Top Apartment Markets Archives - SVN® International

Portland, OR | 2014 Top CRE Markets to Watch : Apartment

Posted on November 6, 2014 by SVN

Sperry Van Ness International Corporation’s (SVNIC) 2014 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2014. Today we are delving into the 2014 Top Apartment Markets to Watch. Not the largest, or the most actively contested markets, the 2014 Apartment Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

TOP APARTMENT MARKET TO WATCH : Portland, Oregon

Multifamily construction has ramped up gradually in Portland, enabling landlords to grow rents even as new supply comes closer to matching the demand for apartments. After two years of adding some 2,000 multifamily units annually to the local inventory, and with a vacancy rate falling to near 3 percent, developers have stepped up the pace and will likely deliver 3,000 apartments in 2014. That accelerated construction activity will be enough to stabilize the vacancy rate and slow rent growth at existing properties. Portland’s enviable quality of life, including outdoor attractions and an expanding cluster of amenities catering to an urban lifestyle, continues to support outpaced job growth. Technology employers, and the service industry jobs that grow around the technology workforce, will help Portland to add about 30,000 jobs in 2014, similar to 2013’s employment growth. With only modest rent growth likely as apartment construction gains momentum, Portland offers opportunities for income investors, and some value-add plays remain for investors willing to invest in significant property upgrades.

To read more on Portland, and other top multifamily markets, download the full version of the Top Apartment Markets to Watch report below.

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Apartment Trends and Markets to Watch
Office Trends and Markets to Watch
Industrial Trends and Markets to Watch
Retail Trends and Markets to Watch
Commercial Real Estate Trends and Markets to Watch

Las Vegas, NV | 2014 Top CRE Markets to Watch : Apartment

Posted on November 6, 2014 by SVN

TOP APARTMENT MARKET TO WATCH : Las Vegas, Nevada

Apartment developers are playing a game of chance in Las Vegas. Encouraged by the first increase in average rents since the Great Recession and a recent improvement in the vacancy rate, projects in the pipeline could deliver as many as 3,000 multifamily units in 2014, a tenfold increase from the previous year. Granted, the local population will increase by 2.7 percent this year alone, making it one of the fastest growing U.S. cities. Yet this market must dig itself out of a deeper housing hole than most, and still has a ways to go. The apartment vacancy rate of 9 percent is more than 10 basis points above the historical average. Average rents have only recovered to 80 percent of the pre-recession peak, and thousands of single-family homes remain on the rental market. The nascent recovery merits some development but is unlikely to float all boats in 2014.

To read more on Las Vegas, and other top multifamily markets, download the full version of the Top Apartment Markets to Watch report below.

It’s a different world out there.

Download the Top Trends and Markets to Watch Reports

Houston, TX | 2014 Top CRE Markets to Watch : Apartment

Posted on November 4, 2014 by SVN

TOP APARTMENT MARKET TO WATCH : Houston, Texas

Houston’s multifamily market has been on a two-year high—and lenders are ready to take it down a notch. Construction will add nearly 11,000 units in the Energy City by the end of 2014, more than 6,000 of which will be in a handful of high-end urban submarkets, growing inventory in those neighborhoods by more than 6 percent. With the remaining 5,000 or so units to be completed elsewhere in the city, however, the overall vacancy rate of about 6 percent is unlikely to shift appreciably until 2015 or beyond, and remains low for this market. Houston’s appetite for apartments is growing nearly twice as fast as the pace of construction, which is expected to add 10,000 units annually in 2015 and 2016. Nevertheless, some lenders concerned over the recent volume of development in Houston have tightened underwriting for construction loans, which could create a competitive advantage for investors with other sources of capital.

To read more on Houston, and other top multifamily markets, download the full version of the Top Apartment Markets to Watch report below.

It’s a different world out there.

Download the Top Trends and Markets to Watch Reports

Denver, CO | 2014 Top CRE Markets to Watch : Apartment

Posted on October 29, 2014 by SVN

TOP APARTMENT MARKET TO WATCH : Denver, Colorado

Denver will add nearly 50,000 jobs in 2014, with much of the growth occurring in high-paying energy, financial services, health care and bioscience industries. Employment growth of almost 4 percent in 2013 and a similar gain expected this year make Denver one of the nation’s fastest-growing job markets. Multifamily rent grew at a remarkable 6 percent in 2013. The addition of 10,000 new units this year will expand the apartment inventory by more than 3 percent, however, enough to slow annual rent growth to a more modest 4 percent. Nearly half of the apartments under construction are in the central business district, where the renovated Union Station is set to open later this year. Existing and planned light rail lines offer development opportunities, as well as value-add plays for investors able to upgrade and reposition existing, older properties in these growth corridors.

To read more on Denver, and other top multifamily markets, download the full version of the Top Apartment Markets to Watch report below.

It’s a different world out there.

Download the Top Trends and Markets to Watch Reports

Dallas, TX | 2014 Top CRE Markets to Watch : Apartment

Posted on October 14, 2014 by SVN

TOP APARTMENT MARKET TO WATCH : Dallas, Texas

Combine low taxes, mild winters and a business-friendly climate with Dallas’ central location relative to both U.S. coasts, and it’s easy to see why this North Texas metro is enjoying annual economic growth of more than 3.5 percent. Reports early this year that logistics technology firm Omnitracs Inc. may bring as many as 1,000 jobs to the Dallas central business district simply added to the list of more than 50 major employers that have relocated to the metro area in the past two years, adding jobs and fueling population growth that will top 2 percent in 2014 alone. Renters in the Dallas-Fort Worth metro absorbed more than 16,600 apartment units in 2013, more than any other U.S. market, yet average vacancy of approximately 5.5 percent is well below the 10-year historical average of around 8 percent. While these fundamentals suggest good development prospects, the metro is also turning out apartments far faster than any other major market, completing nearly 13,000 units in 2013. That new supply could temporarily hamper rent growth in some submarkets.

To read more on Dallas, and other top office markets, download the full version of the Top Apartment Markets to Watch report below.

It’s a different world out there.

Download the Top Trends and Markets to Watch Reports

Apartment Trends and Markets to Watch
Office Trends and Markets to Watch
Industrial Trends and Markets to Watch
Retail Trends and Markets to Watch
Commerical Real Estate Trends and Markets to Watch

Boston, MA | 2014 Top CRE Markets to Watch : Apartment

Posted on September 29, 2014 by SVN

TOP APARTMENT MARKET TO WATCH : Boston, Massachusetts

Boston’s position as a top multifamily investment market (just behind New York and San Francisco) has pushed asset pricing to record highs and made construction an attractive alternative for investors. Local builders and institutional developers from around the country are cranking out new multifamily product here at the rate of about 4,000 units per year. That is well behind the pace of new household formation, which will be nearer to 7,000 annually over the next several years here. A falling vacancy rate, currently near 4 percent, has sparked spectacular rent growth of 20 percent or more over the past five years, although rents may plateau as new projects deliver large blocks of space and add vacancy. Much of the new construction is taking the form of large urban towers, answering the demands of well-paid, highly educated young knowledge workers attracted to Boston’s 24-hour culture.

To read more on Boston, and other top office markets, download the full version of the Top Apartment Markets to Watch report below.