Tag: new units

Some perspective on New Apartment Building Unit Starts: Census Bureau’s stats charted by the NAHB

The NAHB is out this morning with a chart that gives some perspective on apartment building investment starts. The Census Bureau reported 285,000 unit starts in October for 5+ unit buildings. At that rate it looks like we’re just returning to what was a sustainable level of starts in the ’97-’06 period.

Apartment Building Investment Starts Returning to Sustainable Level
Census Bureau data plotted by the NAHB

While developers tend to overshoot the sustainable level (which is where the apartment building investment cycle comes from) the hope is that Continue reading Some perspective on New Apartment Building Unit Starts: Census Bureau’s stats charted by the NAHB

Q3 Apartment Building Investment Reports Now Available From Marcus & Millichap

M&M covers 39 major apartment building investment markets in the US and have just published their Q3 reports. Here’s a list of the metros they cover:

Marcus & Millichap Q3 2012 Apartment Building Investment Market ReportsThey also provide snapshots of the Office, Industrial, Retail and Self-storage sectors in many of those markets, accessible from the tabs on the page. Note this information requires registration at the website to view.

UPDATE: Top 10 US Submarkets for new apartment building units in the pipeline.

In May we posted an article Top 10 US Cities for new apartment building permits where Seattle came in sixth in new apartment building units permitted. Now a new list is out from Axiometrics with a breakdown by submarket and Seattle’s Downtown/Capitol Hill/Queen Anne submarket lands at number two with almost 4,000 units due to come on line in the near future.

Seattle number 2 in Top 10 most new apartment units in the pipeline

And that’s on top of nearly 6,000 units (3,500 in the last two years) that have already been delivered downtown since 2005. Plus there are several other hot neighborhoods such as Belltown and South Lake Union that Continue reading UPDATE: Top 10 US Submarkets for new apartment building units in the pipeline.

Top 10 US Cities for new apartment building permits.

Coming soon to these big MSAs, lots of new apartments:

  1. New York-Northern New Jersey-Long Island
  2. Dallas-Fort Worth-Arlington
  3. Washington, D.C.-Arlington, Alexandria
  4. Los Angeles, Long Beach-Santa Ana
  5. Houston-Sugar Land-Baytown
  6. Seattle-Tacoma-Bellevue
  7. Austin-Round Rock-San Marcos
  8. San Francisco-Oakland-Fremont
  9. Chicago-Joliet-Naperville
  10. Miami-Fort Lauderdale-Pompano Beach

For details see: MFE Mag online

Will they be able to fill them all? How will older properties in these markets fare? Let us know what you’re seeing-

Essex Prop. Trust on Seattle Apartment Building Investment: rents up 6.5%, NOI +11% but 10k new units coming

My Exec Sum: Seattle apartment building investment results from Essex Property Trust Q1 call:

  • Seattle demonstrated exceptional same-store NOI and revenue growth of 11.2% driven by very limited supplies of housing and job growth that exceeds national averages
  • On operating expenses we expect a 2.3% increase for the second quarter ’12 over the second quarter in ’11
  • Seattle rents were up 6.5% compared to the first quarter of 2011. So depending on the submarket, we are now 4% below to even with our prior rent peaks.
  • renewal offers for June and July averaged +6% to 8% in Seattle
  • As of April 30, its occupancy was 96.1% with a net availability of 5.1%.
  • We view this turnover activity (50-55% YoY) as healthy because it provides us with more opportunity to grow rents. Additionally, we only saw a nominal increase in move-outs due to home purchases and affordability.
  • Cap rates continue Continue reading Essex Prop. Trust on Seattle Apartment Building Investment: rents up 6.5%, NOI +11% but 10k new units coming