Question · Q3 2025
Alex Brackenridge asked about the transaction market, including the quantity of for-sale supply, the bid-ask spread, and how this context relates to share buybacks. He also inquired about the faster construction timeline for the unconsolidated development in Washington State.
Answer
Bob Garechana (CIO) noted healthy transaction volume in private markets, about 50% of pre-pandemic levels but accelerating, with a disconnect between public and private markets. He described active bidding and good pricing (around 4.75% cap rates) for 'down the middle of the fairway' assets, concluding that Equity Residential's shares offer a better opportunity currently. Mark Parrell (President and CEO) explained that favorable weather and efficient completion of complex excavation work allowed them to get footings in early, accelerating the timeline for the Kirkland asset.