Low vacancy and limited new development can put existing retail property owners in a strong position. Here’s how:
• Value Growth: Rising rental rates and filling vacancies directly increases Net Operating Income (NOI)—which often translates to higher property values.
• Rental Increases at Lease Renewals: With tenant competition for space increasing, many owners are achieving healthy rent bumps at lease renewal.
• Repositioning Opportunities: Properties with upcoming vacancies may present a rare opportunity to upgrade tenant mix or reconfigure space for higher revenue potential.
………………………………………………
If you would like to learn more about how recent rental trends could affect your property value, reach out to the Visintainer Group for a complimentary property valuation. Whether you’re looking to sell, hold, or explore your options, the Visintainer Group offers expert advice to help you navigate complexities, evaluate opportunities, and maximize your investment.
*Data courtesy of Visintainer Group, Costar Analytics and Trading Economics
NEW APARTMENT SUPPLY: A FIVE-YEAR SURGE
Over the past five years, new apartment construction has reached levels not seen since the early 1980s. From 2020 to 2024, there
were 1.8 million units delivered nationwide—a 37% increase compared to the previous five-year period. Although new construction
starts have decreased over the last one to two years due to rising interest rates, the influx of newly completed units is already
impacting investors across the country.

CENTRAL VALLEY SNAPSHOT (2020–2024)
Total Units Delivered in Central Valley: 11,153
• Visalia: 635 – 12.48% increase in inventory
• Bakersfield: 2,264 – 8.18% increase in inventory
• Fresno/Clovis: 4,073 – 7.57% increase in inventory
• Modesto: 528 – 3.60% increase in inventory
WHY DOES THIS MATTER?
Rent Growth & Competition
Owners now face greater competition to retain tenants and often hesitate to raise rents due to fears of turnover and its associated costs with the guarantee of a premium.
Vacancy Rates
With so many new units, the market has seen an uptick in vacancy. In Fresno for example, vacancy how grown from a low of 1.8% in mid-2021 to 4.4% percent.
Unit Finishes & Amenities
In a competitive environment, maintaining updated finishes and amenities helps attract quality tenants and preserve rental income.
If you would like to learn more about how much new supply has been added in your market or how it could affect your investment, reach out to Visintainer Group. As a brokerage specializing in multi-family assets, we combine up-to-date market data with expert guidance to help you navigate changing conditions and ensure you’re positioned for success.
The real estate market in California’s Central Valley is evolving, with retail property investments undergoing significant shifts. Rising cap rates, new state legislation, and changing seller motivations are reshaping the landscape. Whether you’re an experienced investor or new to the market, understanding these trends is key to maximizing returns and navigating opportunities effectively.
Since 2022, retail property values in the Central Valley have steadily declined, driven by rising cap rates. As of 2024, the average cap rate for multi-tenant retail properties is 7.05%, a 65 basis-point increase from the recent peak of 6.40% in 2022. While this may seem significant, the current average is still slightly below the 10-year historical average of 7.10%, aligning with pre-COVID figures from 2018-2019.

This adjustment signals a return to normalcy in many respects, but investors must remain vigilant. Rising cap rates can offer opportunities for higher yields but may also indicate broader economic shifts affecting property values.
Key Takeaway: Stay informed about cap rate trends to assess the right time for purchasing or selling investments.
The motivations behind selling multi-tenant retail properties are evolving. According to Visintainer Group’s research, the most common reasons include:
Insight: Sellers looking to escape income volatility or burdensome management responsibilities may find opportunities to optimize returns in different markets.
California’s new wage legislation (AB 1228) has introduced a $20 per hour minimum wage for fast-food workers as of April 1, 2024. This is a significant jump from the average $16.21 hourly wage in 2022 and applies to fast-food chains with 60 or more locations nationwide.
Implications for Investors:
For further details on AB 1228, visit the California Director of Industrial Relations.
With market conditions in flux, how should investors respond?
Pro Tip: Staying proactive about legislative updates and economic indicators will give you a competitive edge.
Navigating the complexities of multi-tenant retail investments requires a trusted partner. The Visintainer Group offers unparalleled expertise in the Central Valley market, helping investors buy, sell, and manage retail properties strategically.
Services Include:
Whether you’re looking to expand your portfolio or adjust your strategy, the Visintainer Group provides the insights you need to succeed.
The Central Valley retail investment landscape presents both challenges and opportunities. By understanding market trends, evaluating property dynamics, and staying informed about legislative changes, you can position yourself for success. Don’t navigate these changes alone—reach out to the Visintainer Group for advice tailored to your unique needs.
Contact Us Today
The multi-family investment market in the Central Valley has slowed significantly from its peak just a few years ago. This year has seen only 47 transactions, 56% fewer than the 107 transactions recorded during the same period in 2018.
Despite the sharp decline in deal velocity, average CAP rates today are very similar to those in 2018: 6.00% in the first three quarters of this year compared to 6.26% in 2018.

