According to preliminary first quarter 2013 resultsfrom Reis, apartment sector fundamentals continued to improve in the first quarter of 2013, with vacancies dipping into the low four percent range. Asking and effective rents continued to increase, but there are some signs that improvements in fundamentals are decelerating somewhat.
The national vacancy rate fell by 20 basis points in the first quarter, dipping to 4.3 percent. Over the last four quarters, national vacancies have declined by 70 basis points, a far faster pace than any other sector in commercial real estate. The vacancy rate has now fallen by 370 basis points since the cyclical peak of 8.0 percent, observed right after the recession winded down in late 2009. By contrast, office sector vacancies have only fallen by 60 basis points since fundamentals began recovering five quarters ago.
Read more...What Do Slowing Improvements in Fundamentals Mean for the Multifamily Sector? | Distress content from National Real Estate Investor