Many apartment owners in Walnut Creek, Concord, and Martinez are surprised when a listing gets few serious offers. The East Bay multifamily market is healthy, so the pricing has to be the issue.

The Market Is Not the Problem

According to Lee and Associates' East Bay Multifamily Report for Q1 2026:

◆ Vacancy fell to 5.0%, down from 5.3% the prior quarter
◆ Average asking rent rose to $2,605 per unit
◆ Average sale price reached $374,231 per unit
◆ Cap rates held steady at 5.1%
◆ The quarter's largest trade was a $190 million sale in Walnut Creek at about $530,726 per unit

Tenant demand is solid, new construction is limited, and institutional buyers are active in our area. Well priced buildings are trading. When a listing sits, the price usually does not match how buyers value it.

How Buyers Arrive at a Price

Multifamily buyers do not price a building on emotion or on what a neighbor's building sold for. They price it on income, expenses, and financing. If the asking price does not work with those numbers, most qualified buyers will pass.

Five Common Reasons a Building Sits

◆ Pricing on projected rents instead of actual rents. Buyers underwrite the rent roll as it stands. California's statewide rent cap under AB 1482, along with any local rules, limits how quickly rents can reach market. Future upside can support a price, but buyers will not pay for all of it upfront.

◆ Understated expenses. Insurance, utilities, repairs, and management costs have risen. If the offering shows old expense figures, buyers will replace them with their own, and the value drops.

◆ Ignoring today's debt terms. A buyer's price is limited by what a lender will finance. CBRE's Q2 2026 U.S. Capital Markets Report showed multifamily loan to value ratios easing to 63.3% from 65.8% a year earlier, so buyers need to bring more equity. A price that only works with more leverage than buyers can get will not attract offers.

◆ Deferred maintenance with no clear plan. Roofs, plumbing, balconies, and electrical systems all affect value. Buyers discount uncertainty more than known costs.

◆ Incomplete documentation. Missing leases, inconsistent rent rolls, or unclear expense records slow due diligence and weaken buyer confidence.

How to Price a Building to Trade

A building that sells for a strong number usually goes to market with a clean rent roll that matches the leases, realistic expense figures, and a price that works with current financing. Estoppel certificates, tenant notices, and showing logistics are also planned before launch, so buyers can move with confidence.

For owners planning a 1031 exchange, pricing matters even more. A listing that sits can throw off the timing of the next purchase. My standing advice is to identify your replacement property, or at least a realistic target, before you sell.

Considering a Sale?

If you own an apartment building or multifamily property in Walnut Creek, Concord, Martinez, Pleasant Hill, Antioch, Richmond, or elsewhere in Contra Costa County, I would be glad to show you how a buyer would underwrite your property today.

Book a time with me here: https://links.janesrealtyventures.com

Jane Hazin
Senior Investment Advisor, Commercial Division
Berkshire Hathaway HomeServices Drysdale Properties
DRE 02142001

Sources: Lee and Associates, East Bay Multifamily Market Report, Q1 2026; CBRE, Q2 2026 U.S. Capital Markets Report. I explain deal structures, but please consult your own CPA or attorney for tax and legal advice.