Fourth Quarter Apartment Market Data Released


Just released 4th quarter 2011 market segment reports show apartments leading other sectors in the recovery.  Retail  and Office absorption are starting to reflect positive absorption as consumer spending and job growth slowly pick up.  The data below reflects national trends, here in the Pacific North West we are in better shape due to the strong local economy and diverse employment.  

  

The Apartment Market Stays Strong

  • Vacancies were down to 5.2% by the end of 2011, a level last observed in 2001.
  • Rent growth has been consistently positive for eight straight quarters, and may accelerate even more.
  • Tight supply has helped fundamentals, and expect 2012 to be similarly good. Large completion figures in 2013 may complicate matters.

Retail Sector Seeking Stabilization

  • Vacancies remain pegged at 11.0, unchanged for three quarters and moored at a level last seen in 1991.
  • Asking and effective rent increased by 0.1% in the fourth quarter; the first recorded increase since 2008.
  • Occupied stock increased by 3.18 million SF in the fourth quarter. This is the largest positive value for net absorption since the first loss of occupied space in early 2008.

Office Properties Continue to Improve 

  • Slow but steady decline in vacancies (30bps over the course of 2011) mirrors the slow but steady pace of job creation in the overall economy.
  • Absorption has been positive for five quarters, implying favorable churn in leasing.
  • Effective rent growth was also positive for five consecutive quarters ending at $22.53.  

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