BIRMINGHAM, AL - Rock Apartment Advisors has released their 2014 Rock Report for Birmingham. The Rock Report is a comprehensive study on the current multifamily market in Birmingham including detailed information on occupancies, rental rates, concessions, and supply. This is the 16th iteration of the Rock Report for Birmingham, going back to 1999.
For the 2014 report, 159 properties were surveyed totaling over 36,800 units in the Birmingham market. Average occupancy was slightly down this year across the Birmingham market at 92.5% vs. 2013’s occupancy of 93.0%. Both quoted rents ($825 average/unit) and effective rents ($807 average/unit) increased this year and developers delivered 437 conventional units or 1.19% of the surveyed stock over the past twelve months.
For the second consecutive year, Birmingham saw a slight decline in occupancy due to vacancies mostly as a result of new developments under construction and properties undergoing significant renovations. New developments including The Retreat at Greystone, Moretti at Vulcan, and The Village at Lakeshore Crossings have all reported strong lease up demand. The new developments are achieving record rental rates for the Birmingham market as rental rates for new communities in Birmingham are achieving rental rates of $1.50 to above $2,00 psf. The spread between rental rates for new and existing communities has widened significantly and created opportunities in the “Value Add’ space where existing properties are purchased and upgraded with modern interior finishes and amenities to narrow the rent gap with newer properties. This strategy has been highly effective in the Southside, downtown, and Over the Mountain communities.
“Overall, effective rent growth of 4.0% shows the Birmingham market has recovered and has momentum going into 2015. For the eighth consecutive year, the Birmingham apartment market had positive absorption. With almost 1,500 units under construction and over 2,500 additional units in the planning stages, developers are bullish on the market,” said Bo Flurry, Managing Director at Rock Apartment Advisors.
The full 2014 Rock Report Birmingham is available at www.rockadvisors.com, along with six other market reports across the Southeast.
Rock Apartment Advisors is a Birmingham-based commercial real estate firm with an exclusive focus on apartment brokerage services throughout the Southeast.
Rock has developed a strong reputation based on market knowledge and has brokered over $1.8 billion in apartment transactions since its inception in 2003. For more information on current multi-family opportunities or to see a list of recent sales, visit their website at www.rockadvisors.com or contact them at 205.397.2200.