Source: Kroll Bond Rating Agency / #Apartments #Multifamily
NEW YORK, NY - Kroll Bond Rating Agency released its fourth issue of PropertyBeat, focused on the multifamily market. This report will provide an overview of the key trends shaping the underlying commercial real estate markets in KBRA’s defined Primary Markets.
In addition, the Market Spotlight section spotlights the greater San Francisco Bay area and the challenges both landlords and renters are facing in that market as supply comes online.
The multifamily industry has outperformed other segments of the commercial real estate market, as the slumping housing market has been a boon for rentals. Supply growth has slowed the rate of vacancy declines seen in many markets. Completions in 2013 outpaced 2007 levels (more than 46.0% of 2007 units) and there are no signs of slowing in 2014.
Due to the supply increase, it is generally expect vacancies to increase in many KPrime markets over the next few quarters, tempering the outsized growth seen in recent years.
Net absorption within KPrime markets was down slightly at 14,519 units in Q2 2014, but was up 0.9% on a year–over-year (YOY) basis. Vacancy declined for the 18th consecutive quarter, to end Q2 2014 at 3.8%, its lowest level since 2000.
The report is available at the Kroll Website.