This year has no doubt been one for the record books, as exceptional rent increases and vacancy rates have given rise to a multifamily sector that professionals a decade ago might barely recognize. Speakers at the 2012 CREW Network Convention and Marketplace in Chicago took time to reflect on the extraordinary performance assets across the country, while hinting that 2013 might be the year the ceiling is finally hit.
“This is one of our best years ever,” said Debbie Corson, principal, Apartment Realty Advisors. Absorption has accelerated in 2012 and as a result, rents have continued to increase in 2012 even in the Midwest, noted Corson. Transaction levels, meanwhile, have risen significantly from the lows hit in 2009 and 2010. This year, $16.2 billion in sales were registered in the second quarter.
David Schwartz, managing member of Waterton Associates, agrees with Corson, stating the 2012 is “pretty much as good as it gets.” Yet Schwartz also predicts that the rate of rent increases for his company’s properties will decrease from 5 percent in 2012 to 3.5 percent in 2013, a level he noted is closer to historical rent growth averages of 3 percent a year.
Read more...Multifamily Growth | The Balance Sheet - Yardi Corporate Blog
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