A significant rise in the 10-year Treasury yield has reshaped the investment landscape. The median yield increased from 2.78% in 2018 to 4.03% in 2024—a 125 basis point jump. This has compressed the spread between CAP rates and Treasury yields, reducing transaction activity.
The spread between CAP rates and Treasury yields shrank from 348 basis points in 2018 to 197 basis points in 2024, a 151-basis point reduction. This has two key impacts:
Contact us to discuss market insights or strategies to enhance and preserve the value of your investments.
In today’s dynamic commercial real estate landscape, investors are increasingly choosing to sell their properties. Whether motivated by financial shifts, partnership changes, or new legislation, many commercial real estate owners are opting to liquidate their assets for a variety of reasons. Below, we explore the top five motivations we have observed in today’s market behind why commercial real estate investors are selling.
One of the primary reasons driving commercial real estate owners to sell is the impending maturity of their loans. As interest rates have risen over the last two years, refinancing becomes less favorable, resulting in higher debt service and lower income. This financial strain is causing many investors to reconsider holding their properties. In some cases, refinancing may even require additional funds, prompting owners to fire sale rather than absorb higher costs.
As investors age or their personal priorities shift, the responsibilities tied to managing commercial real estate can become burdensome. Properties that demand hands-on management—such as retail centers, office buildings, and industrial spaces—can weigh heavily on owners who are looking to simplify their portfolios. Many investors are selling their assets to reduce the daily management obligations associated with these properties and have elected to re-invest in single tenant net lease properties with longer leases, with zero to minimal LL responsibility within the lease, and guarantees from regional/national tenants to achieve truly passive cash flow.
California, in particular, is seeing a significant impact from changing laws and regulations. Legislation aimed at altering property values, income generation, and operational expenses is forcing some owners to rethink their investments. For many, the complex legal landscape and the increased costs of compliance have led to the decision to sell. Many owners have elected to 1031 exchange their current California assets out of state. Additionally, these market conditions create opportunities for new buyers who are prepared to navigate these challenges.
Recent market volatility has led many commercial real estate investors to diversify their portfolios. Some investors are selling their current holdings to invest in different asset classes or geographical areas. By spreading risk across multiple investments, owners aim to safeguard their capital while taking advantage of new opportunities in alternative markets or sectors.
As business partnerships evolve or dissolve, selling properties often becomes the easiest way to equitably divide assets. Partnership splits can occur for various reasons, such as retirement, differing financial goals, or the desire to pursue other ventures. Selling the property ensures a clean exit strategy for all involved parties and allows for the equitable distribution of any proceeds.
At Visintainer Group, we understand the complexities of commercial real estate transactions and are committed to helping investors make informed decisions. Our team offers a range of services designed to help your clients navigate the acquisition, hold or disposition of properties, with confidence and ease.
Complimentary Property Valuations
For investors considering a sale or simply curious about where their property stands today, we provide no-cost property valuations. These valuations allow property owners to assess the current market value of their assets and explore reinvestment options. Our team works closely with each client to ensure they receive the most accurate information, helping them make well-informed decisions.
Expertise in 1031 Exchange Transactions
One of the most effective strategies for investors looking to defer capital gains taxes after a sale of their property is through a 1031 Exchange. This beneficial tax code allows an owner to sell one piece of profit-making real estate and use the proceeds to purchase other profit-making real estate.
At Visintainer Group, we offer a uniquely tailored approach to protect your assets, guiding you through the complex and time-sensitive 1031 Exchange process. Our proprietary system ensures a seamless transaction, minimizing the risks associated with tight deadlines. With our extensive national network, you also gain exclusive access to off-market properties, providing unparalleled opportunities to diversify your portfolio and maximize returns.
Navigating Today’s Market with Confidence
Selling commercial real estate in today’s market can be a strategic decision influenced by many. At Visintainer Group, we specialize in guiding investors through this process, offering tailored solutions that align with their individual needs and long-term goals. From complimentary property valuations to expert assistance with 1031 exchanges, we provide the tools and insights necessary for investors to achieve their objectives.